大象传媒

Brown鈥檚 Saudi dilemma

• Robert Peston
• 26 Jun 07, 08:15 AM

Last night received a subpoena from the requesting all relevant information on its 拢40bn contract to supply military equipment to Saudi Arabia.

You would think that would be hugely embarrassing for BAE, given all the allegations that have been made about sleaze and bribes connected to this deal, known as the Al Yamamah contract.

But actually it's a much bigger headache for the Government.

In fact, it will be Gordon Brown's first big diplomatic dilemma as prime minister.

Why? Because the contract was between the British and Saudi governments, not between BAE and Saudi.

BAE was only the contractor.

So it will be a decision for the , not BAE, whether to disclose the details of the deal.

The Saudi government has made it clear over many years that it regards the contract - which allegedly involved payments of hundreds of millions of pounds to Prince Bandar, a member of the Saudi Royal family - as highly confidential.

That's why it put pressure on the British government to stop an investigation into it by the last year.

So the Saudis will not be overjoyed that the Department of Justice is apparently taking up where the Serious Fraud Office left off.

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