Sir Kevin was questioned by Jeremy Gompertz QC, counsel for Dr Kelly's family, about a newspaper report about the same conversation which claimed he had made " a circular motion with his finger around his temple", implying Dr Kelly was mad. The civil servant maintained that was a "slur" against him, but admitted that he had not even complained to the newspaper, let alone taken any legal action.
Sir Kevin was making a belated appearance to be cross examined at the inquiry following an eye operation. The hearing was told by Lord Hutton that his report into the circumstances surrounding the death of Dr Kelly will not be ready before the New Year.
The civil servant told Lord Hutton that the initial feeling among his colleagues was that there was nothing to be gained by naming Dr Kelly, but then the decision was taken to release a press statement which started the process by which the scientist was identified.
Pressed repeatedly by Mr Gompertz about who took the decision. Sir Kevin said " The change of stance, as you put it, was as a result of a meeting chaired by the Prime Minister. The decision was taken at the meeting in No 10, with which the MoD concurred".
But Sir Kevin admitted that no one from the MoD had been present at the meeting on July 8th which was attended by the Prime Minister's close advisors.
When the Permanent Under Secretary arrived at 2.30pm, Mr Blair told him it was over and that he will be briefed by Downing Street's chief of staff, Jonathan Powell.
Sir Kevin denied a claim made by Mr Campbell's diaries that he and Sir David Omand, No 10's security coordinator, had been parties to a discussion about how the scientist's name could be leaked to a friendly newspaper.
"I understand that Alastair Campbell has a very racy diary style, but this was never passed on to us", he said.
The civil servant also denied another claim in the diaries that he had described Dr Kelly to Mr Campbell as "a show-off". Sir Kevin stated "No, I do not believe I had used those words".
Shadow foreign secretary Michael Ancram said: "Kevin Tebbit's evidence is yet another damning indictment of Tony Blair's role in the naming of Dr Kelly.
"Sir Kevin has said the key decision on the naming strategy 'was taken at the meeting in Number 10'. That meeting was chaired by the Prime Minister. The Prime Minister's denials are now shown to be a sham."
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