Mexico began repatriating dozens of its citizens quarantined in China due to fears of a new flu virus and announced steps to revive its economy, hit hard by an epidemic now showing signs of easing.

An Aeromexico plane arrived in Beijing yesterday to pick up Mexican nationals there, after taking on dozens in Shanghai. The flight was scheduled to head south to Guangzhou and then to neighboring Hong Kong before flying home.

None of the 70 or so Mexicans quarantined in mainland China have shown symptoms of the H1N1 flu. They had been caught up in a drama about how far governments should go to stifle fears the virus could creep across their borders.

Xinhua reported that a Chinese chartered flight had collected 79 Chinese nationals in Mexico City before heading to Tijuana, where it was expected to pick up 20 more. China has suspended direct scheduled flights to Mexico.

Other flu-affected nations have had citizens ensnared in China's quarantine measures, including at least four from the United States and more than 20 from Canada.

Mexico is considered the epicentre of the flu outbreak that has infected more than 1,300 people in 22 countries over the past week. To date, 27 deaths have been officially confirmed - 26 in Mexico and one in the United States - though more than 100 are suspected to have died from the flu.

Its global spread has kept alive fears of a pandemic, though scientists say this strain does not appear more deadly than seasonal flu.

But some health experts said the never-before-seen virus that popped up in Mexico this flu season is expected to surge in coming months in the southern hemisphere when the winter begins and they called for continued vigilance.

Meanwhile, more than 150 scientific experts in a teleconference will examine and compare notes on the H1N1 flu virus as the World Health Organisation (WHO) prepared to send 2.4 million treatment courses of Tamiflu, an antiviral proven effective against the new flu, to 72 countries including Mexico.

The US government is cautiously optimistic that the H1N1 influenza virus is milder than first thought, Kathleen Sebelius said yesterday in her first public address since being confirmed as President Barack Obama's Health Secretary.

"There has been aggressive action and appropriate action to get out ahead of what was a brand new viral strain. We will continue to accelerate the work on vaccine manufacturing," she told the Council on Foundations in Atlanta.

The friction between China and Mexico strained a budding friendship, with Beijing courting Latin America as a trade and diplomatic partner, but the damage appears unlikely to last.

Mexican President Felipe Calderon announced a stimulus package, including a temporary tax cut for visiting cruise liners, in a bid to lure back shiploads of foreign visitors.

The flu outbreak has walloped tourism, which accounts for eight per cent of Mexico's economy, as big operators like Carnival Cruise Lines have cancelled visits, but Mr Calderon said the stimulus plan should help things normalize quickly.

"Little by little we are returning to normal," he told an event yesterday in the city of Puebla to mark Mexico's May 5 public holiday.

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