COUNTRIES prepared to protect Hong Kong supergrasses and witnesses from organised crime will be offered a reciprocal deal in the territory under a programme being developed by the Security Branch and police. The Security Branch has not yet begun talks on dedicated protection with favoured participant countries, which include the United States, Canada, Australia and Britain. But Fight Crime Committee member Justein Wong Chun said the Hong Kong Government should relocate its most vulnerable witnesses in China rather than overseas. ''It would be a much cheaper and probably safer option to resettle witnesses in China rather than North America, the United Kingdom or Australia,'' said Mr Wong. ''In China they would find it easier to fully integrate and they might feel more comfortable for their peace of mind. ''This would only apply to very serious cases involving witnesses who may be vulnerable to revenge by crime groups,'' he said. Security Branch Assistant Secretary Rex Chang Wai-yuen yesterday released the Government's initial plan of action arising from recommendations made in Mr Justice Kempster's $6 million Commission of Inquiry into Witness Protection. The plan, revealed last week by the South China Morning Post, involves the establishment of a specialist operational unit to protect witnesses who fear for their safety. Mr Chang said talks with other countries would begin after some further preparatory work on the concept of witness relocation. ''It would only be fair for us to accept witnesses at risk in other countries if they took ours,'' he said. The Legal Department, Correctional Services Department and the Judiciary are also involved in the planning for new arrangements in courts to allow witnesses to give evidence via a closed circuit television linkup. Until the entire package is worked out, police will continue to provide protection and safe houses to witnesses on a case-by-case basis.