FEATURE WHO picks up the tab for the Tories? The riddle of Conservative Party funding has dominated political debate in recent weeks, attention centring on several eighties hero-businessmen who have since been revealed as suspected or proven thieves. DAVE OSLER reports EVIDENCE is now mounting that Britain's party of government is taking indirect backhanders from at least three nasty dictatorships - those of Saudi Arabia, Brunei and 'communist" China.
There is clearly a case to answer. Scrutiny of what is laughably passed off as Tory 'accounts' over the last eight years shows that they cannot explain donations totalling perhaps as much as £71 million. Investigators cannot go any back further. Between 1979 and 1984, the Conservatives simply did not publish details of Only an annual office-memorandum style basic income and expenditure ac count has been published since 1985. Even this is not audited, and sometimes simply does not add up.
Tory records lump together company and other contrihutions in a single line headed "donations". Yet it is possible to strip out payments from the largest 1,500 UK companies throughout the last poriod, thanks to surveys compiled by Lapolitical donations over £200 is a legal Can CHick Gifts In 1989, business gifts to the Tories came to £3.5 million, out of a contributons toal or tl million. In 199 iney were £2.9 million out of £7.9 million, in 1991 £2.8 million out of £15.8 million, Make his a big one and in 1992 just £2.9 million out of £20.7 million. In other words, donations from unknown sources hit a cumulative total of £39.8 million in the last four years alone.
An investigation by a team of journal. ists from Business Age magazine, which had access to Tory insider sources. claimed that two men have consistently acted as conduit for the mystery cash.
One is Sir Brian Wyldbore-Smith, director of the Conservative Board of Finance between 1969 and 1992. The second is Lord Alistair McAlpine, variously treasurer or deputy treasurer of the Conservative Party between 1975 and 1990. Cheques were generally sent to their private addresses, often made out to them personally.
Laundered
The money was then laundered through at least one offshore account with Barclays Bank in Jersey, and four nominee accounts in the names of party agents at the British Overseas Bank and WGTC Nominees, both subsidiaries of the Royal Bank of Scotland.
Wyldbore-Smith, on record as saying 'I don't think a cheque has ever been refused", is a traditionalist party servant. Lord McAlpine of West Green, a memher of the famous construction family. was put in place by Margaret Thatcher herself as roving fundraiser: I was 33 at the time and it was the first time anybody had offered me a job. No, it was the only His Mate has caused problems McAlpine's net worth has been put at £35 million, much of it tied up in property investments in Australia. Not bad for never actually doing anything.
Wyldbore-Smith, his deputy Brigadier Sir Henry Lee (a retired NATO intelligence officer) and McAlpine are reportcdly the only three people with access to the full list of Conservative Party donors. Even Sir Norman Fowler, the party chair. and John Major himself, may not know the full story.
Business Age believes that the Tories have received f€30 million from overseas sources in the last eight years, with over a third of this coming via Hong Kong. Much of that undoubtedly emanates from China.
McAlpine has admitted accepting money from billionaire businessman Li Ka Shing, a leading member of Beijing's shadow government in the Crown Colony and recently appointed a member of the Chinese parliamene.
Li Ka Shing is chief wester agent for the Chinese state-owned arms manufacturer, China North Industries Corp (Norinco).
He also owns Felixstowe. wes container terminal, and 23s a 27 per cent stake in Hong Kong and Shanghai Bank, which in turn owns UK High Street clearing bank Midlands. It is widely believed that he gave the Tories 2 million around the general election of 1987, and smaller donations in 1990 and 1991. one-fifth of all commercial and property interests in Hong Kong.
The motivation for China's realpolitik is readily transparent - the need to strengthen its negotating hand in the run up to Batain's handover of Hons Kong in 1997. Do these claims explain last year's appointment of former Tory chair Chris Patten as governor of Hong Kong? Labour should probably be askThe Guardian has charged that Saudi Arabian sources gave the Tores up to t7 million, delivered in cash by private jet just days before last general election. The payment allegedly followed a meeting between a cabinet minister - named by Labour mir cave soicy uneer partla mentary privilege as Michael Heseltine. President of the Board of Trade - and Prince Bandar Bin Sultan, son of the Saudi defence minister, in March 1992.
Arms deals
Prince Bandar, Saudi Arabia's ambassador to the Us, is authorised to sign arms deals on behalf of the government. This is something close to the Thatcher family's heart, after Margaret personally intervened to secure the €20,000 million Al Yamamah arms contract in 19%5 leaving son Mark to rake in at least part of the commission.
The last alleged foreign donor is the Sultan of Brunei, probably the richest man in the world. Despite his dentals, he has repeatedly been linked with the controversial Al Fayed brothers' takeover of Harrods, during which they lied about their background and resources.
Yet during his stint as trade secretary. Norman Tebbitt blocked a rival bid from liny Kowland's Lontho. Presumably. the Sultan readily recognises services rendered.
Speaking to the House of Commons home affairs select committee investigating party unances, rowier denied outright that the Torics had taken money from Sultan of Brunei, or any member of the royal family of Kuwait or Saudi Arabia, and added: We refuse to accept This is probably no word of a lie. Foreign goverments would be stupid to hand over state cash directly when it could just as casily be channelled It is a case of our internationalism and theirs. Socialist Outlook supports the Fourth International, the only current that groups co-thinkers in 40 countries worldwide in a united struggle against all forms of exploitation and oppression. maintain their own Exploiters' and Op. pressors international, in which koncs Sheikhs and Stalinists back one another in the fight to maintain their rule over us. sponse: "workers of the world, unite!"
SOCIALIST OUTLOOK No. 46, July 10 1993. Page 11