The Government would have to review its relationship with the Housing Society if it built flats outside Hong Kong, the Chief Secretary said in Los Angeles yesterday. Kicking off his US visit, Donald Tsang Yam-kuen was asked if the Government would stop the Housing Society from building flats on the mainland. He said although the Housing Society was a non-profit statutory body, it had gained its assets by acquiring land granted by the Government. He said he was unsure if the society was allowed to build flats on the mainland because under the Housing Society Incorporation Ordinance it was only authorised to build flats in Hong Kong. 'In the eyes of ordinary people, the Housing Society should serve the general public of Hong Kong,' Mr Tsang said. Housing Society chairman and Executive Councillor Timothy Chung Shui-ming said last week the body was considering building flats on the mainland for Hong Kong people as it searched for a new role amid falling demand for public housing. The plan was opposed by the Government. Information Co-ordinator Stephen Lam Sui-lung said the Government was against it because the society was supposed to provide public housing to people in Hong Kong. Meanwhile, executive councillors Yang Ti Liang and Rosanna Wong Yick-ming dismissed claims the Exco has been sidelined in the decision to suspend the sale of Home Ownership Scheme (HOS) flats. 'Only the sale - not the construction - of HOS is suspended. It's only a measure, not a change in policy. We have not been sidelined,' Mr Yang said. 'I believe [the Government] will submit [ideas] to the Exco for discussion when they are to make a final decision.' He denied the Government had breached the Basic Law. Article 56 of the mini-constitution says the Chief Executive shall consult the Executive Council before important policy decisions. Deputy Secretary for Housing Andrew Wells said the HOS suspension would not affect the sale of public rental flats to tenants. 'These rental flats will be sold to the tenants at prices ranging from $100,000 to $200,000 only. I don't think it will overlap with the private property market,' he said.