Hong Kong government calls off talks with pro-democracy student leaders

HONG KONG (Reuters) - The Hong Kong government on Thursday called off talks with pro-democracy student leaders, dealing a blow to attempts to ease tensions that have seen tens of thousands take to the streets to demand free elections and for leader Leung Chun-ying to resign.

Chief Secretary Carrie Lam, the city's No 2 government official, was speaking on the eve of planned talks with student leaders after protests paralysed the city.

"Students' call for an expansion of an uncooperative movement has shaken the trust of the basis of our talks and it will be impossible to have a constructive dialogue," Lam said.

Hong Kong's Justice Department handed the investigation of a $6.4 million business payout to Leung to prosecutors on Thursday as political fallout grows from the mass protests in the Chinese-controlled city.

(Reporting By Clare Jim and Clare Baldwin; Writing by Anne Marie Roantree; Editing by Nick Macfie)