Mikel Arenaza, politician and friend of terror, is a lively, engaging man – I could tell as much by his manner on the phone – but the full extent of his ebullient self-confidence becomes apparent only upon meeting him. We arrange to have a drink in the old town of San Sebastián, not in an herrika taverna - the type of down-at-heel pub favoured by the radical, left-wing nationalist abertzale – but in an upmarket bar where waves of tapas and uncooked mushrooms and peppers cover every conceivable surface, two barmen and a young female chef working frantically in sight of the customers. It is my final evening in the city, after three solid days of meetings, and Arenaza arrives late, picking me out of the crowd within an instant of walking through the door, at least six feet of heavy good looks pulling off a charming smile beneath an unbrushed explosion of wild black hair. The fact that he is wearing a suit surprises me; the average Batasuna councillor might view that as a sop to Madrid. On television, in the Spanish parliament for example, they are often to be seen dressed as if for a football match, in sartorial defiance of the state. Nevertheless, a single studded ear-ring in his right lobe goes some way towards conveying the sense of a subversive personality.

‘It is Alec, yes?’

A big handshake, eyes that gleam on contact. The ladies’ man.

‘That’s right. And you must be Mikel.’

‘Yes indeed I am. Indeed.’

He moves forcefully, all muscle-massed shoulders and bulky arms, wit and cunning coexistent in the arrangement of his face. Was it my imagination, or did time stand still for a split second, the bar falling quiet as he came in? He is known here, a public figure. Arenaza nods without words at the older of the two barmen and a caña doble appears with the speed of a magic trick. His eyes are inquisitive, sizing me up, a persistent grin at one edge of his mouth.

‘You’ve found a table. This is not always easy here, it’s a triumph. So we can talk. We can get to know each other.’

His English is heavily accented and delivered with great confidence and fluidity. I do not bother to ask whether he would rather speak in Spanish; in the absence of Basque, English will be his preferred second language.

‘And you work for Julian?’ The question appears to amuse him. ‘He is the typical English banker, no? Eton school and Oxford?’

‘I guess so. That’s the stereotype.’ Only Julian went to Winchester, not Eton. ‘How do you know him?’

There is a fractional pause. ‘Well, we tried to do some business together a long time ago but it did not come off. However, it was an interesting time and now whenever I go to Madrid I always try to have a dinner with him. He has become my friend. And Sofía, of course, such a beautiful woman. The British always taking our best wives.’ A laugh here, of Falstaffian dimensions. Arenaza, who must be about Julian’s age, has sat down with his back to the room on a low stool which does nothing to diminish his sheer physical impact. He offers his glass in a toast. ‘To Mr and Mrs Church, and to bringing us together.’ Clink. ‘What is it that you think I can do for you?’

He may be in a hurry; the man-about-town with fifty better things to do. It occurs to me that whatever information he might usefully impart for my report will have to be extracted within the next half-hour. It is the challenge of spies to win the confidence of a stranger and I would like to know more about Mikel Arenaza, yet charisma of his sort usually denotes a distracted and restless personality. Time is of the essence.

‘What would be most useful for Endiom to know is your view on the question of separatism. What has become of your party in the wake of the ban? Do you think the Basque people would vote for independence in a referendum? That kind of thing.’

Arenaza bounces his eyebrows and puffs out his cheeks in a well-rehearsed attempt at looking taken aback. I note that he is wearing a very strong aftershave.

‘Well, it’s not unusual to meet an Englishman who arrives straight to the point. I assume you are English, no?’

I take a chance here, going with a pre-arranged plan based on Arenaza’s ideological convictions.

‘Actually my father was Lithuanian and my mother is Irish.’ Two sets of suitably oppressed peoples for a Basque to mull over. ‘They settled in England when my father found work.’

‘Really?’ He looks gratifyingly intrigued. ‘Your mother is from Ireland?’

‘That’s right. County Wicklow. A farm near Bray. Do you know the area at all?’

Mum is actually Cornish, born and bred, but ETA and the IRA have always had very close ties, shared networks, collective goals. About a year ago a general in the Spanish army was killed by a bicycle bomb, a technique ETA were believed to have acquired from the Irish.

‘Only Dublin,’ Arenaza replies, offering me a cigarette which I decline. It’s a South American brand – Belmont – which I have seen only once before. He lights one and smiles through the initial smoke. ‘I have been to several conferences there, also once to Belfast.’

‘And you’re just back from South America?’

He looks taken aback.

‘From Bogotá, yes. How did you know this?’

‘Your cigarettes. You’re smoking a local brand.’

‘Well, well.’ He mutters something to himself in Basque. ‘You’re a very observant person, Mr Milius. Julian makes a good decision in hiring you, I think.’

It is a politician’s flattery, but welcome none the less. I say, ‘Eskerrik asko’ - the Basque for ‘thank you’ – and lead him back into the conversation.

‘So you want to know what has become of Herri Batasuna?’

‘That’s right. To hear it from someone so close to the centre would be very useful.’

‘Well, it is a complicated situation as you can probably be guessing. It is not only my party that is affected. I am sure you have already been informed about what happened last week?’

‘With Egunkaria?’ At dawn on 20 February, a Thursday, masked members of the Guardia Civil burst into the offices of the Basque newspaper Egunkaria and arrested ten of its executives, accusing them of supporting ETA. ‘I heard the police were a bit heavy-handed. Didn’t they go in wearing bulletproof vests?’

‘That’s right. That’s right. It was ridiculous. These are newspaper offices. What are the staff going to shoot them with? Ink?’ I laugh encouragingly as Arenaza spends fifteen minutes telling me things I already know: that more than a hundred men were ordered to search and board up Egunkaria offices throughout the Basque country and Navarra; that they confiscated documents and computer records; that several Basque publishers offered temporary offices and printing facilities to enable the paper to go to press. ‘It was a direct attack on our culture,’ he says finally. ‘This was the only newspaper in the region to publish entirely in Euskera.’

‘And what about the accusation that it was funded by ETA?’

Arenaza tilts his head very slightly to one side so that his eyes momentarily lose their sheen. This may be a sign of irritation or simply a warning to me to be more discreet.

‘I cannot speak for E-T-A,’ he says, spelling out each letter to disguise the acronym, ‘but these accusations were also directed at another newspaper, Egin, during 1998 before it was also banned by Madrid. They say that the armed struggle wanted a Basque-language newspaper, that they moved shares from Egin to Egunkaria to pay for this, and that they nominated certain journalists to be editors. And this is bullshit, of course. Total bullshit.’ Arenaza takes a relaxed drag on his cigarette. His mood is one of nonchalance bordering on conceit. ‘If you want to talk about funding, let’s talk about funding. Egunkaria was given six million euros by the state government, and still the PP accuses them of “political responsibility” in the spread of terrorism. These people are just fascists, Alec. Ignorant fascists.’