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| Version 0 | Version 1 |
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| Blair blasted over Tanzania deal | Blair blasted over Tanzania deal |
| (about 7 hours later) | |
| The UK sold a "useless" air traffic control system to Tanzania in 2001 in a "scandalous" and "squalid" deal, the House of Commons has been told. | The UK sold a "useless" air traffic control system to Tanzania in 2001 in a "scandalous" and "squalid" deal, the House of Commons has been told. |
| Ex-International Development Secretary Clare Short joined the Tories in accusing Tony Blair of pushing through the £28m sale by BAE Systems. | |
| Ministers said the deal had not damaged Tanzania's economy or its development. | Ministers said the deal had not damaged Tanzania's economy or its development. |
| The Serious Fraud Office (SFO) is currently investigating claims that BAE bribed Tanzanian officials. | The Serious Fraud Office (SFO) is currently investigating claims that BAE bribed Tanzanian officials. |
| 'Reputation in tatters' | 'Reputation in tatters' |
| Ms Short, who is now an independent MP, has consistently argued Tanzania could have paid much less for the same equipment. | Ms Short, who is now an independent MP, has consistently argued Tanzania could have paid much less for the same equipment. |
| "I believe that all the parties involved in this deal should be deeply ashamed," she said in a Commons debate on Tuesday night. | "I believe that all the parties involved in this deal should be deeply ashamed," she said in a Commons debate on Tuesday night. |
| Approval for the licences was forced through a divided cabinet by the prime minister Andrew MitchellShadow international development secretary | Approval for the licences was forced through a divided cabinet by the prime minister Andrew MitchellShadow international development secretary |
| She said the deal was "useless and hostile to the interests of Tanzania" and had been opposed by senior cabinet members including Chancellor Gordon Brown. | She said the deal was "useless and hostile to the interests of Tanzania" and had been opposed by senior cabinet members including Chancellor Gordon Brown. |
| She said Barclays Bank had "colluded" with the government by loaning Tanzania the money, but lying to the World Bank about the type and size of the loan. | She said Barclays Bank had "colluded" with the government by loaning Tanzania the money, but lying to the World Bank about the type and size of the loan. |
| Lynne Featherstone, of the Liberal Democrats, said Britain had to be "squeaky clean" if it wanted to "retain any influence, reputation or credibility in world affairs". | Lynne Featherstone, of the Liberal Democrats, said Britain had to be "squeaky clean" if it wanted to "retain any influence, reputation or credibility in world affairs". |
| "Somewhere between the government, BAE and Barclays - and perhaps all three - our reputation worldwide is in tatters," she said. | "Somewhere between the government, BAE and Barclays - and perhaps all three - our reputation worldwide is in tatters," she said. |
| 'Profoundly unattractive' | 'Profoundly unattractive' |
| Shadow international development secretary Andrew Mitchell said BAE had used "ageing technology" and said the system was "not adequate and too expensive". | Shadow international development secretary Andrew Mitchell said BAE had used "ageing technology" and said the system was "not adequate and too expensive". |
| Mr Mitchell said the deal had "all the warning signs of impropriety - a vastly inflated price, an unsuitable product and unorthodox financing". | Mr Mitchell said the deal had "all the warning signs of impropriety - a vastly inflated price, an unsuitable product and unorthodox financing". |
| "Despite the opposition of all the most informed, respected and qualified observers approval for the licences was forced through a divided cabinet by the prime minister." | "Despite the opposition of all the most informed, respected and qualified observers approval for the licences was forced through a divided cabinet by the prime minister." |
| He called on his opposite number, Hilary Benn, to explain the government's "profoundly unattractive" conduct. | He called on his opposite number, Hilary Benn, to explain the government's "profoundly unattractive" conduct. |
| BAE denial | BAE denial |
| Mr Benn said the government had considered whether "the export would seriously undermine the economy or seriously harm the sustainable development of the recipient country". | Mr Benn said the government had considered whether "the export would seriously undermine the economy or seriously harm the sustainable development of the recipient country". |
| "The government at the time judged it would not and, looking back from this vantage point, it would be hard to argue that it did." | "The government at the time judged it would not and, looking back from this vantage point, it would be hard to argue that it did." |
| He said he could not comment on bribery allegations because they were under investigation. | He said he could not comment on bribery allegations because they were under investigation. |
| Officials from the SFO have already visited Tanzania to look into claims BAE gave bribes to ensure the deal would go through. | Officials from the SFO have already visited Tanzania to look into claims BAE gave bribes to ensure the deal would go through. |
| BAE says it is co-operating fully with the inquiry, but has strongly denied operating a secret slush fund to sweeten deals. | BAE says it is co-operating fully with the inquiry, but has strongly denied operating a secret slush fund to sweeten deals. |
| The SFO recently decided to drop a long-running BAE corruption probe into a huge arms deal with Saudi Arabia. | The SFO recently decided to drop a long-running BAE corruption probe into a huge arms deal with Saudi Arabia. |
| Reports said the Saudis had threatened to pull out of a new BAE deal unless the probe was brought to an end. | Reports said the Saudis had threatened to pull out of a new BAE deal unless the probe was brought to an end. |
| Opposition politicians accused the government of putting cash before principle. | Opposition politicians accused the government of putting cash before principle. |