TONY BLAIR and Tessa Jowell faced fresh questions today over allegations that they misled Parliament about secret talks with US casino chiefs.

Papers released under the Freedom of Information Act show that government officials held negotiations with gambling firms about relaxing money laundering laws.

The Conservatives say there are "clear discrepancies" between the documents and what Mr Blair and his Culture Secretary told MPs.

Downing Street and Ms Jowell have denied the allegations. The documents show that ministers and officials from the Department of Culture, Media and Sport met US gaming industry representatives while Labour was drawing up plans to introduce Las Vegas-style casinos to Britain. Part of the negotiations allegedly centred on relaxing money laundering laws.

But Ms Jowell told the Commons that discussions on the money laundering directive were a matter for

the Treasury, not her department.

Shadow chief secretary to the Treasury Philip Hammond said: "There are growing concerns about the relationship between the Government and foreign casino operators. There are also clear discrepancies between the reports of negotiations between the Government and those operators, and what the Prime Minister and Tessa Jowell have told Parliament."

A spokesman said Ms Jowell had never denied being in contact with casino companies during the passage of the Casinos Bill.

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