Peter Mandelson joked with Jeffrey Epstein about marrying Princess Beatrice with the paedophile financier describing it as ‘incest’, leaked emails show.
In an exchange which appears to date back to October 5, 2009, Epstein suggested Lord Mandelson ‘marry Princess Beatrice’, adding ‘the queen would have a queen as a grandson’.
The former MP appears to have replied: ‘Remember, I am already her Lord President’, to which the disgraced financier said: ‘Does that make it incest, how exciting.’
Lord Mandelson resigned from the Labour Party on Sunday after a flood of new revelations emerged from the Epstein emails, including a now-notorious picture of him in his pants while talking to a woman wearing a white dressing gown.
It was today revealed the photo was taken inside Epstein’s palatial ‘House of Sin’ in Paris.
And further questions over the peer’s links with the paedophile were raised after a fresh photo of the pair together was released by the US Department of Justice (DOJ) showing them relaxing on a yacht.
In a previous statement, Lord Mandelson said: ‘I was wrong to believe Epstein following his conviction and to continue my association with him afterwards.
‘I apologise unequivocally for doing so to the women and girls who suffered.’
Peter Mandelson pictured with Jeffrey Epstein on a yacht. The pair joked about the peer marrying Princess Beatrice with the paedophile financier describing it as ‘incest’, emails show
Pictured: The newly released email exchange between the peer and the paedophile
Lord Mandelson’s relationship with Epstein has prompted increased speculation since a raft of emails sent by the late paedophile were released by the (DOJ).
The former Cabinet minister finally quit Labour last night, but Sir Keir Starmer was branded ‘weak’ for failing to kick him out of the party earlier amid a raging storm over a huge tranche of documents released by the US administration.
Epstein is said to have raped underage girls at the Parisienne apartment where the underwear-clad Lord Mandelson posed for a photo, and it was searched by police after his death in 2019 as part of a child sex trafficking investigation.
The peer’s spokesman has said that the disgraced former Labour peer ‘has absolutely no idea’ where the pants picture was taken or ‘whether it has any connection to Epstein at all’.
Data and Forensics experts have matched the metal balcony railing visible in the window next to where the peer is stood in his briefs to those installed on Epstein’s Paris home, which covered 8,000 sq ft flat and had eight bedrooms and grand 16ft ceilings.
The lamp, curtains and red wood panelling on the wall of the apartment also match shots taken when it was put up for sale in 2021. There is also a piece of paper on the desk with Jeffrey E. Epstein printed at the bottom in a different image of the same room.
Jeffrey Epstein’s ‘House of Sin’ flat in Paris – which played host to Andrew and other VIPs – sold for just over £8million after the price had to be heavily slashed.
The disgraced financier and paedophile was accused of having committed some of his worst sex offences there.
Lord Mandelson is yet to make any further comments today on the latest revelations found in the Epstein files.
Lord Mandelson talking to a woman in a white bath robe while in his underwear. His spokesman claimed he had ‘no idea’ where it was taken but the interior appears to match the inside of Epstein’s Paris flat, known as the House of Sin
Lord Mandelson has not explained why he posed in his briefs in images contained in the Epstein Files
Sky News says its analysis suggests the picture was taken in Epstein’s office, due to matching lamps and red panelling
Last night, however, in his letter to Labour’s general secretary, he once again apologised to Epstein’s victims.
He wrote: ‘I have been further linked this weekend to the understandable furore surrounding Jeffrey Epstein and I feel regretful and sorry about this.
‘Allegations which I believe to be false that he made financial payments to me 20 years ago, and of which I have no record or recollection, need investigating by me.
‘While doing this I do not wish to cause further embarrassment to the Labour Party and I am therefore stepping down from membership of the party.
‘I want to take this opportunity to repeat my apology to the women and girls whose voices should have been heard long before now.
‘I have dedicated my life to the values and success of the Labour Party and in taking my decision, I believe I am acting in its best interests.’
But further concerning accusations on Monday suggested Lord Mandelson leaked ‘confidential and market sensitive’ No10 emails to Epstein.
The new US material includes emails apparently forwarded to the paedophile financier by Lord Mandelson in 2009, in which key Downing Street aides and ministers discussed the UK’s resilience to the Credit Crunch crisis and what government assets might be ‘saleable’.
In 2022 a picture emerged of Lord Mandelson, who appears to be singing as Epstein blows out the candles on a birthday cake in Epstein’s Paris lair
The former Cabinet minister finally quit Labour last night, but Sir Keir Starmer was branded ‘weak’ for failing to kick him out of the party earlier (Pictured: The pair in Washington last year)
Lord Mandelson’s entry on the Parliament website changed to ‘non-affiliated’ today. He is on leave of absence from the House
The tranche of documents includes an email seemingly from Lord Mandelson to Epstein, talking about the UK government having ‘saleable’ assets
The 2009 memo highlighted that the government was looking to get investment moving
The document made clear that the government was looking to sell off assets to avoid tax hikes
Other documents seemingly show Lord Mandelson – who was Business Secretary at the time – advising Epstein how he and his powerful friends could lobby against a bankers’ bonus tax.
In May 2010 – after the election but before the Coalition government took over – Lord Mandelson appeared to give Epstein advance notice of a €500billion bailout of the Euro.
What looks to be bank records from 2003 and 2004 suggest that Epstein wired the New Labour architect tens of thousands of pounds – although Lord Mandelson has said he believes they are fake.
The Liberal Democrats and SNP are both calling for police to investigate whether there is evidence of criminality in the actions of Lord Mandelson.
Some MPs are demanding his peerage is stripped – even though he is already on a ‘leave of absence’ from Parliament and has indicated he will not return.
Downing Street said Sir Keir believes Lord Mandelson ‘should not be a member of the House of Lords’ and has asked the Cabinet Secretary to ‘urgently’ review his emails to Epstein.
Meanwhile, Gordon Brown has demanded a Cabinet Office probe into the ‘wholly unacceptable’ disclosure of details of his government’s desperate response to the Credit Crunch.
The ex-prime minister revealed he asked No10 for a probe last September – but after two months was told no evidence could be found.
