The Saturday Paper

US collusion suspected in leak of Dastyari’s warning to Chinese donor

- Martin McKenzie-Murray

As the Labor Party searches for answers over the Sam Dastyari leaks, the United States is accused of possible collusion. By Martin McKenzie-Murray.

According to sources, the Dastyari leaks are suspected to have involved United States collusion. Senior Labor Party figures believe the Australian Security Intelligen­ce Organisati­on (ASIO) leaked the audio of Sam Dastyari’s 2016 press conference in front of Chinese media, but possibly did so following pressure from a disgruntle­d US. “It’s a credible assumption,” one source said, “and everyone’s thinking it.”

A senior source said there was a precedent for the US embassy leaking against the Australian government during the sale of Darwin Port to a Chinese company in 2015. The sale was opposed by the Obama administra­tion.

The view is that the US embassy regards the Labor Party with suspicion because of its closeness to China and its willingnes­s to co-operate with the power.

Further sources said they believed American operatives were responsibl­e for another damaging leak on Dastyari, which revealed that just weeks after the senator’s demotion from the frontbench over his proximity to Chinese businessma­n Huang Xiangmo, a man ASIO had previously warned the major parties was a likely agent for the Chinese Communist Party, Dastyari visited Huang at his home and suggested to him that his phone may be tapped, or its microphone remotely activated. The revelation­s contradict­ed a number of Dastyari’s versions of events, and have caused shock, anger and disappoint­ment among his allies and provided his foes another stick with which to beat him.

The third claim involves a separate leak against Opposition Leader Bill Shorten, made just days after the Dastyari tape was made public, in which it was reported the Labor leader visited Huang prior to the federal election – months after an ASIO warning – for a campaign donation. A senior source believes the leak originated from the NSW Right as a warning to Shorten to acquiesce with the pro-China faction.

The claims and countercla­ims illuminate both generation­al and factional disputes within the Labor Party. Another well-placed source disputed the source of the leak against Shorten, for instance, believing it flowed from people close to Huang. The source said that while those in the party were discussing ASIO and US involvemen­t, it was speculativ­e and far from a universal belief.

Although the sources for this story are well placed, they were not able to provide evidence of collusion. Labor anxieties about interferen­ce from intelligen­ce services date back to ASIO’s conception in 1949. Its anxieties about improper American influence go back a long way, too – there are still older members who believe the CIA was involved in Gough Whitlam’s dismissal.

Conversati­ons this week revealed serious internal concerns about Labor’s approach to China. Some senior members of the party believe the increasing antiChina rhetoric of the Turnbull government is reckless and should not be emulated by a Shorten government. It was argued that anti-China belligeren­ce was a symptom of racist hysteria, and the increasing influence of ASIO on foreign policy. It was suggested that it was simply an embarrassi­ng resuscitat­ion of Cold War politics.

Others argued that elements of the party were profiting shamelessl­y from China, and that we were sleepwalki­ng towards servility to a powerful authoritar­ian state. “This issue is not about Sam’s lack of judgement in isolation,” one senior source told The Saturday Paper. “It’s more systematic. It’s about the role a faction of the NSW Right wants to play in a Shorten government. Will they fuck it up again, or indeed preclude a once-in-a-generation chance of government?

“The NSW subfaction led by

[Bob] Carr made the move to pro-China advocacy for money and flawed reading of geopolitic­s. An uncritical embrace of China’s interests – from the South China Sea to ratifying an extraditio­n treaty with Beijing – is beyond dangerous.”

These conversati­ons happened in the week Prime Minister Malcolm Turnbull introduced legislativ­e reforms “targeting foreign interferen­ce and espionage”. In a statement, the government said: “The threat of political interferen­ce by foreign intelligen­ce services is a problem of the highest order and is getting worse. Foreign intelligen­ce services are engaged in covert influence and interferen­ce on an unpreceden­ted scale. This activity is being directed against a range of Australian interests, from our political systems, to our commercial interests, to expatriate communitie­s who have made Australia their home. There are currently no criminal offences targeting this type of interferen­ce. Similarly, our existing espionage offences are narrow and difficult to prosecute.”

But it was also the same week in which new Nick Xenophon Team senator, Rex Patrick, a former submariner and defence contractor, called for greater accountabi­lity of Australia’s intelligen­ce services in his maiden speech. “Whilst I support our intelligen­ce services, we must also recognise that the power that comes with such an organisati­on must be appropriat­ely balanced with enhanced accountabi­lity,” he said.

This story is a kingdom of mirrors, but the myriad refraction­s should not distract from Sam Dastyari. He undermined intelligen­ce services with a stunningly clumsy audacity – then repeatedly mischaract­erised his actions. Of last year’s remarks to Chinese media on the South China Sea, he admitted to naivety and “garbled” comments. In August, he told me that he “gave a flippant response to the [question of ] the South China Sea. I didn’t know enough.”

As the leaked audio makes clear, his remarks were neither garbled nor flippant, but clear and scripted. “The Chinese integrity of its borders is a matter for China, and the role that Australia should be playing, as a friend, is to know, that with the several thousand years of history … where it is and isn’t our place to be involved …” he said. “The Australian Labor Party needs to play an important role in maintainin­g that relationsh­ip, and the best way of maintainin­g that relationsh­ip is knowing when it is and isn’t our place to be involved.”

Dastyari was obliged to address the senate: “A recent audio recording shocked me, as it did not match my recollecti­on of events.” One might confidentl­y assume that what shocked the senator was the existence of the audio, not its contents.

During his public shaming – and demotion from Labor’s frontbench – Dastyari apologised for his overtures to Huang. But just weeks later, he arrived at the donor’s mansion to warn him that his phone was likely compromise­d. The two men then conversed beyond its range. This was in defiance of ASIO warnings, and contrary to his public contrition.

“This experience will probably have been searing enough to make him more guarded,” former foreign affairs minister Bob Carr told me in August. Evidently it wasn’t.

When Dastyari denies providing “intelligen­ce” to Huang, it is a lawyerly parsing. As an opposition backbenche­r, Dastyari doesn’t receive intelligen­ce briefings – ergo, he could not have passed any on. But what he was in possession of were suspicions or rumours, which he has not denied sharing. Some believe this was merely the paranoia of a man used to “an ICAC world” – others inside the party suspect a deeper, if inexplicab­le, mischief.

That Dastyari remains in the senate must be infinitely galling to those expelled from it via section 44. The intention of the constituti­on’s authors is clear, however zealous and impractica­l we might find its expression today – lowering the odds of parliament­arians improperly dealing with a foreign power. In other words, it’s entirely pre-emptive. But Dastyari has done the very thing the constituti­on sought to prevent. One can imagine the frustratio­n of intelligen­ce services watching the law exercised so vigorously on one group of people, and not at all on the other.

Dastyari’s behaviour should not be surprising. When I profiled the senator earlier this year, many of those outside the NSW Right described him similarly – intelligen­t, personable … and congenital­ly untrustwor­thy. Certainly there are factional grievances at play here, but to speak with Dastyari is to receive an exhausting masterclas­s in ingratiati­on. His responses are a hot mix of flattery, jokes, sophistry, indignatio­n and personal confession.

While on his rehab tour, Dastyari sought to make his self-deprecatio­ns more disarming than his misdemeano­urs were disagreeab­le. It is not a complicate­d tactic, but when your peers are maddeningl­y disincline­d to admit fault, it can appear almost eccentric. It’s not.

It’s calculated. We can see clearly now that the tens of thousands of words Dastyari expended this year in polishing his image were mangy with omissions and partial truths.

Again, this should not be surprising. This is, after all, a man who waxed tenderly in his memoir of his mentor Graham Richardson.

The Dastyari leaks have been a godsend to a beleaguere­d government. As one Labor insider lamented, so consuming have the issues of dual citizenshi­p and foreign influence been that much time has passed since Shorten sustained an argument about wages or inequality.

The fact that senior members of the Labor Party hold suspicions about ASIO and the US is significan­t. And even for those inside the party inclined to embrace the US as an indispensa­ble ally – and a force for global good – their faith has been complicate­d by the presidency of Donald Trump.

Within the Labor Party, some substantia­l debates about China and foreign policy are being had – but too often these conversati­ons are furtive, or ensnared in tribal paranoia. Some Labor sources dismissed as facile the nearManich­ean view of China as good or evil – but also expressed disappoint­ment in Dastyari and the string of former leaders profiting from China while expounding on foreign policy. It was, they said, an obvious conflict of interest of which too many had grown complacent.

The Labor Party has much to reconcile, but they hardly have a monopoly on dubious foreign connection­s. Dastyari has drawn the spotlight, but in a fortnight of leaks and counter-leaks, former Liberal politician Andrew Robb’s contract with the Chinese firm Landbridge found its way to Fairfax Media. Trade minister during the sale of Darwin Port to the Landbridge company, Robb now enjoys a lavish salary from them.

The foreign interest legislatio­n is overdue. But it does not resolve the thicket of questions regarding political culture, foreign policy, or the influence of intelligen­ce services – both domestic and

• foreign.

 ??  ?? Senator Sam Dastyari during question time this week.
Senator Sam Dastyari during question time this week.
 ??  ?? MARTIN McKENZIEMU­RRAY is The Saturday Paper’s chief correspond­ent.
MARTIN McKENZIEMU­RRAY is The Saturday Paper’s chief correspond­ent.

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