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| OECD 'concerns' over Saudi probe | OECD 'concerns' over Saudi probe |
| (10 minutes later) | |
| There are "serious concerns" about the UK dropping a fraud probe into a Saudi arms deal, says the Organisation for Economic Co-operation and Development. | There are "serious concerns" about the UK dropping a fraud probe into a Saudi arms deal, says the Organisation for Economic Co-operation and Development. |
| The OECD, which drew up an anti-bribery treaty signed by Britain, has been investigating the Serious Fraud Office decision announced last month. | The OECD, which drew up an anti-bribery treaty signed by Britain, has been investigating the Serious Fraud Office decision announced last month. |
| Prime Minister Tony Blair has said he took the decision to end the probe in the interests of national security. | Prime Minister Tony Blair has said he took the decision to end the probe in the interests of national security. |
| The OECD has said "appropriate action" would be considered. | The OECD has said "appropriate action" would be considered. |
| The SFO had been investigating claims that defence firm BAE Systems paid bribes to secure an arms deal with the Saudis in the 1980s - something strongly denied by BAE. | The SFO had been investigating claims that defence firm BAE Systems paid bribes to secure an arms deal with the Saudis in the 1980s - something strongly denied by BAE. |
| Terrorism fight | Terrorism fight |
| Mr Blair said continuing with the SFO investigation would seriously damage Britain's relationship with Saudi Arabia. | Mr Blair said continuing with the SFO investigation would seriously damage Britain's relationship with Saudi Arabia. |
| He said it would affect national security, as Saudi Arabia was a key ally in the fight against terrorism, and the wider Middle East. | He said it would affect national security, as Saudi Arabia was a key ally in the fight against terrorism, and the wider Middle East. |
| Mr Blair also said there were some doubts as to whether a successful prosecution could have been mounted. | Mr Blair also said there were some doubts as to whether a successful prosecution could have been mounted. |
| The working group has serious concerns as to whether the decision was consistent with the OECD Anti-Bribery Convention OECD statement | The working group has serious concerns as to whether the decision was consistent with the OECD Anti-Bribery Convention OECD statement |
| In addition he said thousands of British jobs could be lost - although he said that was not the reason the probe was halted. OECD rules mean diplomatic or commercial considerations should not come into play in fraud probes. | |
| But critics, including the Liberal Democrats, say the government was effectively blackmailed into the decision, after reports the Saudis were threatening to pull out of another £6bn deal with BAE. | But critics, including the Liberal Democrats, say the government was effectively blackmailed into the decision, after reports the Saudis were threatening to pull out of another £6bn deal with BAE. |
| Crucial importance | Crucial importance |
| In a statement on Thursday, the OECD said: "The working group has serious concerns as to whether the decision was consistent with the OECD Anti-Bribery Convention." | In a statement on Thursday, the OECD said: "The working group has serious concerns as to whether the decision was consistent with the OECD Anti-Bribery Convention." |
| Secretary General Angel Gurria said "appropriate action" would be considered, after its working group on bribery published its two-yearly report on the UK's compliance with the convention in March. | Secretary General Angel Gurria said "appropriate action" would be considered, after its working group on bribery published its two-yearly report on the UK's compliance with the convention in March. |
| In the House of Lords earlier, Attorney General, Lord Goldsmith said: "It is very important to make it clear that dropping the investigation into alleged bribes paid by BAE Systems - and it was not an entirely comfortable decision - doesn't mean we are backing off in any way from our commitment to tackling international corruption." | In the House of Lords earlier, Attorney General, Lord Goldsmith said: "It is very important to make it clear that dropping the investigation into alleged bribes paid by BAE Systems - and it was not an entirely comfortable decision - doesn't mean we are backing off in any way from our commitment to tackling international corruption." |
| Earlier this week the Guardian newspaper reported that MI6 had refused to endorse the claim the probe would harm the UK's national interest. | Earlier this week the Guardian newspaper reported that MI6 had refused to endorse the claim the probe would harm the UK's national interest. |
| But Lord Goldsmith said: "All relevant agencies were clear about the crucial importance of UK-Saudi co-operation in the fight against terrorism and the damage to UK interests, and potentially UK lives, if that co-operation were withdrawn." | But Lord Goldsmith said: "All relevant agencies were clear about the crucial importance of UK-Saudi co-operation in the fight against terrorism and the damage to UK interests, and potentially UK lives, if that co-operation were withdrawn." |