‘U.K. firms ignored Rhodesia sanctions’

Press, 8 July 1976, Page 9

‘U.K. firms ignored Rhodesia sanctions’

IXZI’A-Reuter London Mr Roland (“liny I Rowland, head of the giant Lonrho International Trading Company, claimed yesterday that prominent British firms had been involved in breaking United Nations economic sanctions against Rhodesia.

The claims, in a letters dated April 5 sent to the? Trade Department and? made public by Mr Row- • land yesterday, were im-j mediately denied by two;' major firms, British Ley-! 1 land and British Pet-!, roleum. I' Mr Rowland released the: letter just after the publica-i tion of a British Government! report critical of the £3oom j combine, which operates in; 43 countries including many in Africa. It said there had beeni “untrammelled and constant offloading of refined petroleum products” at Mozambique, and 50 per cent of this had been imported into Rhodesia bv BP and Shell Oil. A spokesman for the gov-I ernment-controiled BP said! there was no truth in this,! and added: "Our links with! Rhodesia ended with the Unilateral Declaration off Independence (in 1965).” I Mr Rowland also claimed! that British Leyland busj chassis had been forwarded from its South African plant to Rhodes and Land-Rover kits had been assembled in Umtali for the Rhodesian Army and police. British Leyland, now British Government-financed, said the company had had

no dealings with Rhodesia! sin 1965. A relative by marriage of; the Queen, Mr Angus! Ogilvy has stepped down!: from big business life because of the Government! criticism of Lonhro. The activities of Lonhro? were branded in 1973 as l “the unacceptable face of h capitalism” by the former! Prime Minister, Mr Edward Heath. When the report was publisl ’, the Government referred it to the Director of Public Prosecutions. Mr Ogi'vy, one of seven directors criticised for their conduct of Lonhro's affairs, promptly resigned from the boards of othar companies on which he now serves. "Under the circumstances, 1 feel this is the only honour'able thing to do,” tie said. Mr Ogilvy, husband of the Queen’s cousin. Princess Alexandra, resigned from [Lonhro itself in 1973 after a| • much-publicised board-room ibattle in which some direct-! ors sought unsuccessfully to I (remove Mr Hill. Bitterly, Mr Ogilvy challenged the new report. He said its allegations cast grave doubts on his integrity. He denounced the , findings of the inspectors as contrary t. the principles of justice because, he said, they left him no legal redress for clearing his name. [

fhe report said Mr Ogilvy had failed to disclose fully je.pected financial interests to the Lonrho board and • shareholders. It said: "We believe that •Mr Ogilvy was negligent in i fulfilling his duties as a (director of Lonrho to an ex--1 tent that merits severe criticism." Other Lonrho directors criticised in the report include Lord Duncan-Sandys, a former Conservative Commonwealth Secretary who is now chairman of Lonrho, (and Mr Alan Ball, the company’s executive deputy chairman. Of Mr Rowland, the report says, “Lonhro as it is today is very largely Mr Rowland’s creation. He is a man who has vision, negotiating ability, determination, and personality in unusual measure, coupled with unbounded energy to apply his talents. “But his achievements will ibe all the greater if he will 1 allow his enthusiasms to operate within the ordinary ! processes of company. management.” Mr Rowland, together with Kuwaiti interests, now controls almost 40 per cent of the sprawling conglomerate. Lonrho’s activities range from gold and platinum mining, to tea and sugar growing, ranching .shipping, breIweries, and vineyards.