Cover-up row over Black Wednesday

THE Treasury was the centre of a 'cover-up' row today after it delayed releasing sensitive papers on Britain's 1992 exit from the European monetary system.

The Black Wednesday documents were reportedly held back after last-minute interventions by John Major, Tory Prime Minister at the time, and his then Chancellor of the Exchequer Norman - now Lord - Lamont.

Under the Freedom of Information Act, Treasury officials had earlier this week agreed to publish some 300 secret papers on the fiasco, which saw interest rates raised twice, from 10% to 15% cent, in a matter of hours.

But Cabinet Secretary Sir Andrew Turnbull reportedly granted Major and Lamont more time to study the documents, fuelling suggestions that an 'old boys' network' was behind the publication delay.

Both politicians have denied trying to block the release of the papers - the first big test of the information law. The Conservatives do, however, fear Labour could try to use them as part of a General Election 'dirty tricks' campaign.

Party co-chairman Liam Fox said: 'The Government should not be allowed to manipulate release of information it believes damaging to its opponents.'

Many believe Black Wednesday destroyed overnight the Tories' reputation for economic competence and laid the ground for Labour's 1997 election victory