British defense firm BAE has been engaged in a corrupt and fraudulent relationship with our friends the Saudis, and Tony Blair knuckled under to the Saudis’ demands that he drop an investigation: Blair defends dropping of BAE-Saudi probe.

LONDON (AFP) - Prime Minister Tony Blair has defended the dropping of a fraud probe into BAE Systems’ weapons deals with Saudi Arabia, insisting it would have been “devastating” for Britain’s interests to continue.

The Serious Fraud Office (SFO) last month stopped an investigation into claims that giant British defence firm BAE established a slush fund for some members of the Saudi royal family. The fund allegedly provided perks including luxury cars while the company attempted to secure a contract in the 1980s.

Blair advised Attorney General Lord Peter Goldsmith that to continue would have been against Britain’s national interest. The investigation into the Al-Yamamah BAE Systems deal from the 1980s was stopped after two years.

“There is no doubt whatever in my mind, and I think of those of any of the people who have looked at this issue, that had we proceeded with this, the result would have been devastating for our relationship with an important country with whom we cooperate closely on terrorism, on security, on the Middle East peace process and a host of other issues,” Blair said Tuesday.

“And that is leaving aside the thousands of jobs that we would have lost, which is not the consideration in this case, but nonetheless I’ll just point it out.”

BAE last year secured a 10-billion-pound deal with Saudi Arabia for 72 Eurofighter jets, and the deal was reportedly under threat due to the SFO investigation.