The US State Department has voiced concern over what it perceives as pressure on Hong Kong from the mainland to restrict Falun Gong criticism of Beijing's policies on the banned spiritual group.
The report, issued on Monday, said a series of developments in 2001 sparked worries about pressures on the special administrative region (SAR) to suppress the group's freedom of expression, despite its legal existence in Hong Kong.
Of particular concern were statements by Chief Executive Tung Chee-hwa in May and June, 2001, that the group was "no doubt an evil cult" and that the government would not let the Falun Gong "abuse Hong Kong's freedoms and tolerance to affect public peace and order".
The report said other incidents illustrating the situation included the barring of about 100 overseas-based Falun Gong practitioners from entering Hong Kong during President Jiang Zemin's visit in May, 2001, and more than 90 foreign practitioners being denied entry upon arrival at the Hong Kong International Airport last June.
Despite regular coverage of sensitive subjects in the local media, the report quoted the Hong Kong Journalists Association as saying media self-censorship was on the rise, including coverage of topics of particular sensitivity to China, leadership dynamics and Taiwanese and Tibetan independence.
The report noted that the South China Morning Post dismissed its Beijing bureau chief, Jasper Becker, who said that his dismissal was due to the paper's intention to avoid carrying reports on controversial mainland stories. But the report noted the Post said the reason for his dismissal was because he did not follow instructions from the paper's China editor.
The paper continued to cover a number of sensitive political issues involving the mainland and SAR governments, the report added.
It also said the government's move to implement Article 23 of the Basic Law had triggered intense public debate.
It noted that a draft of the legislation was not provided for the public. Although the report recognised the SAR government's general respect for the rights of its residents and said "the law and judiciary generally provided effective means of dealing with individual instances of abuse", it pointed out Hong Kong's failure to establish a broad human rights institution.
The report also expressed concern about the government's failure to enact legislation against racial discrimination. And it said violence and discrimination against women remained a problem.