UK PM defends BAE decision

The Prime Minister has defended the decision to drop a fraud inquiry into alleged bribery linked to a multi-billion arms deal with Saudi Arabia.

Attorney General Lord Goldsmith yesterday announced that the Serious Fraud Office probe relating to the Al Yamamah BAE Systems deal was being halted after two years.

Speaking in Brussels today, Mr Blair said he took "full responsibility" for advising Lord Goldsmith that it was not in Britain's national interests for the inquiry to continue.

Had the investigation been allowed to proceed, it would have produced months or years of "ill feeling" between Britain and a key ally in the Middle East.

Mr Blair said:

"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-Palestine, and that strategic interest comes first, particularly in circumstances where if this prosecution had gone forward all that would have happened is that we would have had months, potentially years, of ill feeling between us and a key partner and ally and probably to no purpose"

"I am afraid in the end my role as Prime Minister is to advise on what is the best national interest, strategic interest of our country and I have absolutely no doubt at all that the right decision was taken in this regard."

By 10 Downing Street