DEFENCE Secretary Liam Fox tonight apologised for making a mistake in allowing "distinctions to be blurred" in his working relationship with former flatmate Adam Werritty.

In a statement released on his return to London, Dr Fox conceded that his frequent contacts with him may have given an impression of wrongdoing.

The beleaguered Tory also accepted that their close ties may have given outsiders the "misleading impression that Mr Werritty was an official adviser rather than simply a friend".

He said: "I accept that it was a mistake to allow distinctions to be blurred between my professional responsibilities and my personal loyalties to a friend. I am sorry for this.

"At no stage did I or my department provide classified information or briefings to Mr Werritty or assist with his commercial work - let alone benefit personally from this work.

"Nevertheless, I do accept that given Mr Werritty's defence-related business interests, my frequent contacts with him may have given an impression of wrongdoing, and may also have given third parties the misleading impression that Mr Werritty was an official adviser rather than simply a friend.

"I have learned lessons from this experience."