The terrorist threat level remains moderate, a government spokesman said, but police will maintain close liaison with mainland authorities and overseas law enforcement agencies to ensure timely exchanges of intelligence.

The governments response followed comments earlier yesterday by Director of Immigration Simon Peh Yun-lu that the department has received intelligence the equestrian events are under threat of attack.

Speaking at his first media reception since assuming office in April, Peh said intelligence said some people are plotting to sabotage the Olympic Games, including the equestrian events.

Of course this kind of intelligence will continually change right now the main individuals who might sabotage the event are terrorists, Peh added, without giving any specifics on the terrorists. If we know some are plotting to sabotage the Games, or to damage the solemnity of the events or disrupt the smooth processing of the events, we will ban their entrance.

Lawmaker James To Kun-sun, deputy chairman of the Legislative Councils security panel, said it was unusual for a director of immigration to reveal intelligence on a potential threat of terrorist action.

He said it was possible Peh was laying the groundwork with which to ban peaceful demonstrations during the Games or to prevent people from entering the city.

In his briefing, Peh refused to be specific about the intelligence his department had received.

Asked whether the department will restrict people from Xinjiang or Tibet, who have a history of fighting for independence from China, from visiting Hong Kong, Peh said the department will not tag people based on their geographical locations.

He said the department will consider carefully the entry of those with a history of disrupting the Olympic torch relay in May.

The department estimates 42,000 visitors will arrive in Hong Kong to see the equestrian events as well as 3,000 athletes.

In addition to maintaining close liaison with mainland authorities, police will step up security measures at strategic locations, in particular the airport, the public transport system and other critical infrastructures.

Sports Federation and Olympic Committee of Hong Kong, China president Timothy Fok Tsun-ting said last night he had not received any news related to the perceived threat.

The Immigration Department was highly criticized on April 26 when it denied the entry of Danish sculptor Jens Galschiot.

He is a member of the group Color Orange which has voiced its concern at alleged human rights violations in the mainland.