SARA KEAYS, ex-mistress of former Cabinet Minister Lord Parkinson of

Carnforth, yesterday accepted ''substantial'' undisclosed libel damages

over newspaper allegations that she wrecked his career by seeking

revenge for breach of a promise of marriage, and made their daughter

Flora a ''victim of spite''.

The damages and legal costs are to be paid by Birmingham Post and Mail

Ltd, publishers of the Sunday Mercury.

Mr Edward Garnier, counsel for Miss Keays, told Mr Justice Drake in

the High Court that the allegations appeared in an article by former

Mercury journalist Susan Clark in December 199O, shortly after the then

Mr Cecil Parkinson announced his resignation from the Cabinet following

the Conservative Party leadership contest.

The newspaper apologised and accepted that the resignation followed on

the departure of Mrs Thatcher as Prime Minister and had nothing to do

with Miss Keays. She had never acted out of spite and had always put her

daughter's interests first.

This case was the latest in a series of libel actions launched by Miss

Keays, 44, of Marksbury, Bath. Last February, she won #105,000 over a

magazine article which she said labelled her a kiss-and-tell,

money-grubbing bimbo. Previous settled actions, only two of which

reached court, are thought to have netted her in the region of #100,000.