STATEMENT OF WITNESS
(C.J. Act, 1967, s9; M.C. Act 1980, M.C. Rules 1981, r. 70)

Statement of			Tasos PANAYIDES
Age of witness (Date of Birth)	9th February 1934 / Cyprus
Occupation of witness		High Commissioner
Address				c/o 93 Park Street
				London W1

This statement, * consisting of 8 pages each signed by me, is true to 
the best of my knowledge and belief and I make it knowing that, if it 
is tendered in evidence, I shall be liable to prosecution if I have 
wilfully stated in it anything which I know to be false or do not 
believe to be true.

Dated the 21st day of May 1987

Signed T Panayides
Signature Witnessed by Y Miles

I am the High Commissioner for Cyprus and I have held this position 
since the 17th January, 1979. The High Commission is situated
at 93 Park Street, London, W1. On Saturday the 4th April, 1987,
a representative of the Government in Cyprus informed me that a 
blackmail threat was being instigated against our Government. I
was informed also to expect a telephone call and the delivery of
an envelope in connection with this case. On Tuesday 7th April,
1987, at 10.55 am, I received a telephone call on 01-499-2810,
which came through my secretary. The caller, a male voice, announced
himself as Mr WILKINS, from the Ministry of Defence. He stated
that the envelope was on its way to the High Commission and that
there had been some delay because it had to come via CAIRO. I said
that I will expect the envelope and the conversation ended, At
about 2.40 p.m. I was in my office on the first floor when I was
informed that the envelope had been delivered to the High Commission.

I then went into the office opposite mine where I saw Mr HANCOCK
and an envelope addressed to me, on the table. The envelope was
about A4 size and brown in colour. My name was handwritten on
the envelope in heavy ink, and I noticed it was incorrectly spelt.
It read - Mr T. PANAIDES. I also thought because of the incorrect
spelling of my name, that the person who wrote it couldn't be
a Greek who knows well the language. Mr HANCOCK opened this
envelope and showed me a letter addressed to His Excellency Spyros
KYPRIANOU and I also saw that the letter was signed by DIGSBY.
It contained information about units installed in Cyprus and also
regarding a delay due to snow on the mountains, and that the units
were buried underground and detection may be possible by proton
magnetometer flown by helicopter. Further DIGSBY was informing
the President that he has one of his men in the group of Commander
Nemo and that he was going to move to detain the group including
Commander Nemo. The final suggestion of DIGSBY was for the money
to be paid and would be recovered once the danger is eliminated.
Also in the envelope (Exhibit RH/1) there was a copy of the report
originally sent by Commander Nemo to the President of Cyprus.
The report is Exhibit RH/1C and the letter I saw is Exhibit RH/1B.
having seen the letter and report we anticipated a further phone
call to confirm the delivery of the envelope, At approximately
4.20 p.m. I was in my office when I accepted a call on 499-2810.
The caller identified himself again as Mr WILKINS from the Ministry
of Defence and asked me If I had received the envelope. I replied
Yes I received it, Then he asked me how long would it take for
it to be sent to Cyprus and my reply was, that by tomorrow night

it would be in the hands of the Government. Mr WILKINS thanked
me and that was the end of the call, I informed immediately the
police officer in the other room, that is Mr HANCOCK. The observa-
tion I made after the conversation with WILKINS was that the man
was not British. In the meantime I was informed of the develop-
ments in this case by my Government and by Scotland Yard. On
Wednesday 13th May, 1987, I was informed by Mr YIANGOU, the Chief
of Police in Cyprus, that the following day I was to expect a
man with the name of Simon CAMBANELAS, and that I am supposed
to issue him with a passport and to deliver to him £25,000 in
cash. On Thursday 14th May, 1987. I had a visit from Mr HANCOCK
in the morning and he informed me that an arrangement had been
made and another officer would delivery a package containing the
money, here at the High Commission. At approximately 10 am, I
received a telephone call on 499-2810 from a male voice who announced
himself as Simon CAMBANELAS asking me if I have any instructions
for a passport and money. The reply was Yes and that I was expect-
ing him. This conversation was in Greek. Shortly before this
telephone call Detective Constable DILLON handed to me a brown
envelope (Exhibit NP/668) and said that it contained £25,000. 
The envelope remained sealed and it was left in my office. Also 
present was Mr HANCOCK, who remained in my office. Just after
11 o'clock, Simon CAMBANELAS came again on the phone, the same
number as before 499-2810. I received this call in the presence
of Mr HANCOCK who switched on the tape recorder attached to this
phone at the start of the conversation, CAMBANELAS said that it
would take him approximately twenty minutes to get to the High

Commission. He then asked me what did he need to have a passport.
I replied that he needed two photographs without glasses, He said
that he wore glasses and I said that if it was for short sighted-
less it didn't matter but if it was just dark glasses he should
take them off for the photos. I then mentioned about not wearing
a hat for the photos and he replied that he was wearing one to
which I said, take it off when you're taking the photos. He then
said that on his way he would stop to have some photos done.
That was the end of the conversation and Mr HANCOCK then switched
the tape recorder off, This tape is now produced as Exhibit RH/2.
At about 11.32 am I was informed by the receptionist that a man
calling himself CAMBANELAS was downstairs to see me. I asked the
receptionist to send him up to my office on the first floor. There
was, shortly, a knock on the door, so I pressed the door release
button and let him in. Just before this I switched on my own
personal tape recorder in which was a tape. The tape recorder
was in my top left hand side desk drawer which I left opened a
little. As I came to the door I then saw a man who was wearing
a grey hat, dark glasses, a raincoat, I would say black, I think
he was wearing a suit but he looked quite smart, He was also wear-
ing one glove on his left hand. He looked to me as if he was
over 30 years old. He was clean shaven and was to me, obviously 
of Greek Cypriot origin. At this time the two police officers
had left my office just before CAMBANELAS arrival and had gone
to the office opposite mine. I asked him to sit down, which he
did, on the sofa, and I went and sat down behind my desk. The
conversation then between us was all in Greek and started off

by my asking him his name which he said was Simon CAMBANELAS with
a "C". I then asked him further questions about his date of birth
and what village he wanted to come from all of which I needed
for the passport. He gave me three sets of photographs also for
the passport of which I chose one where he was not wearing the
hat but just his glasses. His Greek was good but with a heavy
accent which usually Cypriots born in this country tend to have.
Then he asked about the money which I then gave to him. He opened
the envelope carefully and took out £2½000 which he put in his
inside raincoat pocket and then another £2½OOO which he put in
another raincoat pocket. He asked me if I knew what the case
was about and I replied that I had a fair idea. With that he left
my office carrying the brown envelope in his left arm. He mentioned
that he booked to stay at the Inter Continental and had had a
few problems making a reservation but that it had sorted itself
out when he mentioned that he was from the Cyprus High Commission.
Once he had left. I switched off my tape recorder and left it as
it was. I then went into the other office which overlooks the
front entrance and I saw CAMBANELAS surrounded by policemen Then
I returned to my office with Mr HANCOCK who took the tape out
of my recorder and then placed it in an envelope. This tape is
now produced as Exhibit RH/3.

Signed T Panayides
Signature Witnessed By Y Miles WDC