Fraud alleged in British-Saudi arms deal

LONDON, Oct. 28 (UPI) -- Britain scrambled to recover secret documents suggesting an $82 billion arms deal with Saudi Arabia was corrupted by price gouging, it was reported Saturday.

The documents say the price of fighter jets in the massive arms sales to Saudi Arabia -- dubbed Al Yamamah, or "The Dove" -- were inflated by about 33 percent, or $1.1 billion, the Guardian newspaper said.

Government officials hastily withdrew a telegram outlining the fighter-jet sale details after originally placing it in the British archives, saying its release had been "a mistake."

The 21-year-old deal has kept BAE Systems, the world's fourth largest defense contractor, afloat ever since, the newspaper said.

Critics the government does not criticize Saudi human rights abuses so as not to upset the arms sales.

Mark Thatcher, son of former Prime Minister Margaret Thatcher, has also been tied to secret commissions from the deal, the Guardian charged.

Britain's Serious Fraud Office is investigating the allegations.