(Changes date, adds comment from senior HSBC executive in lead and paragraph eight) By Antonio de la Jara SANTIAGO, Chile, Oct 26 (Reuters) - Chile's government said on Wednesday it is investigating reports that former dictator Augusto Pinochet hid about nine tonnes of gold in a Hong Kong bank, a claim his family and the lender have denied. Pinochet, 90, has been charged with tax evasion linked to millions of dollars hidden in secret bank accounts. He is also being investigated for fraud and embezzlement related to that money, which has been frozen pending court cases. Foreign Minister Alejandro Foxley said on Wednesday that the information about the gold was received several days ago and had been passed on to the State Defense Council, a prosecuting body. "If this information is confirmed, it would be grave indeed," Foxley said on national radio on Wednesday. Pinochet's lawyers and family denied any gold stash existed. "There's no limit; they've reached this type of accusation and until now there is no evidence backing these unfounded accusations. We are being persecuted," Marco Antonio Pinochet, the former dictator's youngest son, told Cooperativa radio. El Mercurio newspaper reported the gold was being held for Pinochet in Hong Kong warehouses of HSBC Bank Plc. "There's no such thing, according to our initial investigation. We will fully cooperate with the Chile government on this if they request it," Vincent Cheng, chairman of the Hongkong and Shanghai Banking Corp. -- HSBC's Asian unit -- told reporters on Hong Kong broadcaster Cable TV. A spokesperson for HSBC had told the BBC news Web site earlier that it had started an investigation, but did not believe the bank holds gold or other funds for Pinochet in Hong Kong or elsewhere. If confirmed, the find could raise powerful new suspicions about the wealth Pinochet accumulated over his 17-year dictatorship and further turn public opinion against him. It was not clear how the information was relayed to Chile other than that it came through the foreign ministry. "At this point it is in the hands of the justice system to investigate this," Defense Minister Vivianne Blanlot said. Pinochet took power in a 1973 military coup that toppled Salvador Allende. Pinochet is under investigation for dozens of human rights crimes during his 1973-1990 rule, when an estimated 3,000 Chileans died in political violence. He was charged last year with evading taxes on an estimated $27 million hidden in more than 100 bank accounts outside of Chile. "I can say with absolute certainty that this information is completely and absolutely false," said Pablo Rodriguez, Pinochet's long-time lawyer. Pinochet, 90, is no longer active in Chilean politics, but remains in the public eye because of the string of court cases against him. His defense lawyers have argued he is unfit to stand trial for health reasons. "I can tell you with absolute certainty that general Pinochet has never had a gram of gold in any foreign account," Rodriguez added. (Additional reporting by Pav Jordan)
