Kevin Rudd, the new Australian Prime Minister, delivered a piece of plain speaking to the authorities in Beijing today warning of “significant” human rights problems in Tibet.

Hours later China suffered another public relations setback when some 15 Tibetan monks braved arrest to stage a protest demanding the return of the Dalai Lama, in front of a group of Western journalists on a government-organised visit to their monastery.

Mr Rudd is the highest-profile western leader to visit China since unrest erupted in Tibet last month. Speaking in fluent Mandarin to students at Beijing University, he began by defying his hosts and voicing concern over human rights in the Himalayan region.

“Australia, like most other countries, recognises China’s sovereignty over Tibet but we also believe it is necessary to recognise there are significant human rights problems in Tibet,” said Mr Rudd.

“The current situation in Tibet is of concern to Australians. We recognise the need for all parties to avoid violence and find a solution through dialogue."

While Mr Rudd told the students that he did not support a boycott of the Beijing Olympics, he risked his hosts' anger further by talking about other human rights issues and controversies.

“There are still many problems in China. Problems of poverty, problems of uneven development, problems of pollution. Problems of broader human rights,” he said.

“It is important to recognise that China’s change is having a great impact, not just on China, but also the world."

Mr Rudd described China’s social transformation as “unprecedented in human history”, but warned his audience that its rise was causing anxiety overseas.

“When people overseas are faced with big changes and uncertainties like these, they get nervous,” he said, referring to jobs that have been transferred from other countries to China.

The comments caused a flurry of behind-the-scenes diplomatic activity between Beijing and Canberra.

An Australian foreign affairs department spokesman said: “We can confirm that Australian and Chinese officials have discussed the comments and our differences over Tibet, both in Beijing and Canberra. The Australian Government stands by its comments on Tibet, which reflect our firm and strongly held views."

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