David Davis said Prime Minister Theresa May's letter triggering talks on Britain's departure made clear Britain wants to continue to work with the EU on a range of issues, including security, for both sides.
"We want a deal, and she was making the point that it's bad for both of us if we don't have a deal," Davis told the BBC. "Now that, I think, is a perfectly reasonable point to make and not in any sense a threat."
The tabloid Sun was in no doubt about what May meant: "Your money or your lives," was its front-page headline Thursday, along with the words "PM's Brexit threat to EU."
Britain is a European security powerhouse one of only two nuclear powers in the bloc and with some of the world's most capable intelligence services.
May said today that Britain will probably have to leave the EU police agency, Europol, after Brexit but wants to "maintain the degree of cooperation on these matters that we have currently."
Senior European leaders responded positively to the warm overall tone of May's letter - but they could not miss the steely undertone.
"I find the letter of Mrs. May very constructive generally, but there is also one threat in it," said European Parliament Brexit coordinator Guy Verhoftstadt, saying May seemed to be demanding a good trade deal in exchange for continued security cooperation.
A day after triggering its EU exit process, the British government was outlining on Thursday how it intends to convert thousands of EU rules into British law when it leaves the bloc in 2019.
The government is publishing details of a Great Repeal Bill that will transform existing EU laws into British statute so that "the same rules will apply after exit day" as before.
Opposition lawmakers are unhappy at plans to give government ministers power to change some laws without votes in Parliament.
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