Judge's BAE comments seriously damage the Government - Cable

10.00.00am UTC (GMT +0000) Fri 15th Feb 2008

One of Britain's most senior judges accused the Government yesterday of "rolling over" to Saudi threats in scrapping a corruption probe into arms deals between BAE Systems and the Saudi Arabian government. Documents revealed in the High Court yesterday show that the Government thought "British lives on British streets" would have been at risk if an arms deal inquiry had not been dropped. Two pressure groups are trying to overturn the decision to halt the corruption inquiry. The judicial review is expected to conclude today.

Vince Cable, Liberal Democrat Shadow Chancellor said "The Liberal Democrats alleged at the time that the Government had capitulated in the face of threats from Saudi Arabia which may or may not have had any substance. Today we have confirmation that this is exactly what happened. These comments fully vindicate those of us who argued that Tony Blair and his ministers acted improperly stopping the prosecution into these serious fraud allegations."