(U) BLAIR INTERVIEWED BY POLICE IN "LOANS FOR

UNCLAS LONDON 008361 SIPDIS SENSITIVE SIPDIS STATE FOR EUR/UBI, INR/EU E.O. 12958: N/A TAGS: PGOV PINR UK SUBJECT: (U) BLAIR INTERVIEWED BY POLICE IN "LOANS FOR PEERAGES" AFFAIR REF: LONDON 8143 ¶1. (SBU) SUMMARY: PM Blair was interviewed by the Police December 14 as part of the investigation into the so-called "loans for peerages" or "cash for honors" affair (reftel). This had been widely expected - indeed it was all but inevitable given Blair's personal involvement both in approving loans to the Labour Party and in selecting nominees for peerages and honors. The interview was not conducted under caution, let alone arrest; i.e., the Prime Minister was not being treated as a suspect. Some 90 individuals, including from all three major political parties, have been interviewed, among them Michael Howard, who was the leader of the opposition Conservative Party at the time of the events under scrutiny. Nonetheless, the media and Blair's opponents are playing up the fact that he is the first sitting Prime Minister to be interviewed by the Police in a criminal investigation. END SUMMARY. ¶2. (SBU) Prime Minister Tony Blair was interviewed by the Metropolitan Police December 14 in his study at Number 10 Downing Street. The meeting lasted nearly two hours. Blair was not placed under caution, let alone under arrest - i.e. the Police were not treating him as a suspect. He was not accompanied by an attorney, but a civil servant was present as notetaker. According to the newsmedia, the Prime Minister stressed to the Police that the four lenders to the Labour Party who were subsequently nominated for peerages were put forward as party nominees, not Government nominees - in other words, they were being recognized for their services to the party, not the nation, and it would be absurd to hold it against them that they had contributed money to the party. ¶3. (SBU) There had been reports that the PM was trying to avoid having the Police come to Downing Street, but as it turned out, the potential embarrassment was mitigated by the discretion of the Police visit, the fact that Blair flew off to Brussels later the same day, and the release of the long-awaited official report into the death of Diana, Princess of Wales. Another major announcement made the same day helped to deflect attention further: HMG's decision to cancel the investigation into corruption in multi-billion Pound arms sales to Saudi Arabia. Even so, Blair's critics are playing up the fact that he is the first sitting Prime Minister to be interviewed by the Police in a criminal investigation. In fact, it is hard to see how this investigation could be considered thorough if it failed to include Blair, given his personal involvement both in approving loans to the Labour Party and in selecting nominees for peerages and honors. ¶4. (SBU) Some 90 people have been interviewed in the "loans for peerages" investigation: at least 36 from the Labour Party, 29 from the Conservative Party, four from the Liberal Democrats, and 22 "non-party" figures. Michael Howard, leader of the opposition Conservative Party at the time of the events under scrutiny (around the 2005 general election), is known to be among those interviewed. Several of the interviews occurred under caution, and three individuals were briefly arrested at various times, but no charges have been filed. The officer heading the investigation has said he hopes to complete work and submit a report to the Crown Prosecution Service (CPS) in January, provided he receives all necessary cooperation. It will be up to the CPS to make a recommendation as to whether the Attorney General -- who made the decision not to pursue the allegations of corruption in BAE's dealings with the Saudi government -- makes the final decision on whether a prosecution should go forward. He has said he would seek independent advice in this case. ¶5. (SBU) At this point it is not at all clear that anyone from any party broke the law in this affair. But persistent media coverage has already overturned early expectations that the "loans for peerages" affair would peter out quickly. Visit London's Classified Website: http://www.state.sgov.gov/p/eur/london/index. cfm Tuttle