Blair 'concerned' over arms deal probe

Updated 19.09 Sat Dec 22 2007

Keywords: Lord Goldsmith, fraud, arms deal, Saudi Arabia, Tony Blair

Tony Blair raised concerns about a probe into a Saudi arms deal less than a week before it was scrapped last year, it has emerged.

At the time the investigation was abandoned, the then Prime Minister insisted the decision was taken on security grounds, not commercial interests.

At the time the investigation was abandoned, the then prime minister insisted the decision was taken on security grounds, not commercial interests

But in a recently disclosed letter, Mr Blair addresses his "concern" to Lord Goldsmith, then attorney-general, over ongoing business negotiations.

He also pointed out the "critical difficulties" that the investigation could cause negotiations over the sale of Typhoon aircraft to the Saudis.

Six days after the letter was written, Lord Goldsmith announced to the House of Lords that the Serious Fraud Office inquiry into the Al Yamamah contract from the 1980s was being suspended, causing uproar in the process.

The letter, dated December 8, 2006, has been released to the High Court during a legal action brought by anti-corruption campaigners Corner House and the Campaign Against the Arms Trade.

Last year, Lord Goldsmith said that the probe was putting diplomatic cooperation between Britain and Saudi Arabia at risk, with implications for UK security.

But recent reports have suggested that Saudi Arabia had threatened to pull out of a potential new order for Typhoons.

In his letter to Lord Goldsmith, Mr Blair highlighted that his intervention was unusual - but he said he would be failing in his duty if he did not point out the security issues.

He added that the OECD Convention on Combating Bribery restricted consideration of the national economic interest but went on to mention the Typhoon contract.

He wrote: "As you know, I strongly support our commitment to the Convention and am proud of this Government's record on putting bribery issues on to the agenda and into law.

"While this letter is not primarily concerned with the serious damage being done to our bilateral relationship by the investigation, it is of course of concern to me, not least because of the critical difficulties present to the negotiations over the Typhoon contract."

In September, the Ministry of Defence announced a £4.43 billion deal to sell 72 Typhoon aircraft to Saudi Arabia.

The contract safeguarded thousands of jobs in the north-west, where the planes will be partly built by BAE Systems.