Tony Blair says no tension with MI6 over Saudi corruption probe

‘No dispute’ with MI6 over Saudi corruption probe

‘No dispute’ with MI6 over Saudi corruption probe

The prime minister has said he is “not aware of any unhappiness” in the intelligence community about the decision to drop a corruption probe into a Saudi arms deal.

Reports in today’s Guardian claim the head of MI6, John Scarlett, is refusing to sign off a document saying his organisation backed the decision to drop the Serious Fraud Office (SFO) inquiry into the al-Yamamah agreement with BAE Systems.

Ministers were under huge pressure from the defence industry and Saudi Arabia to abandon the two-year probe, and attorney general Lord Goldsmith finally announced last month that it would be discontinued on the basis of “national security”.

He said the foreign and defence secretaries believed the probe could cause “serious damage to UK/Saudi security, intelligence and diplomatic cooperation”, adding: “The heads of our security and intelligence agencies.share this assessment.”

But today’s claims suggest intelligence chiefs had no information that the Saudis might end cooperation on security matters with Britain because of the probe. The newspaper says they were only asked if such a move would be damaging, and replied that it would.

The decision to abandon the SFO inquiry is now being looked into by the Organisation for Economic Cooperation and Development (OECD), the Guardian claims, and the document Mr Scarlett is being asked to sign will be used to defend the UK’s position.

OECD members are bound to investigate corruption regardless of its economic cost. Lord Goldsmith’s announcement came after the Saudis said they were considering taking a major defence deal to France, although he denied this was a reason for his decision.

However, Tony Blair today rejected the claims of a dispute between the security services and the government over the issue, saying: “I’m not aware of any unhappiness and I really wouldn’t believe what they say in parts of the press about this.”

He defended the decision to drop the SFO probe, saying a prosecution would have been “devastating” for Britain’s relationship with a country on which it cooperates closely on terrorism, security and the Middle East peace process.

Asked about claims that the Saudis need cooperation with Britain on security matters more than Britain needed them, Mr Blair told reporters at his monthly press conference in Downing Street: “I don’t know who you’re talking to.”

He added: “I have to take a judgement about the national interests, that’s my job.

“I knew I would be heavily criticised for it but I believe it to be the right judgement and this isn’t just a personal whim of mine but judgement of the whole entire system and I can assure you as far as I know, it was soundly based.”