BANK DIRECTOR’S EVIDENCE ON CONTACTS WITH STANLEY

Gisborne Herald, Volume LXXV, Issue 22816, 10 December 1948, Page 5

BANK DIRECTOR’S EVIDENCE ON CONTACTS WITH STANLEY

BOARD OF TRADE PROBE

(N.Z.P. A,—Reuter —Copyright.) LONDON, Dec. 8. Continuing his evidence today before the Board of Trade tribunal inquiring into corruption allegations, George Gibson, a director of the Bank of England, told the Attorney-General, Sir Hartley Shawcross, that he did not think it improper to disclose to Sidney Stanley information lie haci obtained in his capacity as a director of the bank.

However, Gibson agreed with Sir Hartley Shawcross that a letter in which he gave Stanley information would have been very useful to Stanley if Stanley had been a confidence trickster dr a "contact man.” “Perfectly Honest Flotation”

Gibson admitted that the letter showed Stanley had direct contact with one director of the bank and indirect contact with another director —Lord Piercy. Gibson said he had sent Stanley a report by Siepman, a permanent director of the Bank of England, which showed that the bank had no objection to the proposed flotation of a public company which Stanley had planned. Asked if that was a proper thing to do, Gibson replied: “As far as I know, and as far as I knew then, this flotation was a perfectly honest flotation.” Gibson read the tribunal a private letter from Gibson to W. G. Glenvil Hall, Financial Secretary to the Treasury, in which Gibson said that Stanley had told him that financial interests in New York would be prepared to lend Britain £250,000,000 on the strength of the Marshall Plan. Offered £IO,OOO Post Glenvil Hall’s reply to the letter stated: “Quite frankly, I am entirely sceptical of the possibility of any group being able to raise a billion dollars for such a loan on terms acceptable to us or. indeed, on any terms at all.” Gibson said that throughout he believed Stanley to be honest and a man of substance and socially pleasant. He never had in mind securing for himself any financial advantage. Replying to Mr. Justice Lynskey, Gibson said he now thought he had been offered a £IO,OOO a year position with a Manchester firm to enlist his assistance in the flotation of the company. Mr. Justice Lynskey: “The reason you approached Lord Piercy and later, Siepman was because of the generous offer made to you? Gibson: Yes.

The tribunal adjourned,