The Bloody Sunday inquiry has dropped a High Court action against a journalist who refused to reveal his sources, it was confirmed yesterday.
Daily Telegraph correspondent Toby Harnden could have been jailed for resisting pressure to disclose the identity of a British soldier, who admitted opening fire on the day in January 1972 when 13 civil rights marchers were shot dead in Derry.
Mr Harnden told the hearing, chaired by Lord Saville, he had destroyed interview notes with two former paratroopers to protect their anonymity.
Although one of the pair identified himself to the inquiry, the journalist kept his pledge to the other. With contempt of court proceedings hanging over him, Mr Harnden faced a heavy fine or up to two years' imprisonment.
But a spokesman for the six-year, £155-million inquiry confirmed the case had been abandoned as the soldier's identity was established through other means. "The tribunal decided earlier this year not to report other journalists and, having finally confirmed the identity of the remaining source in the last few months, they also decided not to pursue the existing case against Mr Harnden."
The paratroopers told him they would withhold evidence from the hearing, as they feared for their lives because witnesses were not allowed to testify anonymously.
That ruling was later overturned, much to the anger of victims' families, to protect the identity of military witnesses.
Mr Harnden is believed to have run up a £110,000 legal bill fighting the action since 2000.
The inquiry spokesman said negotiations were continuing over payment of his costs.
Mr Harnden said yesterday he stood his ground after being sworn to secrecy.
In an article he recalled Soldier X seemed almost physically sick at the prospect of testifying.
"Although he didn't give me his name, he made me promise that I would never reveal his identity," the journalist said.