BRITAIN DID DO DEAL TO RELEASE MEGRAHI; Business at stake says ex-diplomat.

Byline: James Lyons 

BRITAIN did a "political deal" to free the Lockerbie bomber, the UK's former ambassador to Libya claimed yesterday.

Oliver Miles agreed with ministers that Abdelbaset Ali al Megrahi was not released directly in return for oil and trade.

But Miles, who is now deputy head of the Libyan-British Business Council, said a secret agreement appeared to have been concocted.

And the ex-envoy to Tripoli admitted UK business interests in the oil-rich North African state would have been damaged if Megrahi had died in his Scottish jail cell.

The former diplomat said the Libyans had used "every pressure point", including trade, to get Megrahi back.

Miles said: "Business was there in the background. If this had gone wrong, if Megrahi had died in a Scottish prison, there would have been serious repercussions for British interests, including business."

He added: "I don't think there was a deal on business. I suspect there was a political deal."

Miles said his suspicions had been aroused by Megrahi's decision to abandon the appeal against his conviction, something he had sworn not to do.

The convicted bomber - who is dying of prostate cancer and was shown apparently extremely ill in weekend TV pictures - dropped the appeal shortly before being freed on compassionate grounds.

Miles said: "He has always wanted to assert his innocence. So why did he give it up? "I've got a nasty feeling that he did it because somebody tipped him the wink that he was more likely to get humanitarian release if he gave it up."

Desert

Miles also criticised ministers for negotiating a prison transfer agreement alongside trade.

The agreement was part of the "deal in the desert" signed by Tony Blair and Libyan leader Colonel Gaddafi two years ago.

The Government wanted Megrahi kept out of it but backed down when the Libyans played tough and an oil exploration deal worth up to pounds 15billion stalled.

Downing Street and the Scottish government have repeatedly denied any deal.

But the Tories and Lib Dems are demanding a Commons inquiry into the affair.

First Minister Alex Salmond said yesterday the Scottish government would co-operate with "any committee whether of Westminster or the Scottish Parliament".

He added: "We have absolutely nothing we want to keep back."

Megrahi's release sparked fury from some relatives of the 270 people killed when Pan Am flight 103 was blown out of the sky in 1988.

CAPTION(S):

ILL: Megrahi at weekend