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Blair defends Saudi probe ruling Blair defends Saudi probe ruling
(about 1 hour later)
Tony Blair has hit back at criticism of a decision to end a Saudi arms inquiry and of "cash for honours" allegations. Tony Blair has hit back at claims the government was "blackmailed" into dropping a corruption probe into a BAE Systems arms deal with Saudi Arabia.
He said Britain's relationship with Saudi Arabia was "vitally important". The Serious Fraud Office's sudden decision to wind up a two-year inquiry was in the national interest, he said.
Jobs would also be saved but pursuing the inquiry would have caused years of "ill-feeling" and "immense damage" to Britain's national interest. Pursuing it would have damaged the UK's relationship with a key ally and years of "ill feeling", he added.
On honours, he said it was "perfectly natural" the police would want to talk to him but he was he was entitled to nominate working peers. He also denied he tried to "bury" news that he was interviewed by police investigating cash for honours claims.
The prime minister has been accused of caving in to "blackmail" by Saudi Arabia after a two year Serious Fraud Office probe was suddenly dropped. On Thursday, Mr Blair became the first sitting prime minister to be interviewed as part of a criminal investigation - but Downing Street stressed he was spoke to police as a witness and not a suspect.
Priority Working peers
Mr Blair also faces claims, denied by Downing Street, he tried to "bury" news of his police interview on Thursday - thought to be the first time a serving prime minister has been questioned in connection with a criminal investigation. On Friday, Mr Blair said it was not "the slightest bit surprising or wrong that the police should want to come and talk to me" as the original complaint had effectively been made against him personally.
His spokesman has said he was not interviewed under caution - so is not considered a suspect. But he repeated Downing Street's claim that he was within his rights as Labour leader to nominate a number of working peers every year.
Mr Blair's spin doctors are back to their old tricks Chris GraylingShadow transport secretary Our relationship with Saudi Arabia is vitally important for our country...that strategic interest comes firs Tony Blair
It has been anticipated for some weeks that Mr Blair would be interviewed as part of the inquiry, sparked by revelations Labour was given secret loans ahead of last year's election and some donors were nominated for honours. "The particular issues concerned were not about honours given by me as prime minister for people for public service.
But there has been criticism that his questioning coincided with the long-awaited publication of Lord Stevens' report into Princess Diana's death. "On the contrary they were nominated by me as party leader, for party service in the way that other party leaders are entitled to do," Mr Blair told reporters in Brussels, where he is attending an EU summit.
And there was a surprise announcement from the attorney general that the Serious Fraud Office had ended its two-year fraud inquiry into the Saudi deal. Eurofighter deal
Interview timing On the BAE Systems issue, he said he took full responsibility for the advice he had given.
As he attended an EU summit in Brussels on Friday, he refused to comment on suggestions he had chosen the date for his interview. The Serious Fraud Office was investigating claims that Britain's biggest defence firm BAE had paid bribes to secure an arms deal with Saudi Arabia in the 1980s. BAE has denied the claims.
He told reporters: "I've learned over the years not to get involved in issues of process, so you guys can debate that as much as you like." The Typhoon still faces a fight to hold onto its vital Saudi customer
But Conservative front bench MP Chris Grayling thought otherwise. But in a surprise announcement on Thursday the attorney general said the investigation was to be stopped - weeks after reports that the Saudis were threatening to pull out of a deal to buy 72 Eurofighter jets from BAE and deal with France instead.
Mr Blair was questioned by police on Thursday Mr Blair said the decision was taken in the interests of national security, with no regard to economic interests - and because there were doubts over whether a successful prosecution could be mounted.
Referring to the 11 September 2001 email from Labour's former spin doctor Jo Moore, that the day of the US attacks, was a "good day to bury bad news", he said: "Mr Blair's spin doctors are back to their old tricks." 'Vitally important'
Mr Blair also stood by the decision to drop the SFO probe into claims that Britain's biggest defence firm BAE had paid bribes to secure an arms deal with Saudi Arabia in the 1980s. BAE has denied the claims. "Leave aside the effect on thousands of British jobs and billions worth of pounds for British industry," he told reporters.
Lord Goldsmith said the decision was made in the interests of national security amid concerns about its impact on "cooperation" with the country and said there were serious doubts over whether a successful prosecution could be mounted.
Our relationship with Saudi Arabia is vitally important for our country ... That strategic interest comes first Tony Blair
Mr Blair said: "Leave aside the effect on thousands of British jobs and billions worth of pounds for British industry, leaving that to one side.
"Our relationship with Saudi Arabia is vitally important for our country in terms of counter-terrorism, in terms of the broader Middle East, in terms of helping in respect of Israel and Palestine. That strategic interest comes first.""Our relationship with Saudi Arabia is vitally important for our country in terms of counter-terrorism, in terms of the broader Middle East, in terms of helping in respect of Israel and Palestine. That strategic interest comes first."
He said the probe would have led to months or years of "ill feeling between us and a key partner and ally and probably to no purpose".He said the probe would have led to months or years of "ill feeling between us and a key partner and ally and probably to no purpose".
Full responsibility The Lib Dems have called for an inquiry into the affair and accused the government of putting cash before principle.
He said he had "absolutely no doubt" that the right decision was taken and he took full responsibility for the advice he had given. Lib Dem peer, Lord Goodhart, told the BBC's Today programme: "I think what has happened here is that we have been bounced into this decision by what is effectively blackmail by the Saudi Arabian government. "
Critics argue the government had succumbed to Saudi threats to pull out of a deal to buy 72 Eurofighter jets from BAE, amid reports the Saudi royal family was prepared to ditch the contract and deal with France instead. The rows threaten to overshadow Mr Blair's planned trip to the Middle East, where he hopes to make progress on peace negotiations between Israel and the Palestinians.
The Lib Dems have called for an inquiry and accused the government of putting cash before principle and said it was a "sad day" for the rule of law in Britain.
Lib Dem peer, Lord Goodhart, told the BBC's Today programme: "I think what has happened here is that we have been bounced into this decision by what is effectively blackmail by the Saudi Arabian government.
He added: "It is clear it was not the SFO's own decision, and it was not something that was instigated by the SFO. This came from the top."
The government and the SFO have both said "no weight" was given to economic interests.