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I wasn't close to New World boss, Leung says

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Leung Chin-man said yesterday that he was not close with a property developer executive - who later invited him to become vice-chairman of a subsidiary - during negotiations for the sale of Hunghom Peninsula.

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The former housing director made the claim during his fourth round of testimony before a Legislative Council select committee that is investigating that appointment, which was made last year.

Mr Leung said he was not close to Stewart Leung Chi-kin, executive director of New World China Land, which is the mainland subsidiary of New World Development.

However, Mr Leung said the opposite in a letter he wrote to Cheng Yu-tung, the chairman of New World Development. Copies of the letter are in the hands of the committee.

The committee wants to hear additional testimony from Mr Cheng's son Henry Cheng Kar-shun, who is the chairman of New World China Land.

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Cheng Yu-tung sent a letter to the administration in July 2002 seeking a speedy decision about the sale of the government-subsidised estate.

Leung Chin-man, in his reply that October, said he had 'close contacts' with Stewart Leung over the negotiations between the government and the consortium of developers.

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