THE GUARDIAN: Saudi Arabia's rulers threatened to make it easier for terrorists to attack London unless corruption investigations into their arms deals were halted, according to court documents revealed yesterday.
Previously secret files describe how investigators were told they faced "another 7/7" and the loss of "British lives on British streets" if they pressed on with their inquiries and the Saudis carried out their threat to cut off intelligence.
Prince Bandar, the head of the Saudi national security council, and son of the crown prince, was alleged in court to be the man behind the threats to hold back information about suicide bombers and terrorists. He faces accusations that he himself took more than £1bn in secret payments from the arms company BAE.
He was accused in yesterday's high court hearings of flying to London in December 2006 and uttering threats which made the prime minister, Tony Blair, force an end to the Serious Fraud Office investigation into bribery allegations involving Bandar and his family.
The threats halted the fraud inquiry, but triggered an international outcry, with allegations that Britain had broken international anti-bribery treaties.
Lord Justice Moses, hearing the civil case with Mr Justice Sullivan, said the government appeared to have "rolled over" after the threats. He said one possible view was that it was "just as if a gun had been held to the head" of the government.
The SFO investigation began in 2004, when Robert Wardle, its director, studied evidence unearthed by the Guardian. This revealed that massive secret payments were going from BAE to Saudi Arabian princes, to promote arms deals.
Yesterday, anti-corruption campaigners began a legal action to overturn the decision to halt the case. They want the original investigation restarted, arguing the government had caved into blackmail. BAE: secret papers reveal threats from Saudi prince - Spectre of 'another 7/7' led Tony Blair to block bribes inquiry, high court told >>> | David Leigh and Rob Evans
LISTEN TO GUARDIAN AUDIO: 'It was remarkable the way the government had just rolled over': Two pressure groups are appealing against the decision to drop an investigation into BAE's dealings with Saudi Arabia
THE GUARDIAN: A cover-up laid bare: court hears how SFO inquiry was halted: Papers show how arms giant tried to avoid revealing secrets; Saudi threats meant 'no other choice' but to stop investigation
THE GUARDIAN: Full Coverage: The BAE Files
DAILY MAIL: Blair accused of forcing BAE fraud probe to fold by applying 'irresistible pressure
THE INDEPENDENT: Blair used 'irresistible pressure' to halt investigation into BAE-Saudi arms deal | Robert Verkaik, Law Editor
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