October 23, 2007 (LPAC)--A document has surfaced indicating that British Aircraft corporation, BAC, the forerunner of BAE Systems, was bribing officials of Saudi Arabia as early as the 1970s. During 1985-2007, BAE paid bribes to Saudi Prince Bandar in the amount of about $2 billion, part of what Lyndon LaRouche has called "the scandal of the century." Tony Blair killed the investigation into that deal at the end of 2006.

The document, which was filed in the British government's National Archives last July, was a secret draft memo from the 1970s, written by the Defense Export Services Organization (DESO), which reports to the Ministry of Defense (MoD). It said that "technical consultancy" fees "amount in practice to the exertion of influence to sway decisions," i.e., bribes.

The document deals with fees associated with two contracts, including the sale of Lightning aircraft, which later formed the basis for the multi-billion-pound Al Yamamah agreement in the 1980s. The deals were struck between the British and Saudi governments, and the main supplier was BAC. The document was sent by DESO's then chief, Sir Lester Suffield, to the MoD's permanent secretary, Sir Frank Cooper, as part of official correspondence in 1976 over the nature of commissions.

The memo also said Saudi officials "would certainly not officially approve the payment of fees, although they undoubtedly expect appropriately discreet arrangements to be made." The document claims that such sentiments were expressed by figures as senior as King Fahd when he was Crown Prince. This assertion was removed from the final letter.

Commenting on the document Nicholas Gilby, a member of Campaign Against Arms Trade, to the Daily Telegraph: "This document appears to cast serious doubt on the propriety of payments made by BAE via the MoD's accounts. There should be a full open Parliamentary inquiry into these deals both past and present."

Next month, the MoD will testify to parliament's Quadripartite Committee, which looks at defense, trade and foreign affairs. Its chairman, Roger Berry, said he would quiz the MoD about the DESO document. The MoD refused to comment. The DESO document came to light on the eve of a state visit from Saudi Arabia's King Abdullah.