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| [FIFTH AND SIXTH SITTINGS]
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| Clause 1, page 1, leave out lines 9 to 10. |
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| Clause 1, page 1, line 10, after ‘DE&S’, insert ‘subject to conditions on |
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| maintenance and upkeep set by the Secretary of State,’. |
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| Clause 1, page 2, line 42, at end insert— |
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| | ‘(7A) | Arrangements mentioned in this section must include provision for contractual |
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| | obligations to be placed on the company operating the contract for defence |
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| | procurement services under subsection (2), specifically including provision to— |
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| | (a) | require non-UK companies to establish special security arrangements for |
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| | the operation of the contract; |
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| | (b) | disqualify from the directorship of the company any individual who |
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| | holds a directorship over any other company whose main business is in |
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| | the manufacturing or provision of equipment, works or services for |
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| | (c) | disqualify from the directorship of the company any individual who |
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| | holds financial securities in any other company whose main business is |
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| | in the manufacturing or provision of equipment, works or services for |
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| Clause 1, page 2, line 42, at end insert— |
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| | ‘(7A) | Arrangements mentioned in this section may not be brought into force until the |
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| | Secretary of State has published guidance on the operation of the contract, |
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| | (a) | the system by which available defence contracts shall be advertised to |
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| | (b) | the responsibility of the company operating the contract under subsection |
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| | (2) to produce and report annually against progress on an export |
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| Clause 1, page 2, line 42, at end add— |
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| | ‘(7A) | Arrangements mentioned in this section must include provision for contractual |
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| | obligations to be placed on the company operating the contract for defence |
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| | procurement services under subsection (2); specifically including provision to |
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| | prohibit the sale of financial securities in any publicly-listed company appointed |
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| | under subsection (2) where such sale would result in a change of majority |
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| Clause 1, page 3, line 31, at end add— |
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| | ‘“special security arrangements” means a proxy board or Special Security |
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| | agreement set up to prevent foreign influence over British defence |
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| Clause 2, page 3, line 35, at end insert— |
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| | ‘(2A) | Before the financial assistance is granted, the Secretary of State must— |
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| | (a) | lay before both Houses a report detailing the circumstances requiring the |
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| | (b) | withhold approval of any assistance until the report has been laid, and |
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| | (c) | write to the chairs of the relevant parliamentary committees indicating |
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| | that such a report has been laid.’. |
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| Clause 3, page 3, line 41, leave out ‘is’ and insert ‘may be’. |
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| Clause 3, page 3, line 41, after ‘Defence’ insert ‘, except in cases of negligence, |
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| fraud or wilful neglect’. |
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