An arrangement proposed by a Las Vegas jewellery fair organiser for Hong Kong exhibitors is "unnecessary and unreasonable", the Secretary for Commerce, Industry & Technology Henry Tang said. The Hong Kong Economic & Trade Office in San Francisco is negotiating towards a better outcome.

The organiser has asked all Hong Kong exhibitors to display their wares in a separate venue near the main site. Some business people have agreed, for fear of losing all their orders.

Mr Tang said the World Health Organisation is satisfied that Hong Kong does not export any severe acute respiratory syndrome patients.

Hong Kong has been working with the World Health Organisation in a transparent and proactive manner to fight against SARS, he added.

The Government has also been keeping overseas governments, organisers and exhibitors abreast of Hong Kong's latest developments so that they will not impose such unnecessary restrictions on Hong Kong.

Responding to queries from Ma Fung-kwok and Hui Cheung-ching in the Legislative Council today, Mr Tang said Hong Kong handled the World Jewellery and Watch Fair and Malaysian Government's temporary travel restrictions swiftly without seeking mediation from the Central People's Government.

He said it is appropriate for Hong Kong to handle external affairs on its own in accordance with the arrangements set out in the Basic Law.

The principle of "One Country, Two Systems" has also set out Hong Kong's high degree of autonomy in matters relating to trade relationships with other economies.

Therefore, Hong Kong did not ask the Central People's Government to take up the matter diplomatically with the Swiss Government concerning the World Jewellery & Watch Fair 2003, nor with the Malaysian Government over temporary travel restrictions.

Nevertheless, Mr Tang said the Government does not rule out the need to obtain views or assistance from the Central People's Government if there are practical needs, for example, in a case in which a Hong Kong resident is in distress overseas, or for matters involving a country which does not have an official representative in Hong Kong.

Mr Tang noted that, so far, the World Jewellery & Watch Fair was the only large overseas exhibition which rejected Hong Kong business people from taking part owing to the SARS outbreak.

The Trade Development Council is now following up on the case through legal means to claim damages against the Swiss authorities and trade fair organiser.

He also outlined measures aimed at keeping SARS' impacton Hong Kong's businesses to a minimum:

* collecting information on overseas trade fairs to look out for new restrictions on Hong Kong for the trade;

* taking stringent sanitary measures to reassure overseas business people on their visits to Hong Kong;

* joining hands with with airlines, hotels, restaurants and retail outlets to offer a wide range of discounts to overseas buyers to attract more business visits;

* issuing trade circulars to Hong Kong exporters, informing them of WHO's advisory; and

* clarifying with the relevant authorities and organisations that samples and cargo from Hong Kong do not pose health risks to protect Hong Kong's exports and re-exports from exclusion by overseas countries.