THE TREASURY SOLICITOR

Queen Anne's Chambers, 28 Broadway, London SW1H 9JS

DX 123242 St James's Park. Switchboard 020 7210 3000 (GTN 210) .
Direct Line: 020 7210 4750 Direct Fax: 020 7210 3410 E-mail: achapman@Freasury-solicitor.gsl.gov.uk

Mr Martin Smith Please quote: LT3/APCID1

Solicitor to The Hutton Inquiry
Second Floor Your reference: 310052
81 Chancery Lane
London WC2A 1 DD Date' 16 September 2003

Dear Mr Smith

The Inquiry proposes to adduce in evidence a limited number of extracts from Mr Campbell's
diary. I am writing, as agreed, summarising relevant points made by Mr Campbell when he
originally provided extracts from his diary to the Inquiry.

" Mr Campbell has kept a personal diary for some years. The diary is concerned with
many things other than politics and Mr Campbell's work, including his family life and
relations with friends.

" Entries are usually made on the day itself or shortly afterwards . Because it is written
fast it is pretty unpolished and has not been written for publication, or indeed for
anyone other than Mr Campbell to see It is to assist the Inquiry that extracts have
been provided, because clearly Mr Campbell was recording his own account of some
of the events as they happened. The diary records Mr Campbell's immediate
reactions, which are not necessarily the same as the views that he will take after a
little time has passed for reflection.

" As far as Mr Campbell is aware, he is the only witness to the Inquiry who has
supplied such a personal document.

" In providing extracts from his diary to the Inquiry, Mr Campbell has provided those
sections which deal with: the preparation of September dossier; Mr Gilligan's
allegations; the subsequent row with the BBC ; the Government's dealings with Dr
Kelly; Dr Kelly's death ; and, a small number of sections which provide necessary
background to enable the other sections to be understood . He has had Counsel's
advice on what should be included and on what should reasonably be redacted .

When Mr Campbell provided the Inquiry with his diary extracts prior to his first appearance,
he made a number of points about particular entries, including some of the entries which the
Inquiry wishes to adduce in evidence. These are as follows:

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 a) 4 July 2003 - Mr Hoon's reference to a "plea bargain" .
Mr Campbell cannot remember Mr Hoon's exact words, but he thinks that Mr
Hoon was saying that a person had come forward in the way that someone
wanting to plea bargain might do, namely admitting some "offences" whilst
denying others and hoping his honesty in coming forward might lessen any
punishment . The text in Mr Campbell's diary might be taken to suggest that Mr
Hoon was talking about doing some deal with Dr Kelly designed to influence what
he said about his conversation with Mr Gilligan . Mr Campbell is sure that nothing
of that kind was being suggested . He would have remembered if it had been .

b) 6 July 2003 - the reference to the desire for a win and not a draw.
This refers to the possibility that the FAC might be divided (a "draw"). The
context is the question whether the individual coming forward was liable to have
an impact upon the outcome of the FAC report being published on Monday, and
whether it might influence both the Conservative MPs who were said to be
unpersuaded, and the BBC governors who were meeting on Sunday.

c) 7 July 2003 -"source going better but not necessarily him" .

Mr Campbell thinks this is a reference to progress reports from interviews that
were being related to Jonathan Powell, saying it did look likely but they just could
not be sure.

d) 9 July 2003 - "Big conspiracy".

This refers to suggestions from inside the BBC that a corporate decision had
been taken not to cover the story about the source.

The Inquiry has proposed to adduce into evidence all extracts relating to the issue of the
source over a relatively short period . It is of course the case, as the Inquiry knows, that
during this period Mr Campbell was recording other aspects of this matter, and other
unrelated events, in his diary. Indeed, in his entry for 5 July, the day after he first became
aware that someone had come forward, he makes no reference to this development at all . I
think it important to explain this context, not least to the media who may be interested in the
extracts, which are being published with Mr Campbell's agreement.

Yours sincerely

ADAM CHAPMAN
For the Treasury Solicitor