Tony Blair’s US trip to 'broker' £1bn Libya terror deal that left British families with nothingBy Robert Mendick, Chief Reporter 9:12PM BST 24 Oct 2015
Tony Blair has ignored a deadline to explain to MPs his alleged role in a deal that deprived British victims of Libyan terrorism millions of pounds in compensation
Tony Blair made a secret trip to the White House to broker a deal on behalf of Muammar Gaddafi that deprived British victims of Libyan terrorism of millions of pounds in compensation.
Mr Blair acted as a go-between in negotiations between Gaddafi and President George Bush over payments to terror victims, according to a senior source.
“You will find that Mr Blair called on Mr Bush in Washington in February 2008. I do know there was a meeting between Mr Blair and Mr Bush subsequent to one of Mr Blair’s visits to Libya"
Source close to terror deal
The disclosure came as Mr Blair ignored a deadline to explain his role to a parliamentary committee investigating the deal.
Mr Blair was invited to respond by Friday October 23 but instead sent a letter at 6pm on the day of the deadline, asking when the deadline was.
The deal between the US and Libya led to American victims receiving about £1 billion while British victims were left out of the agreement, including hundreds of victims of IRA terrorism, who were killed or maimed using plastic explosives supplied by Libya.
The source said that Mr Blair travelled to Washington to intervene on behalf of Gaddafi in February 2008, after first meeting the dictator in Libya.
The new evidence suggests Mr Blair, who had quit as prime minister less than a year earlier, had played an important role in negotiations between Bush and Gaddafi.
At the time, Libya was being sued through the US courts for committing terror atrocities and billions of pounds of Gaddafi’s assets were at risk of being frozen as part of the law suits.
The deal struck by Bush and Gaddafi led to US victims receiving £1 billion out of a compensation fund but in exchange all court cases were dropped under an act of Congress.
But British victims, who had brought cases in the US, including almost 200 families of IRA terrorist attacks, were not included in the deal. It meant that, for example, the relatives of an American citizen killed in the bombing of Harrods in 1983 received about £5 million while British victims, including the families of four police officers killed in the attack, were left without a penny.
The source said: “You will find that Mr Blair called on Mr Bush in Washington in February 2008. I do know there was a meeting between Mr Blair and Mr Bush subsequent to one of Mr Blair’s visits to Libya.
“There was no deliberate plan to exclude Britons from the deal but that was a consequence. It was certainly the effect. The Libyans had taken fright at the number of court judgments and that led to the negotiations and the setting up of the US compensation fund. It’s regrettable that the US didn’t allow British citizens to make a claim on the fund.”
In a letter dated February 27 2008, Mr Blair wrote to Gaddafi following his visit to Tripoli and then on to Washington. In the letter, which was discovered after Gaddafi was overthrown but whose significance can now be disclosed, Mr Blair wrote: “Dear Muammar” and concluded: “I also raised some of our conversation with president Bush and would be very happy to let you know how those talks went, With my best wishes, yours ever Tony.”
"On USA/Libya, TB should explain what he said to President Bush ... to keep his promise to Col Q [Gaddafi] to intervene after the President allowed US courts to attach Libyan assets"
Sir Vincent Fean in email to Mr Blair's office
The source has made it clear that those talks included discussions about compensation.
A month before Mr Blair met Bush, in January 2008, the US Congress had passed a new law allowing victims of state-sponsored terrorism to collect court-awarded damages by either seizing the terror state’s assets or taking money from companies doing business with them.
Gaddafi was so concerned about this - not least it would jeopardise oil and gas deals with US companies - that he appears to have enlisted Mr Blair’s help.
Mr Blair’s involvement is currently the subject of a parliamentary inquiry by the Northern Ireland Affairs Committee. Concern over Mr Blair’s role was prompted by an email obtained by The Sunday Telegraph which was written by Sir Vincent Fean, the then British ambassador to Libya, to Mr Blair’s office in June 2008.
In the email, sent ahead of another visit to Tripoli by Mr Blair, Sir Vincent wrote: “On USA/Libya, TB should explain what he said to President Bush ... to keep his promise to Col Q [Gaddafi] to intervene after the President allowed US courts to attach Libyan assets.
“He [Blair] could express satisfaction at the progress made in talks between the US and Libya to reach a Govt to Govt solution to all the legal/compensation issues outstanding from the 1980s.”
Laurence Robertson, the committee’s chairman, wrote to Mr Blair asking for a written explanation by October 23.
Mr Blair then set a letter back on October 23, saying he would like to respond and asking for a ‘timeframe for its submission’.
A committee source said: “It is school boyish of Mr Blair in the deliberate misreading of the the letter.”
The committee will want to know why Mr Blair ‘intervened’ on behalf of Gaddafi. The former prime minister is thought to have visited Libya at least six times after leaving Downing St in 2007 as he tried to build up his business and philanthropic interests. Mr Blair has since built up a fortune estimated at £60 million, based on a consultancy business that includes advising foreign governments.
Mr Blair is understood to have attempted to put together a number of deals during his trips to Libya.
Kate Hoey, a Labour MP and committee member, said: “The more we hear from witnesses, the more Tony Blair’s name crops up. It is extremely likely our committee will wish to interview him and see him in person.”
Mr Blair has always insisted he had “nothing whatever to do with any compensation legislation signed by President Bush”.
However, Jason McCue, of McCue & Partners, the law firm that represented almost 200 British victims and their families in a law suit in the US, questioned Mr Blair’s role.
Mr McCue said: “If Mr Blair met President Bush as early as February 2008, this should have given the British Government ample time to ensure that the UK victims’ claims were included.
“Did Mr Blair advise the Government what he was doing? This vital query makes it all the more necessary for Mr Blair to give full account to the Committee of his involvement and what actually went on.”
Mr Blair’s spokeswoman said: “Mr Blair did not have any involvement with the terms of compensation, nor any discussion with President Bush on the matter. The email you reference merely expresses government policy at the time which was to re-engage with the Libyans after they gave up their WMD programme and chose to co-operate rather than sponsor terrorism.”
Sir Vincent has told the inquiry that he knew of three occasions on which Mr Blair had visited Tripoli during his stint as ambassador. Sir Vincent confirmed details of the email in which he also discussed British arms deals with Libya.
Sir Vincent, who has since retired, told MPs the US decision to exclude British victims from the compensation fund was “sad and negative” and said he was not party to the decision taken in Washington.
“The United States had a large amount of influence at the time and indeed now, and joining with them would have increased the chances of success,” he said. “But the United States for reasons I do not fully understand did not wish to associate the UK victims with the US victims.”
http://www.telegraph.co.uk/news/politics/tony-blair/11953214/Tony-Blairs-US-trip-to-broker-1bn-Libya-terror-deal-that-left-British-families-with-nothing.html