Ashcroft's firm threatens telephones

The High Commission in Belize could be cut off

The Foreign Office is seeking legal advice after a Belize company owned by Conservative treasurer Lord Ashcroft threatens to cut off the British High Commission's telephones.

The multi-millionaire's company, Belize Telecommunications Ltd, is believed to be unhappy with the way officials at the central American country's High Commission has been using a call back system when phoning London in order to keep bills down.

Using call back facilities saves on costs as international calls are charged at the rate set by the service provider, and not the domestic telecoms company, which is understood to have a monopoly in Belize.

Lord Ashcroft's firm has a monopoly in Belize

A Foreign Office spokeswoman confirmed they had received a warning from the company that if they continued to use the call back facility, their lines would be cut off.

She said the FO was taking legal advice which indicated that any move to stop the High Commission from carrying out its work would be in breach of the Vienna convention on diplomatic rights.

'Self-serving'

A spokesman for Lord Ashcroft, a tax exile who holds dual UK and Belize nationality, said the situation was more complex than had been portrayed.

He accused the Foreign Office of behaving in a "deeply self-serving way".

Conservative party officials said they were not yet in a position to comment.

The business tycoon has run into controversy before over his dealings in Belize and for helping rescue Conservative finances with vast donations, including a £3m gift to guarantee the party's overdraft.

Leaked Foreign Office memos also revealed that UK diplomats alleged Lord Ashcroft had threatened to "stir up trouble" for Britain abroad if he was not allowed to open a bank in the nearby Turks & Caicos Islands.

Mr Ashcroft rejected the allegations, claiming they were an attempt to "smear" his reputation.