(AFP) Prime Minister Mahathir Mohamad launched a fierce attack today on two Chinese newspapers which a political ally has just taken over in a highly controversial deal.

The premier also defended Malaysia's record on rights for Chinese, who make up a quarter of the population, and said Chinese in Britain and Australia are "oppressed people."

His comments came a day before the Malaysian Chinese Association (MCA) - the second largest party in Mahathir's coalition - holds a special meeting on whether to support or reject the takeover.

The deal has stirred a fierce debate within the minority Chinese community over press freedom and has split the MCA.

Political motive

Mahathir again acknowledged there was a political motive behind the takeover, which he earlier described as purely a business deal, but insisted he did not order the purchase of the two papers.

Nanyang Siang Pau and China Press have sometimes failed to follow the government line, unlike the Malay and English-language media.

Mahathir accused the newspapers of distorting issues to win support for the opposition Democratic Action Party (DAP).

Last August the veteran premier strongly attacked the Chinese pressure group Suqiu, which had urged that affirmative action programmes be extended to all those in need and not just Malays.

Its approach was akin to that of communist terrorists, he said.

" Nanyang and China Press played up this issue so that the Chinese will hate me and hate the (ruling coalition) with the hope they will support the DAP," he said today in a speech to his own party, the United Malays National Organisation.

Mahathir said the papers also played up controversy over planned "vision schools" in which children of the three main races will share some facilities.

Some Chinese groups see the plan as a threat to Chinese-language education despite official denials.

Chinese rights protected

Mahathir defended Malaysia's record on Chinese rights at a press conference after the speech.

"This is...the only country in this region and in fact in the world where Chinese who have settled in this country are allowed to have their own schools, use their own language for teaching and schools are actually supported by the government except at certain levels," he said.

"Chinese in Australia, in America, they should be allowed to have their own schools, they should be allowed to use their own language and everything else that the Chinese in Malaysia enjoy.

"We are saying that the Chinese in Australia, in England should be allowed to speak their own minds but they are oppressed people because they find that that is not very welcomed, they have to learn a foreign language."

Mahathir has admitted he gave his approval to MCA president and transport minister Ling Liong Sik to buy the two papers but insists he did not issue a directive.

He accused Chinese media of trying to drag him into the controversy.

"The western media is always telling lies about us, so it is about time they (Chinese press) have a look at themselves."

Asked to comment on a vote by the MCA's youth wing this afternoon to reject the deal, Mahathir said there "is an obvious attempt to make use of me, to create hatred of me to win support for their views."