TV producer tells of party insult that led to rift with Archer

A gratuitous insult by Jeffrey Archer at one of his champagne and shepherd's pie Christmas parties was one of the reasons that led to his former friend Ted Francis revealing a false alibi and threatening to bring down the Tory peer, the Old Bailey was told yesterday.

Mr Francis said as he talked to fellow guests at the riverside flat in London, the novelist sauntered over and declared: "This man owes me £20,000 and has not paid it back."

Mr Francis said: "I was quite upset by the remark." Although he was soon sent an apology, Mr Francis told the jury: "After that, I felt the relationship should be at arm's length."

Nine years later, in 1999, when Lord Archer of Weston-super-Mare stood as a prospective Tory candidate for the London mayoral election, Mr Francis decided to reveal how he helped create a fictitious alibi.

The 67-year-old television producer maintains that he only agreed to cover up what Lord Archer said was a meal at the Sambuca restaurant with his mistress, Andrina Colquhoun, to help the peer out of "marital difficulties". The former deputy chairman of the Tory party had told him that he feared his wife Mary would hear about the dinner after he had promised her the affair was over, and this could lead to a divorce.

In reality, the prosecution claims, the alibi was intended for use by Lord Archer when he sued the Daily Star newspaper for libel over allegations that he slept with a prostitute, Monica Coghlan. He was awarded £500,000 damages against the newspaper.

Under cross-examination by the prosecution counsel, David Waters QC, Mr Francis denied that he knew his alibi was intended for the 1987 libel trial. He was asked to look at transcripts of secret, taped telephone calls he made which prove, the Crown claims, that he knew the true purpose of the calls.

Mr Francis said: "I did something I was not particularly proud of now. I was following a script. Most of it was high tension, you can't imagine what it was like. I was shaking like a leaf." Asked why he had never inquired about the outcome of the Archers' difficulties, Mr Francis replied: "I assumed, as they remained married, everything was all right."

Two character witnesses appeared for Mr Francis. One of them, Phillip Gibbs, a solicitor, said he was a "true and loyal friend". Lord Archer, nearby in the dock, openly snorted.

Lord Archer, 61, denies two charges of perjury, three charges of attempting to pervert the course of justice and using a false instrument. Mr Francis denies attempting to pervert the course of justice in relation to the false alibi.

The case continues.