"The Australian", Monday, August 26, 1996 front page - By foreign affairs writer Don Greenlees

The chairman of the joint parliamentary foreign affairs and defence committee, Mr Ian Sinclair, yesterday joined the controversy over Australia's relationship with China, urging the Prime Minister, Mr Howard, to meet the Dalai Lama in defiance of warnings by Beijing.

Mr Sinclair, a former defence minister and leader of the National Party, told "The Australian" there had been "undue sensitivity" over the status accorded to the Tibetan spiritual leader's visit and criticised the Department of Foreign Affairs and Trade for advising Mr Howard to refuse a meeting with him.

Mr Sinclair also backed comments by the Minister for Defence, Mr McLachlan, that growing diplomatic and strategic assertiveness by China could scare off foreign investment.

"It's just that (China) seems at the moment more prepared to take action against those who in their views transgress. And I think (Mr McLachlan's) comments are 100 per cent accurate," he said.

"I am sure there is likely to be a withdrawal of investment if China acts in a way which threatens people's confidence."

China has been increasingly strident in pressing its views over a range of strategic and diplomatic issues. In recent months, Beijing has unilaterally extended maritime boundaries over the disputed Paracel Islands in the South China Sea, conducted live-fire war games in the Taiwan Strait and intensified pressure on countries to curb contacts with the Dalai Lama.

On Friday, the Chinese Premier, Mr Li Peng, warned the Minister for Foreign Affairs, Mr Downer, against a high-profile welcome for the Dalai Lama and hinted at reprisals. Mr Li pointedly referred to the downgrading of relations with Germany after criticism of China's human rights record in Tibet.

But Mr Sinclair, who will visit China for talks with government officials next month [NB: Mr Sinclair is leading Australia's delegation to the Inter-Parliamentary Union meeting in Beijing] said yesterday Australia had a "responsibility to act according to its priorities" and not be overly sensitive to Beijing's fears that the Dalai Lama used his visits to promote Tibetan independence.

"He probably wears several hats ... but the hat in which I believe it appropriate for the Prime Minister and for others to meet him is as head of his church", Mr Sinclair said.

"He is a very distinguished head of a church whose origins go back many centuries and it's foolish to suggest that while he may have other roles that for some reasons you should not meet him when you would meet anybody else that happened to be in that same situation."

Asked whether he hoped Mr Howard would find time to meet the Dalai Lama during his September 14 to 29 visit, Mr Sinclair said: "I would hope so, yes."

A spokesman for Mr Howard said yesterday that any request from the Dalai Lama for a meeting would be considered when it was received and "if the Prime Minister's schedule allows". Mr Howard will be in Indonesia and Japan from September 16 to 21.

The Department of Foreign Affairs and Trade warned the Prime Minister against agreeing to a meeting because of concerns over adding to a number of recent irritations in the relationship.

Despite the fact that former prime minister Mr Paul Keating met the Dalai Lama in 1992, DFAT officials argue "times have changed".

They say China was then still perceived to be on the back foot internationally over the 1989 Tiananmen Square massacre.

Government officials said yesterday China was deliberately increasing pressure on issues - ranging from the Dalai Lama's visit to a two-day visit to Taiwan next week by the Minister for Primary Industries and Energy, Mr Anderson - as a means of "testing the new Government".

But the officials said Beijing's strong rhetoric about the consequences of high-ranking talks with the Dalai Lama may backfire and encourage the Prime Minister to schedule a meeting.

Mr Sinclair also accused DFAT bureaucrats of over-reacting to fears about the impact a meeting would have on relations with China.

"Knowing the department, I think they are all hypersensitive. The way in which most them react, they sort of think that if they have got a bit of paper and they stamp secret on it, that somehow it has a ... uniqueness that no other document possesses," he said.

The 32-member joint parliamentary committee, comprising Labor, Coalition and minor party MPs, has arranged a meeting with the Dalai Lama. It also plans to hold a meeting with the Chinese ambassador, Mr Hua Junduo, to discuss issues in the bilateral relationship.

Forwarded by: Alex Butler