Mr Taylor was first to give evidence to the inquiiry
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A friend of weapons expert Dr David Kelly has paid tribute to his "remarkable" work as the inquiry into the scientist's death opened in London.
Terence Taylor detailed how Dr Kelly was a specialist in biology, became his scientific and technological "mentor" in Iraq and was awarded the prestigious Cross of St Michael and St George in 1996 for his "superb work" in that country.
He said the weapons expert had seemed to be in a "normal state of mind" - discussing plans to visit Iraq and talking about his daughter's forthcoming wedding - when he stayed at his Oxfordshire home a few weeks before his apparent suicide.
Mr Taylor, president and executive director of the International Institute for Strategic Studies in Washington, was giving evidence at the Hutton inquiry into Dr Kelly's death via a satellite link from Australia.
Dr Kelly apparently committed suicide after being named as the possible source of a BBC report claiming the government had exaggerated a dossier on Iraq's weapons capability before the war.
Mr Taylor said he met Dr Kelly at the chemical and biological defence establishment at Porton Down in Wiltshire and had known him for 16 years.
He described how the pair carried out weapons inspections in Russia in the early 1990s before Dr Kelly went to Iraq as a chief inspector in the field.
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He was speaking about his daughter's forthcoming wedding ... He seemed to me to be in a very normal state of mind, bearing in mind this was a month before
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His work in Iraq was "really quite remarkable in very difficult and very testing conditions," he said.
It was because of his "remarkably successful" inspection work in Iraq which forced the Iraqis to admit they did have a biological warfare programme that he was awarded the Cross of St Michael and St George, he said.
Mr Taylor said Dr Kelly's work was "recognised internationally" and the scientist had carried out more than 35 inspections in Iraq before weapons inspectors left the country in 1998.
Plans
Mr Taylor said he recalled speaking to Dr Kelly about four days before his death.
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WITNESSES TO THE HUTTON INQUIRY THIS WEEK:
Terence Taylor
Richard Hatfield - Personnel director, MoD
Julian Miller - Intelligence and security secretariat, Cabinet Office
Martin Howard - Deputy chief of defence intelligence, MoD
Patrick Lamb - Deputy head counter proliferation department, Foreign Office
Andrew Gilligan - BBC
Susan Watts - BBC
Gavin Hewitt - BBC
Richard Sambrook - BBC
Brian Wells - Director of counter proliferation and arms control secretariat, MoD
John Williams - Press chief, Foreign Office
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"Most of our conversation was about the Iraq Survey Group ... and he was clearly thinking about that, thinking about going to Iraq," he said.
"We discussed that, not in great detail but in general. He said he was probably going to be going out in more than a week's time. He wouldn't have gone by the time I visited the UK."
Mr Taylor said the only previous contact was about a month earlier.
"I actually stayed with him in his house which was about three or four weeks before this event.
"He seemed to me to be in what I describe as a normal state of mind, someone I have known for 16 years. There didn't seem to be any discernable difference.
Mr Taylor also told the inquiry that Dr Kelly had "expressed some negative thoughts" about some of his colleagues in relation to discussions about their consulting arrangements.
Heart
Lord Hutton will hear from government officials and BBC staff
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He said his relationship with them would not be the same as they were in the past and people going as consultants "mildly irritated him", said Mr Taylor.
Before the inquiry started hearing evidence, Lord Hutton announced further details of Dr Kelly's death.
He said that four electro-cardiogram pads found on the scientist at the scene of his death had been placed there by the ambulance team to find signs of heart activity, but there was none.
Dr Kelly's body was found in woods at Harrowdown Hill, Longworth, Oxfordshire, on 18 July.