This puts the whole vexed issue in perspective (Today's ABC on-line) -
"Chinese factory found making Tibetan flags: reports in a Hong Kong newspaper say police in China have discovered a factory making thousands of Tibetan flags for activist groups overseas.
The Ming Pao newspaper in Hong Kong says the Tibetan flags were being made at a factory in the southern province of Guangdong."
More -
http://www.abc.net.au/news/stories/2008/04/29/2229755.htm?section=justin