CANBERRA - Australia has been warned of further damage to its relations with emerging superpowers China and India as a "poisoned alumni" of embittered students heads home from its universities and colleges.
The warning comes as Beijing steps up diplomatic retaliation against moves in Canberra, and a parliamentary committee urges a new drive to boost relations with New Delhi.
It also follows earlier reports of education scams and concern by visiting Indian Foreign Minister S. M. Krishna that "dubious" agents and private colleges were ruining the lives of Indians studying in Australia.
Canberra is already moving to repair its reputation in India after a series of brutal attacks on students that launched a vitriolic media campaign and raised diplomatic tensions.
Police and universities have stepped up measures to protect and support foreign students, and the federal Government has launched a review of the A$15 billion ($17.7 billion ) a year international education sector.
Prime Minister Kevin Rudd and Foreign Minister Stephen Smith will also be among a rush of high-level visits to India this year.
Canberra has also been working to shore up nosediving relations with China, following Beijing's concern for its students, a new defence white paper that identifies China as the major long-term regional threat, the row over detained Rio Tinto iron ore negotiator Stern Hu and Australia's refusal to deny a visa to exiled Uighur activist Rebiya Kadeer.
Despite this week signing a huge A$50 billion liquefied natural gas deal with Canberra, Beijing has cancelled visits to Australia by senior officials and signalled that further moves may be in store.
The two countries are not only Australia's biggest sources of foreign students - China sends 22 per cent of the total and India 17 per cent - but are considered vital to the nation's economic and strategic future.
A new report tabled by the federal Parliament's foreign affairs and defence committee identified education as a key element in relations with India, a rising world power that Australia was struggling to relate with beyond the historic cultural links of language, the Commonwealth and cricket.
A paper released yesterday by the Lowy Institute warned that long-term relations with the two emerging powers could be seriously damaged by conditions facing students sent to gain professional, technical and trade qualifications.
The paper says that as Australian tertiary institutions try to maximise income from foreign students, some have lowered standards and cut costs on student welfare and services.
Many suffer social isolation and are forced to support themselves by working illegally for below-minimum wages and sub-standard conditions and are exposed to violence and organised crime networks.
"As recent experience with India shows, incidents such as the attacks on Indian students have the potential to crowd out all other creative diplomacy from a bilateral relationship," the paper says.
It says the damage could contaminate some of Australia's most important relationships, including China and India.
"Both Beijing and New Delhi are increasingly assertive in advocating the welfare of ethnic Chinese and Indian minorities overseas when they are under attack."
The paper says if the problems are not addressed they would most likely worsen, with serious negative consequences for Australia.
"The plight of Chinese or Indian students in Australia could translate into an enduring diplomatic irritant if not resolved quickly," it says.
Embittered students add to Australia's woes
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