Kissinger resigns as head of terror panel

Henry Kissinger, the former secretary of state, resigned last night as chairman of the panel investigating the 11 September attacks, citing the controversy over his refusal to give up his consultancy business during the inquiry.

The move is a blow to President Bush, who reluctantly bowed to pressure a few weeks ago to set the commission up to examine the intelligence agencies' failure to forestall the attacks. But it is above all a blow to the victims' families, who have pressed intensely for a full-scale impartial investigation.

Dr Kissinger's resignation comes 48 hours after the panel's vice-chairman, the former senate majority leader George Mitchell, also stepped down, saying he could not afford to give up his law practice.

"It is clear that, although specific potential conflicts can be resolved in this manner, the controversy would quickly move to the consulting firm I have built and own," Dr Kissinger wrote to Mr Bush. "I have, therefore, concluded that I cannot accept the responsibility you proposed."

Many Democrats had criticised the choice of Dr Kissinger, saying his taste for secrecy and respect for power made it unlikely he would try to uncover the truth behind the attacks.