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Mr. Roger Godsiff (Birmingham, Small Heath): I am grateful to the Minister for giving way, because I know that time is short.

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I too very much welcome the opportunity for the Kashmiri people to express their opinions, but does the Minister accept that it is crucial to a democratic process that people be allowed the right to say what they want and to express their opinions on the whole political position? Is it not the case that the elections that the Indians are talking about would take place on the basis that, unless candidates subscribed to the Indian constitution, they would be committing acts of treason, were they to advocate, for example, that Kashmir should not be part of India? That surely cannot be a true democratic process.

Mr. Hanley: The House should be aware that the Indian authorities want to hold state elections in Kashmir in the autumn; these will be the first state elections since 1987, and will bring an end to President's rule from Delhi. It is only right that the people in Jammu and Kashmir should have the right to elect local representatives and be governed by them, and we hope that, if elections are held, militants and political leaders in the valley will allow those who wish to participate to do so, and that the wishes of those who prefer not to vote will be respected.

If the Indian Government decided to invite international observers to monitor the elections, we would definitely welcome that, and it would enable the elections--

Mr. Toby Jessel (Twickenham): Would my right hon. Friend briefly give way?

Mr. Hanley: As long as it is very brief.

Mr. Jessel: I said "briefly". In welcoming these provincial elections, will my right hon. Friend make it clear that it would be quite wrong if anyone was scared off voting by militant terrorists?

Mr. Hanley: Absolutely; indeed, I have just said that. I agree with my hon. Friend.

If the Indian Government decided to invite observers, we would welcome it; it would allow the elections to take place in an atmosphere of greater trust--that is something that has been lacking in previous elections. Furthermore, as my right hon. and learned Friend the Secretary of State for Foreign and Commonwealth Affairs said on 10 July, it would make an important and significant contribution to the credibility of any electoral process in such a sensitive area.

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Elections must be part of the process, but there must be a dialogue between the Indian Government in Delhi and the political leaders in Kashmir if peace is to return, and the development of a genuine political process is important. So too is the improvement of human rights there. The hon. Member for Rochdale (Ms Lynne) spoke graphically on that subject.

The situation continues to cause us grave concern. Members of the security forces continue to be implicated in allegations of human rights abuses. Recently, there have been some improvements in the position, but we should like to see more.

The greatest threat to human rights in the region is the cycle of violence that the local population has had to suffer since the insurgency began. We have long called for an end to external support for this violence, but, sadly, it continues. Indeed, it seems likely that many of those responsible for the kidnapping of Paul Wells and Keith Mangan were not Kashmiris.

I recognise that terrorist violence makes life difficult for the security forces in Kashmir, and that they are there in large numbers. As hon. Members know only too well, terrorism must not be allowed to triumph, and tough action is necessary. But the fight against terrorism must not compromise respect for human rights. We know that from Northern Ireland, where our forces are conscious of the need to respect human rights in maintaining law and order.

I am grateful that the Indian Government are showing a willingness to give access to outside observers and international humanitarian organisations. A key development was their agreement in the past year to allow the International Committee of the Red Cross access to Kashmir.

So what can the UK do? First, it is not right for us to seek to impose a solution. It is for those directly involved to discuss the way forward. I am often asked by those who fail to understand the complexity of the situation why the UK could not mediate. Mediation would work only if the fundamental conditions were right, and both India and Pakistan wanted it.

Mr. Deputy Speaker (Sir Geoffrey Lofthouse): Order. The next debate is on the defence industry in the north-west. I call Mr. Nigel Evans.

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Defence Industry (North-west)

1.30 pm

Mr. Nigel Evans (Ribble Valley): I am grateful for the opportunity to raise this vital issue concerning the importance of defence manufacturing in the north-west and I am delighted to have the support of so many of my colleagues from both within and outside the north-west. Those include, from outside the north-west, my right hon. Friend the Member for Northavon (Sir J. Cope) and my hon. Friend the Member for Salisbury (Mr. Key) and, from within the north-west, my right hon. Friend the Member for South Ribble (Mr. Atkins). My hon. Friend the Member for City of Chester (Mr. Brandreth) will be interested in some of what I shall say and would wish to participate if he could, but I am extremely grateful to see him in his place.

I am also pleased to see my hon. Friends the Members for Blackpool, South (Mr. Hawkins), for Southport (Mr. Banks), for Canterbury (Mr. Brazier) and for Wyre (Mr. Mans). Opposition Members from the north-west include the hon. Members for Pendle (Mr. Prentice), for Burnley (Mr. Pike) and for Rochdale (Ms Lynne). The hon. Member for Tooting (Mr. Cox) must also be interested in this debate.

Britain has a long and distinguished history in international affairs, which has bequeathed us a unique role on the world stage today, from the time when the sun never set on the British empire to present-day conflicts. We are the only country to be a member of NATO, the European Union, the Western European Union, the Commonwealth and the Group of Seven leading industrial countries, and a permanent member of the UN Security Council.

As President Chirac noted earlier this year, Britain has a long tradition of action abroad. That proud tradition has continued under this Government, with our troops, aircraft and Navy not only protecting our protectorates and assets abroad, such as the Falklands, but participating in grand coalitions of states enforcing the rule of law. That can be seen time and again--for example, in the Gulf, when our Tornado fighters, built in the north-west, were the first to brave enemy anti-aircraft fire and bomb Baghdad, and, more recently, in Bosnia, with UNPROFOR enforcing the peace process.

We are still a nation with a global reach. Even if it is not all that it once was, we can still hold up our heads with pride. For example, in one month in 1995, British forces were deployed or carrying out exercises in more than 30 different parts of the world. We are proud to continue that tradition, but we must ensure that our troops continue to be the best armed in the world.

Defence procurement now goes some way to achieving that goal. It accounts for 40 per cent. of our defence budget. It is important to maintain technical superiority, the like of which we have in the north-west. The importance of defence procurement to the economy as a whole and in the north-west in particular is beyond question. Some 38 per cent. of net manufacturing output in the north-west is directly related to aerospace products, which are affiliated to the Consortium for Lancashire Aerospace. Its 127 member companies range from British Aerospace, Rolls-Royce and GEC to smaller companies, some with only five or six employees.

The number of jobs involved is staggering. Up to 40,000 people are employed in the industry. At least two other jobs depend on every aerospace job. We can see the

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devastating effect that the cancellation or refusal of an order can have on the area from the loss of a 10-year lead in electronics and thousands of jobs when the TSR2 was cancelled by the then Labour Government in 1965 because it allegedly cost too much.

That was especially important to British Aerospace in Preston, where thousands of jobs were lost. The effect on the local economy was so severe that people still discuss the loss of that order today. We must not allow such catastrophes to happen again, as they would if Labour ever had a chance to put into operation its plan to slash defence by £4.5 billion. New Labour would certainly mean new danger to jobs in the north-west.

Today, the British armed forces are better armed and equipped than they have ever been, not only in high-tech weaponry but in boots and clothing, and I congratulate the Government on that considerable achievement. To continue it, we must guarantee the success of the British defence industry, especially the expertise and skills for which the north-west has become famous.

My right hon. Friend the Member for South Ribble and I have visited British Aerospace, Samlesbury, in my constituency several times and marvelled at the skills there. Many people from all our constituencies work in the factories there, and at Warton just outside my constituency. Their projects include the Eurofighter, which is set to be a major success, despite the fact that, only a few months ago, there was a major dispute between the four partner nations--Britain, Germany, Spain and Italy--over who should get how many finished aircraft, and over the flight control system.

The Eurofighter is a magnificent aircraft, which I saw in flight at Warton recently. It has advantages over all its competitors, particularly the American F22, which, although it allegedly has a better flight control system, could cost £20 million more per plane. The French Rafale, although roughly the same price, is easily out-performed by the Eurofighter, and the far cheaper Swedish Grippen is much inferior.

We must never forget the strategic importance of having a manufacturing base that is capable of producing aircraft such as the Eurofighter. It has an extremely good chance of being a commercial success, which can but benefit this country. An amazing number of jobs are tied into that project. Once British Aerospace has received the production investment go ahead, the number of people directly employed on the project will be 2,000. That does not include outside contractors or service industry providers, of which there are many.

According to an article in The Times earlier this week, if the aircraft is as big a success as early indications suggest, as it has advantages over all its main rivals, it will have a significant impact on dole queues in the Lancashire area. I urge the Government not to ignore that.

Defence is the life-blood of the north-west economy, and we have become world beaters in that area. It is essential, however, that the Government make the right choices in their procurement programme--unlike the Labour Government of the 1960s who, through their short-sighted penny pinching, consigned many skilled Lancashire workers to the scrap heap and lost us a massive lead in military technology, which filters through to civilian life and benefits us all.

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Opposition Members call for diversification, but we must remember the importance of the defence manufacturing industry to the north-west, the fact that the skills base remains in the north-west, and that exports and research are important.


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