Select Committee on Defence Minutes of Evidence


Examination of Witnesses(Questions 1-19)

WEDNESDAY 27 NOVEMBER 2002

RT HON MR GEOFF HOON MP, AIR MARSHAL ROB WRIGHT AFC AND MR EDWARD OAKDEN

Chairman

  1. Welcome, Secretary of State. Would you like to make an opening statement?

  (Mr Hoon) I would. Can I first introduce Air Marshal Rob Wright and Edward Oakden, who are joining me today. I apologise to the Committee if I have delayed your start. We had a special Cabinet meeting this morning to discuss the Chancellor's pre-Budget statement, which no doubt colleagues will be able to hear for themselves later today. The Prague Summit was a historic two days for NATO. Together with enlargement, major changes were agreed that will give NATO the equipment it needs to meet the new threats of the 21st century. There is obviously a great deal of work still to do but once implemented, those changes will mean a leaner, more functional command structure; more highly deployable forces with new capabilities; and a wide-ranging programme of modernisation aimed at increasing efficiency and reducing bureaucracy at NATO headquarters. We believe that this will give NATO the ability to conduct operations and to rapidly deploy highly capable forces wherever they are needed. The new capabilities package—the Prague Capabilities Commitment—has the potential to deliver real improvement across the range of capabilities, especially in identified, key shortfall areas. Our responsibility now is to ensure that that package is implemented. The Prague Capabilities Commitment gives Europeans and Canadians a good opportunity to start narrowing the growing capability gap with the United States. We will also be looking to newly invited members to contribute, perhaps through the provision of key niche capabilities, although it is fair to say that some countries are already doing that. The new NATO Response Force will enable the Alliance to deploy a joint force quickly to wherever it is needed. It will significantly enhance the Alliance's interoperability, act as a focus for capability improvement, and be a further stimulus to completing the reform of NATO's command and force structures. It is also an opportunity for European allies to demonstrate to the United States that they are serious about NATO having the forces and capabilities to act swiftly, right across the spectrum of missions and in the face of any threat. A root and branch review of the command structure will provide the streamlined framework within which new capabilities and the NRF will be deployed. The agreement announced at Prague will mean a revised, streamlined command structure which will be more flexible and responsive, and based on functional and deployable need. NATO has further strengthened European security through enlargement, bringing in more like-minded nations that have demonstrated their willingness to stand by the NATO allies, whether it involves defending against international terrorism or participating in NATO operations. All these countries have made good progress but still have more to do over the next 18 months to prepare themselves fully for Alliance membership. The United Kingdom will continue to help them. The need for collective defence has never been greater and the new members will make an important contribution. NATO's future success will depend not only on its own military capabilities and structures, but also on its ability to work closely with as many partners as it can. Hence NATO's decision to enhance its partnerships with the countries to NATO's east and south, with a strong emphasis on refocusing partnership to tackle new threats. We recognise that the only way to defeat asymmetric threats like international terrorism is by operating on a united front with as many like-minded countries as possible, whether they are already NATO members or not. NATO's greatly improved relationship with Russia, for example, demonstrates this very clearly. Changes to NATO's capabilities, roles and structures need to dovetail with the European Security and Defence Policy. I firmly believe that what is good for NATO is also good for the European Union, and vice versa. These are complementary, not competing organisations because they are both aimed at improving European military capabilities. Finally, I should return to the recognised need for serious internal adaptation to maintain the efficiency and effectiveness of NATO. Prague has delivered a substantial package of reform which we now need to see through. In short therefore the scale of the changes agreed at the Prague Summit clearly demonstrates the health and vitality of NATO. Implementation will now be the challenge, with the next Summit only a matter of 18 months away. By then it will be crucial that the commitments made at Prague are delivering real results.

  2. Thank you. We visited all of the serious applicant countries a few months ago, and the MoD's response to our report was unusually complementary. Our views were almost congruent on everything we had said with the Ministry of Defence's own view. Can you tell us the extent to which you believe NATO to be militarily stronger as a result of the seven new states who will be joining. Perhaps you can then tell us whether you think NATO is stronger in other areas, politically perhaps, as a result of Prague.
  (Mr Hoon) The obvious expansion of NATO's geographical coverage provides greater security. One of the practical lessons we learned during the Afghanistan operations was the need to have more bases, more access, more support from even beyond existing NATO members, therefore new members constantly enhance the security of the Alliance in that very practical way. One of the benefits of NATO membership that is perhaps too often overlooked—and again, we saw in Afghanistan and continue to see as far as ISAF is concerned- is better interoperability, learning together to be able to co-operate in often very difficult situations, having standardised equipment and a standardised approach. The more that standardisation spreads across the Alliance and into the new member states, there are clear benefits to the security of the Alliance. In one significant respect—and I think this is a crucial question for the Alliance—how does a very small country joining the Alliance help protect the United kingdom? It is obvious how the United Kingdom might protect a smaller joining nation, but it is perhaps less obvious to people here how the reverse might be the case. That is why the emphasis that I have mentioned already on the development of specialised capabilities can add enormously to our overall range of capabilities. Perhaps historically we rather tended to concentrate on providing or attempting to provide a full range of capabilities. Instead, now the emphasis is very strongly on specialisation, on even a smaller nation being able to provide a niche capability that actually, in terms of multinational deployment, may be absolutely vital, and may well be an area of capability that even a country as powerful and with as comprehensive a range of military capabilities as the United States might well welcome in terms of a particular deployment. In those ways NATO is strengthened by the expansion that we have just seen.

  3. When we visited the seven countries, we found very prominent within each of the defence ministries very competent and quite influential personnel from your own Department doing a wide range of tasks, and all were lauded by the people they were working together with. Now, after Prague, they have a difficult task, a lot of demands placed upon them. Are we going to pull the plug out of this assistance? Will it be maintained at the present level? Will it be increased? Who pays for their being seconded to defence ministries? If defence diplomacy is to work, and it is, then I hope you will tell us very positively, Secretary of State, that this excellent piece of British assistance to these countries will be maintained and hopefully, if necessary, increased.
  (Mr Hoon) I am certainly very grateful for your observations and for those of the Committee, because it is something that I am proud of. I think it is something that demonstrates the excellence of the work done in the Ministry of Defence, because the reason why our people are so welcome in a number of different countries is that, of course, they reflect the very considerable abilities that we have in the Ministry of Defence to develop policy and to execute that policy—and this is very often something that is particularly interesting to countries about to join NATO—as well as how to organise the department in a way that makes sense. I very strongly believe that the Ministry of Defence is the most joined-up of government departments, having both the makers of policy and the executors of policy working alongside. Indeed, very often it is extremely difficult to distinguish whether those people are from a military or a Civil Service background, and I think that is enormously to the credit and strength of the Ministry of Defence. Therefore, when individuals go to other countries, part of what we are looking for is for them to have the ability to influence and develop the policy or the structure and organisation of a ministry of defence at the very highest level, and that seems to be the case, largely because, my counterparts, other ministers, permanent secretaries, chiefs of staff, recognise that what they are getting from the United Kingdom is something that is so important and so useful that they do not want to see it wasted at lower levels in their administration. So I assure you that we will continue to support this. We have already had requests for more support. I think, generally speaking, the problem I face is trying to satisfy the demand for such people in a number of different countries. I assure you and I assure the Committee that we shall go on providing that assistance so long as we can afford it and so long as we have the individuals and, of course, the wish on the part of the host nations to continue this work.

  4. Can you drop us a note in due course about the continuation on an individual basis, as you have been telling us: Latvia, Person X, contract expires X date, to be replaced by X, who is paying the salary, etc? This is one of the finest external activities the Ministry of Defence is doing.
  (Mr Hoon) I strongly agree with that, and I do want to emphasize that there will be no lessening in our enthusiasm for this simply because these seven nations have been admitted. But clearly we deal with this on an ad hoc basis. It first of all depends on the country in question wanting to continue the relationship, and we encourage that wherever we can. It also depends on us having individuals who are available and suitable for the particular task in question. One of the things that we have seen as countries have changed their organisational structure is that they perhaps then want someone who is a specialist in terms of financial accounting, so instead of looking at the big picture of how a department operates, they will be concerned specifically with how you ensure budgetary control, how you make sure that the money that is available is reaching where it needs to go. What we find is this is a developing process, and we are providing different skills as countries become more sophisticated.

Mr Roy

  5. The Summit declaration and the Prime Minister alluded to the fact that we may not have seen the end of the enlargement process, and 18 months down the line we could be looking at further enlargement, maybe Albania and Macedonia. What are your thoughts with regard to whether NATO should keep enlarging, keep growing bigger and bigger, and if it does, will it not become weak round the edges the more you bring in weaker countries? Is there a territorial concept to NATO with further enlargement? Would that change the whole remit of the organisation?
  (Mr Hoon) I think those are very good questions, and I think they go to the heart of NATO and what it does, and those are things that we do have to face up to. Certainly we see the prospect for further enlargement. One of the things that I did whilst I was in Prague was to have meetings with my counterparts from both Albania and Macedonia specifically to emphasize that we did not regard this as an end to the process of enlargement, that we wanted to see continuing reform there to allow both of those countries to become members in due course. That really is our position. We do see the benefits of enlargement. We do see the importance of the partnership arrangements that I have described perhaps maturing into membership in the way that the Membership Action Plans have worked for those who have recently been offered the prospect of membership. But I think we do then have to reconcile the issues that you have set out, which is on the one hand, if NATO continues to expand and becomes ever larger, does that potentially threaten its coherence as a military alliance? I think there is a tension here that we have got to face up to. NATO is a special military alliance, and it should have particular military capabilities. We do not want to see it simply turning into yet another international organisation. We have plenty of opportunities of debating international matters with our partners in the international community; we do not need NATO to assume that form. We want to preserve its military qualities and characteristics, and although no-one has sought precisely to define geographical limitations, it would seem to me that we might be guilty of breaching the Trades Descriptions Act if we went too far beyond the North Atlantic area in terms of our responsibilities. So I am not going to precisely define it, but I think it is something that perhaps we will know when we see it.

Mr Jones

  6. The other day Eduard Shevardnadze in Georgia was saying that he thought joining NATO might be an aim in the future. Although you say there are not geographical borders being drawn up yet, would you see, for example, the possibility of states like Georgia coming into NATO?
  (Mr Hoon) I do not think it is right at this stage to make commentaries on individual countries in that way, but I certainly see no reason why we should not have a broad definition of what is Europe, and moreover why we should be seeking to exclude countries who have had very good partnership arrangements with NATO already. So I certainly would not rule that out.

Mr Hancock

  7. Secretary of State, what do you now think is more relevant to the prospects for getting the capability gap improved at this time than we have had previously?
  (Mr Hoon) I think that is a good question, because I asked that question myself at a meeting of defence ministers in Prague in the sense that everyone was enthusiastic about the DCI and its prospects for improving NATO's capabilities at the time that was agreed—I think it was at the Washington Summit—yet it has not delivered as much as we might have wanted. It has delivered some capability improvements but certainly not all of them. I think we have learned lessons though from the DCI in terms of shaping the Prague Capabilities Commitment, not least that it is not as comprehensive. Instead of trying to provide the 57 varieties—I think it is actually 59 varieties—of capability improvements, we are concentrating on a smaller number, a smaller, more important area of capability improvement. Equally, we are making individual states much more responsible for the commitments that they enter into. So it should not be as possible as perhaps it was for individual states to take a step back when asked to volunteer for particular improvements. But in the end—and this is what I said to my fellow defence ministers—it will depend not simply on defence ministers being willing to see capability improvements; it will be something that has to engage the whole of government. Whilst we had heads of state and heads of government present at Prague, it is important that they also maintain the commitments that their government has entered into, and not leave it simply to defence ministries to struggle, often with inadequate budgets, in order to deliver those improvements.

  8. If that is the case, why is it not apparent that some targets have been set for these capabilities to be brought up to scratch? No real interim stage benchmarks have been established, I understand. Has the capability audit that was carried out on the aspiring and existing NATO countries now been put into such shape that it can be made available to this Committee, for example?
  (Mr Hoon) Target dates have been established. The difficulty in terms of benchmarking, if I have understood your question correctly, is obviously that you either have the capability or you do not, and clearly we have seen a number of countries entering into specific commitments—we ourselves have done so—and we want to see those delivered, but frankly, you are either going to deliver that military capability or you are not.

  9. Where do you stand on putting these countries behind the right marker to say, "If you do not deliver, we will take some sort of action"? Is action to be taken against them if they do not fulfil their commitments? What are you going to do to make them put their money where their mouth is?
  (Mr Hoon) I think that is central to the difficulty which an international organisation like NATO has. If I may say so ,with respect, we need to think through the implications of that in terms of national sovereignty, for example, because in the end this is an alliance of sovereign nations, and each nation has its own difficulties to balance commitments in defence as against domestic priorities. That is true of the United Kingdom, and it is true of any other member of the Alliance. Ultimately, it will depend on peer pressure, on other countries who are prepared to make that extra spending and enter into those commitments being able to persuade their fellow Alliance members that they should do the same. I accept that this is the inherent weakness of any international organisation made up of those kinds of sovereign states. If you are suggesting that there should be some overriding constitutional arrangements, then I think that would go far beyond anything that sovereign nations today are prepared to enter into.

  10. Will it not turn into a two-tier NATO? There will be the NATO members who are there because it is a good political club to belong to, and there will be the NATO members who can actually deliver the punch when it is required. The thing that worries me is that some of the people who only have the political commitment will have the right to veto what the ones who will have to deliver the punch will be able to do.
  (Mr Hoon) That is why it is important to look at the capability requirements in the round. One of the changes, as I indicated earlier, that has occurred since the DCI is the recognition that we need to make an overall assessment of what NATO needs as an alliance as against perhaps the individual political priorities of particular member states. But I think I made the point in relation to Frank's question earlier that there are these kinds of tensions as NATO expands and enlarges, but our policy and priority is to keep NATO as an effective military alliance. If we fail to do that, we will have failed in an important plank of our policy, because NATO will then be more influenced by those who are not perhaps prepared to make effective military contributions. All I would say to you is that you should not underestimate the significance of a political commitment to take action. I am less worried in the context of your question by those countries who are at least prepared to enter into the political commitment to take action, even if they themselves are not as well equipped to do it. I obviously would prefer that they were both politically prepared and militarily prepared. Nevertheless, providing that there is no inertia in the system, I think the political commitment is equally important.

  11. Were you satisfied as our Secretary of State and a significant player in the NATO family to the commitment to increase capabilities of the three countries who were allowed to join in the previous enlargement?
  (Mr Hoon) Certainly one of them, Hungary, has publicly conceded that they have not done as much as they might have done in terms of delivering their commitments, but one of the frustrations undoubtedly of multinational, international organisations is that different countries have different economic cycles, they are able to commit to different projects in different timescales, there will be fortunately in democratic societies elections, different parties coming to government with different policies. Trying to coordinate all of those different steps in a coherent whole is extraordinarily difficult, and I think actually we should concentrate on how successful we have been in keeping the Alliance moving in the direction that I have described rather than perhaps warning of the problems. There clearly are problems, but they are not insurmountable, and frankly, the success of the Alliance is that, by and large, we have been able to overcome them.

Syd Rapson

  12. You have mentioned in your opening statement that the capabilities gap will narrow by specialisation and some sort of niche capability. Could I press you on how the Prague commitment would allow member states to have interoperability between each member state and the US in particular, which is getting increasingly difficult? It seems that interoperability works against specialisation and niche capabilities. Could you clear that up for us?
  (Mr Hoon) I do not think it does, but I can see how it might. The whole point of trying to identify shortfalls and how an alliance like NATO resolves them is that they first of all need to be coherent. We need to be able to bring together the various capabilities in order that they can work successfully. Some of the key gaps that we have identified are certainly in the areas of communication, and secure communication in particular. I have made the point before—I do not know if I have made it to the Committee but certainly to the House—about my concern about the United States in particular is investing in new technology in a way that means that, whilst US forces are internally interoperable, they are not necessarily so with their partners and allies, and might not be on an active deployment. That is why we put so much emphasis in the New Chapter work on ensuring that we make a significant investment in this area of digitising our armed forces. That is going to be a challenge for the Alliance as a whole, but in terms of designing niche capabilities, they will have to be designed in order to fit in with the overall framework. That seems to me to be ultimately easier than leaving a particular country to say "Actually, we would rather like to develop this particular kind of capability, and we will spend whatever money it takes," and then hope that that fits in with the overall scheme of things. It will have to be a top-down description of the framework, and member states will then have to subscribe to certain standards in the way in which they satisfy their commitments obligation. Again, you are right to point out the potential difficulty, but actually the deployment in Afghanistan, for example, demonstrated that common standards of training, common specifications on equipment have allowed a significant level of interoperability already, and we need to go on developing that.

  13. Could I stress the strategic lift capability, which I see in some danger as the German parliament failed to ratify the A400M project? What is being done to ensure that that is not scuppered by this unfortunate German lack of enthusiasm?
  (Mr Hoon) I gave an answer to the question from Mike about the kind of difficulties that arise in relation to these multinational projects. Elections, changes of policy, changes of economic circumstances are difficult enough within one country; when they are multiplied across a number of countries, that inevitably causes rifts. If I can say, Syd, that I am more confident about A400M's future than I have been for some time, that we have been given real undertakings by the German Government that they will go ahead, and in those circumstances, I feel confident that that strategic lift issue will be addressed.

  14. They will still be driving this project forward?
  (Mr Hoon) They are absolutely committed to ensuring that A400M is delivered, yes.

Chairman

  15. Which do the RAF want: the A400M or the C-17s?
  (Mr Hoon) The RAF is very pleased, as am I, with the C-17s, but equally are looking forward to the delivery of A400M.

Mr Jones

  16. May I raise something in terms of the technology gap? There has been a lot written about the potential technology gap between the European defence industries and the US. Do you think that NATO should have a role in trying to encourage more specialisation between the various countries in Europe in terms of trying to not plug that gap, but ensure that research goes further in terms of ensuring that the European defence industry can not just compete with the United States, but actually is not wasting money in trying to compete with things that are produced by the United States, and perhaps give some type of opportunity to the United States defence industry to have a relationship with certain defence companies or countries developing certain products rather than trying to emulate what has happened in the United States, which just from a budget point of view the European defence industries are never going to be able to compete?
  (Mr Hoon) That is something that I think all secretaries of state, not only for defence, but also for trade and industry, for example, would have to grapple with. All I can say is that it is a perfectly proper observation. I am not going to specifically be able to answer it, because I think it will depend on particular circumstances. All I would invite you to consider—and it follows on from the Chairman's question—is whether you would apply that, for example, to heavy lift aircraft. Would you say that because the C-17 was there, a very successful aircraft, being produced specifically in the first place for the United States Air Force, we should as European nations have abandoned our ability to develop a heavy lift aircraft of our own? It is a perfectly proper argument, but I am afraid the generality needs to be put into a specific context. There will clearly be areas, where we are unable to compete with US industry, where we do buy directly from US suppliers. Equally, I think it is vitally important for our own technological base and for our own manufacturing industry that we also seek to identify those areas where we are capable of competing. It is unlikely with large-scale projects that that will be the United Kingdom on its own; it will have to be the United Kingdom working with partners. Some of those industrial partners may well be American; they may equally be European. But I am not sure that there is a "one size fits all" answer to your question, because I think you have to ask whether this is an area where UK or Europe would want to abandon any effort to develop capability, given that it is likely that the United States will be able to supply that equipment. I think you have to be pragmatic and look at those areas where we have some strengths and we have some capability as against those where we do not.

  17. Do you think NATO has a role in trying to encourage various European partners to actually cooperate in developing not heavy lift, but other areas?
  (Mr Hoon) I think the idea of identifying those shortfalls that we need to fill does lead to some assessment of who might and how we might do that, because it may well be that the answer is NATO may say to the United Kingdom, "Please supply this particular capability." It may say to a group of nations that they collectively should procure heavy lift aircraft, for example. On the other hand, I think one of the things that NATO can achieve that individual nations are not able to do on their own is the kind of solution that AWACS provides, where those countries like the UK that already have such aircraft are excluded, but on a subscription basis even a country with a relatively modest defence budget can participate in the development of that capability by paying an annual cost. So I think that there are various ways of resolving the problem, which again leads me to the pragmatic end of the answer rather than anything. I think that gives you a comprehensive solution to the problem.

Chairman

  18. I know it is not strictly Prague, but we do not get to see you all that often. Further to what Kevan said and I said, I think most people, if not all, on this Committee would be delighted if the A400M is adopted. Our only concern is at what stage will you have to say we really need the process to start cranking out aircraft, because the RAF cannot wait indefinitely? We said in a report we produced six months ago that if the A400M is not deliverable, maybe Plan B should be activated. Are we anywhere near that, bearing in mind this increasing commitment we have to out-of-area activities? How long can we carry on with delayed C-130Js and leased C-17s? Are we anywhere near that crisis point where we might say, as the Government has done in the past, "Enough is enough"?
  (Mr Hoon) We are certainly not near any crisis point. I accept that I would need to make a judgement if I felt that there was a real prospect of A400M not being delivered, but that is not the position. In fact, as I said in answer to Syd's question earlier, I am more confident now than perhaps I have been in the very recent past that A400M will be constructed and will be delivered.

Mr Cran

  19. Secretary of State, you said very properly in your statement, and I quote, "We will also be looking to newly invited members to contribute perhaps through providing key niche capabilities." Would it be fair for the Committee to deduce from that that it is your view that the capability shortfall is a problem for most of the other countries rather than the United Kingdom and perhaps one or two others?
  (Mr Hoon) Even the United States does not have at any given time all of the capabilities that it requires to do the A-Z of military activity. I do not say that because they would not be able ultimately to generate such capabilities; it is simply that whenever there is a requirement for capabilities, it comes with a time line, and it may well be that that particular capability is doing something else, or it may not be available in sufficient numbers given the needs of that particular operation. We have discussed before that the United States made very detailed requests of the United Kingdom in the aftermath of the events of 11 September because it was familiar with the capabilities that we had on offer, but frankly, we had capabilities that were—I will not say lacking, but were short at the particular time as far as the Americans were concerned. So I do not think this emphasis on niche capability should be taken as suggesting that somehow any one country—the United States gets closest to it—is necessarily in a position to provide the full range these days, because military operations are ever more demanding, they are relying on ever more sophisticated technology. I think it will be increasingly the case in fact that countries cannot provide the full range of what might potentially be necessary given the wide range of possible operations, which is why we concluded in the Strategic Defence Review that increasingly operations will be multinational. That is the direction in which we will go, but the advantage that the concept of specialisation brings, as I said earlier, is that the smallest nation may well be capable of making a vital contribution alongside the largest one.


 
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