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Lord Drayson, the defence procurement minister, said that failure to grant the UK 'operational sovereignty' will lead to the withdrawal of the order for 150 of the F-35 jets.

'Without the technology transfer to give us the confidence to deliver an aircraft fit to fight on our terms, we will not be able to buy these aircraft,' Lord Drayson told the US Senate armed services committee.

'I am spelling this out because it is so important to make our intentions clear,' he added. 'I know the British can be accused of understatement.'

He said that he is making progress in talks with President Bush's administration but that the government does have a Plan B to fall back on should its demands be refused.

The F-35 is intended to replace the Harrier on two new Royal Navy aircraft carriers.