Stage Two of the Phone Hacking Scandal

It looks like the government and the police are using Britain's odious Official Secrets Act in an attempt to ferret our the leakers:

The Metropolitan police are seeking a court order under the Official Secrets Act to make Guardian reporters disclose their confidential sources about the phone-hacking scandal.

In an unprecedented legal attack on journalists' sources, Scotland Yard officers claim the act, which has special powers usually aimed at espionage, could have been breached in July when reporters Amelia Hill and Nick Davies revealed the hacking of Milly Dowler's phone. They are demanding source information be handed over.

The Guardian's editor, Alan Rusbridger, said on Friday: "We shall resist this extraordinary demand to the utmost".

Tom Watson, the former Labour minister who has been prominent in exposing hacking by the News of the World, said: "It is an outrageous abuse and completely unacceptable that, having failed to investigate serious wrongdoing at the News of the World for more than a decade, the police should now be trying to move against the Guardian. It was the Guardian who first exposed this scandal."

The first rule of law enforcement is that the Cops will go after you if you embarrass them, and so now they are going after the paper that broke the story.

They haven't invoked the Act againt the Murdoch papers, where police took bribes for information, but they are going after the Guardian, where police misconduct was revealed.

The fact that they are bringing out the big guns indicates that this is going to be getting a lot worse very soon.