Documents show that UK's Starmer was warned of 'reputational risk' in appointing Peter Mandelson

The document also spelled out other reputational issues over Mandelson’s work in a previous Labour government related to financial matters, including high-profile donors, and his work at Global Counsel, a lobbying firm he co-founded.

Lawmakers have forced Prime Minister Keir Starmer’s government to disclose thousands of files about the decision to name Mandelson to the key diplomatic post at the start of Trump’s second term, despite Mandelson's past friendship with the convicted sex offender.

Authorities published more than 100 pages of documents related to those ties on the government website on Wednesday.

The government has said the files will show that Mandelson misled officials about the extent of the relationship. But Starmer is facing a political storm over his decision to give him the Washington job.

Mandelson, 72, a former Cabinet minister, ambassador and elder statesman of the governing Labour Party, was arrested Feb. 23 at his London home on suspicion of misconduct in public office. He has been released without bail conditions as the police investigation continues.

He has previously denied wrongdoing and hasn’t been charged. He does not face allegations of sexual misconduct.

Cabinet minister Darren Jones said the “first tranche of documents” will be published Wednesday afternoon.

The documents are being published in batches after review by Parliament’s Intelligence and Security Committee. Police have asked the government not to release files that could compromise their criminal investigation into Mandelson.

“The documents that will be published today later to Parliament will provide full transparency about the appointments process, bar one document that has been held back by the Metropolitan Police because of an ongoing criminal investigation,” Jones told broadcaster ITV.

Starmer fired Mandelson in September after an earlier release of documents showed he had maintained contact with Epstein after the financier's 2008 conviction for sexual offenses involving a minor.

Further details about Mandelson's ties with Epstein, revealed in a huge trove of files published by the U.S. Department of Justice in January, drove opponents and even some members of Starmer’s Labour Party to call for the prime minister’s resignation. Starmer survived the immediate danger, but his position remains fragile, even though he never met Epstein and is not implicated in his crimes.

Starmer has apologized to Epstein’s victims and said he was sorry for “having believed Mandelson’s lies.”

The Epstein files suggest that Mandelson sent market-sensitive information to the convicted sex offender when he was the U.K. government’s business secretary after the 2008 financial crisis.

That includes an internal government report discussing ways the U.K. could raise money, including by selling off government assets. Mandelson also appears to have told Epstein he would lobby other members of the government to reduce a tax on bankers’ bonuses.

Mandelson is also facing a separate probe by the European Union’s anti-fraud office for the time he spent as the bloc’s trade representative.