Select Committee on Standards and Privileges First Report


Appendix 5 - Continued (Exhibits 1-20)

Exhibit 1

Letter from Mr Royston Webb of Harrods Legal Department to Mr A J Hastings, Clerk of the Privileges Committee

  As you are aware, a month has now elapsed since Mr Al-Fayed gave evidence to the Privileges Committee of the House of Commons.

  At that meeting, the Chairman of the Committee proposed that Mr Al-Fayed would be recalled for a second session to cover matters not dealt with on 31 October. It must clearly be in the interests of both the Committee and Mr Al-Fayed that the second meeting takes place as soon as possible when matters are still relatively fresh in the mind.. We would therefore respectfully suggest that the next meeting be held before the Christmas recess. It cannot be in the public interest to let the matter drift off into 1996.

  We assume that, in accordance with your previous practice, you will be circulating this letter to Committee members. We look forward to hearing from you at your earliest convenience.

Royston Webb
Director
30 November 1995

Letter from the Clerk of the Privileges Committee to Mr Royston Webb

  Thank you for your letter of 30 November. I will, of course circulate it to the Committee.

  Nevertheless I am rather puzzled by its contents. A decision on whether or not to recall Mr Al-Fayed can only be taken by the whole Committee. No decision has yet been taken.

  As for the Chairman, his words at the close of the meeting on 1 November were:

  "Thank you very much, Mr Al-Fayed and those who have come with you. I think all I can do at this stage is to repeat what I said at the beginning. At this moment we have not decided whether to receive the paper you sought to put before us at the beginning of the meeting. We will consider further, but I cannot be sure yet when we shall be able to do that, whether to receive it, and if so, how to conduct any further inquiries we wish to make. I hope you understand why we do not feel able to go beyond that tonight, but, as I say, we remain grateful for your attendance tonight and that of your colleagues. Thank you very much."   I am sorry if any misunderstanding has arisen.

A J Hastings
Clerk of the Committee   
1 December 1995

Exhibit 2

Letter from Mr Mohamed Al-Fayed to the Rt Hon Anthony Newton MP, Chairman, Privileges Committee

  It is now four weeks since your Committee invited me to explain some of my concerns about activities undertaken by certain members of the House of Commons. I was mindful of the many instances during the meeting which I attended when you indicated that the Committee will consider further concerns I raised in the paper which I submitted to the Committee and the concerns which I raised during the course of the meeting.

  On re-reading the transcript of the meeting, I am struck by the number of times you reiterated that the Committee wished to consider further the material which I had submitted and that those considerations will entail you wishing me to return to give further evidence. I refer particularly to pages 5, 15, 21 and 36 of the transcript. I would appreciate hearing from you on the Committee's conclusions concerning my paper and the other matters to which I referred. I would also be glad to hear from you as to when the Committee intends to investigate further the matters which I have raised.

  I would point out at this stage that I was most surprised at the question from Mr Williams asking me why the letter which my solicitors sent to the House of Commons Committee on Members' Interests concerning Mr Neil Hamilton was not copied to your Committee. I believed that the Members' Interests Committee was going to investigate fully Mr Hamilton's conduct and take appropriate steps. It has not done so. There was a suggestion implicit in the question from Mr Williams that if that letter had been copied to your Committee, appropriate action would have been taken in relation to Mr Hamilton's conduct.

  I have now placed that letter and substantial further information in front of your Committee. I recognise that there are many commitments on yourself and your colleagues. Nevertheless, I am comforted by your personal assurances at the hearing that none of these serious matters will be swept under the carpet, but indeed will be fully investigated.

  Please be assured that I derive comfort from that personal assurance. I am well aware that you are a man of integrity with a sense of public duty second to none. I would welcome a provisional timetable as to when the matters I have raised with you are to be considered and ultimately determined. I hope that you will not consider it unreasonable of me to ask you to indicate the timescale in which it is proposed to operate since clearly the matters which I have raised are of great public importance. I shall leave it to you to make this letter available to your fellow Members of the Committee.

M Al-Fayed
Chairman
4 December 1995

Exhibit 3

Letter from Mr Ian Greer to A J Hastings Esq, Clerk of the Privileges Committee

  The Committee requested that I provide a note of dates on which payments were made by IGA to individual Members of Parliament.

  As you will recall, it was agreed that Members should be identified by a prefix and no amounts specified.

  The note covers the period between my company's inception in January 1981 and my first appearance before the Select Committee in 1988. As stated in my recent evidence before the Committee, there were five payments and these are as follows:

MemberYear
A1985
A1986
B1986
B1988
C1988
D1990

For the sake of completeness, I should mention that one other payment was made to Member A between my first and second appearance in 1990.

9 May 1990
Exhibit 10

Letter from Mr Ian Greer to Mr Mohamed Al-Fayed, 60 Park Lane, London W1Y 3TG.

  I was delighted to meet you once again on Monday evening and look forward greatly to working with you and your Brother.

  I have now seen Michael Palmer and taken a briefing from him. I have spoken to Neil Hamilton MP, Vice-Chairman of the Conservative Party's Trade and Industry Committee, who has agreed to table a question, which is being drafted by Michael and myself, to Leon Brittan. The House of Commons rises today until Tuesday. The question will be published in the Order Paper next Thursday. I have also spoken to John MacArthur of Kleinwort Benson and Gordon Reece and expect to have met them both by the end of the week.

  There is obviously a great deal to be done on the Government and Parliamentary front to ensure that we put maximum pressure on Leon Brittan to take quick and decisive action. Yesterday's article in The Times was without doubt most useful. We now have to ensure that there is good back bench pressure on Ministers on this issue.

  As you know from our brief conversation, I am anxious to ensure that the major investments made by you in Britain are fully appreciated and that we quickly achieve a greater understanding of the commitment your Family has made to the United Kingdom. I would, therefore, like to embark on a carefully prepared programme of meetings with Ministers and senior back benchers. I fully accept, however, the immediate problem of The Observer and Rowland must take priority.

  My Secretary has been in touch with your office with telephone numbers where I can be contacted at any time.

  I look forward to our meeting next week, when hopefully we will be able to agree the financial basis on which we work.

Ian B Greer
30 October 1985

Exhibit 11

Letter from Mr Ian Greer to Al-Fayed Investment Trust, House of Fraser Group, 60 Park Lane, London W1Y 3TG.

  I am writing to confirm the agreement entered into between us when we met together on 28 October, that my Company should act as Political Advisers to you for a period of one year with effect from 1 November 1985, at a fee of £25,000 plus VAT at the prescribed rate.

  We look forward very much to working with you.

Ian B Greer
7 November 1985

Exhibit 12

Letter from Mr Ian Greer to Mr Al-Fayed

  May I take this opportunity of wishing you a very happy, prosperous and successful New Year.

  I would like to have an half hour chat with you as soon as it is convenient to assess where we are, and what plans we should be making for you to establish good working relationships with key Members of Parliament.

  Perhaps you could ask your Secretary to give me a call so that we can arrange a convenient time to meet.

Ian B Greer
9 January 1986

Exhibit 13

Letter from Mr Ian Greer to Mr Mohamed Al-Fayed

  I am enclosing a copy of two Questions which are being tabled today by Teddy Taylor, the Conservative Member of Parliament for Southend. It would appear that they are Lonrho prompted.

  I know Teddy Taylor well, and will talk to him as soon as I can get hold of him, albeit the House goes into recess today and does not come back until 12 January 1987, the day on which the Questions are due for written answer. I will be in contact.

Ian B Greer
19 December 1986

1998 NOTICES OF QUESTIONS AND MOTIONS: 18 DECEMBER 1986 NO. 26

  117 W Mr Teddy Taylor (Southend East): To ask the Secretary of State for Trade and Industry, if he will publish in the Official Report the recent correspondence he has had with the Lonrho Company about the circumstances in which the Al-Fayed family was given permission to purchase the House of Fraser group; and if he will make a statement.

  118 W Mr Teddy Taylor (Southend East): To ask the Secretary of State for Trade and Industry, if he will refer again to the Monopolies and Mergers Commission the purchase of the House of Fraser Company by the Al-Fayed family in the light of the new information which has been presented to him by Lonrho since the date of approval; and if he will make a statement.

Exhibit 14

951 Conduct of the Honourable Member for Bury St. Edmunds

Mr Brian Sedgemore
Mr Dennis Skinner
Mr D N Campbell-Savours

*3

  That this House deplores the attempt of the honourable Member for Bury St Edmunds to censor and silence the Observer in reporting the take-over of the House of Fraser, a British company with 30,000 shareholders, by a Liechtenstein company owned by the Al-Fayeds called AIT which was originally called Precis (317) and was a shelf company formed by Herbert Smith & Co. with two nil paid shares of £1 each; notes the threatening letter written by the honourable Member for Bury St Edmunds to Donald Trelford, the editor of The Observer, dated 3 June 1986 in defence of Mohamed Al-Fayed, Kailash Nath Agarwal and Sari Chandra Swamji Maharaj which says "I have it in mind to draw to the attention of the House the charges made by these gentlemen that The Observer has borne false witness against them, and that, accordingly the allegations you also make against the Prime Minister, Mr Norman Tebbit and Mr Mark Thatcher are palpably untrue"; and informs the honourable Member that Mohamed Al-Fayed and his prestigious merchant bankers Kleinwort Benson misled the Office of Fair Trading and the Government about the family background, wealth and value of the assets of the Al-Fayeds in a letter from Mr MacArthur of Kleinworts to Mr Agar of the OFT dated 6 December 1984 marked "Strictly Private and Confidential" and in the Offer Document dated 4 March 1985.

954 Conduct of the Honourable Member for Beaconsfield

Mr Brian Sedgemore
Mr Dennis Skinner
Mr D N Campbell-Savours

*3

  That this House deplores the attempt of the honourable Member for Beaconsfield to censor and silence The Observer in reporting the take-over of Harrods and 110 prestigious stores formerly owned by the House of Fraser, now owned by AIT, a Liechtenstein company; advises the honourable Member not to be taken in by a public relations exercise being mounted by Mr Mohamed Al-Fayed, whose anti-semitic views have been authenticated on tape recordings; and calls on the honourable Member to join in a boycott of Harrods.


Letter from Mr Tiny Rowland of Lonrho

HOUSE OF FRASER

  In the Early Day Motions published on Monday 16 June 1986, numbers 951 and 954 referred to the House of Fraser Company.

  For ease of reference we now quote the text of the question and motion numbered 951:

    "That this House deplores the attempt of the honourable Member for Bury St Edmunds to censor and silence The Observer in reporting the take over of the House of Fraser, a British company with 30,000 shareholders, by a Liechtenstein company owned by the Al-Fayeds called AIT which was originally called Precis (317) and was a shelf company formed by Herbert Smith and Co with two nil paid shares of £1 each; notes the threatening letter written by the honourable Member for Bury St Edmunds to Donald Trelford, the editor of The Observer, dated 3 June 1986 in defence of Mohamed Al-Fayed, Kailash Nath Agarwal and Sari Chandra Swamji Maharaj which says `I have it in mind to draw to the attention of the House the charges made by these gentlemen that The Observer has borne false witness against them, and that, accordingly the allegations you also make against the Prime Minister, Mr Norman Tebbit and Mr Mark Thatcher are palpably untrue'; and informs the honourable Member that Mohamed Al-Fayed and his prestigious merchant bankers Kleinwort Benson misled the Office of Fair Trading and the Government about the family background, wealth and value of the assets of the Al-Fayeds in a letter from Mr MacArthur of Kleinworts to Mr Agar of the OFT dated 6 December 1984 marked `Strictly Private and Confidential' and in the Offer Document dated 4 March 1985."

To assist honourable Members to understand how grave an issue was being debated, we have pleasure in enclosing a copy of The Observer's article dated 15 June 1986 concerning the background of the Egyptian Fayed family, who are now the owners of Harrods.

  Lonrho is convinced that a confidence trick has been practised on a large number of people and bodies including the previous two Secretaries of State for Trade and Industry. Lonrho is applying to the Secretary of State for Trade and Industry for a reference to the Monopolies Commission concerning this disgraceful affair. One unhappy result that may follow from any further failure of the Secretary of State to intervene, is a dismemberment or collapse of the House of Fraser since it is apparent that the company is not generating sufficient funds to service its present borrowings, which now includes £430 million of loans used to refinance the purchase.   The stark contrast between the article enclosed, and statements by the Sunday Telegraph who described the Fayeds as "one of Egypt's distinguished families"; by the Financial Times who said the Fayeds were "fourth generation Egyptian money"; and again by the Daily Mail who described the Fayeds as "cotton millionaires for one hundred years" - is remarkable.

  In the event of the Secretary of State deciding not to investigate the matter further, the way will be open for Lonrho to press through the Civil Courts for the ultimate truth.

R W Rowland
17 June 1986

Exhibit 15

Facsimile from Ian Greer to Mohamed Al-Fayed

  1. Copy of amendment to EDM No. 577. We expect to be tabled later on tonight for publication in tomorrow's Order Paper.

  2. Copy of questions to be tabled tonight.

Ian Greer
19 February 1987

Exhibit 16

EDM 577

AS AN AMENDMENT TO CLARE SHORT'S PROPOSED MOTION (CONDEMNATION OF HARROD'S TREATMENT OF STAFF)

Line 1, after "House", add "applauds the agreement reached on 19 February 1987 between Harrods Limited and the staff; condemns party political moves by certain Honourable Members to undermine negotiating procedures; abhors the personal attacks made under parliamentary privilege on the owners of Harrods Limited; congratulates the Government on its decision to allow the purchase of Harrods by AIT (UK) plc especially in view of the enormous investment by the owners; congratulates the management and staff on the continued success of a Great British Institution; and draws attention to the statement made by the Convenor of the Eastern Harrods Branch of the Union of Shop, Distributive and Allied Workers that `this branch of the Union wishes to disassociate itself completely from the amendment to the Early Day Motion' tabled by the Honourable Member for Hackney South and Shoreditch `and renounces all sentiments expressed therein'."

PARLIAMENTARY QUESTION

For answer on Monday 23 February

  Neil Hamilton, MP, Tatton: To ask Secretary of State for Trade and Industry when his Department expects to be able to reply to letters from M J Palmer dated 30 January 1987 and 6 February 1987.


PARLIAMENTARY QUESTION

For answer on Monday 23 January

  Neil Hamilton, MP, Tatton: To ask Secretary of State for Trade and Industry when he expects to be in a position to reply to a letter addressed to him dated 2 February 1987 from Mohamed Al-Fayed.

724 Harrods Agreement with Staff

Mr Neil Hamilton
Mr Albert McQuarrie
Mr Nicholas Winterton

* 3

  That this House applauds the agreement reached on 19 February 1987 between Harrods Ltd. and the staff; condemns party political moves by certain honourable Members to undermine negotiating procedures; abhors the personal attacks made under parliamentary privilege on the owners of Harrods Limited; congratulates the Government on its decision to allow the purchase of Harrods by AIT (UK) plc especially in view of the enormous investment by the owners; congratulates the management and staff on the continued success of a great British institution and notes that the proposed motion tabled by the honourable Member for Birmingham, Ladywood, condemning Harrods' treatment of their staff has now been withdrawn following the statement made by the convenor of the eastern Harrods branch of the Union of Shop, Distributive and Allied Workers that this branch of the union wishes to disassociate itself completely from the amendment to that Motion tabled by the honourable Member for Hackney South and Shoreditch and renounces all sentiments expressed therein.

13 March 1987

Exhibit 17

Letter from Mr Neil Hamilton MP to Mr Mohamed Al-Fayed

  Enclosed is a copy of my letter to the Chairman of the Stock Exchange,[7] all of which speaks for itself.

  I have now been elected Secretary of the Conservative Finance Committee and Vice-Chairman of the Trade and Industry Committee, all of which gives me a better position from which you act on your behalf. Previously, as a PPS, it was less easy.

  I will be writing shortly to Francis Maude, the new Minister at the Department of Trade and Industry.

23 July 1987

Exhibit 18

Facsimile from Mr Ian Greer to Mohamed Al-Fayed

  Have seen Neil and others. Expect Motion to go down tonight. Am drafting series of questions to be put to Trade and Industry next week and a further very strong anti-Rowland motion before Parliament rises for the summer.   Will be in touch tomorrow. We have got them on the move!! 12 July 1988

Exhibit 19

NO. 187 NOTICES OF MOTIONS: 14 JULY 1988 8223

1358 Mr Tiny Rowland

Mr Neil Hamilton

* 1

  That this House condemns the continuing barrage of libellous and vicious propaganda being sent by Tiny Rowland, allegedly on behalf of Lonrho plc and at the expense of its shareholders, to honourable Members; further demands that he refrains from pursuing his bitter personal vendetta against the House of Fraser in this House; calls upon Mr Rowland to act in a manner befitting that of a chairman of an international public company; and requests the Secretary of State for Trade and Industry to call upon his inspectors to complete their inquiry into the House of Fraser without further delay.

  As Amendments to Mr Neil Hamilton's proposed Motion (Mr Tiny Rowland):

Mr Frank Cook   

* 1

  Line 1, leave out from "House" to end and add ", whilst not necessarily supporting the views of Mr Tiny Rowland about the House of Fraser, upholds his right to express them and to disseminate them to honourable and Right honourable Members, records surprise that any honourable Member, having been elected to membership of the House in order to hear, heed and represent those in the electorate who seek an effective voice in the prime national political forum, should feel the need, in a country famous for its free speech, to frustrate the long-established and time-honoured parliamentary processes by gagging elements of the electorate; and questions what genuine aims could possible motivate an honourable Member with such contrary purpose.".

Mr Jeremy Corbyn
Mr Eric S Heffer
Mr Tony Benn
Mr Dennis Skinner
Mr Harry Barnes Mr Bob Clay

  * 7


    Mr Ron Brown

  Line 1, leave out from "condemns" to end and add "notes the continuing barrage of the most extraordinary vitriolic communications between Tiny Rowland and the House of Fraser; is grateful for the education into the vicious methods of big business that socialists have received from this; and believes that this vituperative waste of resources is endemic in a capitalist system.".

Exhibit 20

Facsimile from Mr Ian Greer to Mohamed Al-Fayed

  As you know, Michael Grylls wrote to Lord Young yesterday, copy of letter attached.[8]   I have spoken to Neil Hamilton, he is writing over the weekend - the letter will be hand delivered to Lord Young on Monday. We have agreed the text of the letter and it is strong. Neil Hamilton available for delegation to Lord Young next Wednesday/Thursday.

  Have so far failed to contact Tim Smith and Peter Hordern, will continue to try and do so over the weekend.

  My home telephone number is * * * .

29 July 1988


7   Not printed. Back

8   Not printed. Back


 
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