CHINA'S secret police have spies in Australian government agencies, a Chinese defector said.

Former secret policeman Hao Fengjun, now living in Melbourne, said China's Gestapo-like police bureau, "610", used the agents to gather material on the religious group Falun Gong.

In an interview on Channel Nine's Sunday program this morning, Mr Hao said he personally supervised secret agents in Australia -- and elsewhere around the world-- to track Falun Gong supporters.

The [spiritual] group is outlawed in China [...] China's police security bureau, 610, was established to crack down on it and put it out of business.

Mr Hao told Channel Nine he smuggled evidence of 610's activities into Australia after downloading files from his police computer in the Chinese city of Tianjin.

Back in China, he had read the reports from Australia on Falun Gong supporters there -- and some came from spies in government agencies.

"Some of them (came from) Chinese businessmen living overseas," Mr Hao told the program.

"Some are students, some community leaders. And some are from government organisations."

Mr Hao's claim of spying here follows that of another defector, Chen Yonglin, a former officer at China's consulate in Sydney who has been granted a permanent protection visa.

Mr Chen said China had a network of up to 1000 informants in Australia. He has reportedly briefed the Australian Security Intelligence Organisation about them.

Mr Chen also said he knew why China had awarded Australia a lucrative business contract, and it was not on cost grounds.

In 2002, Australia won a $25 billion contract to supply liquid natural gas from the North West Shelf to Guangdong province in China.

China's real trade strategy was contained in a top secret report Mr Chen said he had examined in the Sydney consulate.

"The report claims that the central leaders are very wise in the decision to give the contract to Australia and it will benefit China from the strategic point of view," Mr Chen said. "The strategic advantage exists in the purpose to pull Australia away from the US."

Mr Hao, an ordinary detective before being recruited to the secret police, said 610 used front companies to send agents out to Australia.

Once here they were expected to infiltrate Falun Gong groups.

Two Chinese people living in Australia have come forward to confirm Mr Hao's story -- accountant Martin Deller and Chen Hung.

Mr Deller's activities in Australia were documented in one of Mr Hao's secret files, as were Chen Hung's.