David Cameron has come under scrutiny for discussing China in a meeting with Philip Hammond, the chancellor, just weeks before the British and Chinese governments endorsed a $1bn investment fund he is setting up.
Government records published last month show that Mr Cameron, who was prime minister until 2016, had a meeting last October at the Treasury with Mr Hammond to talk about China.
Mr Cameron had already disclosed in September that he was working with his old friend Peter Gummer, Lord Chadlington, a millionaire public relations veteran, on a new private sector “UK-China Fund”. The former prime minister discussed the idea of the fund with vice-premier Ma Kai, head of China’s finance ministry, during a trip to Beijing on September 20.
Just weeks after Mr Cameron’s meeting with Mr Hammond, the private business initiative received a glowing endorsement from both governments at the end of a meeting of Mr Ma and Mr Hammond for the ninth UK-China Economic and Financial Dialogue in Beijing.
In a joint statement, the two governments said they welcomed the “bilateral UK-China investment fund” that would have target initial investment of $1bn.
“The fund will be led by a number of institutions in the UK and China, with the involvement of former prime minister, The Rt Hon David Cameron, and will be established and operated on a commercial and market-orientated basis,” the announcement said. “It will invest in innovative, sustainable and consumption-driven growth opportunities in the UK, China and third markets to create employment and boost trade links, supporting the Belt and Road Initiative.”
But Peter Dowd, shadow chief secretary to the Treasury, has now written to Mr Hammond to ask for more details about the October meeting and whether the UK-China Fund was discussed.
“I hope that you will be able to shine some light on this matter, as I’m sure you will agree it is of the upmost importance that the British public has faith in the transparency and accountability of our system of government,” he wrote.
Mr Cameron’s appointment as vice-chairman of the UK-China Fund was approved in December by the Advisory Committee on Business Appointments, a government body. Acoba ruled that Mr Cameron could approach the UK government to discuss the terms on which he could “facilitate dialogue” between Beijing and London. It concluded that Mr Cameron’s previous role as prime minister would not “provide an unfair advantage to the fund”.
It noted that the government believed the fund could bring economic benefits by promoting UK-China economic co-operation while Mr Cameron could play a role as a “trusted interlocutor”. But the body also said Mr Cameron could not be personally involved in lobbying Westminster on behalf of the UK-China Fund for two years after leaving government. He resigned in June 2016.
Mr Dowd said: “Philip Hammond needs to explain why the government has lent its credibility and support to what is a private sector venture run by one of David Cameron’s friends.” Mr Dowd also wrote to Acoba to ask if the meeting breached the lobbying ban.
A spokesman for Mr Cameron said his meeting with the chancellor was not exclusively about China and occurred before he received the Acoba guidance. “Mr Cameron applied to Acoba about starting a new UK-China fund once its establishment looked likely,” the spokesman said. “He received their guidance in December 2017 and has abided by their advice.”
The Treasury said: “The UK-China investment fund was one of many private, commercial ventures welcomed during the last Economic and Financial Dialogue. Similar private ventures have been launched at previous EFDs.”
The FT reported earlier this year that Mr Cameron was struggling to get the fund off the ground, having failed to name major investors.
