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* Former PM say media so powerful he could not confront it

* Blair says he did not do a deal with Murdoch

* Blair heckled over Iraq war at Leveson inquiry

By Kate Holton and Matt Falloon

LONDON, May 28 (Reuters) – British leaders have no choice

but to court powerful media barons such as Rupert Murdoch or

risk savage press attacks which are “full on, full frontal, day

in, day out,” former Prime Minister Tony Blair told an inquiry

on Monday.

Interrupted by a heckler who accused him of being a war

criminal for supporting the U.S. invasion of Iraq, Blair paused

briefly before continuing calmly to justify his ties to Murdoch

with whom he developed a close friendship.

An unwillingness to take on the press in Britain has been

cited by many as the reason a culture of illegality and phone

hacking came about at Murdoch’s tabloids, but Blair told the

inquiry into media standards that he had had little choice.

He could either risk being torn apart by what he once

described as the “feral beasts” of the media, or use them to get

his policies implemented.

He never agreed a deal with Murdoch, he said, and only

became godfather to his daughter after he left office. Calling

the mogul three times in the days before the invasion of Iraq

was also not particularly odd, he added.

“With any of these big media groups, you fall out with them,

you watch out, because it is literally relentless and

unremitting once that happens,” Blair, looking tanned and smart

in a navy suit and white shirt, told the inquiry.

“My view is that that is what creates this situation in

which these media people get a power in the system that is

unhealthy. I took the strategic decision to manage this and not

confront it but the power of it is indisputable.”

Blair, whose reputation for obsessive media management

brought him so close to Murdoch that the tycoon would joke about

their love making, said he became increasingly concerned about

the unhealthy relationship between the media and politicians.

Blair is the most senior politician to date to appear before

Leveson, an inquiry sparked by the phone hacking revelations but

which has since broadened out to show the collusion between

senior politicians, media tycoons and police.

“If you fall out with the controlling element of the Daily

Mail, you are then going to be subject to a huge and sustained

attack,” said Blair, who governed Britain from 1997 to 2007

after rebranding the Labour Party.

“Managing these forces was a major part of what you had to

do and was difficult,” he said.

MURDOCH

The inquiry has so far focused on the close ties between

Murdoch’s empire and serving ministers, helping the opposition

Labour Party leader Ed Miliband to consolidate his position with

attacks on current British Prime Minister David Cameron.

The appearance of Blair had been seen as a potential threat

to this approach, but the former prime minister was rarely

troubled by the lead lawyer at the inquiry, reminding observers

how he comfortably led his party to three election victories.

Describing what it feels like when a small section of the

press decide to go after you, Blair said: “It’s full on, full

frontal, day in, day out and that is not journalism in my view.

That’s an abuse of power.”

Sometimes using Murdoch’s first name, Blair said it had been

clear that the proprietor called the shots in his media empire,

and not his newspaper editors. The two later became so close

that having stepped down as prime minister, Blair became a

godfather to Murdoch’s daughter Grace at a ceremony on the banks

of the river Jordan.

“Blair led the way in having no shame about courting

Murdoch,” said Ivor Gaber, professor of political journalism at

City university. “He set the style and the standard and if you

regard Cameron as the ‘heir to Blair’ then it’s not exactly

surprising that he followed suit.”

Murdoch’s papers also supported Blair in his unpopular

decision to join the United States in the invasion of Iraq.

With anger still running high in Britain over Blair’s role

in the war, a protestor broke into court 73 to harangue him,

entering through a supposedly secure entrance to stand between

Blair and the chairman of the inquiry, Lord Leveson.

“This man is a war criminal,” he yelled, as security guards

tried to drag him from the court. Another protestor hit Blair’s

chauffer-driven black Range Rover with an egg as he later left

the court.

“I’d forgotten just what a convincing, classy liar Blair

is,” one observer said on Twitter. “Not so much a testimony as a

masterclass.”

Blair set the tone for his relationship with Britain’s press

when, before his first election victory in 1997, he flew to

Australia in 1995 to speak before a gathering of Murdoch’s

executives who had previously used their British tabloids to

vilify his Labour Party predecessors.

The decision, mocked by rivals as an act of homage to the

all-powerful media boss, infuriated much of his left-of-centre

party who saw the Australian-born tycoon as a right-winger who

had helped to keep them out of power for years.

But Blair’s speech received a standing ovation and Murdoch

indicated for the first time that he could be willing to switch

the allegiance of his newspapers to the Labour Party.

“If our flirtation is ever consummated Tony then I suspect

we will end up making love like porcupines, very, very

carefully,” he told him.