The British Government has suppressed the release of secret documents relating to Rupert Murdoch's dealings with a French-Australian conman and KGB operative four decades ago.

The British Cabinet Office, which includes Prime Minister David Cameron, last week blocked the release under British freedom of information laws of a security classified file dealing with the Australian political controversy known as "The Iraqi money affair".

ASIO surveillance picture of Henri Fischer

The affair nearly cost Gough Whitlam the leadership of the Labor Party, but ended with the newspaper proprietor paying the former prime minister a massive defamation settlement.

The British file, created in early 1976 by the office of former British Labour Prime Minister Harold Wilson is entitled "Claim by Rupert Murdoch (businessman and media magnate) that Gough Whitlam (Australian Prime Minister 1972-1975) was asked by Iraq about dealings between the USA, Syria, Israel and Egypt".