'Britain spied on UN chief'

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

The charge, which threatens a devastating 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.

Ms Short dropped the bombshell when she was 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."

Mr 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 was braced for questions at his monthly press conference later today as the Iraq issue sprang up, yet again, to haunt his Government.

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.

Mrs Gun had been charged with breaching the Official Secrets Act after leaking a topsecret e-mail 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 dramatically dropped yesterday.

Ms Short, 58, has been a persistent and profoundly hostile critic of the Prime Minister ever since she resigned as International Development Secretary in the wake of the war. She has repeatedly accused Mr Blair of dishonesty and called for him to stand down.

However, her earlier charges have usually been levelled in general terms. Never until now has she levelled any accusation so specific and so potentially disastrous.

There was astonishment that Ms Short, seen by many at Westminster as "flaky" on the Iraq war and other issues, should have been given access to ultra-sensitive intelligence material. But her comments today appeared to leave little room for doubt.