Powell had admitted that British agents were involved in a bizarre plot to spy on Russians with a device hidden in a fake plastic rock
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Sir Keir Starmer has appointed Tony Blair's chief of staff Jonathan Powell - who negotiated the Chagos Islands surrender and led a bungled attempt to spy on Russians with fake rocks - as the UK's new National Security Adviser.
Powell, whom Starmer said "has devoted his career to protecting the interests of the country", was handed a job as the PM's Special Envoy for negotiations between the UK and Mauritius over the Chagos Islands less than a month before Britain agreed to surrender them.
"Together with his experience helping to negotiate the Belfast (Good Friday) Agreement and work on some of the world's most complex conflicts, he is uniquely qualified to advise the Government on tackling the challenges ahead and engage with counterparts across the globe to protect and advance UK interests," Starmer added.
Powell had admitted to the BBC that British agents were involved in a plot to spy on Russians with a device hidden in a fake plastic rock.
Jonathan Powell, pictured in Downing Street in 2007
PA
Russia's KGB successor, the FSB, had broadcast X-ray images of the rock, hollowed out and filled with wiring - and accused four British men and one Russian of using it to download information.
The UK had dismissed the spy rock allegations at the time - but Powell later told the broadcaster that the Russians "had us bang to rights".
In response to his appointment today, Powell said: "I am honoured to have been appointed as the National Security Adviser to the Prime Minister.
"This is a hugely important role at a time where national security, international relations, and domestic policies are so interconnected.
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Alastair Campbell has been quick to shield Powell from Tory criticism
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"As the Prime Minister has set out, national security is at the heart of this country's response to the many challenges we face and having an integrated response will be crucial to our success.
"I look forward to advising the Prime Minister and working closely with ministers and officials in this new role."
But Tories have reacted with scorn to the news - Huntingdon MP Ben Obese-Jecty said: "For Keir Starmer to reward Jonathan Powell, the man largely responsible for the Chagos Islands debacle, after bringing him in to negotiate the deal alongside David Lammy, by appointing him as the new National Security Adviser hardly instils confidence in Labour's foreign policy."
That was met with a swift rebuttal by Powell's former colleague Alastair Campbell, who told Obese-Jecty: "That shows how little you know about him. Which is how he likes it!"
'National security is at the heart of this country's response to the many challenges we face,' Powell said
PA
The appointment could also play into the Prime Minister's much-talked-about European "relations reset" - the director of the pro-European think tank The Centre for European Reform, Charles Grant, labelled Powell a "convinced pro-European who will I think understand the importance of closer EU-UK ties".
But Reform UK's Richard Tice appeared unconvinced.
Reacting to the news on social media, Tice wrote: "Chagos disaster tsar, Jonathan Powell - a Blair yes-man - appointed our National Security Advisor.
"Awful appointment post-Trump election," he added.