Select Committee on Foreign Affairs Minutes of Evidence


Examination of witness (Questions 20 - 39)

THURSDAY 14 MAY 1998

SIR JOHN KERR, KCMG

Chairman

  20.  Are you saying that there was no indication from the post in Conakry, from the High Commissioner then in Conakry, in December that there was a danger that this British firm might supply arms?
  (Sir John Kerr)  Chairman, first, the High Commissioner was neither in Freetown nor in Conakry in January. He came back at some stage in December from Conakry where he had been operating out of an hotel room and was on leave in this country and then in North America, I am not sure where.

  21.  Was there any indication by whatever means from our High Commissioner in Sierra Leone in December or January to the Foreign Office expressing fears about the possible supply of arms?
  (Sir John Kerr)  I am advised, and I need to speak with caution given the ongoing Customs and Excise investigation as you acknowledged, Chairman, in your introduction, that no such report was received in the Foreign Office in December.

  22.  And after the Lord Avebury letter, the discussion you mentioned in February, what was the highest level of the Foreign Office at which that letter from Lord Avebury and its implications was discussed?
  (Sir John Kerr)  I cannot tell you, Chairman, I do not know.

  23.  Would that not be on the face of minutes?
  (Sir John Kerr)  Not really. I am sorry, I think I need to go back to the perspective. The working levels in the Foreign Office do see an awful lot, and ourselves create a lot, of suggestions of sanctions busting. When our posts report something that is suspicious and might point to sanctions busting we would expect that to be drawn to the attention of the implementing authority under whichever legislation it is, in this case Customs and Excise. When we see it in the press, when it is drawn to our attention by a Member of this House, a Member of the other place, in this case Lord Avebury, that action would take place quite automatically. I repeat at this committee, of whose existence I was not aware until recently—clearly there had to be some such committee but that it was called the Restricted Enforcement Unit I frankly did not know—there were 60 new items discussed, 38 previous items discussed again, 98 in this meeting on the 18th, 31 action points arising, three for Customs and two visits to companies.

  24.  You are telling the Committee in the light of all you know now that particular allegation from Lord Avebury with all we know about President Kabbah at the Commonwealth Heads of Government Meeting in Edinburgh and so forth, you are not surprised that it did not rise beyond that committee?
  (Sir John Kerr)  No, I am not, Chairman. I think the thing was properly handled.

Sir John Stanley

  25.  Permanent Secretary, could you just clarify the answer which you gave to the Chairman a moment ago. Are you saying to this Committee that contrary to all reports that have appeared in the press, you are stating quite clearly that at no time did the British High Commission in Sierra Leone issue warnings to your Department that Sandline might be contemplating a breach of the embargo?
  (Sir John Kerr)  I mentioned a moment ago, and I am sure you recognise, Sir John, I need to be quite careful about what I say since these matters are clearly being examined by the Customs and Excise investigators now because they clearly would be germane to the investigation of Sandline and their counter-allegation against the Foreign Office. I repeat, it is my understanding, I am advised, that no such report from the High Commissioner was received.

Sir John Stanley:  Would you, after the conclusion of this hearing, go back to your Department's files because clearly you may need to explore this somewhat further. Could you provide confirmation as to whether what you have just said to the Committee is correct or not and if it is needing any amendments could you promptly provide the Committee with the necessary amendments. As you know, Permanent Secretary, regardless of whether—

Chairman

  26.  That was a question, Sir John.
  (Sir John Kerr)  I had hoped it was not a question. I did not hear a question mark at the end.

Sir John Stanley

  27.  There was a degree of uncertainty, as I heard you replying to that question, Permanent Secretary, as to whether your Department did receive any warnings. You said "I am advised" which is not the same as giving an unequivocal assurance. I am asking you to examine the records between the posts and your Department, the totality of those, and confirm to this Committee the advice you have given this Committee that no warning at any time was received by your Department from the British High Commission for Sierra Leone indicating that there might be a possibility of Sandline breaching the embargo. I am just asking you to confirm that to the Committee when you have taken any further investigation you need to do.
  (Sir John Kerr)  Sir John, I hear the question mark very clearly this time. May I take it that what you would like me to confirm concerns, and I may not be able to do it, I shall have to take advice from my lawyers and Customs and Excise, but if I can do it, if I am allowed to do it, I would like to do it, the question is before arms were apparently delivered was the Foreign Office alerted in any way by the High Commission in Sierra Leone?

Chairman

  28.  Or from any other source.
  (Sir John Kerr)  Any other source brings in Lord Avebury.

Sir John Stanley

  29.  I am not saying before they were delivered.
  (Sir John Kerr)  Forgive me, Sir John, that is quite an important distinction I am trying to make. In our investigation now into an allegation against us we are bound to have exchanged messages with our posts. I should like to know whether this is an historical question: were we warned; did we receive a warning of the possibility before arms were delivered? That might be an easier question for me to confirm that the answer I have given, which I believe is correct, is absolutely correct. If I need to look into the month of April when the allegation was made against the Foreign Office, and the Foreign Office is bound to be exchanging telegrams with its post saying "here, hang on, what is all this?", are you saying that too is covered by your question? Is your question timeless or is it warning of arms supply before arms, according to the press, were supplied?

  30.  The question is timeless but obviously covered by the obligations you have which you have referred to not to prejudice the Customs and Excise inquiry. Permanent Secretary, regardless of whatever warnings were or were not received from the post, the issue of Sandline and the issue of possible breach of the embargo was blazed across the front of the Observer on Sunday 8 March. Can you tell us before your Department made the reference to Customs and Excise whether they consulted the officials in the Attorney General's departments or the Attorney General himself?
  (Sir John Kerr)  They did not.

  31.  Thank you. Later on that week, on the same date that the reference was made by the Foreign Office to Customs and Excise, also on Tuesday 10 March Baroness Symons, the Parliamentary Under-Secretary of State, as you know, was replying to a series of questions from Lord Avebury in which she was asked to investigate reports that appeared in the Observer, The US News, The World Report and other places that future diamond resources of the country had been mortgaged in an illegal arms transaction in which a British company, Sandline International, was involved. Baroness Symons, replying to that question, said: "My Lords, I am aware of the newspaper article to which the noble Lord refers". Permanent Secretary, can you confirm the fact that the Minister said that indicates that briefing was provided for Baroness Symons for that debate by officials of your Department in relation to the Observer article and the Sandline allegations?
  (Sir John Kerr)  Yes, I can confirm that there was a briefing provided. Chairman, and Sir John, I need to put this in perspective again. As I am sure you realise we are well short here of realising that the company is going to make a counter-allegation against us, the Foreign Office, the people who initiated the investigation of it. The allegation against Sandline had been acted on, it was in the hands of the investigating authority. That had a rather routine look to it at the time—I am not complaining about officials not having told me about the action they took in mid-February—therefore this matter would not have been prominent in the papers being prepared. Yes, I can confirm that the papers do contain references to the fact that Sandline are being investigated for possible sanctions busting.

Sir John Stanley:  Thank you.

Sir Peter Emery

  32.  The date of those?
  (Sir John Kerr)  The debate, I think is it the 10th, Sir John?

Sir John Stanley

  33.  The debate was on 10 March, yes. The following day, Permanent Secretary, was of course a Prime Minister's questions day. Can you confirm that No.10 had sought a briefing for the Prime Minister for Prime Minister's questions on the Observer article and Sandline for that day's PM's questions?
  (Sir John Kerr)  I cannot confirm that, I frankly do not know. My not confirming it does not mean that it did not happen.

Sir John Stanley:  I quite understand. Could you examine your Department's papers and could you tell this Committee whether briefing was provided for Prime Minister's questions on Wednesday 11 March? Could you also tell the Committee whether, as is the normal practice in Government Departments, that briefing was put to a Minister in your Department before going to No.10 and, if so, which Minister cleared the briefing for No.10?

Chairman

  34.  Will you confirm as Sir John has asked?
  (Sir John Kerr)  Absolutely. I do not know the answer to Sir John's first question, I am happy to find out.

Sir John Stanley

  35.  The following day, Permanent Secretary, as you know there was an adjournment debate initiated by Mr Simon Hughes in the House of Commons on Sierra Leone. As you will know, in fact, Mr Hughes and indeed other Members participating in that debate had not referred to the Observer article but the Minister himself, Mr Lloyd, quite spontaneously and of his own volition introduced the Observer article and Sandline. Indeed he said at column 844: "I am slightly surprised that no-one has referred to it" referring to the Observer article. Can you also confirm that Mr Lloyd received briefing from your Department's officials to enable him to respond to Mr Simon Hughes' debate on 12 March?
  (Sir John Kerr)  Yes, Chairman, I can. Again this was my perspective point. Prominence, no. It was there. The point that most concerned officials was that they heard, I think from the Observer, that the Observer might be going to write a story about triangular meetings between Mr Penfold, President Kabbah and a representative of Sandline. They told the Observer, I think on the Friday, that was not the case. They consulted Mr Penfold and they established that was not the case. I think Mr Lloyd's briefing may have contained quite a bit about the allegation of a triangular meeting, an allegation that did not actually appear in the Observer article.

  36.  Thank you. Just a final question I would like to put to you. This relates to the briefing of the Foreign Secretary. The Foreign Secretary when he made his reply to the Private Notice Question on 6 May certainly gave the impression to me, and perhaps to others, that he was really wholly unsighted about Sandline until 28 April. Could you tell us what was the date when the first information about Sandline and your Department's discussions with Sandline were sent to the private office of the Foreign Secretary?
  (Sir John Kerr)  Oh, there is no doubt about it, it was when the letter from the solicitor's firm, Berwin, arrived on——

Mr Mackinlay

  37.  24 April.
  (Sir John Kerr)  Thank you. On the 24th. The Foreign Secretary was then abroad, I think.

  38.  April.
  (Sir John Kerr)  April. Perspective, sir. The first action by Foreign Office officials was absolutely right and it was absolutely right they should go ahead and do it. It was the kind of routine matter which should certainly not have been reported to Ministers. That is what we do in the Foreign Office, we do not sit on things, we deal with them. The second moment comes when it comes to the attention of the Foreign Office that the company is going to make an allegation against us, and indeed it is already making it. In that case the Director of the Africa Command correctly reported that to me. That was an allegation against the Foreign Office, against the Diplomatic Service, so he drew it to my attention. It was a copy of his report to me which was for information with Mr Lloyd and which the Foreign Secretary referred to in his statement on the 6th, papers shown to Mr Lloyd for information. That is quite correct because an allegation against the Foreign Office and the Service, that is an allegation which comes to me. I read the report from the Africa Director with concern but not huge concern because I was pretty confident that these guys who work in the Foreign Office would have got it right and the Director told me they had got it right, that the counter-allegation against us was not true. I thanked him and I remained on the bridge keeping an eye on this one. I was alert to it from then on. I did not actually tell the Foreign Secretary about it because it is not the sort of daily business—a company makes an allegation against us, we having passed on an allegation against it—that I would immediately expect the Foreign Secretary to be bothered with. It was right that the Minister of State should be in the picture, it was right that I should have been put in the picture, and in fact the Deputy Under-Secretaries to the Office were put in the picture. That is good, that is fine. The Command had done the right thing. The thing had escalated out of the Command because it was an allegation against us. I do not feel that it would have been right to bother the Foreign Secretary with it. That is not because the Foreign Secretary would not have wished to see something, probably in retrospect he thinks I should have sent it on to him, I do not know, but the Foreign Secretary is meant to be laying down the strategy of foreign policy and carrying that out. During the UK Presidency of the EU that is going to be extremely hard work, that is a very, very busy schedule. Housekeeping matters like this are basically the responsibility of guys like me. The Foreign Secretary has a massive workload which is gone through rigorously and efficiently. It would be quite wrong to create a situation where everybody who wishes to cough in the Foreign Office has to push a paper at a Minister and drown Ministers with paper, or when they hear a cough directed at the Foreign Office.

Mr Rowlands

  39.  The burden of your case, Sir John, is that the command structure of the FCO did not require these papers being pushed up to yourself. Can we try to discover at least what level they were pushed up to. On page three of the Departmental Report we have the command structure laid before us. There is an Africa and Commonwealth Department headed by Mr Dales, and an African Department (Equatorial) which is where, if the press reports are right, it was dealt with at desk and official level. Are you saying that reference to the Customs and Excise, the one that formally occurred on 10 March on which there had been discussion beforehand, did not go outside that section of the Office? It was not reported up above what level?
  (Sir John Kerr)  The action taken, I now discover on the 18th, and the reply to Lord Avebury sent on the 26th and the formal confirmation notice sent to Customs on 10 March, none of them would have risen above Mr Dales' command. I do not know but I doubt if they went to him. This is typical daily business.


 
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