Australia pushes China on Rio detentions

By Rob Taylor and Lucy Hornby

CANBERRA/BEIJING (Reuters) - Australia summoned China's ambassador on Monday for a second time to press for details of the detention of Rio Tinto's top iron ore salesman in China and three other staff accused of spying.

The detentions of the four and protracted price talks between Rio and Chinese steel mills helped push down shares on Monday in BHP Billiton and Rio Tinto, two of the world's largest iron ore firms.

Australian Prime Minister Kevin Rudd, who attended last week's G8 summit in Italy, flew home on Monday as the diplomatic storm strained bilateral ties. Rudd would be on informal leave for the rest of the week, said his office, despite calls for the former Beijing diplomat and fluent Mandarin speaker to intervene in the Rio detentions and call Chinese President Hu Jintao.

Australia has urged Chinese authorities to consider the wider risks for international business confidence in China. But Australia, which has relied on China's insatiable appetite for its minerals to protect its economy from the global financial crisis, is treading carefully.

Australia will not use "megaphone diplomacy" to pressure Beijing to release the Rio staff, Finance Minister Lindsay Tanner told Reuters Television.

"Our dealings with the Chinese government are going through formal channels. It is always important in these very delicate situations for governments and ministers to be very careful about their public commentary ... where an individual's freedom is at stake."

Australia's Foreign Ministry also summoned the Chinese ambassador on Thursday.

During his 2007 election race, Rudd promised deeper Australian engagement with Asia, especially China. He has forged a close relationship with China's leadership, phoning Premier Wen Jiabao in September 2008 to discuss the unfolding financial crisis and addressing President Hu in Mandarin at a 2007 regional leaders' conference.