• Cameron's adviser Hugh Powell left file on display to photographers
  • Document revealed Britain will not impose sanctions against Russia
  • Will not support military action against the country either, it showed
  • Also disclosed Russian investors will not be frozen out of City of London
  • Hague and Cameron claimed today they would 'get tough' with Russia
  • Britain will not impose sanctions or support military action against Russia, according to a briefing paper that was revealed in error yesterday.
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The document was snapped by a sharp photographer who zoomed in on the deputy national security adviser Hugh Powell as he walked past No10 to attend a meeting about the coup in Ukraine.

The document became public when one of David Cameron's advisers left it on display to press photographers before a Downing Street meeting.

The blunder by Hugh Powell, who is deputy national security adviser, also shows that the Government has no plans to freeze Russian investors out of the City of London.

Instead, the briefing paper recommends that the UN should take the lead and possibly send monitors to Ukraine.

The document says: 'UK should not support for now, trade sanctions ... or close London's financial centre to Russians.'

It also says that Britain should 'discourage any discussions (eg at Nato) of emergency military preparations'.

Downing Street sources confirmed that the briefing document is official policy.

Ministers fear that imposing trade restrictions or somehow excluding Russians from the financial markets in London will hurt economic growth and deter foreign investment.

The capital is known as 'Londongrad' due to the number of millionaire Russian oligarchs based here. A senior figure said: 'We're trying to find ways of hurting Russia, not hurting ourselves.'

Mr Powell, who was at Eton with the Prime Minister, is the son of Margaret Thatcher's chief foreign policy adviser Charles Powell and nephew of Tony Blair's chief of staff Jonathan Powell.

The document undermined claims by Mr Cameron and William Hague that the UK was set to get tough with Russia.
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"Well young man, let me teach you a thing or two about statesmanship. Firstly, don't ever tell the truth, that's weakness..."

Visiting the Ukrainian capital Kiev, the Foreign Secretary described the situation as the biggest crisis in Europe in the 21st century.

He warned Russian president Vladimir Putin that he faces a 'significant cost' for taking control of the Ukrainian region.

After chairing the National Security Council meeting, Mr Cameron said a clear message needed to be 'sent to the Russian government that continuing down this path of violating the sovereignty of another country will have costs and consequences'.

He added: 'We shall have to bring to bear diplomatic, political, economic and other pressures.'

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"Now you listen to me, Russia: do as we say, not as we do!"
By contrast, US secretary of state John Kerry went much further, threatening to deny Russians in America access to their money. He said Mr Putin 'may find himself with asset freezes on Russian business. American business may pull back, there may be a further tumble of the rouble'.

Last night EU foreign ministers, meeting in Brussels, agreed to suspend cooperation with Russia over the planned G8 summit in Mr Putin's holiday home of Sochi in June.

The EU will also suspend cooperation on visas and they warned that 'further sanctions' may be imposed after an emergency summit on Thursday. A Downing Street spokesman refused to discuss the leak. 'We never comment on security matters,' he said.

Labour MP Simon Danczuk called for Mr Powell to resign, pointing out that Bob Quick - the former Scotland Yard head of counter-terrorism - was forced to quit in 2009 after a similar mistake.

He said: 'It's astonishing that the deputy national security adviser can't keep sensitive documents like this private. It's clearly a serious issue and needs to be addressed.'

Tory MP Douglas Carswell added: 'I'm surprised to hear that Inspector Clouseau is working in Downing Street. We have literally shown all our cards.'

One Government official indicated that a reprimand was on the cards for Mr Powell.