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Manufacturing

8. Mr. Jeff Ennis (Barnsley, East and Mexborough): What recent meetings he has had with the German Foreign Minister to discuss manufacturing industry. [117174]

The Minister of State, Foreign and Commonwealth Office (Mr. Keith Vaz): My right hon. Friend the Foreign Secretary discussed the subject with the German Foreign Minister at the General Affairs Council meeting in Luxembourg yesterday.

Mr. Ennis: Does my hon. Friend agree that Vodafone's recent takeover of Mannesmann shows that British companies can compete in Germany? Does he further

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agree that in order for British companies to compete in the future, Britain must maintain its central role within the European Union?

Mr. Vaz: I agree with my hon. Friend. Bilateral trade with Germany last year was worth £49 billion, and 700,000 British companies invest and create jobs in Europe. It is extremely important that we keep that relationship going.

Mr. Nicholas Winterton (Macclesfield): When the Foreign Secretary met his German counterpart, did they discuss the problems that Germany and, to an extent, this country are encountering with manufacturing costs? Is he aware that, for the first time in recent years, Germany has started to export its manufacturing capacity to other parts of the world--not least the far east--because of the heavy social and other costs involved with manufacturing within the EU, and within Germany in particular? Until recently, we have had some advantage--but we are giving it away.

Mr. Vaz: I do not know whether that exact point was discussed by my right hon. Friend, but I know of the hon. Gentleman's great interest in this matter as chairman of the manufacturing group in this House. Our relationship with Germany is a good commercial one, based on the creation of jobs in both countries. We want to make sure that German firms are able to succeed in this country, and that our firms succeed in Germany. That is what being part of the EU is all about--a market of 390 million people; soon, we hope, to be enlarged by a further 120 million to create the largest single market in the world. We want the climate and conditions for our manufacturing industry to survive and prosper.

Mr. Richard Burden (Birmingham, Northfield): Does my hon. Friend agree that the anger and opposition felt by so many people in this country at BMW's decision to break up the Rover Group is directed against BMW as a pan-European company, rather than against German industry or the German people as a whole? Does he agree that German companies--including those that located to Britain in support of BMW's presence here--and Rover dealers in Germany stand to lose out as well? Will he ask his counterpart in the German Foreign Ministry to join us in asking BMW to consider seriously all credible alternative bids for Rover, so that German and British industry can thrive?

Mr. Vaz: I congratulate my hon. Friend on what he has done as a west midlands Member of Parliament in promoting the need for jobs in the area following what has happened. I assure him that the Government have put their faith in the taskforce, to which £129 million has been allocated. BMW is working with Alchemy and the British Government, particularly my right hon. Friend the Secretary of State for Trade and Industry, to ensure the best possible outcome. We shall do everything that we can to help that process. The record of past taskforces is good. Within nine months of the 1998 Fujitsu closure, when 580 jobs were lost, 97 per cent. of the work force were in employment again. I assure my hon. Friend that we shall do all that we can to help the process.

Mr. Francis Maude (Horsham): In his foreword to the Department's annual report, the Foreign Secretary places

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great stress on the role to be played by his Department in what he refers to as a "joined-up organisation", with the Department of Trade and Industry to promote trade and investment. What effect does he think that it has on the efforts of those trying to attract inward investment when they read reports of the Secretary of State for Trade and Industry and the Secretary of State for Defence calling the management of BMW liars? Does he think that helps?

Mr. Vaz: As the right hon. Gentleman knows, my right hon. Friends did not say that. He will also know that we were disappointed by BMW's decision, because a commitment was made to the company. Rather than making cheap political points, the right hon. Gentleman should work positively to ensure that those who have lost or may lose their jobs are put back in employment.

Iraq

9. Mr. Dale Campbell-Savours (Workington): When he next intends to visit the Gulf states to discuss the future of Iraq. [117175]

The Secretary of State for Foreign and Commonwealth Affairs (Mr. Robin Cook): We have regular dialogue with countries in the region on Iraq. Saudi Arabia, Kuwait and Bahrain were all helpful in securing agreement in the Security Council to resolution 1284, drafted by the United Kingdom. Every country in the Gulf supports the implementation of that resolution, which unilaterally removes any ceiling on oil exports by Iraq and offers the suspension of sanctions in return for progress on disarmament of weapons of mass destruction. I regret that Iraq has yet to say whether it will take up that prospect of an end to sanctions.

Mr. Campbell-Savours: In so far as the United Nations has miserably failed to enforce its own resolutions and not stopped sanction busting by Saddam Hussein, enabling him to raise the money to fund his illegal regime, could we not consider a change in policy away from the enforcement of sanctions, which some of us have supported through thick and thin for nearly 10 years, towards a policy of indicting Saddam Hussein in the international court for war crimes, murder, genocide and crimes against humanity? Should not that be the new approach?

Mr. Cook: No international court would be competent to pursue those charges. We could pursue them only through a United Nations Security Council resolution to establish a special tribunal on Iraq. As I have said before, I see no realistic prospect of our obtaining agreement to such a resolution. Because of that, Britain was in the lead in supporting the formation of an International Criminal Court, which would have prosecutors who could decide for themselves who should be brought before the court, and which would end the arrangement by which special UN clearance was needed for anybody to be indicted. Once we have such a court, the way will be clear to proceed against dictators such as Saddam in the way my hon. Friend wishes.

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Mr. Jonathan Sayeed (Mid-Bedfordshire): In the meantime, as the right hon. Gentleman is aware, there has been a sharp increase in the smuggling of oil by Iraq. What practical steps are being taken to stop that?

Mr. Cook: The United States and United Kingdom navies operate in the Gulf and have carried out some successful operations, including one recently against oil smuggling. The hon. Gentleman raises an important point. There is no reason to smuggle oil out of Iraq. As a result of the recent resolution, Saddam can legitimately export all the oil that he wants. The only reason he chooses to smuggle some of it is that he does not want to be held to account for the money that he receives for that oil. He does not want to put it towards children's food, hospitals and medicines for his people. He wants to use it to support his military. That is the only reason for the smuggling.

Ms Oona King (Bethnal Green and Bow): Does my right hon. Friend agree that, while we can and must target sanctions more effectively--I hope that he will have recourse to the report by the International Development Committee on that subject--the fact remains that it is Saddam Hussein himself who bears responsibility for the plight of the Iraqi people? If he wished to take up the opportunity to exchange oil for supplies and humanitarian relief, he could.

Mr. Cook: At present, Iraq is exporting a volume of oil roughly equivalent to the volume exported by Kuwait and the United Arab Emirates. It has just been announced that Iraq will increase its production by another 700,000 barrels a day, which will bring its exports above those of Iran. Potentially, $10 billion is available for humanitarian purposes in Iraq. In those circumstances, I find it hard to understand why people in Iraq are going hungry and are short of medicines. The only reason for that is the priorities of Saddam Hussein, not the sanctions.

Montenegro

10. Mr. David Heath (Somerton and Frome): What assessment he has made of the political situation in Montenegro. [117176]

The Minister of State, Foreign and Commonwealth Office (Mr. Keith Vaz): We continue to support the democratically elected Government of President Djukanovic, and are keen to see the democratic and economic reforms already under way in Montenegro expanded and developed. We strongly condemn the economic measures taken against Montenegro by Milosevic, including an embargo on food and medicines. I discussed the current situation with the Montenegrin Foreign Minister, Branko Lukovac, at the stability pact conference last month.

Mr. Heath: Does the Minister agree that it is desperately important to underpin the democratic aspirations in Montenegro? When will the stability pact for south-east Europe deliver for Montenegro, Macedonia, Albania and the other states in the region? Do the serious criticisms expressed in the German press, the Bundestag

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and the European Parliament give him any cause for concern about, or any lack of confidence in, Mr. Bodo Hombach, the co-ordinator of the stability pact?

Mr. Vaz: I know of the hon. Gentleman's interest in those matters as the chairman of the all-party group on Kosovo. Yesterday, at the Luxembourg General Affairs Council meeting, we heard a very good report from Javier Solana and Chris Patten about the work that they have undertaken following the successful conclusions at Lisbon, where it was decided that there needed to be a much more proactive role in trying to deal with the situation in Montenegro. The hon. Gentleman, more than anyone else in the House, knows how difficult the situation is, but we need to support the Government of Montenegro and ensure that they have the capacity and the confidence to deal with the very difficult situation they are in. Montenegro has had 82.7 million euro given to it in the past two years. We want to ensure that Solana and Patten can work with Bodo Hombach--who has done an excellent job in difficult circumstances--to deliver a practical result for the people of Montenegro.


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