Blair intervened in decision to suspend Saudi arms probe

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Ministers last night faced calls for a fresh inquiry into the suspension of the bribery probe into BAE Systems' Saudi arms deals after it was revealed how Tony Blair intervened in the decision.

Newly released secret documents show the then Prime Minister begged his Attorney General to scrap a Serious Fraud Office inquiry, fearing it would jeopardise future fighter-jet contracts.

When the SFO controversially abandoned its investigation into the Al-Yamamah arms deal, Mr Blair insisted the decision had been taken on security grounds.

But a letter from Mr Blair to Lord Goldsmith, then Attorney General, just six days before the suspension was announced, shows that he also highlighted the "critical difficulties" the probe could cause to the sale of Typhoon aircraft to the Saudis.

The document, dated December 8, 2006, has been released to the High Court during a legal action brought by anti-corruption campaigners.

In the letter, Mr Blair acknowledged an international agreement preventing the consideration of national economic interest but nevertheless referred to "concern" over "damage" being done to relations with the Saudis.

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Contract: 72 typhoons were sold

In September, the Ministry of Defence announced a £4.43billion deal to sell 72 Typhoons to Saudi Arabia. Liberal Democrat leader Nick Clegg last night called for an independent inquiry, adding:

"This news confirms our very worst fears about this murky affair."