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Five people claimed Sir Edward abused and murdered children aboard his Morning Cloud yachts between 19 off Broadstairs, Kent - but police established there was no 'credible' evidence, no witnesses and no missing children.
An allegation he was involved in an Army child sex ring was ruled out after two other men were arrested and released because they had 'no link' to the former Tory leader.
Police received 42 claims from 40 people reported to 14 different police forces.
The alleged offences between 19 include child sexual abuse, physical abuse and sexual abuse of an adult.
This included a combination of emotional, physical, sexual and/or spiritual abuse with the abuse committed using symbols, ceremonies and/or group activities with a religious or supernatural meaning.'Two of the alleged victims of ritual abuse died before Operation Conifer commenced,' the report states.'They had made disclosures of alleged ritual abuse where it was alleged that Sir Edward was a perpetrator.'There was limited opportunity to investigate those disclosure further.'The occult abuse claims made by a group of women first emerged in February.
They said Sir Edward Heath abused them as children and also accused their parents of being involved in up to 16 murders.
A keen sailor, Sir Edward owned five yachts between 19, all of which he named Morning Cloud.Another two people with links to the British Army were also accused of involvement in the same ring, and were arrested and interviewed by police.However they were eventually released without charge, and no evidence was found that linked either of the men to Sir Edward.The former prime minister's family, friends and former colleagues said Wiltshire Police's incendiary report was made to give their two-year probe 'bogus credibility' and help Chief Constable Mike Veale avoid 'getting fired'.Wiltshire Police concluded that Sir Edward would have been questioned under caution about seven allegations had he not died in 2005.