THE Government admitted for the first time yesterday that soldiers

from the SAS brought the Peterhead prison siege to an end in 1987.

Now SAS men are set to give evidence in a Scottish court from behind

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screens, their faces being revealed only to the Judge, counsel, and the

jury.

They will be appearing for the Secretary of State in a case in which

he is being sued for #10,000 by a Peterhead prisoner who alleges he was

beaten up when the elite troops intervened to rescue a prison officer

being held hostage. The Scottish Secretary denies liability.

The action is being pursued by Mr John Devine, who claims that since

his alleged treatment at the hands of the SAS in October 1987 he has

needed psychiatric treatment and has suffered sleeplessness, headaches,

and loss of appetite. He alleges that in the initial fracas he was

thrown down a flight of stairs.

The case is due to be heard by Lord Clyde and a jury at the Court of

Session next week.

At a preliminary hearing earlier this week counsel on both sides were

careful not to mention the SAS by name. It was alleged that Mr Devine

had been beaten up by ''Crown servants''.

The Scottish Secretary, who is responsible for the prison service,

successfully resisted a move to postpone the case. His counsel explained

that these particular ''Crown servants'' had priorities other than

giving evidence in court.

Yesterday, however, the Crown servant euphemism was dropped when Mr

Alastair Dunlop, QC, appearing for the Scottish Secretary, asked Lord

Coulsfield for special arrangements to be made to allow SAS men to give

their evidence.

Mr Dunlop told the court: ''The incident was brought to an end by

force through the intervention of members of the armed forces, and in

particular the SAS.

''I am informed it is essential for the appropriate presentation of

the defence that at least some of those from the SAS give evidence. I am

advised, and indeed it is accepted, that for reasons of security,

operational effectiveness and personal safety, it is essential that the

soldiers' identity should be protected.''

The intention was to erect a screen in court which would result in the

soldiers being seen only by the Judge, jury, and counsel. The SAS men

would also be referred to only by letters of the alphabet.

Lord Coulsfield agreed to approve these arrangements for the hearing,

which is due to begin on Tuesday.