North Yorkshire arms dealer Peter Bleach today escaped the death penalty after being cleared of attempting to wage war against India.

A Foreign Office spokesman said Bleach, a former pupil of St Peter's School, York, had also been cleared of collecting arms with the intention of waging war.

But he said the judge in Calcutta had convicted Bleach of conspiracy to commit offences against the Indian government.

Bleach, 48, formerly of Fylingthorpe, near Whitby, will return to court on Wednesday for sentence. He faces up to 10 years in jail for illegally smuggling arms into India.

The news was greeted with mixed feelings by Bleach's friends and relatives today.

His girlfriend, Joanna Fletcher, told the Evening Press the news from India did not come as a relief as he had been found guilty of all but the most serious charge. "I'm disappointed, but I'm not surprised."

Asked how Bleach would take today's ruling, Ms Fletcher said: "On the chin. He's very pragmatic and he will settle down and start working on his appeal immediately."

She added: "He had no choice but to present his own defence. He had no money, so it's academic."

Bleach's mother, Oceana, who lives at Brompton-by-Sawdon, near Scarborough, was not available for comment today as she was said to be upset by the news.

Bleach was arrested more than four years ago on suspicion of dropping arms and ammunition to an insurgent group in West Bengal in order to stir up armed conflict.

Bleach, a former lance corporal in the Army Intelligence Corps, has spent most of the time since then in solitary confinement in Calcutta's Presidency Prison.

The case against Bleach was adjourned more than 20 times before he finally learned his fate from Justice P K Biswas.

Bleach alerted the Defence Export Sales Organisation, part of the Ministry of Defence, after a Danish businessman asked him to supply a quote for 2,500 AK-47 assault rifles.

Det Supt Ian Lynch, head of North Yorkshire CID, admitted the extent of MI5's involvement in the case when he was interviewed for a Tyne-Tees Television documentary entitled The Bleach Conspiracy, which was screened in August.

Official reports faxed to Bleach as he worked on his defence had not been properly edited and still contained references to MI5's role.

Bleach insisted his decision to go ahead with the arms drop was part of a plan worked out by Special Branch.

But Det Supt Lynch said his officers advised Bleach to pull out of the deal.

Outspoken Tory MP Sir Teddy Taylor today insisted the Government had evidence to prove Bleach was working hand-in-hand with British intelligence.

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