Formula One leaders McLaren emerged unpunished on Thursday from a hearing into a spying controversy that threatened to wreck their title hopes.

The International Automobile Federation (FIA) said in a statement that although McLaren had Ferrari data in their possession, there was insufficient evidence that they had gained any benefit from it.

"We therefore impose no penalty," it said.

However, the world governing body warned after the hearing in Paris that the Mercedes-powered team could still be kicked out of this and next year's championship if fresh proof emerged against them.

McLaren are 27 points clear of Ferrari with seven races remaining in a championship led by their 22-year-old British rookie Lewis Hamilton.

His team mate, double world champion Fernando Alonso, is two points adrift, with Ferrari's Brazilian Felipe Massa third, a further nine points back.

McLaren team boss Ron Dennis, who attended the World Motor Sport Council hearing in Paris, told reporters he was "not completely comfortable with the outcome but the punishment fits the crime".

McLaren had argued that suspended chief designer Mike Coughlan, who was found to have a quantity of Ferrari data at his home, acted without their knowledge or authority and had not shared it with anyone else at the team.

The team said in a later statement it found the FIA's unanimous decision to be "very balanced and fair" and accepted that there had been "a purely technical breach" of the regulations.

"We believe we have acted correctly throughout," added Dennis, while Hamilton and Alonso said they looked forward to an exciting end to the season.

However, Ferrari found the lack of a sanction incomprehensible and added in a statement that the FIA decision "legitimises dishonest behaviour in Formula One and sets a very serious precedent."

SPY SAGA

Ferrari have taken legal action in Italy and England against Coughlan and former Ferrari engineer Nigel Stepney.

The extraordinary meeting at the FIA's Place de la Concorde headquarters warned McLaren that they could be summoned again if new evidence emerged that they had used Ferrari information "to the detriment of the championship".

The FIA said it "reserved the right to invite...McLaren back in front of the WMSC where it will face the possibility of exclusion from not only the 2007 championship but also the 2008 championship."

The 'spy saga' has gripped the glamour sport for weeks, with McLaren stunned by revelations about Coughlan and his cache of Ferrari data.

Ferrari's lawyers argued in a document submitted to the London High Court last week that it was 'likely' McLaren owed their lead to Coughlan obtaining some 780 pages of highly sensitive data from the Italian team.

Coughlan, who provided an affidavit to the governing body and both teams, and Stepney could now face bans from international motorsport.

The two had approached Honda together about job opportunities but Stepney has denied he was the one who provided Coughlan with the information. Honda have said they were not offered any Ferrari data.

"The WMSC will also invite Mr Stepney and Mr Coughlan to show reason why they should not be banned from international motor sport for a lengthy period," said the FIA.

"The WMSC has delegated authority to deal with this matter to the legal department of the FIA."

(China Daily via Reuters July 27, 2007)