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British Drop Inquiry Into Saudi Arms Deal
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By THE ASSOCIATED PRESS
Published: December 15, 2006
LONDON, Dec. 14 (Reuters) — British prosecutors dropped a two-year corruption inquiry into a multibillion-dollar defense deal with Saudi Arabia on Thursday after the government warned that the investigation could undermine national security.

The reversal followed reports that Saudi Arabia had warned Britain it might cancel an order for 72 Eurofighter Typhoon jets from BAE Systems over the inquiry into past dealings involving Saudi officials and people working on behalf of BAE.

The government’s top lawyer, Lord Goldsmith, said Prime Minister Tony Blair, British security service chiefs and the Saudi ambassador to London believed that prolonging the investigation could cause “serious damage” to relations with Riyadh.

The Serious Fraud Office said it had decided to drop the investigation after receiving “representations” concerning the need to safeguard national and international security.

Arms sales to Saudi Arabia represent the biggest export deals in British history, and analysts said the latest, worth an estimated $19.66 billion, had been at risk.

Thousands of jobs may have been threatened.

http://www.nytimes.com/2006/12/15/world/europe/15britain.html

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