America Demands That Britain Hand Over BAE Evidence

The Guardian is reporting that there is a looming diplomatic spat between Britain and the USA over the investigation into BAE corruption in its Saudi Arabian deals.

A potential diplomatic collision with the US is looming over the corruption allegations against the arms company BAE. The department of justice in Washington has formally demanded that Britain hand over all evidence of secret payments the company made to members of the Saudi royal family to secure huge arms deals.

The department has taken over the corruption investigation after British prosecutors were forced by the then prime minister, Tony Blair, to halt it late last year on alleged grounds of national security.

The timing of this couldn't be better, coming as it did just hours after the Government went into damage limitation mode after the statements made about Britain's future relationship with the USA by the International Development Secretary, Douglas Alexander and also by the recently ennobled Sir Mark Malloch Brown, the Minister for Africa, Asia and UN. Both statements by these ministers have been seen as criticism of US foreign policy forcing Gordon Brown and the Foreign Secretary, David Miliband to insist that there is no change at all in the Britain's relationship with the USA. David Miliband went on air to say that:

"Our commitment to work with the American government in general, and the Bush administration in particular, is resolute," Mr Miliband told the BBC.

While this is unlikely to create a serious rift between Britain and America, it is interesting nonetheless. When Tony Blair was Prime Minister, he insisted that the reason the The Serious Fraud Office investigation into BAE corruption and the payments to the Saudi royal family had to be dropped was for reasons of national security. So, if that was true then we should expect a refusal to co-operate with the American investigation. Refusing to co-operate with an American corruption investigation could have negative consequences for Britain and would cause further worry in Washington about Britain's relationship with the USA. If Britain does decide to co-operate and hand over the evidence collected so far by the SFO then that, presumably, would either create 'national security' issues for Britain or expose Blair and Lord Goldsmith's assertions as a pack of lies.

Tom, FYI, Metronet is going

Tom, FYI, Metronet is going bust:

http://news.bbc.co.uk/2/hi/business/6900360.stm

Where does this leave Gord PFI Brown - to say nothing of Alistair Darling, the worst Transport Minister ever? Will Ken now be able to buy it for a song?