The Shanghai government has ordered local media not to report on Disney's plans for a theme park in the city, fearing it might derail ongoing talks with the American entertainment giant or upset Hong Kong. 'We received a notice saying there should be no reports without special permission from the [government] Information Office,' a local reporter said. Another said he was aware of the talks between the city and Disney but senior editors had told staff not to report the issue. 'This is sensitive,' a reporter said. 'There is a very tight clamp on the news.' Even the Web site of the city's official news organisation Eastday, which generally enjoys more leeway than the traditional media, and the English-language Shanghai Daily, which is normally strong on business news, have avoided the topic. Local media have also refrained from publishing the Information Office's carefully worded denial of the initial reports that were carried on the Web sites of the Guangzhou-based Southern Weekend and the Beijing Youth Daily. It is believed local officials have made several visits to the United States to discuss the possible project with the Walt Disney Company. Government sources said a framework agreement was reached last month. Sources say the two sides are far from a final agreement but a site for the theme park has been chosen in the town of Huanglou, at the southern end of the booming Pudong New Area. Disney officials said they had never ruled out another theme park in China, but Chief Secretary Donald Tsang Yam-kuen said last September that Disney assured him it would let the Hong Kong park be 'up and running and mature before thinking about another'. The SAR government projects that 75 per cent of non-local visitors in the first year of operation of Hong Kong Disneyland - due to open in 2005 or 2006 - will be from the mainland. Some analysts believe China eventually will be able to support two parks, but others believe a Shanghai Disneyland would hurt Hong Kong's efforts to justify its $22 billion investment in the project. Legislators are angry there was no exclusivity clause to help the SAR recoup its investment in what was widely seen as a generous package for Disney.