Blair blasts back at Short

British intelligence was today sensationally accused of bugging the offices of United Nations Secretary General Kofi Annan.

The charge, which threatens an international row and a huge scandal for Tony Blair, came from former Cabinet minister Clare Short.

She said she was "absolutely" sure British spies had conducted a sustained and major operation within the UN in the run-up to the war on Iraq. She herself, when a minister, had seen transcripts of the Secretary General's private conversations, she said.

Her charge drew an impassioned and furious response from Mr Blair, who denounced it as "wholly irresponsible" and damaging to Britain's security.

Ms Short dropped the bombshell when questioned on the BBC's Today programme over charges that American intelligence had tapped phone conversations of UN officials.

Asked whether diplomatic pressure was one thing but spying on the UN was different, the former international development secretary replied: "Well, indeed, but these things are done and in the case of Kofi's office it's been done for some time." Asked

whether she believed British intelligence was involved, she replied: "Well, I know. I have seen transcripts of Kofi Annan's conversations. In fact I have had conversations with Kofi in the run-up to war, thinking 'Oh dear. There will be a transcript of this and people will see what he and I are saying'."

Her interviewer, John Humphrys, clearly startled, then asked: "In other words, British spies - let's be very clear about this in case I am misunderstanding you - British spies have been instructed to carry out operations within the UN on people like Kofi Annan?"

Ms Short: "Yes, absolutely." Humphrys: "Did you know about this while you were in government?"

Ms Short: "Absolutely. I read some of the transcripts of his conversations."

Asked whether she believed such operations were legal, she replied: "I don't know. I presume so. It's odd, but I don't know about the legalities."

Downing Street, challenged over the charge, stopped short of denying it. A spokesman said: "There is a convention that governments do not comment on the work of the security services. But the United Kingdom always acts in accordance with domestic and international law." Whitehall pointed out that ministers and officials did not reply to such charges for good reason.

"If you deny one, you are bound to be asked about the next, and the next, and the next," said one source.

Despite that, Mr Blair found his monthly press conference today hijacked by the row as the Iraq issue sprang up, yet again, to haunt him.

The Government faced embarrassment over the Iraq war yesterday when Katharine Gun, 29, a translator for the Government Communications Headquarters (GCHQ), walked free from the Old Bailey.

She had been charged with breaching the Official Secrets Act after leaking a top-secret email which revealed US plans to bug delegates at the UN Security Council ahead of a crucial vote in the run-up to the conflict.

She admitted leaking the email, which she said "horrified" her, but the case against her was dropped.

With the Government enmeshed not only over Ms Short's allegations but also the decision to allow Mrs Gun to walk free, there were suggestions there could now be a wholesale review of the law, including the increasingly ineffectual Official Secrets Act.

At his press conference, Mr Blair steadfastly refused to confirm or deny Ms Short's charges. To do so, he said, would break the rule followed by every government not to comment on intelligence matters. He rounded on the next questioner, saying: "I tell you, our intelligence services perform an absolutely vital task on behalf of this country.

"Many work in circumstances of very great danger and it really is the height of irresponsibility to expose them to this type of public questioning in a way that does absolutely no good to the security of this country."

He let his anger show over the intervention from Ms Short, 58, acidly describing it as "totally irresponsible - and entirely consistent." Mr Blair repeatedly stressed that his refusal to comment on the charges from Ms Short should not be taken to confirm them.

On the dropping of charges against Mrs Gun, Mr Blair denied having any part in the decision. He angrily warned that people like Ms Short and Mrs Gun were putting the security of the nation at risk.

"My reaction to the events of the last 24 hours is that we will be in a very dangerous situation as a country if people feel they can simply just spill out secrets or details of security operations whether false or true and think they can get away with it," he said. He was also repeatedly challenged over reports that the Attorney General, Lord Goldsmith, advised until December 2002 - a few months before the invasion of Iraq - that the war could be unlawful.

Mr Blair did not deny the charge outright, but insisted: "I absolutely deny that we did anything other than conform with his advice throughout." He sidestepped the question of whether Ms Short, like Mrs Gun, should face prosecution for breaching the Official Secrets Act.

But in the Lords, the Attorney General came close to admitting that the Act is now effectively useless.

Asked whether there would be a review, Lord Goldsmith replied: "It is the case that the substantive law is always kept under review and the effect of particular cases on the substantive law is considered."

Ms Short refused to say more this afternoon. Former foreign secretary Robin Cook who, like her, resigned over the Iraq war, appeared today to agree with Mr Blair's call for restraint.

He described Ms Short's charges as "interesting" but refused to comment further.