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Britain is preparing to pay Iran a £450million debt to help free a British mother jailed there for alleged espionage, it was reported last night.

Boris Johnson wants to improve relations with Iran as he battles to free Nazanin Zaghari-Ratcliffe who is locked in a Tehran jail.  

He has ordered officials to find a way to get around UN sanctions which have stopped the UK paying Iran a debt over a 1970s arms deal. 

The Shah of Iran paid Britain £650million for 1,750 Chieftain tanks but only 185 had been delivered when he was toppled in 1979 and the new government cancelled the order.

Two senior government sources said they fear Iran is holding Mrs Zaghari-Ratcliffe as 'collateral' for the debt.

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