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HOUSE OF COMMONS LONDON SWIA OAA

LEADER OF THE OPPOSITION WHits 2 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 ofthese 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 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 ofthe Register or to any actions or omissions on the part ofMr 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 None has been substantiated and suggestions of inferences to be drawn therefrom by newspaper were in tum withdrawn publicly in December as part of the settlement between Mr Ashcroft and that newspaper of the libel action which he had taken against them.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 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 ofLords.

I

•

The Rt HOD MP

The Rt Hon The Lord Thomson ofMonifieth 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 ofhis libel action against 'l'M Times (on wbiob we did not aeMIie him" owing to a conflict ofinterest), 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 ofaccountants 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

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