France moves to close Taiwan case

Nicolas Sarkozy was said to have been the target of a smear campaign

French prosecutors have called for a seven-year investigation into alleged corruption over the sale of warships to Taiwan to be dismissed without trial.

State prosecutor Jean-Claude Marin says he asked for the case to be closed on 22 July due to lack of evidence.

The scandal led to accusations of corruption during Francois Mitterrand's last years as president.

Judges were repeatedly denied access to secret French defence files and documents at the heart of the case.

The case was also linked to the so-called Clearstream affair during which former Prime Minister Dominique de Villepin was accused of plotting to damage the reputation of rival presidential candidate Nicolas Sarkozy by linking him to the scandal.

The final decision on whether or not to close the case will have to be taken by financial judges Renaud Van Ruymbeke and Xaviere Simeoni, who have been examining the affair since 2001.

They were asked to investigate allegations that a large portion of the value of a 1991 contract paid by Taiwan for the vessels was diverted directly to politicians and military officers in Taiwan, China and France.

But in his letter to the two judges, Mr Marin wrote that his investigations had not "brought to light the existence of retro-commissions" allegedly paid for the sale of the six French vessels.

The probe, he added, could not identify who might have benefited from any alleged bribes.

Taiwan has sought damages of nearly $1bn over the case before an international arbitration tribunal. Numerous officials and military officers have also been charged.