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January 27, 2001

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Blair defends Vaz in Hinduja passport row

H S Rao in London

British Prime Minister Anthony Blair has come to the aid of embattled Minister for Europe Keith Vaz as the India-born politician fought to avoid becoming the second victim of the controversy surrounding the granting of passports to non-resident Indian businessman Srichand P Hinduja.

The Tories and Liberal Democrats demanded to know whether there was any connection between the Hindujas' one million pound sponsorship of the faith centre at London's Millennium Dome and the granting of citizenship to Srichand Hinduja in six months rather than the average 19 months.

On Friday, Blair confirmed that Vaz had made representations to the home office about Hinduja's passports while being a backbench member of Parliament, but added that "from the look of the papers I have seen, I cannot see anything wrong with what has been done".

"Keith is a prominent Asian MP. They [the Hindujas] are prominent people from the Asian community. He made representations on their behalf," Blair said.

Vaz told reporters on Friday that he was pleased that an investigation had been ordered into the issue of the passport. "I am very relaxed about [the inquiry], but I will not apologise for my links with the British Asian community," he remarked.

Vaz said he would be happy to have his correspondence published after the inquiry was completed. It was "not unusual" for citizenship to be granted rapidly, he said. Labour had speeded up procedures for talented people to be allowed into the country to invest.

Meanwhile, Sir Anthony Hammond, former treasury solicitor, began work on his inquiry, ordered by Prime Minister Blair, into the circumstances surrounding the application and granting of citizenship to Hinduja in March 1999.

The probe was ordered after Peter Mandelson, former secretary for Northern Ireland and one of Blair's closest aides, resigned over the controversy.

On Friday night it emerged that Trade and Industry Secretary Stephen Byers had met Gopichand P Hinduja, president of the Hinduja Group, at his Whitehall office on November 22, 2000, a month after the Central Bureau of Investigation applied to have the Hindujas charged in connection with alleged bribery in the Bofors arms deal.

The department of trade and industry confirmed that Byers had met S P and G P Hinduja several times in 1999 and 2000, but stressed that on all occasions they discussed "departmental business".

Anne Widdecombe, shadow home secretary, said she was unwilling to await the completion of Sir Anthony's probe before demanding further details of what had happened.

"The questions that I have tabled are designed to establish what conversations there were between ministers at the home office and other ministers, ministerial colleagues, in other departments about the situation of the Hindujas," she said.

Meanwhile, Labour Party bosses in Mandelson's Hartlepool constituency confirmed that he would stand again as their candidate in the next general election.

PTI

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