Margaret Thatcher was compelled to pay the Iranian regime £2 million to rebuild their London embassy after the dramatic siege within the 1980s - to keep away from betraying the secrets and techniques of the SAS.
The embassy was engulfed by flames after a sequence of explosions throughout the raid in Might 1980 - after six gunmen from a radical Iranian Arab group took 24 individuals hostage.
Stun grenades lobbed by means of the damaged home windows additionally set fireplace to the curtains, almost roasting one SAS trooper alive.
Former Prime Minister Margaret Thatcher, who was orced to pay the Iranian regime £2 million to rebuild their London embassy after the dramatic siege within the 1980s - to keep away from betraying the secrets and techniques of the SAS
Two hostages died within the raid, which got here after a six day siege, whereas all however one of many gunmen, who have been demanding the discharge of prisoners, have been additionally killed.
For 2 years, the Prime Minister refused to pay a penny to Iran to restore the burned-out destroy on Princes Gate in South Kensington.
She was livid that Iran had the nerve to make the declare, when the Ayatollah's brutal regime was nonetheless holding 52 US hostages and harmless Britons in an emabssy in Tehran.
However secret paperwork have revealed how she relented after the insurance coverage wrangle threatened to show SAS operations and permit troopers to be sued for doing their responsibility.
The embassy was engulfed by flames after a sequence of explosions throughout the raid in Might 1980 - after six gunmen from a radical Iranian Arab group took 24 individuals hostage
The televised storming of the embassy boosted SAS status they have been invited by quite a few international governments to go 'on mortgage' to resolve hostage conditions overseas
On the time, the SAS had simply performed a extremely secret function in liberating the Falklands and it was additionally conducting extremely delicate operations towards the IRA which might ship hammer blows to the terrorists all through the 1980s.
The televised storming of the embassy boosted SAS status they have been invited by quite a few international governments to go 'on mortgage' to resolve hostage conditions overseas.
However a hidden Dwelling Workplace file discovered within the Nationwide Archives has revealed how the key warfare on terror was almost compromised by the insurance coverage wrangle over Princes Gate.
The long-lost file says inside weeks of the raid, police, the Ministry of Defence, Dwelling Workplace and International Places of work have been shocked to obtain a letter from Iran's insurance coverage brokers primarily based in Essex.
Firefighters take away a physique from the burnt out stays of the embassy constructing after the siege ended
Ministers feared that paying for harm attributable to the army working beneath Metropolitan Police supervision would create a authorized minefield
Despatched by recorded supply, it demanded cost for harm to the embassy constructing and contents from the 'unlucky incident', including: 'It will appear the harm was straight attributable to the SAS rescue operation which itself occurred beneath the direct orders of Her Majesty's Authorities.'
Ministers feared that paying for harm attributable to the army working beneath Metropolitan Police supervision would create a authorized minefield.
It will even be trigger 'public outrage' given the 'brutal and unpopular nature' of the Iranian regime, ministers agreed in confidential memos.
However in August 1982, International Secretary Frances Pym wrote to a nonetheless adamant Mrs Thatcher to warn her 'issues might quickly come to a head.'
The Iranian embassy reopened in 1993 after Mrs Thatcher agreed the funding to restore the constructing
He stated: ''Neighbours, Westminster Metropolis Council, and most people have gotten more and more restive on the continuance of this harmful eye sore.
'Westminster Metropolis Council has obtained a court docket order authorising them to hold out repairs and cost the fee to the Iranians.
'If the the council's workmen transfer in with out Iranian settlement, I might count on the Iranians to react sharply.'
Britain had been contemplating arbitration with Iran by means of the courts however the Legal professional Common Sir Michael Havers was advising towards this.
The hazard that Iran was seemingly to make use of its place to publicly insult Britain and the Particular Air Service.
On condition that tens of millions in abroad commerce agreements have been additionally using on a deal, the price of repairs was 'small by comparability' at between £1 and £2 million', he argued.
The Iranian embassy reopened in 1993 after Mrs Thatcher agreed the funding - in trade for Iran repairing the British Embassy broken in Tehran throughout the Revolution.
However the fee to Iran was solely £250,000 and the Tehran compound was broken once more when it was attacked by frenzied mob who tore down the Union Jack in 2011.
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