ASHCROFT BLOCKS US DOCUMENTS

Tory treasurer Michael Ashcroft is blocking the release of pivotal
documents from the US drug enforcement agency which will be central to
the forthcoming libel case against the Times newspaper.

He refused yesterday to grant a waiver to the Guardian newspaper to
release the files after the DEA offered to process a request under the
US freedom of information act if he gave his permission.

Not only has he blocked the request but he says he does not intend to
ask for the files to be released to himself, which he has a right to
do under US freedom of information legislation.

A spokesman for Mr Ashcroft said the Tory treasurer had nothing to
hide.

"We see no advantage in trying to get hold of information which we
have no idea where it might have come from, what it might say, and on
what basis it was pulled together."

He said that Mr Ashcroft's lawyers had not applied for the DEA files
through the US freedom of information act.

"We feel that the ball is in the Times' court. We have not seen their
defence."

He said the Times was due to serve its defence by the end of this
week. No date has been fixed for the trial but a big battle is
expected shortly between the Tory treasurer and the Times over the
release of documents.

The Guardian's approach to Mr Ashcroft came after the DEA released a
censored file entitled Activities of British businessman Michael
Ashcroft, compiled on April 1, 1993. This is believed to be one of
four reports held by the agency on Mr Ashcroft, a principal donor to
the Tory party and a tax exile who also enjoys diplomatic immunity as
Belize ambassador to the US.

The file suggests that a US attache authorised the research into Mr
Ashcroft's activities after he started acquiring "significant assets
in Belize". The agency has researched his background in Britain, the
US and Belize. The report also lists all his subsidiary companies,
charities, including his anti-drug and crime-fighting organisations
and financial support for the London City Ballet.

One page on his investments in Belize is so heavily censored that only
two sentences remain.

Last night Peter Bradley, Labour MP for the Wrekin, called for both Mr
Ashcroft and Mr Hague to come clean over the issue.

A move by Tory activist David Strafford to demand that Mr Ashcroft
stand for election was defeated by 300 votes to seven at a private
meeting of Tory chairmen yesterday.