Gruelling question time for Thatcher over Iraq

IN TENSE and sharp exchanges at the Scott inquiry yesterday, Baroness Thatcher washed her hands of any responsibility for government policy which nearly led to three British businessmen being unjustly jailed for helping Saddam Hussein's military build-up.

Pressed politely but relentlessly by Presiley Baxendale, QC, counsel for the inquiry, the former prime minister claimed she was not informed of the decision by three junior ministers to relax government guidelines on exports to Baghdad. Despite asking to be kept informed of 'all relevant decisions', she said she was never told formally that guidelines limiting defence-related exports to Iran and Iraq were revised in 1988.

The decision led to a relaxation of export policy towards Iraq and resulted in millions of pounds of UK machine tools being sent to equip munitions factories.

In an all-day confrontation longer than any she had experienced at the dispatch box, Lady Thatcher admitted that although not informed officially, 'it may have been mentioned to me by one of my secretaries. I have no recollection if it was.'

Despite maintaining 'it would have been better' if she had been kept informed, she refused to criticise them for failing to. The changes were 'technical' and not 'substantial', she said.

Lady Thatcher's appearance was the first by a former or serving prime minister to give evidence in public to an official inquiry.

A large crowd waiting outside the London inquiry from early morning to witness the anticipated clash, was quickly rewarded with a series of testy exchanges between Lady Thatcher and her inquisitors, Ms Baxendale and Lord Justice Scott.

Her efforts to dominate proceedings clashed head-on with the inquiry team's determination to discover what she knew about accusations that the government connived in exports breaching its guidelines.

She complained repeatedly that she was being asked the same questions 'again and again and again and again'.

Ms Baxendale obliged by then putting them once more.

Denying any involvement in granting export licences to Matrix Churchill, the Coventry machine tool company whose exports were sent to Iraq despite repeated intelligence warnings that they were being used to make missiles and shells, Lady Thatcher said: 'I have no knowledge of this at all. I have asked for a trawl of the documents and I have been unable to find any evidence of a submission in the documents that I was involved.'

Three company directors were acquitted of breaching export regulations at the Old Bailey last year. Paul Henderson, the former managing director of Matrix Churchill, said it was 'inconceivable' she had not known what was happening.

Menzies Campbell, Liberal Democrat defence spokesman, said: 'Lady Thatcher may have convinced herself. She may even have convinced Lord Justice Scott. But she certainly did not convince me.'

Robin Cook, Labour trade spokesman, said it was clear that Lady Thatcher deceived Parliament about the operation of the guidelines.

Thatcher entangled, page 3

Leading article, page 19

(Photograph omitted)