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Blair defends Saudi probe ruling Blair defends Saudi probe ruling
(10 minutes later)
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. Tony Blair has hit back at claims a corruption probe into a Saudi arms deal with BAE Systems was dropped after commercial and political pressure.
The Serious Fraud Office's sudden decision to wind up a two-year inquiry was in the national interest, he said.The Serious Fraud Office's sudden decision to wind up a two-year inquiry was in the national interest, he said.
Pursuing it would have damaged the UK's relationship with a key ally and created years of "ill feeling". Pursuing it would have damaged the UK's relationship with a key ally, he added.
He also denied he tried to "bury" news that he was interviewed by police investigating cash for honours claims. The Lib Dems say the SFO was forced to drop the probe after reports the Saudis were threatening to pull out of another BAE deal to supply Eurofighter jets.
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 spoken to police as a witness and not a suspect. The SFO 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 always denied the claims.
'Effectively blackmailed'
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.
Liberal Democrat peer Lord Goodhart told the 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.
Our relationship with Saudi Arabia is vitally important for our country...that strategic interest comes first Tony Blair
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."
But speaking at an EU summit in Brussels, Mr Blair was careful to put to one side the effect on "thousands of British jobs and billions worth of pounds for British industry".
He said his role as prime minister was to advise on what was in the best interests of the country.
Prosecution doubts
"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" and he was certain the right decision had been taken.
The Typhoon still faces a fight to hold onto its vital Saudi customer
The attorney general has said the decision had been taken in the interests of national security and because there were doubts over whether a successful prosecution could be mounted.
Mr Blair also denied accusations he had tried to "bury bad news" by deliberately timed his police interview on the cash for honours allegations to coincide with the SFO announcement, and the publication of Lord John Stevens's report into the death of Princess Diana.
On Thursday, Mr Blair became the first sitting prime minister to be interviewed as part of a criminal investigation - but Downing Street stressed he spoke to police as a witness and not a suspect.
Working peersWorking peers
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.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.
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.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.
Our relationship with Saudi Arabia is vitally important for our country...that strategic interest comes firs Tony Blair
"The particular issues concerned were not about honours given by me as prime minister for people for public service."The particular issues concerned were not about honours given by me as prime minister for people for public service.
"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. "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 said.
Eurofighter deal
On the BAE Systems issue, he said he took full responsibility for the advice he had given.
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.
The Typhoon still faces a fight to hold onto its vital Saudi customer
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 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.
'Vitally important'
"Leave aside the effect on thousands of British jobs and billions worth of pounds for British industry," he told reporters.
"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".
The Lib Dems have called for an inquiry into the affair and accused the government of putting cash before principle.
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. "
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 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.