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Another blow for Chen's credibility

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Lee Teng-hui denies claim he used state funds to bankroll clandestine diplomacy

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Taiwanese President Chen Shui-bian received another slap in the face yesterday when former president Lee Teng-hui denied using state funds in secretive diplomatic missions during his term in office - contradicting earlier claims by Mr Chen.

Prosecutors did not rule out the possibility they might question Mr Chen and his wife, Wu Shu-chen, again to check discrepancies in testimony from various witnesses.

As part of his defence against allegations that he embezzled NT$36 million (HK$8.5 million) from the Special State Affairs Fund, Mr Chen said in August that Mr Lee had also used the fund to support secretive diplomatic missions.

Taiwan has been engaged in clandestine activities since the 1970s as it attempts to stem defections to Beijing from its dwindling number of diplomatic allies.

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But Mr Lee told prosecutors the diplomatic missions were paid for with specially designated funds and did not require the use of the state fund, Taiwanese cable network TVBS reported.

The former president was questioned at his residence on September 15, but the interview was only confirmed by the High Court Prosecutors' Office yesterday. The timing of the questioning coincided with a mass protest that saw more than 300,000 red-clad protesters encircle the Presidential Office and the president's nearby residence, urging Mr Chen to resign.

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