Still the 'ugly face of capitalism'

ONRHO look at Tiny's 'victory' ROLAND Tiny' Rowland has re-established the £200m Lonrho group, the pan - African mining and trading company, one-man band.

As a shareholder said at Thursday's riotous annual meeting: You can't shackle a man like Tiny Rowland.' Rowland's overwhelming victory has meant the ousting of eight directors including Sir Basil Smallpeice, the former Cunard chairman and ex-managing director of BOAC.

As the eight resoundingly defeated men had their names read out, the packed meeting of shareholders booed and hissed.

'Good riddance', they cried at Smallpeice who sat stoically on the platform.

And as Tiny-'the genius' So up waves they heered him in their fruity voices. Tiny beamed and waved enthusiastically towards the cameras.

Now that Rowland has won, it's time to look at what he's won.

The 'ugly face of capitalism'-to quote premier Heath -has triumphed over the Smallpeices.

In March last year the City accountants, Peat Marwick Mitchell, presented report on Lonrho's financial affairs.

They warned the company had until September to raise £10m to end short-term indebtedness with its principal UK bankers.

The cash shortage came like a bombshell. Nobody Lord Oil's family keep their shares ALTHOUGH he has sold his own shares in the North Sea oil bonanza, the Tory government's 'Oil Supremo', Lord Polwarth, has retained shares held by his children and other members of his family.

Polwarth, former chairman of the Bank of Scotland, was appointed in charge of North Sea oil developments by premier Edward Heath on May 12.

The job, according to Heath, would be to 'supervise an industrial expansion to be compared with a vast wartime operation' He said Polwarth would supervise a 'task force' of officials from various government departments.

The Tory Press unanimously welcomed Heath's decision.

Some of the Lonrho shareholders at the Central Hall, Westminster, meeting on Thursday. had a clue that the had so deteriorated.

The accountants warned that the existing management (Rowland) was 'unsuitable for administering the complex and diversified group that Lonrho has become.

The following month the dwindling shares took a boost when Duncan Sandys, Tory MP for Streatham and former Colonial Secretary, became chairman.

Also onto the 'strengthened' board came Edward du Cann, Tory MP for Taunton, and chairman of the merchant bank, Keyser Ullmann, Sir Basil Smallpeice, Dr A. Gerber, W. H. N. Wilkinson, R. F. Dunlop and T. R. Prentice.

A Keyser Ullmann spokesman said Sandys was an excellent choice because he 1S very lamnuar will tue familiao dhar African scene and is a strong The 'Guardian' said: 'Lord Polwarth's appointment appears to make good sense. He knows Scottish industry and he is to have direct access to the Prime Minister?

When details emerged of Polwarth's . personal financial stake in the oil boom, Heath vigorously defended him. Robert Hughes, Labour MP for Aberdeen North, said that Heath had treated his criticisms of Polwarth in a 'very cavalier' fashion.

Heath wrote to Hughes saying that Polwarth had reviewed his shareholdings and had 'satisfied himself that there did not appear to be any risk of conflict with his new duties' In a parliamentary debate a week ago, Cabinet minister, Mr Gordon Campbell, refused Hughes' demand that Polwarth should man. This just needed'.

The bank had decided to get involved as Lonrho was most interesting and stimulating challenge which we would not have undertaken unless it was thought that the company had a good future'.

These plans, hailed in City of London and Tory Press, camouflaged true situation in Lonrho.

A vicious boardroom battle was underway to get rid of Rowland and his The effort collapsed with the sacking this week of Smallpeice, Gerber, Wilkinson and five others.

In the past year Lonrho has staggered from one calamity to the next resulting in the notorious court aLLIUI UVEr CHRIAA те- antina Rowland's moval.

19. A. I. RALL resign as 'Mr Oil' his shares.

Briefed by the Prime Minister himself, Campbell attacked Hughes for 'sniping and carping.

'There are too many Jeremiahs on the Opposition benches. Instead of recognizing the successes and opportunities for the future, all we get is carping criticism of those involved.' He said Polwarth was the 'ideal man' for the job.

On Thursday, however, the Tory defence collapsed. Polwarth called a Press conference and announced he was selling his own shares.

He promised to sell a total of 17,100 shares worth 'under £20,000'. He said he wanted to get on with his work 'unhampered by a continuing campaign This exposed the feather- This exposed the featherbedding and tax haven fiddles of big City interests. There was a lot of humbug in the capitalist Press that these practices were isolated' and 'unrepresentative'.

Thursday's vote showed that not only are these practices part of the way of life of the City, they are greatly admired.

The revelations about Lonrho are the most compelling reasons why the policy of nationalization without compensation under workers' be made an immediate demand.

Lonrho, with its extensive Interests In Africa and Arab countries, is the ugly face of British capitalism and imperialism.

The labour and trade union movement must demand that it be put on the list of companies to be expropriated • without compensation and under workers' anatail Taladinea government. of unfounded innuendoes.

This is a list of the total Polwarth shareholdings: • Atlantic Assets: Lord Polwarth 6,500 ordinary shares; 5,500 ordinary shares with two other nominees; 10,800 ordinary shares in trust with two trustees. Lady Caroline Polwarth 15,000 ordinary shares; 6,000 ordinary shares in • trust with two trustees.

British Assets: Lord

Polwarth 4,000 ordinary shares and £700 convertible loan stock in trust with two trustees. Lady Caroline Polwarth £700 convertible loan stock in trust with two trustees. • Second British Assets: Lord Polwarth 600 ordinary shares and 500 ordinary shares with two other nominees. Above: Duncan Sandys, MP for Streatham and former Colonial Secretary, brought into chairmanship because of his 'good African contacts'. Below: Thursday's platform included Edward du Cann:

Dalaud

ДI 8, SORAL (PENCI All these share trusts have large financial stakes in the oil industry. The most important is Atlantic, which has apportioned much of its £40m capital in offshore drilling operations.

It also has a stake in the recently floated £20m North Sea Assets Trust, which was established specifically to invest in oil trusts.

Among its first projects has been a share in the construction of a large, semi - submersible pipe-laying barge for deep North Sea waters.

Despite this lucrative engagement in the North Sea boom, Polwarth persistently stated that there was 'no clash of interest'.

Only Hughes made any protest from the Opposition on this issue. He told the Commons 'Anyone who believes no conflict of interest arises is incredibly naive.

'Here is a man who can be identifying onshore development where a company, ın which he has an interest, has a direct controlling interest in development of this kind.

'It is a very serious matter. This sorry tale throws a beam of light onto the curious morality of the Prime Minister and this government.' Trying to put the best face on the abrupt sale of his shares, Polwarth said:

'I now have no holdings that could conceivably cross the front of my duties'except, of course, the interest still held by Lady Carcline and his other trustees and nominees.

Saturday