UK's Blair quizzed in cash-for-honours probe

LONDON, Dec 14 (Reuters) British Prime Minister Tony Blair has been questioned by police investigating whether political parties awarded state honours in return for loans, his spokesman said today.

''The prime minister talked to the police today in Downing Street. This was not under caution, nor was he accompanied by a lawyer,'' Blair's spokesman said.

The fact that Blair was quizzed without having received a police caution about his rights means the prime minister was questioned as a witness and not as a possible suspect.

The police probe was launched after the Scottish National Party (SNP) alleged the prime minister had nominated wealthy businessmen for seats in parliament's unelected upper house, the House of Lords, in exchange for loans to his Labour Party.

''Given that the SNP specifically complained about people nominated for peerages by the prime minister it was expected that the police would ask to see the prime minister,'' his spokesman said.

He added that Blair had spoken to the police for one-and-a-half to two hours.

Police have interviewed most members of Blair's 2005 cabinet in their probe and have said they hope to send evidence to prosecutors in January.

They wanted to know if ministers were aware that four rich businessmen who helped bankroll the ruling Labour Party's 2005 election campaign had been nominated by Blair for seats in parliament's unelected upper house, the House of Lords.

A 1925 law makes it illegal to sell state honours.

Blair has said he knew about undeclared loans from a string of wealthy businessmen who were later nominated for seats in the House of Lords, known as peerages, but he has denied any link.

REUTERS BDP ND1936