Britain bribed senior Saudi officials to secure arms contracts, a former Tory defence secretary admitted last night.

Lord Gilmour who, as Sir Ian Gilmour, held the post in Edward Heath's government, said payments were necessary to beat American and French competition.

The admission follows the disclosure of classified documents, including a memorandum from 1972 in which a senior official responsible for defence sales mentions a company used to pass on "douceurs" - bribes.

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