BRITAIN: Ten Downing Street has cleared Mr Peter Mandelson of any wrongdoing in the Hinduja passport affair, while keeping the door seemingly shut against his return to the cabinet.
However, the twice-resigned former minister has almost certainly ensured his eventual rehabilitation in some other post after accepting his own part in the "muddle" which forced his departure from the Northern Ireland Office 13 months ago; acquitting the Prime Minister, Mr Blair, of any need to apologise for his ministerial exile; and again confirming a desire to pursue his public life in some position "outside government".
A second inquiry by Sir Anthony Hammond failed yesterday to resolve the question of whether Mr Mandelson had telephoned then Home Office minister Mr Mike O'Brien about the passport application of Srichand Hinduja, at a time when he was seeking sponsorship for the Millennium Dome from the controversial tycoons.
New documents unearthed by Mr Mandelson - which led Mr Blair to order the second inquiry - were not enough to persuade Sir Anthony to reverse his earlier conclusion that it was "likely" Mr Mandelson had made the call in 1998.
However, he said the telephone conversation, whether it took place or not, was "intrinsically insignificant" and had little bearing on his judgment on Mr Mandelson's behaviour.
Indeed in clearing both Mr O'Brien and Mr Mandelson, Sir Anthony went out of his way to exonerate the former Northern Ireland Secretary.
"The new documents do not affect my original conclusion that both Mr Mandelson and Mr O'Brien behaved properly throughout their involvement in Mr S.P. Hinduja's interest in and reapplication for naturalisation as a British citizen. If anything, they reinforce my judgment that Mr Mandelson was concerned both to act and to be seen to act with propriety," he said.
In a carefully co-ordinated response, Downing Street hinted that, had the new documents been available at the time, Mr Mandelson might not have been forced to resign.
Mr Blair's spokesman said the prime minister welcomed the additional report, which "underlines again that there was no impropriety, no wrongdoing, no passports for favours".
He continued: "It should be remembered the inquiry was set up to look at a charge which was tantamount to corruption, namely that passports were in effect traded for sponsorship for the dome.
"Both reports from Sir Anthony show that this charge is totally without foundation and that those who doubted Peter Mandelson's word were wrong to do so."
The fact that Number 10 had not merely questioned his word but forcefully ejected him was lost yesterday in a cloud of forgiveness.
Mr Mandelson told the BBC: "I'm not owed an apology because nobody made a mistake." Since the documents had not been available, he said, Mr Blair could not be held culpable.
And having cleared his name, Mr Mandelson again assured the prime minister: "I am not seeking a return to the cabinet - I don't want to go back into that firing line."
Which of course left entirely open the question of any other capacity in which he might yet serve Mr Blair.