Richard Perle, a prime mover behind the neo-conservative lobby which pressed for war against Iraq, resigned from a top advisory job to the Pentagon last night, amid allegations of improperly conflicting business interests.

In a letter to Donald Rumsfeld, the Defense Secretary, Mr Perle denied the claims – arising from a $725,000 (£463,000) consultancy post at GlobalCrossing, a bankrupt telecommunications company – as based on "errors of fact". However, he said he had no alternative but to step down from his post as chairman of the Defense Policy Board, an important outside advisory panel to the Pentagon.

The controversy arose earlier this month when it was disclosed that GlobalCrossing was trying to overcome objections by the Pentagon to its sale to Far Eastern interests. Of the fee, $600,000 is said to be conditional on the sale going through.

Mr Perle, known as "The Prince of Darkness" for his unrelenting opposition to nuclear-arms control during his years as a top Pentagon official in the 1980s, is a vocal proponent of removing Saddam Hussein by force, and an architect of the Bush administration doctrine of pre-emptive attacks. He is a close friend of Mr Rumsfeld and his deputy, Paul Wolfowitz.

The resignation is unlikely to see any lessening of Mr Perle's influence. Mr Rumsfeld has asked him to remain on the Board, and he will undoubtedly remain an unofficial adviser to the Bush administration.

Nor will corporate America lose interest in him. Last week he reportedly took part in a Goldman Sachs conference call to advise clients on investment opportunities arising from the war, and its implications for confrontation with North Korea.

© 2003 Independent Digital (UK) Ltd

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