damages from a British newspaper.

The flamboyant British Conservative MP agreed to the undisclosed damages from Mirror Group Newspapers in an out-of-court settlement.

It ended the last libel action launched by media baron Robert Maxwell before his death.

In October 1991, Maxwell issued a writ against Mr. Allason, after he called for an investigation into allegations of links between Maxwell, the Daily Mirror's foreign editor, Mr. Nicholas Davies, and Israel's intelligence services.

Mr. Allason, who has written books on espionage under the pen-name Nigel West, issued a counter-writ over a Daily Mirror editorial which accused him of behaving in a "cowardly and dishonourable'' manner.

He had called for an inquiry following the publication of a book, entitled "The Samson Option'' written by US journalist Seymour Hersh, which alleged Davies had operated an arms-trading company from his south London home.

Yesterday, Mirror Group Newspapers said they unreservedly withdrew their criticism of Allason and agreed to pay him substantial undisclosed damages. A spokesman for the company said it was fair to say the settlement ran to six figures, but declined to give a precise total.

Maxwell was known for his prolific use of the libel courts to protect his reputation. His publishing empire, which included the Daily Mirror, collapsed under the weight of debt and financial scandal after he dies after falling overboard from his yacht last November.

Mr. Allason said: "I'm very pleased. I don't think anyone who has had their reputation damaged in the way the Mirror abused their power last year could be anything other than entirely satisfied.'' Mr. Rupert Allason MP.