Diplomat warns of US 'horror' over Scottish independence

Published on Friday 26 September 2008 22:30

ONE of Britain's most experienced and influential diplomats has warned that inward investment from the United States could dry up if Scotland becomes independent.

Lord Kerr of Kinlochard, a former British ambassador to the US and former head of the Diplomatic Service, also said he believed an independent Scotland would struggle to get into the EU because of likely opposition from countries with their own separatist movements.

Speaking to The Scotsman, Lord Kerr, who was born and educated in Scotland, said he believed that whoever won this year's US presidential election would react in the same way to Scottish independence.

He said: "There would be private horror in both cases because they would see it as a weakening of the United Kingdom which they see as the principle European, and possibly global, ally. That would be true if either Obama or McCain was president."

He added: "Scottish independence would be seen by American politicians as a bad thing but they would be smart enough to say that in private, not in public – they would regard it as none of their business in public.

"But, as for American business, they would also see it as a bad thing; they would regard it as bad news if they were thinking of investing in Scotland."

Lord Kerr, an independent cross-bench peer who was ambassador and UK permanent representative to the European Communities/European Union during John Major's premiership, also predicted a tough time for an independent Scotland in Europe.

"If Scotland was to become independent, it would have to leave the EU and reapply to get back in," he said. "People in Scotland love to believe it isn't true, but getting back in would not be easy.

"I'm not saying it wouldn't happen, but it would not be easy. Scotland would have to overcome the objections of countries like Spain which doesn't want Catalonia to go the same way.

"In all probability, the Scots would get in but they would be out for quite a time before they got back."

Lord Kerr's intervention, on both these issues, represents a blow to SNP arguments over Scottish independence.

Alex Salmond has argued the opposite: first, that an independent Scotland would attract new inward investment, particularly from the US; and also that Scotland would become a member of the EU in a "seamless" fashion immediately after independence.

A source close to the First Minister said: "This is palpable nonsense. Scotland is already an integral and valuable part of the European Union.

"All serious international legal opinion is agreed that an independent Scotland would remain part of the EU and be warmly welcomed by our European neighbours.

"An independent Scotland, with a highly skilled workforce and lower corporation tax rates than our neighbours, would also be an attractive destination for inward investment from the United States and elsewhere."