Today's papers

PRESIDENT Saddam Hussein of Iraq is planning to steal dozens of warships damaged in the Shatt al Arab waterway during the Gulf War and sell them for scrap, the Sunday Telegraph reports. Although the ships legally belong to the London insurance market Iraq expects to earn at least pounds 20m from the sales.

The Sunday Times reports that President Clinton is to be sued for sexual harassment by a woman he employed while he was governor of Arkansas. Paula Jones, 27, claims Clinton demanded oral sex and exposed himself to her at a conference hotel in May 1991.

Senior officers and planners in the RAF have given their support to a plan to pull all British combat aircraft and helicopters out of Germany. The plan, if approved by the cabinet, is aimed at reducing defence expenditure by pounds 1bn over the next three years, according to the Observer.

The Church of England could be running deeper into financial crisis by using accounting methods criticised as sharp practice, the Sunday Express reports. After losing pounds 800m in the property slump it is now generating money by complex financial deals condemned by the Archbishop of Canterbury last year.