P144 CJEFAX 144  Thu  7 Oct  21:14/24
      
     
       POLITICS   
 
  THATCHER NAMED IN ARMS SCANDAL      
  Lady Thatcher has been linked to    
  the arms for Iraq affair.           
                                      
  The Scott Inquiry has heard         
  allegations that she decided not to 
  stop millions of pounds' worth of   
  machine tools being exported to     
  Iraq.                               
                                      
  Her alleged involvement emerged     
  from a letter, read to the inquiry, 
  from a Ministry of Defence official 
  to defence minister Lord Trefgjun.  
                                      
  It said she agreed to the export of 
  Matrix Churchill lathes in order to 
  protect intelligence sources.       
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