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-Kurt Vonnegut
Australian media mogul Kerry Packer was almost dragged into the Spycatcher case of the 1980s to help negotiate a deal that would have saved Margaret Thatcher’s British government from an embarrassing court loss that elevated the public and legal standing of Malcolm Turnbull.
Documents released on Friday by the British National Archives show key officials within the Thatcher government dramatically underestimated Turnbull, as well as Justice Philip Powell, who ruled in favour of former British spy Peter Wright.
In his book Spycatcher, Wright alleged that a former head of the British security service was a Soviet mole during the 1950s and 1960s. He also claimed former British Labour prime minister Harold Wilson was investigated by MI5 over claims he was being paid by the Soviet Union.
Both allegations had been dismissed by official agencies in Britain. They had also been the source of other books.
But the Thatcher government prevented Wright, who by the mid-1980s was living in Tasmania as an Australian citizen, from publishingSpycatcher in Britain. He then sought to publish the book in his new home nation, prompting the UK to take legal action to block it.
During the November 1986 trial, Wright and his publisher were represented by Turnbull.
The archives’ documents, which include handwritten comments from Thatcher, show that during the trial Turnbull suggested an out-of-court settlement that would have brought the legal proceedings to a halt.
Kerry Packer, who had recently sold Channel Nine to Alan Bond for $1 billion (and would buy it back from Bond for $250 million), was proposed as the mediator between the UK government and Wright.
But the idea was rejected, with Thatcher constantly reassured by her legal representatives that they would ultimately win the court case.
Thatcher and her government were being told that even if the court found in Wright’s favour, there was a better than 50 per cent chance it would be overturned either on appeal or in the High Court.
But both the NSW Court of Appeal and the High Court backed Powell’s decision.