----~~----"-------_.---_._._.

_--"-------""-------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - -

CABINET OFFICE

DISCUSSIONS WITH POLITICAL HONOURS SCRUTINY COMMITTEE

FOLLOWING THE ANNOUNCEMENT OF LORD ASCHROFT'S PEERAGE ON
31 MARCH 2000

MEMORANDUM FOR THE PUBLIC ADMINISTRATION SELECT COMMITTEE

Introduction

1. In his letter of 4 March to the Cabinet Secretary, the Committee Chairman

asked the Cabinet Office to supply any papers relating to the discussions with
government which took place subsequent to the announcement by No 10 on
31 March 2000 that Mr Michael Ashcroft was to be created a Life Peer. The
department was also asked to supply a brief written statement describing the
nature of the dialogue, and describing the identities of those directly involved
or otherwise consulted.

2. This memorandum responds to the request. It describes the nature of the

dialogue and includes copies of all the correspondence between the Secretary
of the Political Honours Scrutiny Committee and Sir Hayden Phillips, Clerk to
the Crown in Chancery (Annex A). A small amount of internal
correspondence between the Secretary and Committee members is not
included; the conclusions are fully reflected in the letters from the Secretary to
Sir Hayden Phillips.

Lord Ashcroft's Statement

3. Lord Ashcroft's statement of 1 March said that there was a dialogue with the
Government subsequent to the memorandum he gave to Mr William Hague on
23 March 2000. Lord Ashcroft stated:

"In subsequent dialogue with the Government, it. was officially confirmed
that the interpretation in the first undertaking ['a clear and unequivocal
assurance that I have decided to take up permanent residence in the UK
again before the end of the calendar year'] of the words 'permanent
residence' was to be that of 'a long term resident' of the UK".

Nature of the Dialogue

4. The essence of the dialogue was a series of discussions and exchanges

during May, June and July 2000 aimed at satisfying the Political Honours

Page 1 of5
 Scrutiny Committee that the assurances given by Mr Ashcroft at the time of
his announcement as Working Peer on 31 March were being put into practice.

Those Involved

5. Those principally involved were:

The members of the Political Honours Scrutiny Committee (PHSC):

• Lord Thomson of Monifieth, (Chair), appointed to PHSC October 1992

(now dece~sed)

• Baroness Dean of Thornton-Le-Fylde, appointed February1998

• Lord Hurd of Westwell, appointed April 1999

The Secretariat of the Committee was provided by the Ceremonial Officer of

the Cabinet Office: Sir Anthony Merifield until June 2000, subsequently Gay
Catto. A background note on the PHSC is at Annex B.

Sir Hayden Phillips, Clerk to the Crown in Chancery was responsible for the
Crown Office. In turn, this is responsible for arranging the issue of Letters
Patent to an individual appointed to the House of Lords. The Queen issues
Letters Patent on the advice of Ministers, acting under her Royal Prerogative.
(Letters Patent, issued by'the office of the Clerk of the Crown, are the means
by which a Peerage is formally conferred. The new Peer is enabled to take
his seat in the House of Lords by virtue of a Writ of Summons, the issue of
which follows immediately after the issue of the Letters Patent and the
documents invariable bear the same date.)

Rt Hon James Arbuthnot MP, then Opposition Chief Whip, who was acting
as an interlocutor with the then Mr Ashcroft.

Cabinet Office
17 March 2010

Page 2 of5
 Annex A

Papers Recording the Discussions with Political Honours Scrutiny

Committee

As requested, the Cabinet Office is making available to the Committee the

relevant documents.

Document A: Letter of 12 April 2000 from Sir Anthony Merifield, Secretary of

the Political Honours Scrutiny Committee to Sir Hayden Phillips, Clerk to the
Crown in Chancery.

Document B: Letter of 23 March 2000 from the Prime Minster to the then
Leader of the Conservative Party

Document C: Letter of 23 March 2000 from the then Leader of the

Conservative Party to the Prime Minister

Document 0: Letter of 27 March 2000 from the PHSC to the Prime Minister

Document E: Press notice issued on 31 March 2000

Document F: Letter of 9 May 2000 from Sir Anthony Merifield, Secretary of

the Political Honours Scrutiny Committee to Sir Hayden Phillips,

Document G: Letter of 13 June 2000 and attachment from Sir Hayden Phillips
to Gay Catto, Secretary of the Political Honours Scrutiny Committee.

Document H: Letter of 22 June 2000 from Gay Catto to Sir Hayden Phillips.

Document I: Letter of 29 June 2000 from Sir Hayden Phillips to Gay Catto,
(with attachments J-L below):

Document J: Letter of 22 March 2000 from Lord Thomson to the Prime

Minister

Document K: Letter of 28 March 2000 from the Honours Secretary, No 10 to

Tina Stowell in the then Leader of the Opposition's Office

Document L: Letter of 23 May 1999 from the then Leader of the Opposition
(Mr Hague) to the Prime Minister

Document M: Letter of 2 March 2000 from then Leader of the Opposition to

Lord Thomson attaching letter of 29 February 2000 from Allen and Overy,
Solicitors, to James Arbuthnot

Document N: Letter of 12 July 2000 from Gay Catto to Sir Hayden Phillips.

Document 0: Letter of 12 July 2000 from Sir Hayden Phillips to Mr Arbuthnot.

Page 3 of5
Document P: Letter of 12 July 2000 from Mr Arbuthnot to Sir Hayden Phillips.

Document Q: Letter of 13 July 2000 from Sir Hayden Phillips to Gay Catto.

Page 40f5
 Annex B

Political Honours Scrutiny Committee,

The Political Honours Scrutiny Committee was a committee of the Privy Council,
whose members were all Privy Councillors, instituted in 1923, in accordance with
the recommendations of the Royal Commission on Honours, under an Order of
the Privy Council. The Committee was required to "make such enquiry as it
thought fit about those whom the Prime Minister proposed to recommend for an
honour on account of political services, including political peerages, and report
whether they were fit and proper persons to be recommended". The Committee
did not initiate recommendations or select them. The duty was that of scrutiny.
Members were appointed by the Prime Minister.

The Committee's functions were taken over by the House of Lords Appointments
Commission in 2005.

Page 5 of5
:.,\
'••' PERSONAL AND
HEHTHICTED . HONOlIHS

SII HHyrkli Phdlips KCB

Lord ('lwlledlor's !)cpClIIIlH'1l1
HO\lSI' of Lorch,
London SW 1A OPW
J1 April .WOO

We spuke about tile J~SIW of Leiters Patent to Mr Michael Ashcroft

J. In confldence I am sending to you copies of lellcrs from I he PH He

about their dcnsion:

a thilt of 22 March (A) was sent by the Prime Minister tu 'he

Leader of the Conservative Party, from whom a letter was received on
23 Marcil 2000 (BI covering the affidavit signed by Mr Ashcroft on
23 March 2000;

b. the light of that, the Committee responded to the Pnnw

In
Minisln on 27 March 2000 (extract enclosed at C). No 10 published rl
Note to l<:ditors (whICh I believe they had agreed with the ConSCTviit iv('
Leader's offlcel in the Press Notice issued on 31 March (Dl

1 Thl l'!1dirl1lrln of tll(' PllSe hulds ruml)' to lilt \l(,\~, l',X1J1 \~:-.nl dhll I
1It'III've Iw Nu 10. that lhe logIC of their declslon IS

il thl' dppoillllllCl1t IS fur a Working Peerage;

b all affidavit was signed on 23 March by M r Ashcroft gIving em

HSSlJl"i:l.nc(' I hat he' would not take up that appointmcnl (Ie be
lllirodll('('d mtn the Hou~c) until he had becume pcrrnalH'l\tl) £TSldt'!l1
ill soin(' t 1011' bdon' dH' ('IHi of this cakndar \'('ilr; ilnd

( lltlll! II<' beco!lles so resident Ihere is no lll"gl'rl<'\' 111 (1)(' ISSl/t' .,f
].\'[I('l s Pilll'[ji HlId it \Vnl (If Surnrnol\s !lHit't'd til ,l!ltl'.~· it 1>('('1 C\~~( IliI"

\\IlIJid <;IH',!."I'·,{ Iklt '.\'(' «I',tld 11111 P(lIIlT II\(' 11lHklldklllg

I" Ir I ii' /' ',("'111~ rCd"{illdhlt" nut to t'XP"\ ( II'll' IS'>IIl' »1 IXi\('1 c. 11,1" II'
Iw \'.1,1"1\ ." i 'it I '. I \ ( , ,j fr, 1111 t I il' Is ') II (' ," ,I IN II ( ," ~:', U I II II I q I'" til \ i \i II i'l I I

I,,!1 !l!, \)III\I! ill', t'!ll'( k('d Ir'/ f'I' 11,;1 Itll ii: .!t ..

PERSON A L A Nil
H [':STR I{'Tl-~1l HONOt In",
 RESTRICTED, HONOURS

very shott
\V()I kllig 1\'(,1 s :,llppOI [ tllis, with L('tt(~I'S (lntell! ,\,( ')
gaps 11l'1\\'ct'1I
tIll' Illtl'Oc!uclioll to Ihe I{ouse, Now the ('OIH'l:pt of (I Worl<ing Peer h,l's"
bClIJlJle Illllell f1l'lIler, with the loss of hcreditflly Membl:rs, the rationale for
a close t l(' seem s 10 Ill; st rengt hened

:, Wc Ilced to cOllsider how to handle I he Incchallics of this, especially

ilS Nu 10 seC/II !lot to wish to frunt the respollse to Mr Ashcroft though ill
the last resort II IS the Prime Minister who makt,s the reconllm'n(\atioll ('
The l)U('CIl Lonl Thomson will b(~ willing to call u PIISC Meeting if
necessary ,- and it may indeed be right to do this to ensure Ihat Lord Hurd
can express his views, But, alternatively it may be sufficient to inform the
PHSC that Iwith the Prime Minister's agreemenl), the Crown Office luke OW
VICW that they should not, issUt: Letters Patent until it is clear that
Mr Ashcroft has ll1oVt~d into permullent residence in the UI( and is thus a hie
to take his seat and function as a Working Peer.

6. How('vel, as PHSC Secretary r need to have a clear message to covey

10 the Memlwr!-;, Hnd to be moving in line with you should there need to be a
handling strategy So it would be most helpful if you, William Chapman and
I could have a wonl fin;t,

7. I realise you have an uncomfortable Monday and Tuesday with PAC

and Select Committees though 1 trust your page 3 notoriety will not provoke
any of your interlocutors to extremesl But if we could meet at noon on
Monday to clarify the position, and any handling points, I would be grateful

8. I am copying this letter to William Chapman. He is aware of the noon

meeting which your secretary kindly off(~red,

\··-f
I,....
\ .

ANTHONY MERIFIELD

PERSONAL AND
RESTRICTED HONOURS
( '.

10 DOWNING STREET
LONDON SWlA 2M

TIlE PRIME MINISTER 23 March 2000

I am writing to let you know that the Political Honours Scrutiny

Committee (PHSC) have completed their enquiries on your recommendations for
working life peerages submitted with your letter of 2 March.

The Committee were unable to approve the recommendation for Mr

Michael Ashcroft for the forthcoming list of peerages. Enclosed is a copy of a
letter from Lord Thomson recording the Committee's concerns. I would be
happy to pass on your response to them.

The list of working peers will be published on Friday 31 March. I will be

writing shortly to Sebastian Coe, Robin Hodgson and Dame Sheila Masters to
inform them of their life peerages. My office will be in touch with yours to
confinn the details.

AJVvt ~

~
The Right Honourable William Hague MP

PERSONAL - HONOURS IN CONFIDENCE

 c )
HUll S}' 0 F (' () tvl M UN <,
I ON[)()N 5W1/\ OAA

( L,\l)U( Ot' t iii I Jt'\'f)',J'1 10:--'

WHIts

2)
, March 7.000

Thank you for your letter of today's date

Followmg our telephone conversatlOn eallier this evening I was pleased to leanl
fTom Jonathan Powell's conversatIon wIth my PPS, John WhittmgdaJe MP, that
you do not object to tbe recorrunendatlOn of a peerage \0 Michael Ashcroft

I am happy to give the assurance In the terms sought by the Conunlttee and
enclose a memo I have tonIght receIved from Michael Ashcroft. 1 am,
therefore, as requested by Oeorge Thomson, sendmg this directly to you and
would ask that you pass it on to the Commlttee Wllhout delay so that they can
formalise thea approval.

The Rt Hou "'illiam Hagu~ MP

Th Rt Han Tony Blcm MP

10 Downmg Street
London SW IA 2AA
 Memorandum

To 1 tIe Rt Ho'! William t laglJf' MP

Leader of the OPP0£'lli()r"

From

Date' 23 March 20UO

further tv our telephone conversation I am wrltmg 10 you 10 confirm ttle aS5U1ances

which f have given you In relalion to the matters wlllct) you raised Wlttl mE" and lInOn

whICh you soughl my woMen and uneqlJlvocat undertakIngs

I herelJy give you my clear and unequivocal assurance that I have decided to take up
permanent residence in the UK again before the end of this calendar year I have given
my advisers Instructions to make arrangement (0 give eFfect to this decIsion and I will
instruct them forthwith to do so WlttH() this cale",dar year

I hereby firmly agree tnat I will not seek to be Introduced to the House of l.ords until
have taken up residency In the United Kingdom within the "mescale above mentioned

I will also Immediately resign as the Belize representatIve to the United Nations that
reSignation to take effect before 31 ~I March this year

These ~re my solemn and binding unoertakrngs to you

//1 At?
~.

Slgr'lature Witnessed by

. ~y ... 1'.\-.)"J ... 4.'~ :,~ . . '

 D
lIousn OF /,ORIJS'
LOlldo" SU'/ A ()PJfI

The Prime Ministci

10 IJowning Street
LondonSWl

27 March 2000

Dear P,ime Minister,

WORKING PEERS UST: SPRING 2000

We have now considered the letter of 23 Man:h 2000, from the LeadeJ of the
Conservative Party, enclosing an affidavit from Mr Ashcroft.

The Committee's 22 March letter rehearsed some of the points which

informed the Committee's views last June. This time, our primary
reservations in respect to Mr Ashcroft (as indeed to one other candidate also)
were that, though proposed as a Working Peer. he would be unable to fulfil
that function until he became a permanent resident of Lhe UK - and so, in
his case also, a UK tax payer. It seemed to us that without such
assurances, the appointment of anyone, and of Mr Ashcroft in particular, to
a seat in Parliament would give rise to highly critical and damaging
publicity.

Mr Ashcroft's affidavit, endorsed by Mr Hague in his letter, meet our

requirements. Provided, therefore, that the assurances are put in the public
domain, we would not consider Mr Asht;wfL unsuitable to be recommended
in terms of our remi t..

We would hope that th~ Press Notice announcing the Working Peers
Appointments could include a note on the following lines:

"In order to meet the requirements for a Working Peer,

Mr Ashcroft has given his clear and unequivocal assurance that
he will take up permanent residence in the UK again before the
end of this calendar year. He would be introduced into the House
of Lords only after taking up that residence. These undertakings
have been endorsed by the Leader of the Conservative Party and
conveyed to the Prime Minister - and to the Political Honours
Scrutiny Committee I'l
 RESTRICTED .- HONOURS

We have been concerned by statements in the Press about certain

candidates who are within the Working Peers List. The Times of
2 March reported offers of a Peerage to five former Labour Party
Hereditary Peers and mention has been made also of a possible offer of
a Peerage to Mr Ashcroft and Mr Coe. The most recent comments,
about Mr Ashcroft, were printed on Friday last week and are
particularly unwelcome. The careful and confidential handling of early
sounding, nomination, and scrutiny cannot be emphasised too much.
We believe it would be right to hold an enquiry into any breaches of
confidentiality which may have occurred.

Yours sincerely,

~,. THOMSON OF MONIFlBTH

(On behalf of the Committee)
Drqft approwd by the Committee and Blgned,
in Lord Thomson's absence, with hu authorl.ty•

.,,
 ,.
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I-rida,l ~ I !\Iarl'h ='(I()(I

Working Peel's List

W(lrkin!~ .. l·l· ..S Lisl

rile ()lIel.'llltas bcclI graciously pleased III signir) her inlenlionlllcllnlcrring Peerages prlhl' t Initcd
KingJplll fiJI" I ill: lIPl11l 11ll.' 1IIltkrllll.'nlillncd:

'I'll hl' Bllnllll'ssl'S:

/)1" Ka) i\f\()!{I, \\S, OBI-., Din:l'1l1L hlllcalioll L\lra

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Anthony lilllwl'dingl' (illl'll'l'!lock. BalOl1l~I~J{KU I·:V OBI':. Chairlllan. Raill'n:ight (,roup:

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f)allil'l JlIsl'ph Iml'NN/\N ()(', ('hainnan. The I~at ('ollncil.

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Sehasti'<lll Nl'\\hold ('01·. ()I~I'.. Privale S,,'{'rclary III the Leader (lIthe Opposilinn,

Mallhc\\ I, VANS ('I~I·.. Milllaging Din:l:tor. Faber & rabe).

(icmgc I l'lllHIX I YI' ". ('hid LXl'cutiVl', Midlands Cll-operative SoddY I ,td: Chairman, Co-
operative \\'hulL'sale Sociely LId.

/\ntlmllY I{obcrt (iRI·/\ Vj:S. Furmel' Councillor, Pcndk BowughCouncil

Julian Pascoc "rancis Sl I.l'ger. Baron (j({ENF!:I.I., I'orlner Advisor ttl the World Bank.

Robin (iral1\ille IIOJ)(iSON CHI:. Chairman and Fotllldcr. Granville pk.

ProkSSlll .Iulian ('Ilark's Roland III lNI ('/3 FRS. ProICssol' or( 'Iimatc Modelling. [)epartment or
Spac~ alld ('liIIHl!l: Ph~ sics and (icological ScienCl'S and Ilolloral') ProlCsSOI' of Mathematics,
Ilnivcrsily ('(IIIl'gc I.onlloll.

William Ihial1 .I01{Di\N ('Ill':. (i~nl'ral Secretary. Intertlational ('olll'edcralioll ofl'rel' Trade lJnions.

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Note.' fur Editors

ill Ilrdl'l rl'quirellll'lllS 1'01 a Wllr~illg PCLT, rvlr rv1icllacl /\shcI\'fl has gi\ l'n his Ckill and
III 11IL'ci 1I1L'
assurance thill Ill' wi \I lake up permanent rl'sidellce in Ihl' I Jnilcd K ingdolll again hcj()ll'
lllll'lj ui V{lca I
lhl' elld or Ihe l'alelldm yca!. I k WilUld he introduced illto the Iiouse 01' Lords ollly aner taking lip
IhallcsitfLoJll'i.' I'hese lilldl'llakillgs have hCl'll endorsed by the I.euth.'r urlhe ('ollsl'rvillivl' Parly alld
COIl\ l'\L'd It) llie I'rilllL' r\1illislL'r - alld It, thl' I'nliticaillonours Scrutiny Committee.

SIHllL'lhis:
~dclil'i\lllS
Ddilll2
Dra~~'h\ H)k

Newsletter
Sigll lip to PUI' 1lL'\\ S Iclle!" lo ~CL'P updated with thL' Iall'st iIlll.lnnatioll ,'rom N lIlll bl'r I()
(lid hLTL' I" SUhSITilw .

flicl<r D
Lah.'st I)ho.os

ViI'" all il1~l:.s

Shall' this ~DD
YOllU~ 0'
I.ill('sl \'id(.'os

'" i', >if\

 Si, AlllhollY Mnifield 1,(\11 (II (:l'«'1I101lial Of/in'1

\ .101 ' II"" '

Sit Phillips 1« '/3

lIilVc!('1I
PC/IlHlIwn( Secret ell Y
LOld C hftllce!lol's Depa Itmen t
\JOUSt' of Lords
I,Olldoll SW I A ()PW
q May ')000

I am wdling, following a meeting of Ihe Political HOJlours Scruliny

Coml1lillCC, to provide some additional information about the appoinlllH'llt
of M, Michael Ashcroft to a Working Peerage,

The Committee ,'ccognises that, following the public announcernent Ull

J 1 March, Ihe implementation of the award, with the conditions attached 10
it, pass{'s to the Crown Office, acting on advice from the Horne Office who
will have outained Royal Approval to the issue of Letters Palenl The
Cornrnlllee have noted that these convey a right to a place in the Ilollse of
Lorch;, and that practice in respect of those appointed as Wor'kin~ Peen;
recngllisf>S that the Leiters Patent be issued when the individual is ready to
~() Hhead and take his 01 her seat We understand that except for cases
wlwn' illness, or H Parliamentar'Y ,·cccss, have intervened. there ll'> no recent
precedent for splitting the issue of Leiters Patent. and the il'>SllC of a Wril of
Summons Hnd tIl(' arrAngements for the Peer to he introduced illlo the
lIouse Inde{>d, we understood that once Lellers Palent have heen issuf'o
the individual cOSH'crncd has a constitutional right, and duty, 10 lak(~ his
pltH'c in Ihe House of Lords withollt undue delay

III order to provide assuramT auout his ability 10 fulfil Ihe dutws of it
Working Peer Oil behalf of his Party I (in March he was still resident O\'(TSeill-;
and limited to ()O days pC?r year residence in the UK!. Mr Mich,wl Ashnof'
rUlllished us willi an undertaking that he htHI "tI(,( )(kd \0 takc' \IP
permanl'lI! n'SI<!crwl' in the lJK agalll heforc the end of tillS (a!cnd,ll \'('dl"
Ill' also Sfilcl thaI " It<'ll'l)~ flrlllly Agree that' will f10r s('('/, (Ill\' I!dlll'i) t I l III
IlllJodll( ('(I 1111(1 til( fllIUSt' or I,fllds ulItli I havl' lilkc'll 'Ill It 'iI!kl\' \ !II tilt
l '1111('</ hlll,~d(lI11 \\1111111 III!' llllll''>ldlt, cdJ')\I' rlP.'IlIIlIlICd

I~n;l Hill f' Il I!Orll)\ 'Ih

TIlt' t'Ollllllitt<'(' \\ould preCcl dwt, ill Ille light of thCbC lllltkl standings ,md
of IIIl' provisions of the Cunstitutional documents to which I hHVC referred,
Mr Ashnufl should be issued With his Lettcls Pel!Clll, witll thell light lllld
dllly 10 allelld lIS II Member of til(' House or Lords, only when Ill' IS III d
positiOIl 10 excrcise thaI ,'igh!. While it is for Mr Ashcrort tu <k<:id(' how to
notify IllS taking up permanent residence, a letter to the Inland 1~\'\'CIl\H'
which provides them with H firm date (and would include or lead tu tht'
submission of their forms m Form P86 (Arrival in the UK) and II< DOM 1
(Domicile)) would seem to be significant in discharging the assurance IJ(-
gave in March. ,Thereafter we would not expect there to be any unduc delay
in the issue of the Leiters Patent and Michael Ashcroft's being introduccd in
the House

When appropriate, the Crown Office may wish to write to give Mr Ashcroft
some indication of the convention, practice and precedent which suggest
that it would be usual to issue Letters Patent as soon as, but not before, H
new Peer is in a position to discharge the constitutional right and duty
conveyed in the legal documents. There need be 110 delay once this stage
has been reached so that, once permanently resident in t he UK, Mr Ashcroft
may then take his place in the House to discharge the responsibilities of a
Working Peer for which he was nominated by his Party Leader,

....."") \ '" . (, c. \...

1

"
~.J

ANTHONY MERlF1ELD
(Secretary, Political Honours Scrutiny Committee)

RESTRICTED HONOUHS
 I{lsml( 1111
)
II () \ I " I (II I (IIi jI ~,

I ():;I>III\ SWlt\ (lI'W

f\"lllI,tlH'llt :-"\'"fl·Lll) ,:lItl

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lilly l'allll
('crclllOnial ()flil.TI
Ashley Iiollse
2 M01Kk SII!'('I
LONDON
SWil' 21H)

MICHAEL ASIICnOFT

I prvpos~ [0 send the enclosed draft leUer to James Arbutlmot MP. the Opposition Chief Whip,
who has HCll'd as lin intcnncdiary with Michacl Ashcroft, to confirm our joint understanding of Mr
Ashcwfi's positiol! jn relation to his lI11dcl1nking to the Leader orthe Opposition ill connecllon with
hb Pl'CllIgl'

()Il thl' basis of that joiut understanding, J believe J t:annot reasonably withhold my permission
1(11 the jllllcedurc leading to Ashcll.lfl'S Introduction to tile House gOiltg ahead, I would be grateful,
ho\\'c\'l:I. it yOIl "til/it.! I:onfirm Ihal Ihis is ill line Wllh the expectations of the PHSC, urgently
(';(illslIlling t!le m~lIIbers <i'Fttlc{\JlIlmittce if necessary.
 \
!

JUIH' 2000

The Right Honourable

James Arbuthnot Esq MP
Opposition Chief Whir
House of Commons
LONDON
SWIA OAA

MICIIAEL ASHCROFT

( am writing, as we agreed, to confinn our understanding of Michael Ashcroft's position in

relation to the undertaking he gave to the Leader of the Opposition in conneclion with his Peerage,

You explained that Mr Ashcroft would complete Inland Revenue Form 1'86 (Arrival in the
UK) giving as his reasons for taking up residence in the l IK, the fact that he was to take lip a seat in
the House of Lords and thai his contract for services to the various companies with which he is
involved would be based in the UK His income under those contracts would, therefore, be sourced
in the UK and subject to UK tax. Mr Ashcroft does not believe that his domicile [or tax purposes is
relevant to the question of his Peerage, having undertaken to be resident in the UK. Paragraph 3. I
of the Inland Revenue's guidance "Coming to the UK" states that a person is treated as resident and
ordinarily resident if he intends to come to lhe UK to live here permanently. Mr Ashcroft has said
(hal·he will live in the UK indefinitely and will, therefore, be a long-term resident here.

I should be grateful if you could write to confinn that you agree with my understanding of the
position and that the Leader of the Opposition is satisfied that the action adequately meets the terms
of his undertaking to take up pennanent residence in the UK, If so, I shall invite Mr Ashcroft to
discuss his title with Garter King of Arms and I will set in motion the process for Letters (latent and
Introduction on a date to be agreed between him and the Crown Office
 " f ;, J ,\. I \ " J1 J i t J 11 l , t J I \ .~.
Ii

(;,1)' <::1110, CC/('llllllli"J Of(in'r

( ABINE'I
OFFI('F

~;III hyd('11 I'llillips I(CI~

LlInl ('IIiIlHdlul 's I h:pcJlllll!'111
Ilnust' III LOlds
LondolJ :SW I A UPW

MICHAEL ASHCROFT

ThHnJ< Yl.lU lUI your let tel of 13 JUllC. I am SOli)' I wasn't able to g(~l back 10
you ear Iit'l .

I have now been able to consult the Political Honours Scrutiny Committee
about the dnlft letter whkh you PI'opose to send to the Opposition Chief
Whip They arc somewhat concerned that Mr Ashcroft does not apparently
propose to complete the second of the two Inland Revenue forms mentioned
in Anthuny Medfield's lettcr of 9 May to you. In their view the undertaking
given I>y Mr Ashcroft did involve domicile as well as residence as defined by
the Inlllnd Revenue. (Ann from my own, admittedly inexpert reading of
lorll18 pg6 and \)OM 1 it is hard to sec how Mr Ashcroft could avoid filling ill
the secund OIlCC he had (ompleted the first.)

Tile COllllllitlce would therdore be grateful if Mr Arbuthnot could be asked

10 c1arlly the position a lit tie further. They do not fecI that the
undcI ~;taJlding set out in yuur draft letter yet meets their expectations,

GAY CAT'l'O

,;I ',J J:!( II IJ l!WW11I:S

 1

J IOllSH (JI; l,oHlJs,

I.ONI JON SW I A OI'W

I'cHuanell1 S~C1claf)' IIncl

('Itll of the ClOwn ill CIIlHlrcl):

SI/ Ilayden Phillips }{C!I

2..,\'fV-.,June 2000
Gay Catto
Ceremonial Office!
Ashley Housa
2 Monck Street
LONDON
SW1P 2BO

MICHAEL ASHCROFT

Thank you for your latter of 22 June. I have sought from the Opposition Chief Whip the further
clanficatlon you sought.

He has provided me with coplf3s of two letters (which I enclose), one from Richard Roscoe to
Tina Stowell and one from Lord Thomson of Monifieth to the Prime Minister. These letters show
thai Mr Ashcroft was asked to give an undertaking to take up IJ8rmanent residence In the UK. In
order to be available in the UK to exercise lhe responsIbilities of a Working Peer The
Committee's view was that availability to sit in the House of Lords was the centralls8ue and the
undertaking Mr Ashcroft was asked to give was intended to satisfy the Committee that he would
be available. As someone who Is resident and ordinarily resident for tax purposes, Mr Ashcroft will
be able to sit regularly in the House and to e)(ercisc lhe responsibilities of a Working Peer. It Is on
thai basis that Mr Arbuthnot does not believe that the quesUon of domicile Is or can be relevant to
the fulfilment of the undertaking.

In any event, my own understanding from independent enquiries to the Inland Revenue Is that
the Form DOM1 (Domicile) need not be completed until the tax return Is submitted which for the
current tax year could be as late as January 2002 While some people choose to submit OOM1 on
arrival or shortly afterwards. thEJ Inland Revehue would not require someone, who had not chosen
to complete the form, to do so prior to the completion of their tax return at the end of the talC year.

Mr Arbulhnot also pointed oul to me that other Working Peers, including. he said, Lord Paul,
are resident but non-domiciled fa! tax purposes and seem to be adequately fUlfilling their
responsibilities. He is concerned about the appearance of inequity in the treatment of Mr Ashcroft
in comparison with other non-domiciled Working Peers

In my view, what Mr Ashcroft proposes would appear \0 be sufficient to meet the undertaking
~le has given On lhe information available to me, I do not think I can reasonably continue to
withhold permission for the issue of Leiters Patent. but it IS clearly Important for all concerned that I
do not take the formal action for which I am responsible if the Committee feels I have missed a
relevant point in the agreements which were rcached I should, therefore, be grateful for their
!eadlOn and 1 am. 01 course. ready 10 meet them 10 discuss the POSition if that would be helpful
 /lOUSE OF LORl)l\'
London S'VIA ()PJf!

Tlie Prime Minister

10 Downing Street
LOlloon SW 1

22 March 2000

Dear p.,ime Ministff!r,

WORK1NG PEERS UST: SPRING 2000

When we I-epol-ted the outcome of our meeting on 16 March, I said I would

be wl-iting separately to you about Mr Michael Ashcroft.

Last time we had a number of concerns about Mr .Ashcroft - possible

adverse publicity linking the sinking of the Belize Registered Rema with his
shared ownership of the Belize Shipping Registerj his pennanent residence
overseas; and the fact that Mr Ashcroft held a Belize diplomatic post at the
United Nations. There were discrepancies also between the donations
reported and those being canvassed in the Press - Mr Arbuthnot's current
Certificate now clarifies for us both personal and company donations (which
were recent and substantial).

The Rema sinking may continue to provoke comment (as it did in the Lloyd's
Register on 18 February), but we must recognise that a recent report by the
Marine Accident Investigation Branch was unable to identify the cause of its
sinking or link it to the Belize Register. (Although the inspectors noted that
it was an old ship, detained twice in port State control inspections and was
flagged to a State with a poor detention record. F'urthermore they reported
that the ship was undermanned and there were questions about the
qualifications and experience of the crew. Exceptionally the Chief Inspector
of Marine Accidents had added to the Report cerlain recommendations to
assist Belize improve its safety record.)

More specifically, therefore, we considered the issue of residence, as this

seems centraJ to the exercise of responsibilities as a Working Peer. In his
23 May letter to you last year, Mr Hague said "He (Mr Ashcroft) is, however,
committed to becoming resident by the next financial year lie by April 20001
in order properly to fulfil his responsibilities in the House of Lords". It is
unlikely that commitment will be realised and a letter (enclosedl from
Mr Ashcroft's lawyers, Allen and Overy, which was sent to \18 recently,
 lllHkcs It dedi thaI there an' Illfilly ~':IglliflullltiSfl\lCS 10 1Jt' Hddl('S:-;cd b(~f()rt
rill inkllliol\ to rel\lln to lIve ill Brilain CHII Ill' put inlo effect
We understand the likely constraints, hut for that very reason believe Ihat it
would he important to have a clearer assurance of residence before advising,
on Mr AshclOft's appointment as a Working Peer in this parliculal List.
eiven Mr Hague's May 1999 letter, Hnd the timescale for exercising the
duties of a Working Peer appointed in a Spring List, we hope you will agree
to invite Mr Hague to Jet us have firm evidence of an unequivocal decision by
Mr Ashcroft that he will have taken up residence in the UK, on a permanent
basis, before the end of this calendar year.

. Even with an assurance about such a decision, (which we hope would be

put into the public domain). we would propose also that the ConseIvat ive
Leader- should reach an agreement with Mr Ashcroft that he should not be
introduced into the House of Lords until he has actually taken up that
residence in the UK in the timescale we have mentioned.

If it can be given, an assurance about such an irrevocable decision, carrying

wilh it messages about availability and status as a UK tax payer, and a dear
understanding from the Party Leader about the date of Mr Ashcroft's
introduction to the House, would go a long way to avoid what might
otherwise be highly critical and damaging publicity.

Finally, we understand from a letter sent to us by Mr Hague, that

Mr Ashcroft is ready to resign his appointment as the Belize representative
at the United Nations once he is able to attend regularly as a Working Peer,
We believe that should be done before any publication of a Peerage.

We hope that it will be possible for you to convey these points to Mr Hague
and invite his response. If you wished to use this letter for that purpose, we
would be happy for a copy to be sent, exceptionally, to Mr Hague. But we
would expect his response to be sent directly to you.

Yours sincerely,

jr THOMSON OF MONIFIETH
(On behalf 0/ the Committee)

Draft approved by the Committee and signed,

in Lord Thomson's absence, with his authority

Rf<;STRICTl<:.ll HONOURS
 IN (O~Tlf)ENCF . HONOURS

It
10 DOWNING STREET
LONDON S\ltl~ 2M

28 Marcb 2000

y,.. -(;. .
l dIll WI iling lO confirm lhe outcome of the Politk:ll Hooours ScrutlDY
COOlmittee' s ('oll5it1~ratioD of Mr Michael Achcroft. I

Tbe Committe!! !las agreed that Mr Ashcroft" s affidavit, eodorsed by Mr

Hague metl theIr requiremerlls. Provided that these usurances are placed In me
p',lbllc domain there ""ould be DO objections to Mr Ashcrof\ btin' rccoaunended,
Tb.~ Pume MUlisler bas, therefore, put in hand the oecessary aftqcments for
Mr Asbcron (0 beinchu1.ed in the list of workina life peers to be ',~ed on
Fnday 3 t March \,

We propose that the press notice lI1JlouDcing the Working Peers Ust wiU
1Dclude the follOWing note: l,

~ 10 order to meet the tcquiJemenlS tor a Working Peer. Mr Ashcroft has

givcll his clelt <Uid unequivocal issurance that he will take up pehnanent
residence in the UnJted Kingdom ipm before the end of the cale~ )'e.ar, He
would bemrroouced u\to the House of Lords only after taldDe up:tb.at Tfsidente
These undertUings have been eooolsed by the leader of lhe Co~rvati\l: Party
and l:on\,eyed to the Prime M.inister- and \0 the PQlilical HODOUfS Scrutiny
Conuninee "

~hs) Twa Sto.. . eU MDE

l.!'i (,()~}-IDE~CF . 1I0~OI JR~

~ , I -J.' j r 1 i1 ' 'I, --, r 1\1, I': ,
III
L

• ........•..
. -

HOUSE OF COMMONS
.
-

LONDON SW1A OM

WH/ta
23 May 1999

Th.ank you for your letter about my recommendations for working lik
peerages.

I am ltlost concerned about the: C~tteet s report to you on Michael

Ashcroft Atb suaaCltionof lor-..
Powe11, my Chief Whip spoke
to Douglas H\U'd to pltJUC
discovered that the issues W~ 88 foUows;
w*
tqjpt be behind such a report, and

1. The COmmittoc UDC1erstood that Mr Ashcroft was the owner and

chief executive officer of the Belize Shipping Registry. The
Belizean trawler 'R#ma' went clown in tho North sea last year
. .

with tbe lou of four Btlu.h lives. The state of the ship in terms
of~, and tile ~ nature of ~ ~ required by
the seu.an ~, ~ to be tIz subjed8 .of a report to
come Ollt in ~ N()VIm)ber, and were likely to be
scandalous. For dQ$ t--.o now was not the proper time to
make a working peer'"of someone who, though not pcmIODI1ly
involved in the state .
. of the ship, was closely connected with it.
2. Mt Ashcroft was a tax exile. It was incompatible for someone
who chose to be Ollt of the coun1rY for the mavority of the year
to be a working peer, a position that required presence in
Wemninster.

3. Mr Ashcroft had recently become the Belizean ambassador to

the United Nations, which was incompatible with being a
British working peer.
 lu

4. The Committee bad read reports that suggested he had

underwritten the finances of the Conservative Party.

It seems that the cumulative effect of these issues was such as to

persuade the Committee that it should report to you that Mr Ashcroft was
not a "fit and proper person" to be recommendod. The decision as to
recommendation is, of co~ not theirs but yours, and the pwpose of
this letter is therefore to express to you my concern at the Committee's
~;d .... ~~dJlrittthit repOrt . · b l d dttemUn still
to~dWIi:~,*;i~f6l~~[... . .. J you s. ou e

I shall deal with ~h ofthe issues in tum..

1. Mt ~b~f;\ is~ot the Chief ~ve Officer of the Belizean

SJjPP~. ;~e~·He i$tbo~rman .4 Chief Bxecuti~
om_ ~ 6~~ owner. of8JJt a pUblic company whose
prib6iP81 actiVities_ C01·bPl~ 1M'" to the Shipping
R,egi$ter. Bm:·OWQS (as a ~ sruu
~) 50% of the
contpltny tblt .......P1 the ~ on bebalf of b Belizean
Government; but ~ other SO%is owned by a &roUP of laWyers
who IDJIko up the active ~ oftbe CODJPIUlY. Co!i1iary
to SUQCSfiODS msadem SOIII8 ..... ~Mr Aahaoft bas no
direct invoN~ iD. the ;maQI.~ of the ResistrY and his
personal link witb. tile loss of _ Rana and the leport to be
produced in N~ (.~ inci~, the request of Belize
aDd tbt ~iDI ~) is a diStaDt ODe. The Sunday
Expre$SdClbtly ~ an apolOiY to him for suggesting
that his·in..- in theR.egister showed he W8I iporiIig the
safety of those who SIfted in Belizean registered ships.

2. I am advised thai tJJe terms of reference of the Committee do

not include a judgement of wbelber Mr Ashcroft would be
likely, ifmade a workin& peer, to attend (although for reasons I
shall set out I believe he would). The Committee "will have no
duties either ofinitiation or selection, nor will they be asked to
adjudicate on the nature of the honour submitted. Their
functions will be one of scrutiny and scrutiny only . to report if
the past history or general character of a person rendered him
 unsuitable to be recommended". Mr Ashcroft is indeed non..
resident for tax pwposes and bas been for some years, during
which time his principal business interests have been abroad.
He is, however, committed to becoming resident by the next
financial year in order properly to fulfil bis responsibilities in
the House of Lords. This decision will cost him (and benefit
the Treasury) tens of millions a year in tax yet he considers it
worthwhile.

3. fij~ ~tiQll as a Bel~am~or i$ so~g that he

would bring to a halt if it were felt that it was incompatible
with bej:ng a working peer. He is a dual national, and Belize is
a 1IlOI11~ of the Conunonwealth; so this seems an odd reason
to dct1yhitn a peerage.

4. ~ ~Uee a,pears to accept tba.t it is perfectly proper for a

~.pea-to 'b$.Ve __ su1$t8b1ial and regular donations to
a.po__ ,~ pnm.d.ed .tl*e is no queation of those
dOQ81iC)JJ$ bo.kJg Uladc in .~ for the recommendation of a
peerase. My Chief Whip has aheady certified that no such
question ari..- in this caBo. In any event, Mr Ashaoft does not
underwrite the Conservative Party. He is agenerou.s supportel
but in no ditlerent a way from tho$e many Labour peers
(including Lords Sainsbury, Hamlyn, Levy, PuttDam and
Bragg) who generously support the Labour Party. Perhaps
more to the point, he is also an exceptionally generous
supporter of charitf in 't!lis C9U11try. His work for
~ (which befoundod) continues to be of
. ., 4

acknowledpd value to the police and to good order and has

been ~blc for sometbU1s like 26,000 arrests. He was the
anonymous businessman who recently offered a £50,000
reward for information leading to the arrest and conviction of
Jill Dando's killer. It would be quite wrong to assert that his
support for any political party should somehow diminish the
importance and value of what he bas already done for the
country.
 All of this arises in a climate of secrecy that will create the false
impression that there is lurking in his past something giving setious
cause to doubt his integrity. Yet it also seems to me likely that there will
be leaks to the press of the fact that he has been the subject of an
unfavourable report by the Committee. All of this is utterly unfair to
him.

A very in:tportantissue ofprinciple now arises. Mr Ashcroft IlU1S the risk

of being denied a peerage for reasons which are either wrong,
insubstantial 01' a matter of choice and swift alteration, .yet this is
~ in a way which allows no opportunity to answer the
allegations made against him. Surely in cases where the Committee feels
there is some question about whether a per$OD is fit and proper to be
recommended for an honour, the party leader reconmtending tbat honour
should be given the opportunity to answer points made against his
recommendation. But I have not been given tbat opportunity.

If therefore despite the points made in this letter you still feel uuab1e to
recommend his name for a workinIlife peerage, or to arrange for these
points to be put urgently to the Conunittee, I would ask for an urgent
meeting with you to dilCUSS the matter fUrther.

~ rJutCeIeh-{1
oJ~~

The Rt Han Tony Blair MP

10 Downing Street
London SWIA 2AA

I I ~ ~ '. ~ I.;.
-------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - ----------------------------_._- - -
",-- ,) , IL.\ \... \ c:-n

HOUSE OF COMMONS
LONDON SWIA OAA

LEADER OF THE OPPOSITION

2 WHits
March 2000

I am taking the somewhat unusual step of writing a letter to coincide with my

nominations for life peerages. I am doing so because one of my nominations,
namely Mr Michael Ashcroft, was considered by the Committee last summer on
my nomination and did not go forward. I was given to understand that there
were a number of concerns held by the Committee at that time which led them
to the view that they could not recommend that this name went forward. --~

I believe that the causes of these concerns have now been met, and I felt that it
might be helpful if I were to explain why in these circumstances I have
nominated Mr Ashcroft once again.

- There was concern about Mr Ashcroft's involvement with the Belize Shipping
Registry IMMARBE -and in particular with the sinking of the mv Rema on 25 th
April 1998. As you will be aware Mr Ashcroft severed all his connections with
the Register in July 1999 and the official investigation into the sinking of the
Rema has found no cause which can be attributed to the failings of the Register
or to any actions or omissions on the part of Mr Ashcroft. I hope therefore that
this concern has been fully met.

In an unpleasant media campaign aimed at Mr Ashcroft over the summer and

autunm a number of other allegations were made. None has been substantiated
and suggestions of inferences to be drawn therefrom by the Times newspaper
were in tum withdrawn publicly in December as part of the settlement between
Mr Ashcroft and that newspaper of the libel action which he had taken against
them.
 -2-

Concern was also, I understand, expressed by the Committee in the summer on

two other aspects relating to Mr Ashcroft.

Firstly his non-residence in the UK was felt to be relevant. Mr Ashcroft has

since publicly undertaken to resume residency in the UK. Given the complex
nature of his business and financial affairs this cannot be achieved immediately
but his lawyers have been instructed to resettle his affairs so as to achieve his
residency in a well ordered manner. A letter from his solicitors Allen & Overy
to James Arbuthnot is attached which makes clear the way in which Mr
Ashcroft is taking the necessary action to fulfil his undertaking to resume
residency. I have no doubt that this reflects his clear intention.

Secondly his current position as Belize ambassador to the UN caused concern.

Mr Ashcroft has undertaken to me that he will give this up if he is ennobled to
avoid any potential conflict of interest. Once again I am in no doubt that this
reflects his clear intention.

Finally I am putting his name forward once again because I value his abilities
and wish to make political use of them as a working peer within the House of
Lords to which, I believe, he would bring new strengths.

I am sure that you will appreciate that, in the light of what has gone before, I
would not be renominating Mr Ashcroft if I had any doubts as to his suitability
and was not anxious to make use of him on the Conservative benches in the
House of Lords.

The Rt HOD William Hague MP

The Rt Hon The Lord Thomson of Monifieth

Chainnan
Political Honours Scrutiny Committee
~) ...... EN & OVERY One New Change
London EC4M 9QQ

Our Ref: CO:71139S.1

29th February, 2000

BYIIAND
STRICfLY PRIVATE & CONFIDENTIAL
.
Rl. Hon. James Arbuthnot MP
Cbi~fWhip. Conservative Party
House ofCommons
London SWI

Dear Sir,

Michael A. Ashcroft

Mr. Ashc;roft, who is a long-estabtished client of this f'lrm, has asked us to write to you regarding the
status or his reorpnisation ofbis personal and business affilirs.

Sh~ after the settlement in December 1999 of his libel action against 'l'M Times (on wbiob we did not
aeMIie him" owing to a conflict of interest), Mr. Ashcroft consulted Ulan his affairs, baving regard to his
intention to return to live in Britain. somethiDg to wbich be bad publicly coounittcd himself.

ActOfdingly, since that time we bave been advising Mr. A.shcroft on various relevant questions, in
c:ol\iunGtion with his other professional advisen, including a leading rum
of accountants in London whom
he bas engaged for the pwpose. He has instruoted us to advise him on the methods and implications of
reorganising bis affairs in an appropriate mannc:l'. prior to his returning to live in Britain, so thal he can
fulfil his commitment.

Given that Mr. Asb'%oft ha$ lived abroad for many years and bas substantial business and othc:l' interests
abroad, as well as in the United Kingdom, there are many significant issues to be addressed, some of
which an: complex in nature. In relation to bis becoming resident ill Britain. several possible courses of
action are UDder consideratioD and each will have to be assessed according to its implications for him, his
family and associated trusts and busin~sses; in some instances, it will also be necessary to obtain advice in
other jurisdictions.

Yours faithfully.

Copy: Michael A. Ashcroft

A lis' olllt~ 1I/UrtCJ 01 ptuf1l~n utd 'It~lr p'0/uno,,«J f(IIa/ifictltiqflS is IIP~" '0 ItuptdiOIl lit ,Itt llbavr flfJiet..
nit ptut"tn IIU t'illtn soliciton Dr npttnti/ortigPl IlIW)'u1
 In q jW 'ILl) . I/( h\'() ( IH\

<:F1U~M()NJAL BJ,AN<:l1

Cay Caito, Ceremonial <)f[icn

1I.,},jqILHI\(. l"kl[I{~:SII('" I"".I,,,~WII· ·1

.".1\ ' I! Jill} )(lO:)

SII Haydcll Phillips KCB •. ,. _. I ~ t t ~'i' I •

l'clnwllcI,t Secretary and

( 'krk of the Crown ill ChallCCI Y
Iiouse of Lords
London SWI A UPW

/,,,JICIIAEI,ASIICROFI

'J hank yOll fOI your Ieltcl 0129 JUllC.

The PHSC arc most grateful (01 the funha clarification yOll have obtained frolll
the Opposition Chief Whip. They agrec that there is now 1\0 reason why you
should nol put in mol ion lhe procedures kading to Mr Ashcroft's introduction to
Ihe House of Lords. They suggest however thai, sincc the question of
Mr Ashcroft's domicile docs 1101 appall'lIlly have to he resolved al lhis slage, it
might be preferable 10 omit the third sen!. lice ('Mr Ashcron does not believe, .. ')
of Ihe second paragraph of the draft Iell VI 10 the Opposition Chief Whip which
you sen! me 011 13 June,

GAY t.. \ 1'10

I~"''' II{lC II-/) - I !01\'OI lit"

 o
IloUSI:: OF LOI~\)S,

LONDON SWI A OPW

I'clllWnen( Secretary and

(:Itlk of tlie Crown ill Chancery

SII Hayden Phillips KCn

..,...."...
''- July 2000

The Right Honourable

James Arbuthnot Esq MP
Opppsition Chief Whip
House of Commons
LONDON
SW1AOM

1~rJ~~£ MICHAEL ASHCROFT

I am writing, as we agreed, to confirm our understanding of Michael Ashcroft's position in

relation to the undertaking he gave to the Leader of the Opposition In connection with his Peerage.

You explained that Mr Ashcroft would complete Inland Revenue Form P86 (Arrival in the UK)
giving as his reasons for taking up residence in the UK, the fact that he was to take up a seat in
the House of Lords and that his contract for services to the various companies with which he Is
involved would be based In the UK. His income under those contracts would, therefore, be
sourced in the UK and sUbject to UK tax. Paragraph 3.1 of the Inland Revenue's guidance
"Coming to the UK" states that a person is treated as resIdent and ordinarily resident If he Intends
to come to the UK to live here permanently. Mr Ashcroft has said that he will live in the UK
indefinitely and will, therefore, be a long-term resident here.

I should be grateful if you could write to confirm that you agree with my understanding of the
position and that the Leader of the Opposition is satisfied that the action adequately meets the
terms of his undertaking to take up permanent residence In the UK. If so, I shall set In motion the
process for Letters Patent and Introduction on a date to be agreed between him and the Crown
Office,

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HOUSE OF ('UMMONS
LONDON ~)'.. IA OAA

From the Opposition Chief Whip

12 th July, 2000

Further to your letter of loday's da\e, I confirni that I' agree wltli Your'
understanding of the position and that the Leader of the Opposition is
satisfied that the action adequately m(,~l'ls the terms of Michael Ashcroft's
undertaking to take up permanent residence in the UK.

Sir Hayden Phillips KCH

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Ashley /louse
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I OI~DON
SW1P ;J!iU

MICHAEL ASHCROFT

I arn wrlling 10 lei you know that I wfote to Ihe Opposition Chief Whip yesterday (copy
enclosed) and received the enclosed reply. As you will see, the way is now clear to proceed to the
issue of Letters Palent and Introduction lo the House I have instructed the Head of Ihe Crown
Office, 10 lake the necessary steps

I am copying tIlls leller and Ils enclosures 10 Hfcllard Wilson and William Chapman