July 16 (Bloomberg) -- U.S. Commerce Secretary Gary Locke called on China to provide more information about the arrest of Rio Tinto Group executives amid allegations of bribery.

“All we can say right now to the Chinese government, and I think everyone, should simply urge greater transparency and following due process,” Locke said in a Bloomberg Television interview today in Beijing. “Until people have the full set of facts, how can we make any judgments?”

Chinese authorities last week said they had evidence that four Rio employees, including Stern Hu, an Australian citizen and head of iron ore operations in China, stole state secrets. China accuses Hu of bribing steel executives during ore price talks, Australia’s Foreign Minister Stephen Smith said July 10.

China, the world’s biggest buyer of iron ore, and suppliers have been wrangling for a record length of time over a cut in benchmark prices of the key ingredient in steel. The government plans to spend about $68 billion this year on roads, railways and other infrastructure, creating jobs to help ensure social stability as exports slump.

Locke’s comments come a day after a warning by Australian Prime Minister Kevin Rudd that the world is “watching closely how this case is handled.” Australia is the world’s biggest shipper of iron ore.

“Noise” coming out of Australia on the case was an interference in the legal system of China, foreign ministry spokesman Qin Gang said at a regular press briefing today in Beijing. “This is not in the interests of Australia.”

Little Known

Locke said the U.S. business community in China hasn’t expressed alarm over the arrest because so little of the circumstances surrounding his detention are known.

“People don’t know whether this is an isolated case or this is a widespread problem,” Locke said. “So far, people are saying they don’t know the facts of the case, they want information, and until then we’re going to have to withhold judgment.”

The U.S. hasn’t yet received a reply to a request for information, Locke said.

“We’ve already communicated some of our thoughts with the Chinese government,” he said.

Hu and the three other employees were detained on July 5.

“Megaphone diplomacy won’t solve this difficult case,” Australia’s Smith told Sky News television from Egypt today. “This is not a matter that can be solved by one phone call.”

Smith is due to meet China’s vice foreign affairs minister He Yafei today at a major economies forum in Egypt, Treasurer Wayne Swan said today in Brisbane.

Steel mills in China have accepted a “provisional” 33 percent price cut from Rio and may allow annual talks to lapse, Umetal Research Institute said.

Talks Drag

This year’s talks began in January, and passed the June 30 deadline without an agreement, becoming the longest-running in the 40-year history of setting annual prices.

The 33 percent cut is the first drop in seven years and would shave about $15 billion from China’s iron ore bill, according to calculations based on Morgan Stanley forecasts.

Executives from 16 Chinese steel mills taking part in talks this year received payments from Rio employees, China Daily newspaper reported yesterday, citing an industry insider it didn’t identify. Rio declined to comment on the report.

No executives at Baosteel Group Corp., China’s biggest steelmaker, are being investigated or have been asked to assist with the probe into Rio, Zhang Chi, a media official with Baosteel, said by phone yesterday.

China’s exports have dropped for eight months, government figures show.

To contact the reporter on this story: Michael Forsythe in Beijing at mforsythe@bloomberg.net

Last Updated: July 16, 2009 03:54 EDT