The UK Airprox Board, which investigates near-misses, concluded both planes had the right to be flying.
Of course, as the were both operating according to the laws of physics, subset aerodynamics.
As to the C-130 and the parachutists and the whinging ... I'd be interested to know what actually went down, as opposed to what was in the paper. I seem to recall that there was a NATO STANAG about drop zones and temporary special use air space, also one about training ranges.