The files show that the British Prime Minister was warned of the “reputational risks” in appointing Mandelson

LONDON (AP) — Documents released by the British government on Wednesday show that officials believe there is a “reputational risk” in appointing Peter Mandelson as U.S. ambassador because of his relationship with convicted sex offender Jeffrey Epstein.

Prime Minister Keir Starmer gave Mandelson the job anyway, but fired him nine months later when new details of the relationship with Epstein emerged. Starmer is now facing a political storm over the decision.

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The concerns were raised in a document sent to Starmer in December 2024 when he was considering appointing Mandelson, who is seen as vital to establishing a good relationship with President Donald Trump’s administration.

The Prime Minister’s advice from the civil service head summarized Mandelson’s relationship with Epstein over two decades, noting that “Mandelson remained at Epstein’s home while he was in prison in June 2009” for sex offenses involving a minor.

It also highlighted other reputational issues unrelated to Mandelson’s work in the previous Labor government – when he had to resign twice over financial matters – and his work at Global Counsel, a lobbying firm he co-founded.

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Lawmakers forced Starmer’s government to reveal thousands of files about the decision to appoint Mandelson to the key diplomatic position at the beginning of Trump’s second term.

The authorities published the first batch – more than 140 pages of documents – related to those relationships on the government website on Wednesday.

Darren Jones, the prime minister’s first secretary, said due diligence on Mandelson “did not uncover the depth and extent” of his friendship with Epstein, and said Mandelson had lied to Starmer about the friendship.

“Peter Mandelson should never have been given the privilege of representing this country,” Jones told lawmakers in the House of Commons. “I repeat to the House that the Prime Minister deeply regrets taking him at his word. It was a mistake to do so.”

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The documents are being published in batches after being reviewed by Parliament’s Intelligence and Security Committee. The police asked the government not to release files that could jeopardize their criminal investigation into Mandelson.

The documents released on Wednesday indicate that he was asked questions about his relationship with Epstein, and say that the director of communications in the Prime Minister’s Office was “satisfied with his answers.”

The responses themselves were not published due to the police investigation.

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Mandelson, 72, a former minister, ambassador and senior statesman in the ruling Labor Party, was arrested on February 23 at his London home on suspicion of misconduct in public office. He has been released without bail as police investigations continue.

He has previously denied any wrongdoing and has not been charged. He does not face charges of sexual misconduct.

Starmer fired Mandelson in September after an earlier release of documents showed he remained in contact with Epstein after the financier’s 2008 conviction for sex crimes involving a minor.

Further details about Mandelson’s ties to Epstein, revealed in a huge trove of files released by the US Department of Justice in January, have prompted opponents and even some members of Starmer’s Labor Party to call for the prime minister’s resignation. Starmer escaped immediate danger, but his position remains fragile, even though he never met Epstein and was not implicated in his crimes.

The Epstein files suggest that Mandelson sent market-sensitive information to the convicted sex offender when he was the UK government’s business secretary after the 2008 financial crisis. This includes an internal government report discussing ways the UK could raise money, including by selling government assets.

Mandelson also appears to have told Epstein that he would pressure other members of the government to reduce the tax on bankers’ bonuses.

Starmer apologized to Epstein’s victims and said he was sorry “for believing Mandelson’s lies.”

Mandelson also faces a separate investigation by the EU’s anti-fraud office during his time as the bloc’s trade representative.