Blair and the Saudis

Are involved in a not-so-secret arms deal.

Mr Blair went to Riyadh on July 2, en route to Singapore, where Britain was bidding for the 2012 Olympics. Three weeks later, Mr Reid made a two-day visit, when he sought to persuade Prince Sultan, the crown prince, to re-equip his air force with the Typhoon, the European fighter plane of which the British arms company BAE has the lion's share of manufacturing.

Defence, diplomatic and legal sources say negotiations are stalling because the Saudis are demanding three favours. These are that Britain should expel two anti-Saudi dissidents, Saad al-Faqih and Mohammed al-Masari; that British Airways should resume flights to Riyadh, currently cancelled through terrorism fears; and that a corruption investigation implicating the Saudi ruling family and BAE should be dropped. Crown prince Sultan's son-in-law, Prince Turki bin Nasr, is at the centre of a "slush fund" investigation by the Serious Fraud Office.