by Jorge Svartzman

BEIJING, Dec 12 (AFP) - The Chinese government Thursday hit back at Hollywood stars who have accused it of trying to block a film about Tibetan spiritual leader the Dalai Lama.

"Neither the Chinese government nor the authorities concerned have put any pressure on the Walt Disney Company" over the film, foreign ministry spokesman Shen Guofang said.

Forty-one Hollywood luminaries, including Paul Newman, Richard Gere, and Barbra Streisand said in a letter to the Chinese ambassdor to Washington, Li Daoyu, they had become "increasingly alarmed at the Chinese government's attempts to dictate what artistic projects can be undertaken in or on China."

"Those who sent the letter do not understand the situation," Shen replied.

"We hope Disney will continue to work with China," as this would help "boost understanding between our two countries," he added.

Disney Studios has resisted pressure from Beijing over "Kundun," a movie about the Dalai Lama, whose non-violent campaign to preserve Tibetan Buddhism and oppose China's annexation of his Himalayan homeland has annoyed Beijing for decades.

The Dalai Lama has lived in exile in India since fleeing Tibet in 1959 following a failed uprising against Chinese rule.

The letter lauded Disney's stand against the Chinese government even though Beijing has hinted that the film could jeopardize the company's plans to build a theme park near Shanghai.

China's efforts to "restrict the right of producers, directors, distributors, writers, and others to freedom of expression are wholly unacceptable," said the letter, dated December 10.

"The latest example is your government's threat to use its market clout to halt production of 'Kundun,'" the Hollywood notables said.

They urged film companies to "actively and publicly oppose" all Chinese government efforts at censorship or intimidation and to demand distribution agreements that bar government restriction or review.

"We are eager for good relations with your government and with our Chinese colleagues, but respect for freedom of expression must underpin those ties," they wrote.

Chinese foreign ministry spokesman Cui Tiankai said last month that "any words or actions which distort the story of Tibet or make apologies for the Dalai Lama do not conform with reality."

Among those who signed the protest letter were film directors Oliver Stone, Bernardo Bertolucci, and Spike Lee, and actors Richard Dreyfuss, Tim Robbins, and Susan Sarandon.