Select Committee on Foreign Affairs Third Report


Assistance in environmental matters

130. General environmental degradation in Russia is of direct concern for us. Examples of KHF assistance in this area include help with improving the standard of drinking water in St Petersburg.[323] The British Council, too, is active on environmental issues.[324] The most severe concerns are in the nuclear field. We have already shown that Russian nuclear safety is potentially an extremely grave problem for the United Kingdom and the rest of Europe, as well as for Russia itself. The problem is not simply one of unsafe nuclear reactors but of unsatisfactory methods of disposal of nuclear waste.[325] Obviously this is an area where the United Kingdom can only work as one of many partners with Russia and we are delighted by the Foreign Secretary's personal commitment to mobilise the international response to the problem.[326] Multilateral assistance has been channelled through the EBRD Nuclear Safety Account, which provides safety upgrades for Soviet designed nuclear power stations in Russia and elsewhere, and to which the United Kingdom has contributed £18.25 million since 1992. But the scale of the problem is such that any bilateral assistance ought to be welcome.

131. We are pleased by the Government's decision, announced by the Chief Secretary to the Treasury on 24 November 1999, that nuclear safety in the former USSR would be the subject of cross departmental study in the 2000 Cross-Cutting Review.[327] This is an excellent example of joined-up government, involving the Treasury, 10 Downing Street, the Cabinet Office, DFID, Ministry of Defence, Health and Safety Executive, Department of Trade and Industry and Department of the Environment, Transport and the Regions, as well as the FCO. A key task of the review will be to establish a funding mechanism. Up until now, there has been an annual bilateral contribution from the United Kingdom to Russia of £2 million. In addition, following the Foreign Secretary's visit to the laid-up nuclear fleet in Murmansk in early 1999, the United Kingdom has offered £5 million towards safe disposal of spent fuel rods and other nuclear materials stored in unsafe conditions in the area.[328] The Foreign Secretary accepted that £5 million would not result in "a major transformation of the situation", but it would buy some time while a long term solution was developed.[329] This is precisely the sort of practical help which we were told in Russia that local administrations very much welcomed, and it is a good example of well targeted bilateral assistance. However, we were most concerned to hear that the Russians had apparently been dilatory in taking up the offer because of their sensitivity about the strategic security of their nuclear programmes. Frustrating procedural and bureaucratic delays had meant that none of the money offered in March 1999 had been drawn by December of that year.[330] We believe that Russian nuclear safety is of so direct an interest to the United Kingdom that the Government must continue to seek every opportunity to assist the Russian nuclear clear-up, frustrating as this process will often be. We recommend that this be a priority for financial assistance from the United Kingdom, and that the United Kingdom play an active role in the EBRD Nuclear Safety Account.

Humanitarian assistance

132. The FCO told us that the European Union had provided _470 million of emergency food aid in 1998-99 because of the poor 1998 Russian harvest. However, their assessment was that the better harvest in 1999 and improved Russian economic position meant that the country would not require food aid over this winter.[331] We received no evidence counter to this, though the US and Russia on 1 February signed agreements whereby Russia will receive free of charge 20,000 tons of seeds and 200,000 tons of food commodities this year. Agreements for an additional 300,000 tons of wheat are still being negotiated.[332]

133. The FCO also told us that "targeted humanitarian assistance to vulnerable communities may be needed", and that the United Kingdom had given £1.4 million to the International Committee of the Red Cross (ICRC) in the last year for its programmes in Russia.[333] No region of Russia is as much in need of this humanitarian assistance as Chechnya and the neighbouring territories into which Chechen refugees have fled. There have been great difficulties in providing assistance in the area: as the Foreign Secretary told us, the ICRC has pulled out of Chechnya because of threats to its own staff, while the Russians have not demonstrated "the proactive response that one might have hoped for." In addition, there are problems of remoteness.[334] The Declaration made at the Istanbul Summit of the OSCE contained the words "we agree that in the light of the humanitarian situation in the region it is important to alleviate the hardships of the civilian population, including by creating appropriate conditions for international organisations to provide humanitarian aid." The fact that Russia supported the Declaration, and therefore the principle of humanitarian assistance, is significant. The Helsinki European Council also considered this issue, with the following text included in the Council conclusions:

"The Council considered it of the utmost importance that the international humanitarian aid agencies are able to assist the victims of the Chechen war. Full access to the IDPs has been promised. The Council instructed the Heads of Mission of Member States in Moscow to obtain regularly information on the delivery of humanitarian assistance, including through visits to the region. The Council called upon the Russian authorities to provide the necessary security for the humanitarian aid operations."

We support this response, and welcome the £0.5 million that the British Government has already provided to the ICRC for its work in the area (which will, of course, include support delivered in Georgia). We recommend that the British Government, with its European partners, continue to press the Russian authorities to allow full access to Chechnya and neighbouring territories for international humanitarian agencies, and that it provide substantial financial assistance to the agencies for their work in the area.

Military retraining

134. The Ministry of Defence operates, in conjunction with the Russian Defence Ministry, a Resettlement Programme which, since its inception in 1995, has helped over 7,000 officers to adjust to civilian life. The cost has been £1 million a year.[335] We visited the Military Resettlement Centre in St Petersburg, which is one of six operating in Russia. We were told that training at the centre changed to reflect the needs of the current job market. The emphasis was on providing officers with concrete practical skills which they could use in new jobs. 80 per cent of officers completing the course succeeded in finding employment. Although there was no age limit for attendance, the majority of officers were between 35 and 45 and had either been made redundant or had reached the end of their contract. Around 30,000 to 40,000 people were due to leave the Russian armed forces in 1999, and it is clear that the need for a training programme will continue after March 2000 when the current British programme ends. The Defence Secretary wrote to his Russian counterpart in July 1999 suggesting that the programme be continued until 2003, and we were told by the FCO that co-operation with other countries was also being considered.[336] The resettlement project is one which builds upon British skills in helping retiring officers to re-integrate into civilian life. It also achieves a political objective in helping to reduce the disruption to Russian society from the run down of the armed forces. In its report on The Future of NATO: The Washington Summit, the Defence Committee concluded[337] that the programme should "continue to be funded and improved, for example by helping such former military officers to set up small businesses. It should serve as a model for other initiatives for practical, grass-roots co-operation with Russia in resolving the problems of the legacy of the Cold War." We agree. We recommend that funding for the military retraining programme continue after March 2000.

Diplomatic Representation

SIZE OF REPRESENTATION

135. The United Kingdom has an Embassy in Moscow and Consulates General in St Petersburg and Ekaterinburg. The total of home-based staff is 90 (82 in Moscow, 6 in St Petersburg and 2 in Ekaterinburg). There are just over double this number of locally-engaged staff (113 Russians and 30 expatriates in Moscow, 18 Russians and 7 expatriates in St Petersburg and 11 Russians and 2 expatriates in Ekaterinburg). Our diplomatic presence is smaller than those of the USA or Germany, but larger than that of France. The table below demonstrates this.[338]

Russia is an important country for British diplomacy—around one in 25 of British diplomats posted abroad is based there, and their roles cover the important range of bilateral relations between our two countries, including political reporting, commercial development, defence, law enforcement and consular work.

QUALITY OF REPRESENTATION

136. There was generally high praise for the work of the Embassy and Consulates General, and specifically for Sir Andrew Wood (the Ambassador from July 1995 to early January 2000) both in the evidence we received and from those whom we met in Russia. We were ourselves impressed by the staff with whom we dealt, and especially with their language skills. Professor Hanson commended the "grasp and judgement" of Embassy staff[339], while Dr Pravda believed that British diplomats in Russia had "a very high reputation which is well deserved."[340] BP Amoco wrote of the "professional and dedicated assistance" which the Embassy (and Eastern Department in the FCO in London) had given them, and amplified these views in oral evidence.[341] SmithKline Beecham told us that "the Ambassador and his team provide an excellent level of support."[342] BNFL thought British commercial diplomatic representation the leader in the field.[343] Barclays plc and SGS UK Ltd also spoke highly of the assistance they had received from the Embassy.[344] Particularly warm endorsement of the work of the Embassy, and of the Ambassador in particular, came from the CBI.[345] In a different context, human rights activists we met in Russia spoke highly of the Embassy's activities in this area.

137. There were more critical voices. The criticisms of the visa regime were so common that we address them separately in a later section of the report.[346] The Russo-British Chamber of Commerce registered a number of problems in the commercial field: instances of Embassy personnel "showing little interest" in helping British business; slowness in provision of information; failure to keep up to date; failure to follow up inquiries effectively; ineffectual assistance to small companies, and lack of expertise among commercial staff.[347] In oral evidence, Mr Cant of the Chamber conceded, however, that commercial awareness had improved in recent years [348], and he submitted a supplementary memorandum which attempted to counter what he described as his "largely negative" original memorandum.[349] The Moscow Narodny Bank[350] was particularly critical: British representation appeared "limited both in its depth and the geographic spread of its operations"; the commercial section was not as active as it ought to be, failing to recognise the potential for British Small to Medium Enterprises (SMEs) because of the non-commercial background of its staff, and there was a "definite need to be more dynamic and proactive."[351] Cadbury Schweppes argued a case which has more long-standing echoes of the FCO's perceived failure to treat business as a priority:

"Whilst the Embassy staff have appeared eager to attract new UK business into the country, and into the area, there has appeared to be less concern in continuing those relationships on an ongoing basis, at a time when some of the real difficulties may emerge. Certainly we would contrast our perceptions with those of, for example, the Dutch and South African diplomatic services, who appear to take much more of a proactive role in going out to meet and consult with business on a regular basis. Sometimes the impression is that the political agenda weighs more heavily in the priorities of UK officials than do issues of business and economic support to organisations such as ours."[352]

While some members of British Invisibles were very positive about the Embassy's commercial services (and Sir Andrew Wood in particular), others wrote in similar terms to Cadbury Schweppes that the Embassy was "not particularly effective in supporting British business and compare unfavourably with some other countries' diplomatic and commercial representation (e.g. USA, Germany, Holland, Finland and Ireland.)" In general, the members of British Invisibles were less satisfied with the service provided in Russia than they were with the services provided by the posts in the South Caucasus and Central Asia.[353]

138. It is regrettable that criticisms of this nature can still be levelled at British diplomatic efforts to promote commercial links. Of course, the criticisms have to be balanced against the praise which the Embassy received—and we note BP Amoco's view that Moscow Narodny Bank's comments were "quite, quite surprising".[354] Mr Cant's second memorandum described his Chamber's overall experience of the Embassy as "positive" and that co-operation was "proactive and dynamic."[355] Commercial organisations may also be frustrated by an unforgiving business climate in Russia, and have invested the Embassy and its staff with abilities to alter a skewed playing field which they simply cannot be expected to possess. However, despite aspirations by more reform-minded Russians for business to work with business, there is still a tendency in Russia for business people to expect foreign firms to receive continuing assistance and support from their Governments' representatives. The FCO must remain alive to this.

139. It is important for the FCO, which has as one of its formal objectives the "improvement of economic opportunities for a prosperous UK"[356], to examine the criticisms of its commercial efforts in Russia which have been made in evidence to us. In particular, it might adopt two constructive recommendations made by the CBI: to use more project-based six-month secondees from industry at posts in Russia (a proposal supported by one member of British Invisibles), and enhance the British Embassy Website for the benefit of British firms doing business in Russia.[357] It might also consider the proposal of Glaxo Wellcome that the commercial section could be resourced to organise itself as the sponsor of an investment or project promoted by a British company.[358] We recommend that the FCO review the operation of its commercial staff in Russia and consider whether their work would benefit from a greater use of secondees from the private sector, a commercially-friendly Embassy Website and more overt sponsorship of British investments or projects.

REGIONAL PRESENCE

140. The Embassy was particularly praised for its efforts to understand the country outside Moscow. With the increasing regionalisation of Russia, this is very welcome. Dr Michael Bradshaw, of the University of Birmingham, for example, said that he was "impressed that Russia's regions have been given a priority, and that the Embassy seems well informed about the political situation beyond Moscow"[359], though he was less sure that there had been adequate analysis of the regional economic situation. The CBI wrote that "the Ambassador's visits to the Russian regions have been warmly supported by British companies."[360] Dr Pravda argued that it would now be "useful to broaden the consular network and increase contacts with major cities"[361], and the CBI suggested that, as the Russian economy developed, "more resources will be needed throughout the regions."[362] BP Amoco called for the extension of Embassy support beyond Moscow, pointing out that travel times are long, and that specialised local knowledge was necessary to give full support to business, although in oral evidence Mr Chase of BP Amoco warned that it was "important not to dilute quality for pure geographic spread".[363] Mr Anatoli Tarasov, the Minister of Foreign Economic Relations of the Sverdlovsk Oblast' Administration also wrote to us about the necessity to "expand the existing potential for co-operation with strong, economically-developed Russian regions" of which the Sverdlovsk Oblast' is a prime example.[364]

141. The work of the Consulate General in Ekaterinburg, the capital of Sverdlovsk Oblast', is indeed a very impressive example of what can be achieved with few, but enthusiastic and committed, staff. As Minister Tarasov wrote, "the successful development of mutual relations between Sverdlovsk Oblast' and Great Britain became possible, on the whole, thanks to the opening of a British Consulate General in Ekaterinburg."[365] Mr Cant of the Russo-British Chamber of Commerce described the work of both the Ekaterinburg and St Petersburg Consulates General as "quite pro-active and bullish".[366] During our brief visits to St Petersburg and Ekaterinburg we ourselves received a very positive impression of what the Consulates General had been able to achieve.

142. We believe that the FCO should consider whether there is scope for further expansion of its networks of Consulates in Russia. In the USA, for example, there are 11 British Consulates with full-time staff, and in Canada there are three. Of course, commerce with North America is vastly greater than with Russia. But Russia's long-term potential may be enormous. We heard in Russia that the first foreign commercial arrival in a city could do a great deal to corner the market. The same could be true with diplomatic missions though, as Professor Hanson and Dr Galeotti warned us[367], any new regional presence by the United Kingdom would need to be chosen with care. As we mention below[368], there are now 10 cities in which the British Council is active. In Ekaterinburg, the Council is co-located with the Consulate General. This may be a pattern which can be repeated elsewhere. It may also be possible for buildings to be shared with diplomatic missions from other friendly countries: in Ekaterinburg, the USA Consulate is in the same block as the British. We were pleased by the Foreign Secretary's statement that he "would not rule out additional consulates general in Russia", and his acceptance of the cost benefit advantage of opening these posts in areas of commercial opportunity.[369] We recommend that the FCO consider establishing a network of Consulates, concentrating on commerce across Russia.

EMBASSY BUILDING

143. During our time in Moscow, Members of the Committee visited the new Embassy building which was occupied in early 2000. We endorse the FCO's view that the present offices are "overcrowded and inadequate"[370], and we are sure that the new building, with its imaginative design, will provide both a better working environment for staff and visitors (including visa applicants, as we discuss below[371]), and a more contemporary image for the United Kingdom. We commend the FCO for the good design of its new Embassy building, the excellent choice of location and the fact that the work is being completed to schedule, despite all the difficulties of operating in the Russian bureaucratic environment.

144. We were told that the present Embassy buildings will be used for additional staff accommodation "reducing our exposure to the expensive Moscow property rental market."[372] We visited a number of existing staff flats, including those occupied by very junior staff. While they are adequate, and compared reasonably well with the sort of accommodation which these staff might expect to occupy in London, the flats are hardly luxurious. They also have no access to gardens, and are furnished in a dull institutional way. The harsh environment of Moscow will be mitigated by providing accommodation on the present Embassy site. We hope that as many staff as possible, including junior officers, will be able to benefit from this. We also approve of the decision to retain possession of the site: it is a prestigious one, and the Residence and other official accommodation will continue to attract invitees because of their location.

Ministerial Visits

145. An important element of bilateral diplomacy is the extent and frequency of contact between Minsters of the governments of Russia and the United Kingdom. Meetings occur in the United Kingdom and in third countries, but it is particularly important that British Ministers are seen to visit Russia. Since May 1997, there has been one visit by the Prime Minister to Russia, and two visits by the Foreign Secretary. Another will occur later in February 2000. Two other Cabinet Ministers have visited on one occasion each (the Secretary of State for Defence and the President of the Board of Trade), and there have been three visits by junior FCO Ministers and five visits by junior Ministers in other Departments.[373] We would like to see more regular ministerial visits to Russia. We recommend that FCO Ministers should give visits to Russia a higher priority, and that Ministers from other Departments should also be encouraged by the FCO to visit Russia.

Visa Regime

146. A common theme in the evidence we received was criticism of the visa regime which operates in Moscow. This criticism came from academics, journalists and business witnesses. Professor Light believed that it was "widely perceived... that the British Embassy is the worst Embassy in Moscow for getting a visa" and that "consular staff are said to act with contempt towards Russians."[374] Professor White reported that the German Embassy was regarded as even worse, but that the British visa section was regarded as applying "a difficult and often humiliating process" to visa applicants.[375] John Thornhill of the Financial Times corroborated this view, describing the "countless complaints" he had heard. He, too, believed that other Western embassies were equally bad.[376] The Russo-British Chamber of Commerce wrote that a "common complaint from British business" was "the problem of their Russian counterparts having great difficulty in obtaining UK visas", and Mr Cant from the Chamber described examples of rudeness to visa applicants.[377] The CBI argued that the visa services were a major source of irritation to United Kingdom companies who find their Russian partners complaining of their treatment.[378] Moscow Narodny Bank described the "general dissatisfaction with the ability of the visa section to deal with applications" as a "constraint on enhancing Russo-British trade and business".[379] We therefore decided that it was important for Members to inspect the visa section during our visit to Moscow.

147. It is certainly true that conditions in the visa section which we visited were far from ideal. There was a cramped, if clean and pleasant, waiting room, though on occasions applicants have needed to queue outside (where shelter was provided). Interview rooms were tiny and claustrophobic, and the accommodation in which staff worked was extremely poor. This environment was not conducive to maintaining good humour in what is often a stressful situation. The Foreign Secretary described accommodation as "unsatisfactory", though he believed that the position would be "transformed"[380] now that the new Embassy building with what the FCO describes as its "much better facilities for visa work"[381] was open. On the old site, physical conditions had not kept up with what has been an enormous increase in demand. In the Cold War period travel outside the Soviet bloc was restricted by the Soviet authorities. There were therefore comparatively few applicants for visas, perhaps in the order of 3,000 annually.[382] Nowadays, the Moscow Embassy issues more visas than any other post in the world—78,000 in 1998, though the August 1998 economic crisis led to a reduction of about 35 per cent in application numbers.[383]

148. We received evidence that there have already been improvements in the visa system in Moscow. The Foreign Secretary believed that there was no evidence of particular harshness, nor did he believe that the 90 per cent of interviews completed within ten minutes could be "particularly extensive, intrusive or distressing".[384] Dame Elizabeth Anson, the Independent Monitor, told us that there had been reasons to complain about rudeness and delays in the past, but that she felt that the problem was "now much exaggerated". She also pointed out that, once such a perception arose, it was difficult to dislodge it, and that Russians might consider questions about personal circumstances as excessively intrusive.[385] Mr Cant of the Russo-British Chamber of Commerce told us that there was "no doubt at all" that things were getting better, and Mr Putintsev of SGS UK Ltd gave persuasive, if anecdotal evidence, of how the situation had changed from the days when the British Embassy had been the worst in Moscow and he personally had been forced to queue for five days simply to enter.[386] A cross-section of those in the waiting room when Members of the Committee visited also said that conditions had improved—and there were no complaints about staff rudeness. We appreciate, however, that, in this area, there is an unwillingness to complain. The Ambassador in Moscow told us that he would vigorously investigate any complaint he received, but that it was more difficult to act against generalised complaints than specific ones. However, the Russo-British Chamber of Commerce told us that companies were unwilling to "put their heads above the parapet" on this issue.[387]

149. A particular aspect of the problem is the requirement for many applicants to attend in person. The difficulties for a Russian based in Vladivostok being called for interview in Moscow was mentioned by the Russo-Chamber of Commerce.[388] The level of demand in Moscow has been reduced by the opening of visa-issuing posts in St Petersburg and Ekaterinburg. New technology, as well as new posts, could make the visa-issuing process simpler. In theory, for example, not only can documents be sent by fax, but applications can be submitted by e-mail and interviews conducted by video-conference. We appreciate that changes in these areas could not be introduced in Russia only, but geographically large countries with thinly spread British posts have special problems which are amenable to technologically innovative solutions. In this context, we note FCO Ministers' interest in enhancing electronic service delivery.[389] The Foreign Secretary told us that electronic means could not be used to process visa applications because the "charge needs to be paid up front".[390] We regard this as a pretty feeble argument in an age when cheques and bank transfers are common in Russia, and electronic payment will no doubt soon follow.

150. While the opening of a visa-issuing post in Ekaterinburg was generally welcomed, and the efficiency of the post praised,[391] Dr Galeotti believed that it was "astonishing" that a visa-issuing post had been opened in a city which he described as "one of the most thoroughly criminalised in all Russia." He said that his views were shared by British police officers who had dealt with criminals whose visas had been issued in Ekaterinburg.[392] Members who visited Ekaterinburg took this issue up, but were assured that the Consulate General there had equal access to all necessary databases, and that local staff were, if anything, better equipped to identify local undesirables. The Foreign Secretary told us that he was "puzzled" by Dr Galeotti's views.[393]

151. Another aspect of the criticism of the visa regime is that it was particularly harsh on young, single women. According to Mr Thornhill, these women "often face a particularly gruelling time"[394], while Professor White wrote of the "apparent assumption that all female applicants were prostitutes."[395] Mr Cant told us in oral evidence that young unmarried women have been assumed to be travelling to the United Kingdom for marriage.[396] For what is it worth, we can record that all of those being interviewed by entry clearance officers (ECOs) when we visited the visa section in Moscow were young women. Dame Elizabeth Anson told us that she had found that the statistics disproved the belief that women and girls were refused visas more often than men. She pointed out that ECOs needed to ask certain questions to establish the long term intentions of the applicant which might be regarded by female applicants as personally intrusive. She also commented "I am satisfied that the stories of sexual innuendo at interviews are often historical and anecdotal, but I am not wholly satisfied with the attitude of all the ECOs since 1994 in Moscow". She had made recommendations for training.[397] Any gender bias or stereotyping is unacceptable in dealing with visa applicants, and lines of questioning adopted by ECOs must reflect this.

152. As Sir Rodric Braithwaite put it, "a visa regime exists to refuse visas"[398], and he reminded us that the FCO had been required to implement requirements of the Home Office and Security Service "which not everybody thought were entirely necessary."[399] In fact, the rate of refusals in Russia is small, at less than 3 per cent.[400] This compares with what we understand to be a refusal rate of around 20 per cent by the USA. It is the primary task of the visa section in Moscow, as in other posts overseas, to ensure that those who should not receive visas do not do so. But it is also the visa section's responsibility to implement the law fairly and with courtesy. A young man or young woman who could one day be a political or business leader in Russia may well have had his or her first contact with the United Kingdom through a visa application. The visa section is our shop window.

153. The CBI told us that "any visa system must not only protect British interests, but must also be flexible enough not to impact negatively on legitimate commercial and political interchange."[401] Although we were pleased by the evidence that the situation was getting better, there remains room for improvement. There is still too great a weight of evidence that all is not right for anyone to be complacent. As Sir Rodric said, part of the improvement necessary will come from "general good management."[402] As we recommended in a previous report, Heads of Mission should see entry clearance as "a key element in the overall function of their work of representing the United Kingdom."[403] We are re-assured by the attention which Dame Elizabeth Anson (who was visiting Moscow at the same time as us) is giving to visa issues in Russia. We recommend that—

(a)  senior management attention in Moscow, including the personal attention of the Ambassador, should be directed towards building upon the improvements already achieved in the visa-issuing system;

(b)  the FCO should examine with the Home Office means of using information technology to simplify the system, especially for applicants who live a long distance from British posts; and

(c)  the FCO should continue to monitor the questions asked in visa interviews to ensure the avoidance of unnecessary probing of an applicant's private life.

The British Council

154. The British Council has greatly expanded its operations in Russia since 1992. As Dr Wozencraft of the Council told us, a "very small operation in a stable block of the British Embassy in Moscow" has become a nation-wide presence, operating through ten regional offices from the Baltic to the Pacific, and from the Black Sea to the Urals.[404] The Council's directorate in Russia is, in fact, one of its eight global priority operations, reflecting the FCO's view of international priorities.[405] The Council's evidence describes in detail its work in changing outdated perceptions of the United Kingdom in the arts and in science and technology, in demonstrating commitment to the reform process in Russia by assistance in economic reform, education, good governance and human rights and environmental protection, in extending English language training in Russia and in promoting educational services in the United Kingdom. All of this is vital work: Professor White argued that "Russians have no wish to find themselves marginalised at the level of exchanges between civilisations."[406] The British Council is in the vanguard of these exchanges between Russia and the Untied Kingdom. Its impressive website, with pages of information on human rights, also shows how central the Council's work is in furthering the FCO's political aims.[407]

155. We received much evidence demonstrating the Council's importance and praising its work in Russia. Dr Pravda argued that:

"The British Council continues to do extremely valuable work with very limited funding. Cultural relations remain the most under-valued and under-used dimension of British foreign policy. It is here in particular that we could punch above our economic, military and political weight."[408]

John Thornhill of the Financial Times wrote of "much valuable work in raising awareness of the UK and capitalising on the enormous interest among the Russian population in our language, culture, educational opportunities and business links" which had been done by the Council.[409] Among commercial witnesses, Invensys described the Council as a "highly regarded institution."[410] David Cant of the Russo-British Chamber of Commerce thought the Council was doing "a very good job"[411], while BP Amoco gave details of its joint ventures with the Council in Sakhalin and (prospectively) in Irkutsk with their "real benefit to local communities."[412] From an independent viewpoint, Dr Bradshaw of the University of Birmingham also praised the BP Amoco/British Council joint venture in Sakhalin.[413] During our visit to Russia, we visited the British Council's premises in Moscow, St Petersburg and Ekaterinburg. We were greatly impressed by the commitment and enthusiasm of the staff, as well as by the large numbers of young Russians using the services provided.

156. There remains great untapped demand in Russia for the British Council's services. The Council is very conscious of this. Their written evidence referred to "considerable potential to extend the outreach of Council programmes", and their oral witnesses suggested that extending the Council's regional outreach, and consolidating standards in the areas in which they were at present operating, were priorities if the necessary money became available.[414] There were important cities, like Rostov-on-Don or Novosibirsk, where the Council felt it could operate. It needed to target young people better, and develop its programmes on human rights and good governance.[415] There is also "an enormous growth in demand for the English language" which other English-speaking countries were not meeting.[416] The Council is, however, realistic about the extent to which it is able to expand, and clearly recognises that there are some regions of Russia where the local partnership necessary for its work would not be forthcoming. It also needs to bear in mind the advice of the FCO and DTI as to the appropriate regions into which the Council should expand.[417] Nevertheless, the Council is right in identifying regional expansion as one of its priorities because of the increasing decentralisation of power in Russia. The co-location of the British Council with the Consulate General in Ekaterinburg illustrates an imaginative response to combining resources for conventional diplomacy with those for cultural diplomacy.

157. According to Dr Pravda "the Council simply does not have the funding" to do the work it should be doing in the regions, and the Council itself is clear that any further expansion of effort "will require significant additional resources."[418] Its extended role has so far been performed without any increase in real terms in the funding it has received from the FCO. Indeed, the Council has needed to transfer money from programmes in other countries in the region in order to maintain its grant-in-aid budget in Russia in real terms.[419] The first chart below shows the Council's total budget and total grant-in-aid for each of the last three years, together with the grant-in-aid and total budgets for Russia. The second chart shows the figures in real terms.

  

158. To an extent the British Council can be expected to raise money from other resources than its grant-in-aid. It has done so successfully in Russia as the Charts demonstrate. Its direct English language teaching operations are completely self-sufficient financially, for example,[420] and the Council manages programmes under contract from other bodies, such as the Know How Fund or the EU TACIS programme, as well as of more commercial organisations like oil companies or educational establishments in the United Kingdom.[421] However, in its work of changing perceptions of the United Kingdom in Russia, in demonstrating that the United Kingdom is a committed partner in the reform process or in promoting human rights or environmentalism, the Council is performing a task on behalf of the British Government which the Government should fund at a realistic level. As the FCO itself says, "the Council does much to spread knowledge of the UK, and to demonstrate British interest and involvement across Russia."[422] As we commented in a previous Report, the FCO should not will the ends if it is not prepared to provide the means.[423]

159. The reduction of programmes in other countries in the region so that the grant-in-aid in Russia can be bolstered is, in our view, misconceived. Nor should it have been necessary. In our recent Report on South Caucasus and Central Asia we called for increased funding for the Council's operations in the countries of the area,[424] and there is a strong case for similarly strengthening the Council's presence in other states which were once part of the USSR as well as the states of Central Europe. These countries should certainly not be downgraded at the expense of Russia.

160. In our Report of last summer on FCO Resources, we described the British Council as "seriously underfunded" and recommended an increase by 2002-2003 in real terms of 10 per cent in its funding compared with the level of the early to mid 1990s. Such an increase was, in our view, "both affordable and fully justified."[425] In his response to this recommendation, the Foreign Secretary said that the "FCO agrees that a further increase in funding for the Council would certainly be beneficial, resources permitting."[426] This Report demonstrates the scale of the challenge for the West in engaging Russia. The British Council's work is at the forefront of this process of engagement, and Russia thus could be an object lesson of what might be done if a modest increase in means were provided to the Council. We recommend that the British Council's grant-in-aid in Russia should be increased in real terms by not less than 10 per cent by 2002-2003, and that this increase should not be at the expense of the Council's other programmes.


323   Ev. p. 127. Back

324   Q74. Back

325   Ev. p. 121. Back

326   Q314. Back

327   HC Deb 6 December 1999 col 409w; Ev. pp. 153-4, Appendix 1. Back

328   Ev. p. 121. Back

329   Q320. Back

330   Q314. Back

331   Ev. p. 117. Back

332   Reuters, reported in RFE/RL Newsline, available on www.rferl.org Back

333   Ev. p. 117. Back

334   QQ249, 304. Back

335   Ev. p. 119. Back

336   Ev. p. 119. Back

337   Third Report, Session 1998-99, HC 39, para 111. Available on the Defence Committee's web site: www.publications.parliament.uk/pa/cm199899/cmselect/cmdfence/cmdfence.htm Back

338   Ev. p. 115. These figures were subsequently updated in letters of 1 and 2 February. Back

339   Ev. p. 50. Back

340   Ev. p. 55. Back

341   Ev. p. 85; QQ183-184. Back

342   Ev. p. 179, Appendix 17. Back

343   Q181. Back

344   Q205. Back

345   Ev. p. 217, Appendix 29. Back

346   See paras 133 to 140. Back

347   Ev. pp. 79-81. Back

348   Q181. Back

349   Ev p. 236, Appendix 31. Back

350   The Central Bank of Russia is the majority owner of Moscow Narodny Bank. Back

351   Ev. p. 180, Appendix 19. Back

352   Ev. pp. 170-1, Appendix 10. Back

353   Ev. p. 205, Appendix 27. Back

354   Q183. Back

355   Ev. p. 236, Appendix 31. Back

356   FCO Departmental Report 1999, Cm 4209, p. 16. Back

357   Ev. p. 218, Appendix 29. The Embassy web site is: www.britemb.msk.ru. Back

358   Ev. p. 182, Appendix 20. Back

359   Ev. p. 161, Appendix 4. Back

360   Ev. p. 217, Appendix 29.  Back

361   Ev. p. 55. Back

362   Ev. p. 217, Appendix 29. Back

363   Ev. p. 85; Q183. Back

364   Ev. pp. 193-4, Appendix 23-FCO translation. Back

365   ibidBack

366   Q181. Back

367   Q125. Back

368   See para 141. Back

369   QQ 339, 349. Back

370   Ev. p. 122. Back

371   See para 134. Back

372   Ev. p. 122. Back

373   HC Deb 1 February 2000 c. 546W. Back

374   Ev. p. 52. Back

375   Ev. p. 167, Appendix 7. Back

376   Ev. p. 171, Appendix 11. Back

377   Ev. p. 79; Q186. Back

378   Ev. p. 217, Appendix 29. Back

379   Ev. p. 180, Appendix 19. Back

380   Q338. Back

381   Ev. p. 122. Back

382   QQ 202, 356. Back

383   Ev. p. 122. Back

384   Q339. Back

385   Ev. pp. 186-8, Appendix 25. Back

386   QQ190, 204. Back

387   Q188. Back

388   Ev. p. 79; Q186. Back

389   HC Deb 7 December 1999, col. 680. Back

390   Q340. Back

391   Q189. Back

392   Ev. pp. 58-9. Back

393   Q332. Back

394   Ev. p. 171, Appendix 11. Back

395   Ev. p. 167, Appendix 7. Back

396   Q186. Back

397   Ev. p. 197, Appendix 25. Back

398   Q202. Back

399   Q216. Back

400   Ev. p. 122. Back

401   Ev. p. 217, Appendix 29. Back

402   Q216. Back

403   Fourth Report, Session 1997-98, Entry Clearance Operations with particular reference to Islamabad and New Delhi, HC 515, para. 41. Available on the Committee's web site:

www.publications.parliament.uk/pa/cm199798/cmselect/cmfaff/cmfaff.htm Back

404   Q70. Back

405   Ev. pp. 34-35. Back

406   Ev. pp. 166-7, Appendix 7. Back

407   www.britcoun.org/russia/. Back

408   Ev. p. 55. Back

409   Ev. p. 171, Appendix 11. Back

410   Ev. p. 193, Appendix 22. Back

411   Q195. Back

412   Ev. p. 85; Q194. Back

413   Ev. p. 161, Appendix 4. Back

414   Ev. p. 34; QQ70-71. Back

415   QQ73 and 96. Back

416   Ev. p. 38; Q78. Back

417   QQ65-69. Back

418   Ev. p. 41; Q119. Back

419   Ev. p. 35. Back

420   Q85. Back

421   Q70. Back

422   Ev. p. 116. Back

423   Sixth Report from the Foreign Affairs Committee, Session 1998-99, HC 349, para. 177. Available on the Committee web site: www.publications.parliament.uk/pa/cm199899/cmselect/cmfaff/cmfaff.htm Back

424   Sixth Report from the Foreign Affairs Committee, Session 1998-99, HC 349, para. 178. Available on the Committee web site: www.publications.parliament.uk/pa/cm199899/cmselect/cmfaff/cmfaff.htm Back

425   Fifth Report from the Foreign Affairs Committee, Session 1998-99, HC 271, para. 42, available on the Committee web site: www.publications.parliament.uk/pa/cm199899/cmselect/cmfaff/cmfaff.htm Back

426   Cm 4462, para 19. Back


 
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