"The Australian", Monday, August 12 (front page) - By foreign affairs writer Don Greenlees

The Department of Foreign Affairs and Trade has warned the Prime Minister, Mr Howard, against meeting Tibet's spiritual leader,the Dalai Lama, because of concerns over souring ties with China at a delicate time in the relationship.

The refusal of Mr Howard to meet the Dalai Lama during the September 14-29 visit would significantly downgrade the status of the visit and avoid another potential flashpoint.

The advice to Mr Howard highlights mounting concern within the Government that relations with China will need to be managed carefully following a series of recent irritations. These include the cancellation of the Development Import Finance Facility aid scheme, protests by the Chinese Foreign Ministry over a planned

ministerial visit to Taiwan and criticism in the Chinese media of the expansion of military co-operation between Australia and the United States.

The visit by the Dalai Lama could spell further trouble, depending on the status it is accorded by the Government.

Already, the Minister for Foreign Affairs, Mr Downer, has agreed to meet him despite loud complaints by the Chinese ambassador, Mr Hua Junduo.

In a press conference in mid-May, Mr Hua warned that while Beijing was not concerned about the Dalai Lama's religious activities, his political activities could be the catalyst for a "very unpleasant episode" in relations between China and Australia.

Beijing's concerns over the Dalai Lama are based on his activities in support of Tibetan independence from China. Since 1972, successive Australian governments have implicitly recognised Tibet as part of China.

Mr Downer is due to meet Mr Hua tonight and is expected to address a number of problem areas ahead of his first visit to Beijing between August 22 and 25.

Mr Downer met the Chinese Foreign Minister, Mr Qian Qichen, on July 25 in Jakarta, though the issue of the Dalai Lama's visit was not raised.

In a meeting on August 2 in Beijing with the Australian ambassador, Mr Ric Smith, and the ambassador to Washington, Mr John McCarthy, a high-ranking Foreign Ministry official commented that it was important that the first meeting between the two ministers had been "so successful", according to a cable to Canberra.

Officials are nonetheless concerned to avoid another spat with an increasingly assertive China over the Dalai Lama in the wake of protests at the planned visit by the Minister for Primary Industries, Mr Anderson, to Taiwan next month and the on-going dispute over DIFF. The Dalai Lama's representative in Australia, Mr Chhime Rigzing, said Tibetan activists still hoped Mr Howard would agree to a meeting which would send an important symbolic message.

"If the meeting takes place the Dalai Lama can ... ask Mr Howard to use his good offices to ask the Chinese to meet the Dalai Lama to seek negotiations on the issue of Tibet," he said.