from Crikey …..

It is rare that such an open and shut case has been presented to the Australian people for judgment. There cannot be a shred of doubt: Helen Liu is ... um, something. You know. Like, a bit, sort of ... you know what we mean.

According to The Australian’s headline, Liu “...has strong links with Chinese army”. However, when eager readers examine the relevant article to see this clinching proof that our Defence Minister has been “showered with gifts” by a PLA officer, they only discover she’s on the editorial committee of “Shandong Celebrities Family”, which “has extensive membership within China's military, the Peoples' Liberation Army”.

But wait, there’s more compelling evidence. “Of the past 10 cover photos, three have featured senior army officers”. An ex-PLA officer did some calligraphy for them.

And the clincher? Ms Liu -- or Madame Liu, as News Ltd publications inexplicably call her -- is from Shandong, and “Shandong is famous as a source of senior soldiers in China.”

Lucky she’s not from Szechuan, famous for its duck. Even The Australian in its wildest deluded dreams, surely cannot be serving this rubbish up with a straight face.

Oh, and last time we checked, News Ltd’s owner was himself married to a Chinese-born businesswoman. Married! Chinese! Woman!

ASIO took the unprecedented step of issuing a statement saying it had no concerns about Ms Liu. Or, presumably, with her connections with John Howard, with whom she has been photographed.

What’s the exact charge here? What’s the problem? Where is this all leading? And what is the Opposition trying to suggest with its constant reiteration of loose factoids connecting the Rudd Government with China?

Instead of devoting time and effort to working out who did calligraphy for “Shandong Celebrities Family", here are some real issues journalists could pursue:

·                     what the febrile Sinophobic atmosphere being whipped up in Australia means for future Chinese investment

·                     how Kevin Rudd can best argue the Anglo-American-Asia-Pacific case for sensible reform to global finance

·                     how Australia’s defence interests are served if a handful of rogue Defence officials can slander the Minister trying to reform that Department.

meanwhile …..

ASIO reveals China-linked campaign to dominate Australia's media

Canberra correspondent Bernard Keane writes:

Australia’s relationship with China is about to be rocked by revelations of a major Chinese-linked attempt to dominate Australia’s media and other cultural influences as part of a growing "soft power" campaign.

The revelation, based on the work of Australian security agencies,  comes at a time when domestic debate about Australia’s, and the Rudd Government’s, relationship with China has entered a new phase of suspicion, with suggestions of an improper relationship between Defence Minister Joel Fitzgibbon and Australian-Chinese businesswoman Helen Liu, and claims that the Prime Minister is too active in China’s interests.

Crikey understands that Australia’s domestic and foreign intelligence services are also concerned at the Prime Minister’s own links with the shadowy figure at the centre of the campaign.

According to a joint briefing prepared by both ASIO and ASIS, the campaign centres on an attempt by Chinese-linked interests to control a major segment of the Australian media market by owning newspapers in most capital cities, as well as a national masthead that purports to "shape the agenda". In a number of cities, the group monopolises newspaper opinion. The group has a longstanding record of attempting to influence political and business issues to serve its own interests.

The group also has a major stake in Australia’s subscription television sector through a monopoly provider that has driven competitors out of the market. This enables television channels from the Chinese international broadcaster CCTV to pump pro-Chinese propaganda into Australian homes 24 hours a day. The group also has a substantial operation in Parliament House in Canberra, through which it has extensive access to key decisionmakers.

"The group has apparently unlimited ambitions," said one veteran intelligence analyst, speaking to Crikey on the condition of anonymity.

"They’ve even got a huge stake in the National Rugby League competition. I’ve never seen such a concerted effort to control how people think. China has really looked long and hard at how America uses its soft power and is determined to do even better, using the media as its conduit."

The group is controlled by an American businessman with extensive Chinese links. He is married to a Chinese businesswoman hailing from Jiangsu province, which borders Shandong province, home of Helen Liu. Shandong is famous as a source of senior soldiers in China. The businessman is on the public record as hailing China’s "industrialization and modernization" as "one of the most profound social transformations in human history", has attacked media services that are not sufficiently pro-Chinese, and criticised dissident movements such as Tibetan independence supporters and Falun Gong.

The group is also understood to have links with Mandarin-speaking Prime Minister Rudd, who is currently campaigning for China to be allowed greater power in the IMF. Yesterday, the Government approved a Chinese foreign investment bid in Fortescue Metals and is currently considering a Chinese investment bid for Rio Tinto.

According to reports, the Prime Minister dined with the businessman in New York prior to his election and had an hour-long meeting, details of which Mr Rudd refused to provide to the press.

More seriously, Rudd is also a long-time friend with one of the group’s senior executives, and is understood that the Prime Minister is godfather to the executive’s son.

"The role of ‘godfather’ is a very sacred and honoured position in Chinese society," said the analyst.

"It demonstrates both the high regard in which Rudd is held, and how close he is with them. It’s deeply disturbing."