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Rio Tinto executive opts against appealing 10-year sentence

SHANGHAI (AP) — A jailed Australian former Rio Tinto executive has opted not to appeal his 10-year sentence for bribery and commercial spying, his lawyer said yesterday, in a case that rattled foreign businesses and prompted Australia to criticise secrecy surrounding the trial.

In a brief text message, lawyer Jin Chunqing said Stern Hu told him of his decision in a meeting at the Shanghai detention house. He did not comment further.

Hu, the manager in charge of Rio Tinto's China iron ore business, and three Chinese coworkers were detained in July during contentious price negotiations with Chinese steel mills. They pleaded guilty but observers said their sentences were unusually severe, especially for a case involving civilian business dealings. Australian Foreign Minister Stephen Smith called Hu's penalty "very harsh".

Australia's foreign ministry said the decision not to appeal was "a matter for Stern Hu and his lawyers".

"We respect his decision. We will continue to provide Mr. Hu with all consular assistance," said a ministry statement.

The case was closely watched abroad and some questioned whether it signalled a worsening environment for foreign businesses in China.

Yesterday was the deadline to appeal the court's March 29 verdict. Lawyers for Hu's three Chinese co-workers said they will appeal their sentences of between seven and 14 years.

"We think the sentence is much too tough," said Tao Wuping, a lawyer for Liu Caikui, who was sentenced to seven years.

Zhai Jian, lawyer for Ge Minqiang, also decided to appeal. Zhai would not comment further.

Wang Yong, who was sentenced to 14 years, also decided to appeal.

Rio Tinto spokesman David Luff said the company had no comment on Hu's decision not to appeal.

Si Weijiang, a prominent lawyer and blogger in Shanghai who was not involved in the Rio Tinto case, said Hu might have felt he would gain nothing by attempting to appeal.

"Hu might not hold any hope for the sentence change, and if it changes, it might go even tougher, I'm afraid," Si wrote on his blog.

The Australian government protested the court's decision to close hearings regarding charges the four stole commercial secrets.

London-based Rio Tinto is a key industry negotiator in price talks with China's state-owned steel mills, and the arrests of its employees were initially thought linked to Beijing's anger over high prices it paid for iron ore — a key commodity for China's booming economy. That belief was shaken after the four pleaded guilty to taking bribes from steel mills trying to get preferential access to ore supplies. Rio Tinto fired all four after the court convicted them following a three-day trial in March.

The case came as fault lines appear between Beijing and global corporations eager to tap a fast-growing market of more than one billion people. A recent survey showed a growing number of foreign businesses in China feel shut out under government policies promoting home-grown technology. Internet search giant Google's high-profile decision to move its Chinese site to Hong Kong after a spat over censorship and hacking added to the unease.