1993, Pedley was the target of smear campaign in the Sunday Telegraph and the Sunday Express in an attempt to stop him proposing a motion at the Conservative Party Conference. The Mandrake column in the Telegraph alleged he had personally written the YC Report and had libelled Hamilton. The claims were repeated by Alistair McAlpine in his Express column, which went further and called for Pedley to be banned. Pedley instituted libel proceedings against both the Sunday Telegraph and McAlpine. Both apologised. A further libel against Pedley occurred in 1994, when supporters of Hamilton, resisting pressures for Hamilton to resign as minister, blamed Pedley supporters for exacting revenge on Hamilton. The Daily Telegraph ran as it main front-page story a piece placing Pedley at the centre of the unfolding drama. The paper quoted a close Hamilton friend as saying, "This has turned into a factional fight with the [Tory] left trying to force him out." Anger was directed at David Hunt MP (Minister for Open Government) who they regarded as instrumental in destroying Hamilton's chances of staying on. "Mr Hunt has clashed with Mr Hamilton before, most notably over the cabinet minister's patronage of Mr Phil Pedley." The article went on to imply that Hamilton had won his case of libel against Pedley. Pedley issued libel proceedings and the Telegraph issued an apology. "We may have given the false impression that Pedley lost that action. In fact Mr Hamilton discontinued it.... on terms debarring him from taking further proceedings against Mr Pedley... Mr Hamilton was ordered to pay Mr Pedley's costs. We apologise to Mr Pedley. Falklands During Pedley's tenure as chairman, the Argentine military invaded the Falklands causing a crisis for the Thatcher government. Conservative Central Office canvassed each section of the party for its opinion on different scenarios ranging from negotiated surrender to airstrikes on the Argentine mainland. Pedley issued a press release stating;"The invasion of the Falklands illustrates a classic case of the failure to maintain a deterrence. We announced the withdrawal of HMS Endurance and the Argentine Junta misread our intentions. In the wake of the appalling Argentine aggression, Conservative Central Office have canvassed all sectors of the voluntary Party for their opinion. In the YCs... our stance is clear. This aggression cannot stand... air strikes against the Argentine mainland no, but the Falkland islanders must be liberated, by force if necessary. We stand foursquare behind