London, June 13: Besides BAE Systems, Britain's biggest weapons company currently negotiating a one billion pounds worth Hawk deal with India, the government's own arms sales department is "directly implicated in bribery abroad", a leading London daily claimed today. "Current ministry of defence files show that DESO, the Defence Exports Services Organisation, officially authorises what is calls special commission paid by arms firms," the 'Guardian' stated.

Payment arrangements are even written by civil servants into the secret contracts on government-to-government arms deals.

According to the report, firms which pay the bribes, described as "commonplace in certain parts of the world", are exempt from normal mod rules banning corruption.

The allegations against the BAE Systems were made by the United States after receiving reports from the CIA and rival firms that point to bribery in a Czech arms deal.

The daily claimed that its discoveries have uncovered a series of "damning Whitehall (government) files detailing graphically how bribery has been at the heart of DESO's mission from the day the unit was launched nearly 40 years ago."

The then labour defence secretary, Denis Healey, hired a tough businessman, Sir Donald Stokes, to tell him how to compete with the Americans on arms sales. But civil servants were dismayed by what Sir Donald then advised. As Healey's top official, Sir Henry Hardman, noted in July 1965: "Sir Donald Stokes had indicated that it was often necessary to offer bribes to make sales."

Bureau Report