China threatens Australia with sanctions over Dalai Lama

BEIJING, Sept 19 (AFP) - China on Thursday threatened Australia with commercial and economic sanctions over meetings between Australian leaders and the Dalai Lama.

Foreign Ministry spokesman Shen Guofang said the Tibetan spiritual leader's encounter with Australian foreign minister Alexander Downer "will harm the development of Sino-Australian relations and will have consequences, even in the economic and commercial field."

But he declined to specify what "concrete measures" China would take. Downer had insisted his meeting with the Dalai Lama this week was in a private capacity. But Australian Prime Minister John Howard has said he may meet the Tibetan leader next week.

In a routine criticism of the Dalai Lama, who arrived Saturday on a two-week visit, Shen said his talks with Australian officials constituted "interference in China's internal affairs."

The Tibetan leader was "not just a religious figure, but a politician pursuing separatist activities," Shen added.

The Dalai Lama has led a government-in-exile from Dharamsala in northern India since fleeing Tibet in 1959 after an abortive uprising against Chinese rule. Chinese troops 'liberated' the region in 1951.

On Wednesday, at least 13 Tibetans from monasteries near Lhasa were detained during an intensive re-education campaign to discredit the Dalai Lama, whose photograph is even banned in the mountainous Himalayan region.

The London-based Tibet Information Network (TIN) said the arrests were made as part of a "Loving the Motherland and Loving Religion" campaign.

Canberra would not be drawn Thursday on Shen's remarks, while Australian business circles in China voiced hopes that they would not be unfairly targetted.

"The Chinese government is simply restating its previous position and in light of that we have no comment on this latest matter," a government official told AFP.

Patrick Lee, chief China representative of the International Wool Secretariat, said the dispute over the Dalai Lama should not be allowed to hamper recent progress made in negotiations on widening the access of Australian wool producers to the Chinese market.

"A couple of key issues are currently under discussion," Lee said. "We hope the Chinese government will behave and separate economic issues from political ones."

Prime Minister Howard said Tuesday in Indonesia that he too intended to meet the spiritual leader.

"I have explained to the Chinese authorities that naturally the Australian prime minister decides according to Australian interests who the Australian prime minister sees," Howard said.

"We have a proper reputation as a country of religious and political tolerance and it is in that context that any meeting between us, if it can be arranged, will take place," he added.

In Canberra on Wednesday, the Dalai Lama said he welcomed Howard's decision to meet him and said he hoped his visit would not harm Australia's trade links with China.

Foreign Minister Alexander Downer incurred China's wrath by flying specially to Sydney from Adelaide to meet the Dalai Lama when he arrived Saturday night at the start of his 15-day visit.

A main feature of the visit to Sydney will be a Kalachakra religious initiation ceremony.

Howard is expected back in Australia on September 21.