Anwar said he had `big arguments' during at least 10 meetings with Mahathir from the end of June last year and that their relationship became `somewhat turbulent and continuously engaged in heated debates' from early August.

``An ultimatum was given on September 2, saying that either I resign effective that day or that charges would be preferred against me in a number of related offences ranging from sexual misconduct to treason,'' he told the court.

Attorney-General Mohtar Abdullah, who has been leading the prosecution team since Anwar took the stand on Monday, objected that Anwar was raising the issue of a political plot to oust him.

But Judge Augustine Paul, who ruled Tuesday that any evidence of a political conspiracy was `irrelevant', overruled the objection.

Anwar, 51, ison trial on four charges of corruption alleging he abused his position to get police to cover up sexual misconduct allegations against him. He also faces a fifth corruption charge and five counts of sodomy.

Anwar told the court on Wednesday that Mahathir's closest ally, Daim Zainuddin, came to see him on August 12 last year, telling him the Attorney-General was considering charges against him.

``I went straight to the Prime minister's office,'' Anwar said.

``I protested. Why did the Attorney-General choose to brief Daim on the possible charges to be preferred against me? Had he been delegated with responsibilities to the effect and was it because money can buy everything?''

The prosecution objected but Anwar snapped back. ``This is the truth, you will be very happy to hear,'' Anwar said.

Justice Paul warned the crowd to calm down, saying: ``Anybody who believes this is a theatre may leave and clap outside.''

Elaborating on the August 12 confrontation, Anwar said Mahathir telephoned theAttorney-General and told him to proceed with charges against Anwar's tennis partner but wait for further instructions on charging Anwar himself.

``I was there. I cannot be convinced of the independence of the Attorney-General,'' Anwar said.

The tennis partner, Solaimalai Nallakaruppan, was later charged with unlawful possession of bullets and faced a mandatory death sentence until last week when the charges were reduced, leading to a 42-month prison sentence.

Anwar said he appealed to police chief Rahim Noor to be `professional' in dealing with his friend.

``I heard complaints about harassment and even threats to get Nalla to sign prepared statements in order to implicate me,'' he said.

He also said he told Rahim about his `major differences' with Mahathir and confided to him a ``number of very highly confidential matters'' including problems with the Prime minister over the role of the anti-corruption agency.

Rahim told him it was a `complex matter' and that police had to follow orders. ``Youare going to be the next Prime minister. Please deal and solve your political problems with the prime minister yourself,'' he was quoted as saying.

Anwar said he was "shocked" and asked Rahim whether he had instructions from Mahathir. But the police Chief "merely said it was a political issue," he said.

"I do not know what to do with my Defence because they are so interrelated. The police conspiracy cannot stand alone. I am helpless," Anwar added, before Justice P Aul asked Defence lawyers to "control their client."

Earlier on Wednesday, Anwar said he had `documents to prove there was a charge against Rafidah Aziz (Malaysian trade minister)'. ``But the Prime minister stopped it,'' he said.

Anwar also described his arrest on September 20, when he was assaulted `gestapo-style' by police before his first court appearance with a black eye. Mahathir ordered an inquiry into the beating last month.