Mr Fayed was also behind allegations concerning the former Chief Secretary to the Treasury Jonathan Aitken’s stay at the brothers’ Ritz Hotel in Paris – allegations fiercely denied by Mr Aitken.But the court was told that neither Mohammed 63, nor Ali, 52, had been given any explanation for the refusal, nor any opportunity to comment upon any reservations the Home Office and ministers may have had about their claims. He gave them leave to take their case to the Court of Appeal.The judge said that although there had been a strong trend in recent years to require that ministers give reasons to those adversely affected by their decisions, Mr Howard, in maintaining his silence, had been lawfully exercising powers given to him under the 1981 British Nationality Act.Ever since the brothers’ separate applications were simultaneously dismissed last year, it has been suggested that the decision was politically motivated and prompted by a series of run-ins with the Government.Mohamed al-Fayed, the Harrods chairman, was the source of the “cash-for- questions” allegations that resulted in the resignation of two junior ministers, Neil Hamilton and Tim Smith. HEATHER MILLS

Home Affairs Correspondent
The owners of Harrods, Mohamed and Ali al-Fayed, have lost their High Court battle with the Home Secretary to become British citizens – but they have not yet lost the war.For while ruling that Michael Howard’s decision to deny the Egyptian- born brothers a United Kingdom passport – without giving any reasons or right of representation – was lawful, the judge questioned whether the law should be changed.Mr Justice Judge declared the procedure “lacked the appearance of fairness” and suggested that the Home Secretary should “urgently” look again at the case of the millionaire brothers, who have spent 30 years in this country. “I don’t think in today’s world the appetite of corporate givers to fund a theological library is very great,” he said.. if I cannot come to these books in one place.”However, Canon John Halliburton, of St Paul’s Cathedral, told the meeting that the college had an investment income of pounds 36,000 a year, while the building cost pounds 200,000 a year and needed pounds 1m for repairs.

“We are the custodians of a wonderful collection of books,” he said “I shall be heartbroken … Opponents of the plans have threatened injunctions and worse.Yet yesterday’s meeting was curiously good-tempered. The Rev Chad Varah, Rector of St Stephen’s Walbrook in the City, and founder of the Samaritans, urged that the books be housed in a redundant church. The college itself, a sort of club for city clergy, hopes to take over a redundant church, while the building will be sold. However, it is not expected to fetch more than pounds 1m, since it is both dilapidated and legally very difficult to modify.The plans to break up the library have been the focus of fierce opposition It is unique in its scope, cheapness and friendliness. ANDREW BROWN

Religious Affairs Correspondent
One of the oldest and loveliest theological libraries in England yesterday succumbed to the 20th century with a surprising lack of rancour.Sion College is housed in a 19th-century Grade 1 listed building on the embankment in the City of London, but its library dates from 1630, with some books more than a century older.However, a meeting of the college’s governing body, the court, decided yesterday by 21 votes to seven to break it up.The books will be divided between Lambeth Palace library and that of King’s College, London. Unions suggest that 3,000 jobs could go at the three newly merged companies.t InterCity Cross Country, one of the 25 new train companies, has been advising its passengers to complete their journeys by bus, rather than using trains run by other operators, in its passenger magazine, XC.Keith Bill, of Save our Railways, said: “This magazine tells passengers to take one of their trains to one of their stations, but then change on to a bus to tourist attractions.” A Cross Country spokeswoman said: “This is an error We will be altering it in future issues of our magazine.”.

“We will of course do nothing that will compromise our position on safety, our Passenger’s Charter commitments or those of our franchise contract.”Stagecoach’s announcement follows the takeover of BR’s three heavy freight companies at the weekend by the US-owned Wisconsin Central and warnings by Ed Burkhardt, who heads Wisconsin, that job losses among the 7,500 staff are inevitable. With such a sharp reduction, job cuts were always seen as inevitable by rail analysts, but the speed of Stagecoach’s decision has surprised the industry.Mr Field said the job cuts would not compromise safety. Stagecoach narrowly beat off competition from the management buy-out team, backed by Compagnie Generale des Eaux, which, it is thought, was seeking only 1 per cent more subsidy.Stagecoach will receive pounds 54.7m next year as a subsidy to run services, compared with the pounds 63.5m BR received, and so far the company has refused to say whether this will lead to reductions in services. While most of the staff are behind the scenes, a few station staff are also involved.The cuts follow the company’s first review of staffing arrangements and Peter Field, the managing director, warned that this was the first of a series of cuts in the workforce. “There will be further reductions in staffing levels resulting from restructuring proposals and organisational changes.” He said discussions with the trade unions were being held.South West Trains, one of two lines to be privatised earlier this month, is one of the largest operators on the network and runs most of the services out of Waterloo. Except he would no longer be mayor of Washington, DC, but Washington, MD.

This may be the city’s best hope: otherwise, DC may soon be deceased.. CHRISTIAN WOLMAR

Transport Correspondent
South West Trains, which became the first privatised train company when it was taken over by Stagecoach, Britain’s largest bus operator, earlier this month, is to shed 125 jobs in an effort to reduce costs.The jobs to be cut – from a 4,000-strong workforce – are mainly white- collar posts, ranging from senior managers to wages clerks, but further job cuts are expected to be made as Stagecoach is receiving less subsidy than British Rail got to run the services.The company will at first offer voluntary severance, under the same terms as BR’s old agreements, but warned that “a number of redundancies” may be necessary. At a stroke, the city government would no longer have to provide expensive services that no other city is obliged to offer. Its citizens would pay taxes to Maryland but in return gain political representation at all levels, voting for Maryland senators and Maryland congressmen. Like New York, Chicago or any city in the land, Washington would still have its mayor, running the police department and other urban services. Most promising is the third solution, that Washington be returned to the neighbouring state of Maryland, from which it was orginally carved in 1791.

The federal city would be reduced to a small enclave comprising the buildings of the Capitol, the White House and government agencies, grouped around the Mall.For Washingtonians, the benefits would be huge. One is a complete takeover of the city by Congress – which would settle Washington’s financial difficulties but still leave its inhabitants without proper voting rights. Others propose turning the District of Columbia into an economic “free zone”, without federal taxes, in the hope of drawing businesses and residents back to the city. Today, even the most ardent advocates of full home rule are silent, broken by the city’s decay.Three choices then are left. The figure 51 (denoting the 51st state) could be seen on posters and daubed on walls; even a name was ready and waiting, New Columbia.