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FT.com Home UK: "The British government has said repeatedly it stands by intelligence it gathered and used in its controversial September 2002 dossier on Iraq's weapons of mass destruction programmes. It still claims that Iraq had sought uranium from Niger.

But the US intelligence community, officials and politicians, are publicly sceptical, and the public differences between the two allies on the issue have obscured the evidence that lies behind the UK claim.

Until now, the only evidence of Iraq's alleged attempts to buy uranium from Niger had turned out to be a forgery. In October 2002, documents were handed to the US embassy in Rome that appeared to be correspondence between Niger and Iraqi officials.

When the US State Department later passed the documents to the International Atomic Energy Agency (IAEA), the UN nuclear watchdog, they were found to be fake. US officials have subsequently distanced themselves from the entire notion that Iraq was seeking buy uranium from Niger.

However, European intelligence officers have now revealed that three years before the fake documents became public, human and electronic intelligence sources from a number of countries picked up repeated discussion of an illicit trade in uranium from Niger. One of the customers discussed by the traders was Iraq.

These intelligence officials now say the forged documents appear to have been part of a 'scam', and the actual intelligence showing discussion of uranium supply has been ignored.......

The FT has now learnt that three European intelligence services were aware of possible illicit trade in uranium from Niger between 1999 and 2001. Human intelligence gathered in Italy and Africa more than three years before the Iraq war had shown Niger officials referring to possible illicit uranium deals with at least five countries, including Iraq.

This intelligence provided clues about plans by Libya and Iran to develop their undeclared nuclear programmes. Niger officials were also discussing sales to North Korea and China of uranium ore or the "yellow cake" refined from it: the raw materials that can be progressively enriched to make nuclear bombs.

The raw intelligence on the negotiations included indications that Libya was investing in Niger's uranium industry to prop it up at a time when demand had fallen, and that sales to Iraq were just a part of the clandestine export plan. These secret exports would allow countries with undeclared nuclear programmes to build up uranium stockpiles.

One nuclear counter-proliferation expert told the FT: "If I am going to make a bomb, I am not going to use the uranium that I have declared. I am going to use what I acquire clandestinely, if I am going to keep the programme hidden."

This may have been the method being used by Libya before it agreed last December to abandon its secret nuclear programme. According to the IAEA, there are 2,600 tonnes of refined uranium ore - "yellow cake" - in Libya. However, less than 1,500 tonnes of it is accounted for in Niger records, even though Niger was Libya's main supplier.

Information gathered in 1999-2001 suggested that the uranium sold illicitly would be extracted from mines in Niger that had been abandoned as uneconomic by the two French-owned mining companies - Cominak and Somair, both of which are owned by the mining giant Cogema - operating in Niger.

"Mines can be abandoned by Cogema when they become unproductive. This doesn't mean that people near the mines can't keep on extracting," a senior European counter-proliferation official said.

He added that there was no evidence the companies were aware of the plans for illicit mining.

When the intelligence gathered in 1999-2001 was thrown into the diplomatic maelstrom that preceded the US-led invasion of Iraq, it took on new significance. Several services contributed to the picture.

The Italians, looking for corroboration but lacking the global reach of the CIA or the UK intelligence service MI6, passed information to the US in 2001 and to the UK in 2002.

The UK eavesdropping centre GCHQ had intercepted communications suggesting Iraq was seeking clandestine uranium supplies, as had the French intelligence service.

The Italian intelligence was not incorporated in detail into the assessments of the CIA, which seeks to use such information only when it is gathered from its own sources rather than as a result of liaison with foreign intelligence services. But five months after receiving it, the US sent former ambassador Joseph Wilson to Niger to assess the credibility of separate US intelligence information that suggested Iraq had approached Niger.

Mr Wilson was critical of the Bush administration's use of secret intelligence, and has since charged that the White House sought to intimidate him by leaking the identity of his wife, Valerie Plame, as a CIA agent.

But Mr Wilson also stated in his account of the visit that Mohamed Sayeed al-Sahaf, Iraq's former information minister, was identified to him by a Niger official as having sought to discuss trade with Niger.

As Niger's other main export is goats, some intelligence officials have surmised uranium was what Mr Sahaf was referring to."

This is a bombshell! So Iraq really was trying to buy uranium between from Niger between 1999-2001! I wonder if all those people who called Bush a liar will now retract their statements?

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