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CONCERNS over the rule of law in the SAR have been raised in the US State Department's annual report on international human rights.

 The report said two high-profile cases in which the Government failed to prosecute Xinhua and former newspaper publisher Sally Aw Sian had undermined confidence in the legal system.

 'Although the Judiciary remains independent, human rights activists are concerned that the legal system may favour those closely aligned with China or powerful local institutions,' the report notes.

 Apparently steering clear of commentary, the 33-page report outlined the Government's decision not to prosecute Xinhua, which is now known as Beijing's Liaison Office, for alleged violations of the Privacy Ordinance.

 The Department of Justice had refused to prosecute Xinhua in 1998 for allegedly failing to meet the legal deadline to respond to a request from legislator Emily Lau Wai-hing of The Frontier for information she believed it held on her.

 It argued Xinhua was a state organ exempt from local legislation.

 In March of the same year the department cited 'public interest' when it decided not to prosecute Sally Aw Sian, former owner of the Sing Tao Group, for alleged circulation fraud.

 Secretary for Justice Elsie Leung Oi-see said at the time that there was insufficient evidence and a charge could have put the newspaper group out of business, thus damaging free speech and putting people out of work.

 The concerns are detailed in part of an expanded section on the SAR in the State Department's annual report on international human rights that covers a range of issues, from police violence to discrimination.

 The report also gave a detailed breakdown of the right of abode issue. Concerns and fears are generally sourced to activist groups rather than the US Government itself.

 The report will be tabled at the annual meeting of the United Nations Human Rights Commission in Geneva next month as part of a US attempt to seek a censure motion against China.

 Beijing is criticised for a 'marked deterioration' of human rights on the mainland but Hong Kong is described in more neutral, even-handed language, with a number of freedoms noted including the legal existence of the Falun Gong spiritual movement, which is banned on the mainland.

 'The Government generally respected the human rights of its citizens,' it states, before noting problems that existed 'before and after the reversion to China'.

 They are:  Limitations on citizens' ability to change their government and limitations on the power of the legislature to affect government policy;  Reports of 'use of excessive force' by police;  Media self-censorship to 'some degree';  Violence and discrimination against women; discrimination against the disabled and ethnic minorities; intimidation of foreign domestic servants;  Human smuggling for forced labour and prostitution rackets.

 The report also outlines extensive press freedom, describing political debate as 'vigorous'.

 Chris Jackson, Director-General of the Hong Kong Economic and Trade Office in Washington, said the Government would be watching to see if the report raised hackles in the US Congress, whose members increasingly link Hong Kong to Beijing.

 'We are studying the report and we will be watching things very closely indeed,' he said, adding that Hong Kong could find itself dragged into all manner of China-related issues at any time.

 In Hong Kong, senior officials yesterday denied allegations in the report that the SAR had become 'a transit point' for human smuggling to the US, Canada and other Western countries.

 Chief Secretary for Administration Anson Chan Fang On-sang said: 'We are absolutely not a transit point and our trade partners are very clear of our role in this aspect.

 'In fact, we have provided a lot of information on human smuggling to other countries and facilitate searches.'  Deputy Secretary for Security Timothy Tong Hin-ming said the allegations 'are not equal to the facts'.

 'In fact, we have kept close contacts with law enforcement agencies in the United States.'  Mr Tong stressed there had been no significant rise in human smuggling to or from the SAR.

 The report is expected to be raised this week during the high-level visit to the SAR of the State Department's Assistant Secretary of State for East Asian and Pacific Affairs, Stanley Roth.



US raises fears over rule of law