DATE=6/1/2000 TYPE=CORRESPONDENT REPORT TITLE=TAIWAN WARNING (L-ONLY) NUMBER=2-263042 BYLINE=ALISHA RYU DATELINE=HONG KONG CONTENT= VOICED AT: INTRO: Hong Kong politicians and business leaders are reacting angrily to a warning from Beijing not to engage in trade with companies that openly support Taiwan independence. Alisha Ryu has details from Hong Kong. TEXT: Addressing the Chinese Chamber of Commerce on Wednesday, a Hong Kong-based official of the Central Government Liaison Office, He Zhiming (prounced Hee Chee-ming), said Hong Kong firms that trade with pro- independence Taiwan businesses faced "risk". Mr. He went on to say he hopes Hong Kong businessmen will - in his words - "know how to choose when seeking Taiwan trading partners." Local pro-democracy politicians quickly called the comments a threat that undermines Hong Kong's long- cherished reputation as a bastion of free trade. On Thursday, Hong Kong's acting chief executive, Anson Chan, firmly rejected Beijing's warning, saying politics has no place in Hong Kong's business community. // CHAN ACT // In our view, business decisions are best left to businessmen and should not invite the interference of any official. It is inappropriate for any political consideration to affect business decisions. // END ACT // A lawmaker representing the influential Hong Kong General Chamber of Commerce, James Tien, told VOA that local businesses are especially worried such comments could erode overseas investor confidence. // TIEN ACT // Foreign investors might take this statement seriously because they assume that what they will become fact. We certainly hope it will be clarified overseas that this is just a statement made by a liaison officer and is not the view of the Hong Kong government, Hong Kong legislative council, or the Hong Kong business community. // END ACT // Mr. He's comments on Wednesday marked the second time this year a Beijing official from the Hong Kong Liaison Office has issued a warning about Taiwan. In April, the deputy director of the office, Wang Fengchao, warned Hong Kong media not to report any news or views that support Taiwan independence. Beijing regards Taiwan as a renegade province and has repeatedly vowed to reunite the island with the mainland, by force if necessary. (Signed) NEB/AR/FC 01-Jun-2000 06:16 AM EDT (01-Jun-2000 1016 UTC) NNNN Source: Voice of America .