HONG KONG, May 8 — President Jiang Zemin of China hailed the freedom in Hong Kong today, as protesters from the Falun Gong spiritual movement rallied throughout the city, accusing Mr. Jiang of imprisoning and torturing their members on the Chinese mainland.
Mr. Jiang was the main attraction at a business conference here held by AOL Time Warner, the media and publishing conglomerate. Time Warner's executives spent part of the gala dinner at which Mr. Jiang spoke trying to figure out among themselves how to persuade China to lift a ban on the company's flagship magazine, Time.
It was an awkward day for this former British colony and the American corporation, both of which have deep, complicated ties to China.
Hong Kong struggled to balance its commitment to civil liberties with its desire not to offend Mr. Jiang, who has led the campaign against Falun Gong. AOL Time Warner juggled its desire to cultivate Mr. Jiang and the Chinese government with its need to defend one of its most prominent magazines.
Only the Chinese president, who jauntily greeted a parade of well- wishers, seemed not to notice the conflicts.
"Hong Kong residents have enjoyed full freedom and more democratic rights than ever before," he declared, referring to the semiautonomous status Beijing granted Hong Kong after China resumed sovereignty here in 1997. "The Chinese government will never waver in or change this policy, come what may."
As Mr. Jiang spoke, adherents of Falun Gong tested his claim, mounting the first major protest against the president on Chinese soil since before the sect was banned on the mainland in July 1999. It is still permitted to operate here.
The police did not interfere in the protests, though Falun Gong members complained that they were kept far from where Mr. Jiang spoke. The group also said that nearly 100 members who had traveled to Hong Kong for the rallies were turned back at the airport yesterday and today.
The American Consulate here said American citizens had been among those refused entry. A spokeswoman, Barbara A. Zigli, said the consulate had sought an explanation from the Hong Kong government.
The editors of Time have been concerned about issues of freedom since early March, when the magazine stopped being available on newsstands in mainland China (it continues to be sold here). The ban came 10 days after Time published an article about the activities of Falun Gong in Hong Kong.
"We regret it appears Time's distribution in China has been restricted," said Walter Isaacson, the editorial director of Time Inc. and the former managing editor of Time. "We're making inquiries, but either way, Time's journalists in China will continue to do their jobs vigorously."
A delegation from the company met with Mr. Jiang this afternoon, but Time's status was not broached. As executives mingled with Chinese officials this evening, their understanding of the situation became murkier rather than clearer. Some officials told them that Time had not been formally banned.
But nobody was in the mood to play sleuth at what was supposed to be a conference about the opportunities for American business in China.
In his remarks, Mr. Levin described Mr. Jiang as a "man of honor" and called him "my good friend." He used the same phrase two years ago, when Time Warner held this conference, the Fortune Global Forum, in Shanghai.