by Jack Taylor

SYDNEY, March 11 (AFP) - Australian Prime Minister John Howard has been warned against making a big issue of human rights to avoid alienating China during an upcoming visit, according to a leaked document published here Tuesday.

A report by Canberra's chief diplomat, foreign affairs department secretary Phillip Flood, said China remains "totally unyielding" on human rights and is unwilling to make concessions to improve bilateral relations.

Its unrelenting position on human rights and non-interference in internal affairs, "whether relating to China, Tibet or Hong Kong, poses a real policy challenge for us," it said, warning that the problem needed careful management.

Flood, who met senior Chinese officials during a visit to Beijing last month, said they regard Howard's visit from March 28 to April 2 as being of fundamental importance to relations.

"Their focus was firmly on the bilateral relationship although they signalled they want this very much on their own terms," Flood stated. "On sensitive questions of Taiwan and human rights, China remains unyeilding."

His assessment, made in a "post information report" cabled to Australia's overseas posts and leaked to the Sydney Morning Herald, was confirmed to AFP by a source in Canberra.

It sounded a warning that a strong stand by Canberra could mean China challenging Australia's role in Asia, including its bid to attend the Asia-Europe Meeting (ASEM).

The advice follows a year of tension in bilateral relationships over what China saw as a "pattern of behaviour" by Australia.

A ministerial visit to Taiwan, Howard's meeting with the Dalai Lama and his refusal to rebutt anti-Asian remarks by independent MP Pauline Hanson angered Beijing and led to criticism of Canberra by the Chinese media.

But it was incensed by Australia's decision last year to beef up its defence alliance with the United States in which Beijing saw Australia as the southern anchor of encirclement aimed at containing China's growing economic and military power.

Howard met Chinese President Jiang Zemin at the Asia-Pacific Economic Co-operation (APEC) forum in Manila last year when the problems were discussed and Howard reaffirmed Australia's commitment "to developing a strong framework for advancing the relationship."

Announcing his visit to China, he denied it was "a fence-mending trip", saying it was a demonstration of his desire to have "a good relationship", but acknowledged issues last year had caused problems.

Australia has been kept out of the ASEM largely through the opposition of Malaysia's Prime Minister Mahathir Mohamad, who has resisted approaches by Howard to relent.

But opposition by China to Australian attendance would be regarded by Canberra as a serious blow to its prospects.