Mittal steel row ambassador is reassigned

Published on Wednesday 5 June 2002 01:00

THE diplomat who plunged Tony Blair into the ‘Steelgate’ cash-for-contracts row has been removed by stealth from his ambassadorial job.

Richard Ralph, the British ambassador to Romania, has been replaced just three months after he played a key role in persuading the Prime Minister to lobby in support of the sale of a giant Romanian steel plant to the billionaire Labour Party donor, Lakshmi Mittal.

Mr Blair’s letter sealed a 300 million deal for Mr Mittal, whose companies work in direct competition with British industries.

The Foreign Office announced Mr Ralph’s departure in a press release issued on 24 May - the day parliament began a two-week recess.

The Conservatives last night described the move as another blatant attempt by the government to bury bad news.

A spokesman for the Foreign Office last night declined to disclose the location of Mr Ralph’s next diplomatic posting, leading to speculation he is to be punished for exposing Mr Blair to international ridicule. However, he denied any suggestion that Mr Ralph’s move was connected to the Mittal steelworks scandal.

Mr Blair wrote to Adrian Nastase, the Romanian president, to personally endorse Mr Mittal’s credentials as a British businessman after he had given 125,000 to Labour’s funds.

The letter ensured the sale of the state-owned Sidex steel company to Mr Mittal and provoked a political row with the Tories accusing Mr Blair of cynically drawing to the attention of rich businessmen the benefits of giving money to Labour. It also forced the Prime Minister’s official spokesman to retract statements that Mr Blair had been ignorant of the donation when he wrote his letter.

Mr Mittal employs only 0.1 per cent of his workforce in Britain and stands accused by Plaid Cymru of attempting to destroy the remains of Corus, formerly British Steel, in Wales.

The Foreign Office last night denied it had attempted to slip out the news of the departure: "There is no basis in the idea he is moving on because of the Mittal case or that this announcement was slipped out quietly."