Brown faces questions over gold reserves sale

Between 1999 and 2002, the Treasury sold 395 tonnes of gold – a move which critics say cost the UK as much as 7bn following sharp rises in the international price of bullion.

Now,k previously secret papers released under the Freedom of Information Act show how Mr Brown was anxious to be able to present the sale as a "joint proposal" with the Bank of England.

However, the crucial passage revealing exactly what was agreed between Mr Brown and the then Bank Governor, Eddie (later Lord) George, has been blacked out from the documents published by the Treasury.

Although much of the documentation remains secret, the papers that have been released show how in August 1998 Mr Brown's office instructed a Treasury official, James Steel, to "work up a joint Treasury-Bank programme for gold sales".

Mr Brown's principal private secretary Tom Scholar said the Chancellor then intended to discuss the matter with Lord George in the autumn.

However on December 23, Tamara Finkelstein – an official in Mr Brown's office – sent a worried email to Mr Steel and other senior Treasury officials expressing concern that there was still no joint position with the Bank.

Mr Brown finally met Lord George in January 1999 to discuss the sell-off. In an email to Mr Steel, Mr Scholar said that the two men had agreed his recommendations.

However the next passage – apparently referring to something that Lord George said – is redacted.