ARAB-US RELATIONS - March 27 - Perle Resigns As Head Of Defence Policy Board.

Richard Perle, the influential Pentagon adviser and a staunch advocate of the war on Iraq, steps down as Chairman of Defence Policy Board - a key advisory body to the Defence Department - amidst mounting criticism that his outside business dealings posed a conflict of interest. (Perle was appointed by Defence Secretary Donald Rumsfeld in 2001 to chair the Defence Policy Board, a group of private-sector officials who advise the Pentagon, and is seen as the intellectual mentor of many of the department's senior civilian leaders). Perle will remain a board member. He announced that he is ending his consultancy work with Global Crossing, the bankrupt telecommunications company, that made him a source of controversy for the Bush administration in recent weeks and prompted calls for a congressional investigation. Perle said in a letter to Chris Nash, a senior vice president at Global Crossing: "In light of the recent controversy reported in the press, I think it best that I withdraw from performing any further services for the company. I believe most of my work on your behalf is complete". The company paid Perle $150,000 to advise it on the sale of its assets to a Chinese-controlled company, which has been held up by defence department objections. He was to be paid another $600,000 upon government approval of the deal. Perle denied last week that there was anything improper about the work. He told The FT: "I wouldn't do it if I didn't think it was appropriate".