Envoy's letter to be key evidence in trial linked to Silvio Berlusconi

A letter from Hong Kong's former envoy to Europe to a close political associate of Silvio Berlusconi will be presented to a Milanese court as evidence in a money laundering and tax evasion trial linked to the ex-Italian premier.

The letter sent by special envoy Duncan Pescod to former Italian senator Sergio De Gregorio on May 6, 2008, sheds more light on a meeting between the two sides in April of that year.

The disgraced senator has claimed that during the meeting he tried to broker a deal to stop Hong Kong from transferring evidence to Italian prosecutors for investigations related to Berlusconi. This came as the Hong Kong side was said to have asked Rome to help arrange a private audience with Pope Benedict XVI for Donald Tsang Yam-kuen, the city's chief executive at the time and a devout Catholic.

Tsang denies any knowledge of the meeting. Pescod, now a permanent secretary for transport and housing, earlier admitted having met an Italian senator to discuss a possible meeting between Tsang and the Pope.

He has also confirmed that the former Italian senator - who is now being investigated for corruption himself - asked the Hong Kong government to interfere with the transfer of evidence to Italy. Pescod said he clearly told the Italian it was not possible. He reiterated last night that his contact with De Gregorio was routine and part of his envoy role.

The letter bears the Hong Kong Economic and Trade Office letterhead and Pescod's personal signature as the city's special representative. It was submitted to the court in Milan on Tuesday and will be used as evidence for a corruption trial resuming today involving Berlusconi's eldest son Pier Silvio, two Hong Kong women and eight others.