"It is based mostly on pre-existing information either collected from the Internet or provided by Falungong practitioners in Canada," Xinhua news agency said, citing Zhang Weidong, a spokesman for China's embassy in Ottawa.

The report, prepared by David Kilgour, former Canadian secretary of state for the Asia Pacific, and human rights lawyer David Matas, is "biased and groundless," Zhang said.

The fact that some Chinese cities mentioned in the report are located in the wrong part of the country reflects its lack of credibility, according to Xinhua.

Kilgour and Matas issued the report -- alleging China harvests organs from live prisoners, mostly jailed Falungong members -- earlier this month.

They implicated dozens of hospitals and jails after a two-month investigation.

The pair also identified some 41,500 suspect transplants in China since 2000, saying they were unable to track the source of the organs.

Zhang said China had adopted a "very prudent and responsible" attitude on the issue of human organ transplants, consistently abiding by World Health Organization principles.

China has issued a regulation on transplants, explicitly banning the sale of human organs and introducing a set of medical standards for transplants in an effort to guarantee medical safety, Zhang was quoted as saying.

The Falungong unnerved the Chinese leadership with its organizational talent and was eventually banned in mid-1999.

The government has still carried out an apparently effective campaign against the movement inside China, but the group continues to thrive overseas.

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