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SCMP Reporter

AUSTRALIA says it will continue to seek the release of businessman James Peng Jiandong, whose 16-year jail term on corruption charges has been upheld by a Guangdong court.

The decision by the Guangdong Higher People's Court yesterday exhausted the last avenue of appeal for the 36-year-old Australian citizen.

'Naturally, the Australian Government is extremely disappointed in this outcome, not least because of the various apparent anomalies that were involved in the legal process,' Foreign Minister Gareth Evans told Parliament in Canberra.

'We'll be appealing again for clemency and we'll certainly be pressing again for his immediate deportation.' Peng has been in custody in China since October 1993 when he was abducted from his hotel in Macau.

He was led into court at 10 am yesterday, acknowledging the presence of three Australian diplomats and two defence lawyers before being placed in the dock in front of the three judges.

In marked contrast to his last court appearance in Shenzhen when he seemed unrepentant and spoke defiantly, Peng appeared subdued.

Chief Judge Xing Tong read from a statement detailing Peng's alleged crimes and summarised the defence case, concluding 'the evidence is sufficient to uphold' the conviction.

'I'm innocent. I'm not guilty,' Peng replied, but the judge cut him off, saying: 'This is not the place to defend yourself.' Peng signed a document and was led away. Minutes later he was driven away in a convoy of three police vans.

His wife, Lina, 31, said she was shocked.

'My husband is innocent and we had put our trust in the Guangdong Government. Now I can only hope the Australian Government can rescue my husband from jail,' she said.

Their sons aged seven and two, and six-year-old daughter, are 'too young to understand and I can't tell them they will miss their father for 16 years', she said.

'I can only tell them that law is right and James has not done anything wrong, so he will come back soon.

'I don't know how it will affect the children.'  Mrs Peng and the children, who are living in Hong Kong, did not attend court.

 The Chinese Foreign Ministry said the rejection of Peng's appeal 'should not adversely affect Sino-Australian relations'.

 'Foreigners who violate China's laws can be sentenced to substantial prison terms,' spokesman Shen Guofang said.

 'Whether or not they are deported is a question for the judicial departments to decide in accordance with the specifics of the case.

 'The James Peng case is an independent judicial affair,' he said.

 Australian Ambassador Mike Lightowler said his Government would continue to offer Peng consular support.

 However, it could not 'involve itself in the legal processes of another sovereign country and does not have the capacity to intervene in Chinese judicial proceedings', he said.

 Peng was first brought to trial in November 1994, after a year-long investigation.

 In September this year, the Shenzhen Intermediate People's Court sentenced him to 15 years for illegally borrowing 290,000 yuan (HK$269,700) of company money to pay gambling debts, with an additional sentence of deportation.

 He was ordered to serve a further three years for embezzling $800,000 of company funds.

 His term was reduced by two years because of the time spent in detention.



Australia to continue Peng fight