Select Committee on Foreign Affairs Second Joint Report


3  EXPORT LICENCE DECISIONS DURING 2001

23. At the beginning of this inquiry, we made 57 requests for further information on licences to individual countries listed in the 2001 Annual Report. Most of our requests related to specific licence applications, where the information in the 2001 Annual Report was in our view insufficient to assess whether a licence had been properly granted or refused. A number of the licences we chose to examine had also been identified by non-governmental organisations as potentially of concern. We followed up the information initially provided by the Government with more than 30 requests for further clarification.

24. We also requested information about all refusals of licence applications, revocations of licences, and appeals during 2001. This information has been a vital benchmark. A knowledge of where and why the Government has refused to issue licences helps us to judge whether its policy in issuing licences is sensible or consistent.

25. We are grateful to the Government for the further information that it has provided: it has shown to our satisfaction that most of the licence decisions we decided to investigate appear to have been properly taken, although the judgements in some cases were more finely balanced than in others.

26. We discuss first those licensing decisions on which the further information we have received has been largely reassuring. We group these by the export licensing criterion that we were primarily seeking to ensure had been properly considered in each case. We then turn to the small number of exports which give us cause for concern.

Licence decisions giving little or no cause for concern

Criterion 1: International obligations

27. We have sought reassurance that a number of licences reported in the 2001 Annual Report were compatible with existing national and international embargos. The licences in all of these cases appear to have been properly granted. In many cases, the end users of the goods licensed for export were international and non-governmental organisations involved in humanitarian and peacekeeping tasks.

28. All items for Angola were for export only through permitted named entry points. The Government also assessed that there was "no clear risk" that the goods would be used in the Democratic Republic of the Congo, contrary to the UN embargo.[18] Much of the equipment was for use by the oil industry.[19] Body armour permitted for export to Burundi was for use "by UN personnel in Burundi for personal protection".[20] Components for body armour allowed for export to China were "for bomb suits specially designed for bomb disposal purposes only".[21] Licences for body armour and military cargo vehicles to Eritrea were granted "after the UN and EU embargoes on the export of arms to Eritrea (and Ethiopia) were lifted in May 2001".[22] The end users of the licences give us no cause for concern.[23]

29. The Government "maintain confidence" in Hong Kong's export control regime.[24] We are reassured—as were our predecessor Committees[25]—by the steps that the Government is taking to ensure that goods licensed for export to Hong Kong are not diverted to mainland China. A British export control team recently visited Hong Kong, and the Government monitors the use "of certain goods that would not be approved for export to mainland China".[26]

30. The Government has no concerns that fragmentation hand grenades licensed for export to the Maldives might be used as a component in land mines. The grenades are for use "for security purposes".[27] Although it is hard to imagine for what legitimate security purposes the Maldives might require such grenades, we have no concerns over end-user diversion, and are therefore not unduly alarmed that the export of the grenades was permitted.

31. Goods permitted for export to Sierra Leone were intended only for end-users not covered by the UN arms embargo.[28] Those for export to Somalia were for use in demining operations by the Halo Trust, and were humanitarian exemptions to the UN embargo.[29] A licence was issued for the export to Sudan of "a military listed tanker for use in the refuelling of light civilian aircraft at Khartoum airport".[30] The Government has explained to our satisfaction its rationale for refusing a licence application for the export to Uganda of equipment with the military list rating ML6,[31] while permitting an apparently similar licence (for armoured all wheel drive vehicles).[32]

Criterion 2: Human rights and internal repression

32. We have sought further information about licences granted where the potential might have existed for the use of the equipment in human rights abuses or internal repression.

33. Licences were granted for export to Bahrain of body armour, components for assault rifles, components for submachine guns, general purpose machine guns, semi-automatic pistols, small arms ammunition and weapon sights.[33] We followed up the information on one of the licences where it was unclear who the end-user was.[34] All of the licences appear to have been properly granted. We have received information about an open licence for the export to Cambodia of body armour and military helmets, but this has not been sufficient for us to judge whether there is a risk that the equipment might be improperly used.[35] We have no concerns about the licences granted for the export to Colombia of body armour, military helmets and smoke hand grenades.[36] The Government has explained its decision to grant a licence for the export of anti-riot shields to El Salvador on the grounds that "there is no longer any systemic abuse of human rights",[37] and this assessment is supported by the US State Department.[38] Ballistic protection vests and helmets for export to Guatemala were "for use in demining programmes".[39] We have no concerns about the licence granted for the export of armoured all-wheel drive vehicles to Indonesia.[40]

Criterion 3: Internal situation

34. Saferworld, an NGO "working to identify, develop and publicise more effective approaches to preventing armed conflict",[41] has expressed concern about the increase in the value of Standard Individual Export Licences (SIELs) to Israel from £12.5 million in 2000 to £22.5 million in 2001.[42] But the value figures provided for SIELs are rather misleading, because no comparable value figures are provided for exports under open licences. This increase in SIELs may well therefore be a consequence of the removal of Israel as a permitted destination from a number of open licences. This would be consistent with information provided by the then Foreign Secretary to our predecessor Committees in March 2001.[43] Paradoxically, a stricter policy on strategic exports to a country can lead to an increase in the value of SIELs issued for that country, as the Government ceases to allow the export of the same goods under open licences.[44]

35. The Government has reiterated to us its "commitment to take account of the risk that exports might be used for internal repression or affect regional stability".[45] With reference specifically to Israel, the Government has told us that:

    The outbreak of the intifada, continued Israeli incursions in the Occupied Territories and the Israeli breach of its assurance that UK originated equipment would not be used in the Occupied Territories have all been factored in to the Government's current export licensing policy. Since the outbreak of violence in the Occupied Territories in September 2000, HMG has taken account of Israeli military tactics in its licensing decisions and continues to keep the situation under close review.[46]

We are largely reassured that the Government is assessing properly against the consolidated criteria licence applications for export direct to Israel. A separate issue, however, which we consider in more detail below,[47] is the more relaxed policy towards the export of components for incorporation into military equipment abroad prior to onward export to Israel.

36. We also asked for details of licences issued for the export to the Philippines of, among other equipment, 100 assault rifles, 40 general purpose machine guns and 100 submachine guns.[48] Following further clarification from the Government, it appears that these licences were properly granted for use by appropriate end-users.[49]

Criterion 4: Regional peace and stability

37. Commentators as disparate as Salman Rushdie and US Deputy Secretary of State Richard Armitage have described Kashmir as "the most dangerous place in the world", particularly in view of the ongoing nuclear arms race between India and Pakistan.[50] With this in mind, we asked the Government for information on all SIELs granted to India and Pakistan for equipment on the military list, ranging from combat aircraft to semiconductor wafers.[51] We also asked for information on all licence applications refused by the Government.[52]

38. From the information we have received, including responses to our further written questions,[53] we conclude that the Government operates a highly specialised and focused licensing system which ensures, probably as well as any licensing system could, that equipment at risk of being used in India or Pakistan (or indeed anywhere else in the world) for the development of weapons of mass destruction does not receive an export licence. This includes a wide range of goods with legitimate civilian uses as well as more suspect military purposes.

39. We are less persuaded of the stringency of the Government's system when it comes to the export of conventional weapons to India and Pakistan, including combat aircraft. We discuss this in greater detail below.[54]

40. Answers that we have received in respect of licences for beryllium, furnaces and maraging steel to Iran and furnaces to Kazakhstan have given us no reason to doubt the Government's assurances that it has taken every possible step to ensure that there is no risk of the equipment in question being diverted to weapons of mass destruction programmes.[55]

41. Saferworld raised concerns in its evidence about the implications for human rights and regional stability of the issue in 2001 of:

    Open Individual Export Licences for unlimited exports of an extremely wide range of equipment including small arms and light weapons, light and heavy artillery, armoured vehicles including main battle tanks, combat aircraft, helicopters and selected rocket systems and missiles … to Tajikistan, Turkmenistan and Uzbekistan … Bahrain, Jordan, Kuwait, Oman, Pakistan, Qatar, Saudi Arabia and UAE.[56]

These are good examples of licences which, as they appear in the 2001 Annual Report, give a misleading impression: that the Government has opened the door to arms sales across a wide swathe of central Asia and the Middle East.

42. The reality is rather different. The OIEL was issued to the United States Government, and the equipment was for use in support of US military operations overseas. The licence was "not to be used for foreign military sales".[57] We welcome the fact that the Government has allowed us to publish this information. We are not surprised that observers with access only to the information in the 2001 Annual Report have expressed concern in the way that they have.

43. Having seen details of the open licence, we believe that the Government was right to grant it, and to support US forces in the war against terror. We are, however, concerned that such transfers could be seen to be in breach of criterion four, under which the Government "will not issue an export licence if there is a clear risk that the intended recipient would use the proposed export aggressively against another country". There was clearly an expectation that the equipment permitted for export under the open licence would be used in US military operations overseas, such as those that have taken place in Afghanistan and Iraq. Criterion four cannot have been intended to act as a constraint on the ability of our closest military ally to conduct operations in which our armed forces have played a key role. We recommend that the Government should explain in its response to this Report how the supply of military equipment to the United Kingdom's allies conducting military operations overseas can be supported without conflicting with the terms of the consolidated criteria.

Criterion 6: Regard of the buyer country for international law

44. We asked the Government for information about an open licence for the export to Syria of equipment for submachine guns and for other small arms. While the equipment does not appear to be in itself of much concern, we are surprised that an open licence is considered appropriate for the export of any equipment for the use of small arms to Syria, a country which has recently been associated by the US Administration with the illicit supply of military equipment to Iraq.[58]

Criterion 7: Risk of diversion

45. When deciding whether to grant a licence application, the Government assesses the risk that the equipment proposed for export will find its way into the hands of undesirable end-users. Saferworld has raised concerns "regarding possible diversion" about licences granted for the export to the Bahamas of components for machine guns and small arms, and to the Channel Islands for equipment described in the 2001 Annual Report as armoured fighting vehicles, components for combat helicopters, components for sub-machine guns, rifles, semi-automatic pistols, shotguns and submachine guns.[59] Concerns about licences issued to the Channel Islands were also investigated by our predecessors in the last Parliament, and they were able at the time to answer their own rhetorical question "Were the Islands becoming a major offshore arsenal—or a conduit for arming less desirable regimes?" resoundingly in the negative.[60]

46. The further information that we have received from the Government on this occasion has once again been reassuring. There is no reason to fear that the equipment licensed for export to the Bahamas risks being diverted. Details of the licences for the Channel Islands also give no indication of any involvement by the islands, as suggested by Saferworld, in "the illicit trade in arms". Many of the exports permitted are only barely capable of being described as military in nature, tyres and collectors' items, for example. We are less certain, judging from the information that the Government has provided to us in confidence, that it was right to license the export of 11 sub-machine guns to the Channel Islands.[61]

47. We have also received information from the Government about measures to ensure that military equipment was not being diverted to Iraq from other countries in the region, nor to Zimbabwe from other countries in southern Africa.[62]

Criterion 8: Sustainable Development

48. A licence was granted for the export to Bolivia of "equipment employing cryptography", at a value of £11.5 million. Bolivia qualifies for debt relief under the Highly Indebted Poor Country (HIPC) initiative, and the value of this equipment was greater than that of the total bilateral aid from the United Kingdom to Bolivia during financial year 2000/01.[63] We therefore wished to reassure ourselves that this licence did not present any sustainable development concerns. The Government's response, that the export was for the use of a privately owned "major Bolivian telephone company", has provided this reassurance.[64]

49. We comment further below on licences for the export of air traffic control equipment to Tanzania, and on the sustainable development criterion in general.[65]

Licence decisions of concern

50. As we have already made clear, our impression is that in most cases the right decisions are being taken on export licence applications, within the terms of the consolidated criteria. We do, however, have concerns about several specific licensing decisions. Our first area of concern is the Government's policy and administration on the export of military equipment to India and Pakistan, and on the export of Hawk aircraft. While the Government's policy on the export of oversized handcuffs is clear, we have uncovered inconsistencies in its application. We commented at length in our last Report on the Government's decision to license the export of a military air traffic control system to Tanzania—the relevant licence decisions appear in the 2001 Annual Report, and we have some brief further comments to make in this Report. Finally, we look at the Government's policy on the export of military equipment to Sri Lanka and Nepal.

India and Pakistan

51. India and Pakistan made up more than half of all licence refusals in 2001. For India, 89 SIEL applications were refused and one transhipment licence was refused.[66] One application for an open licence was also refused, while two open licences were revoked.[67] For Pakistan, 36 SIEL applications were refused.[68] Almost all (76) of the applications refused to India and a third of those refused to Pakistan were for the export of goods not on the military list, but of potential use in weapons of mass destruction programmes.[69] As we have mentioned above, we believe that the Government is doing all it can to ensure that India and Pakistan are unable to acquire goods from the United Kingdom which are capable of contributing to their nuclear weapons programmes.[70]

52. We have some concerns, however, about whether the Government is taking sufficiently into account the risk of regional instability on the sub-continent when making licensing decisions relating to the export of conventional military equipment.

53. Previous Committee Reports have commented on the export of Hawk training jets to Zimbabwe and Indonesia, and on their proposed export to India.[71] While the Hawk aircraft's main role is in operational combat training and in training pilots to fly fast jets, it also has, in the Government's words, "a limited ground attack capability".[72] Saferworld has expressed concerns that Hawk will "be used to train pilots to fly the (potentially nuclear-capable) Jaguars" and that it can "also easily be reconfigured to be ideal ground-attack jets for use in Kashmir".[73]

54. BAE Systems is known to be negotiating for the sale of Hawk to India, with a number of the aircraft to be produced under licence in that country. The Government has supported this sale.[74]

55. The Government's decision to support the sale of Hawk to India seems to be based in part on the presumption that it is for use as a training aircraft. In parliamentary questions on 16 May 2000, Peter Hain MP, then Minister of State in the FCO, when asked whether a contract for the sale of Hawk to India would be "compatible with an ethical foreign policy", replied: "Indeed it would be compatible, because those Hawk jets are for training purposes".[75] In its memorandum to us, the Government has stated that it is "satisfied that India would deploy Hawk in its intended role as a training aircraft".[76] However, we understand that the Government has issued licences for weapons and weapon parts known to be for fitment to Hawk, where these were for export to countries to which the jet was originally sold on the basis that it was for training purposes.

56. While Hawk is primarily a training aircraft, it also has a combat capability. One of the "principal features" of Hawk as marketed by BAE Systems is its "heavy and varied weapons load".[77] We have seen no information to indicate that Hawk is being exported to India unweaponised or with limited combat capability, nor that undertakings have been sought from the Indian Government that Hawk will not be used in combat. In assessing licences for the export of military equipment, the Government is obliged to refuse a licence under Criterion 4 of the consolidated criteria "if there is a clear risk that the intended recipient would use the proposed export aggressively against another country or to assert by force a territorial claim". Given the ongoing tension between India and Pakistan over Kashmir, we recommend that the Government judge with great rigour whether a proposed export is likely to be used aggressively. Without seeking to reach a judgement ourselves on whether it would be right or not to allow the export of Hawk aircraft to India, we recommend that decisions on whether to allow or refuse licence applications in the case of Hawk and other designated training equipment should take into account the actual and potential capabilities of the equipment, as well as their intended role.

57. We also investigated in the course of our inquiry licences granted to Pakistan during 2001 for production equipment and components for large-calibre artillery. The Government has written that it "assessed there to be no clear risk of aggressive use" of the equipment,[78] and it has supplied us in confidence with further information about the equipment. In private session the Foreign Secretary told us that in his judgement "approving these exports was not going to make any difference at all to the degree of tension or the resolution of dispute" between India and Pakistan.[79] Mr Dowse also pointed out that exchanges of fire across the line of control "were involving at that time small arms rather than artillery",[80] but we note that artillery exchanges across the line of control were widely reported in both 2000 and 2002.[81]

58. We are not convinced that the export of such artillery in finished form would or should have been permitted by the Government. We therefore have our doubts about whether it was right for the Government to license the export of production equipment. We recommend that the Government clarify in its response to this Report under what circumstances it permits the export of production equipment where it would not be prepared to license the export of the end product.

59. On 19 September 2002, the Foreign Secretary wrote "to clarify the Government's position on the possible export of Hawk aircraft to India".[82] In evidence to us on 21 March 2002, the Foreign Secretary had indicated "that no export licence application for the export of Hawk aircraft to India had yet been received". It emerged, however, from this letter that an open licence for Hawk components and production equipment had in fact been "recommended for approval by Ministers at the Foreign Office" in the previous Parliament in late Spring 2001, and that the licence had been formally issued on 6 September 2001, following approval by DTI Ministers.

60. The Foreign Secretary has apologised to us for this oversight, and we accept this apology. We also accept that it was not his "intention to give an inaccurate answer to the Committee, nor … was that the intention of officials".

61. Nonetheless, we are dismayed that this oversight was possible. The proposed sale of Hawk to India had had a high political profile for a number of years. While it is understandable that ministers newly arrived in office were personally unaware of what their predecessors had approved in a previous Parliament, it is disturbing that officials were unable to brief them on the fact that an open licence had been granted for the export of components and production equipment which, were it not for commercial constraints, would have enabled the production of Hawk in India under licence. It is astonishing that officials failed to inform ministers that a licence had been granted, apparently for a full year, during which ministers were making inaccurate statements both to us and to the House and were promoting the sale of Hawk in India.

62. We must assume that, at the very least, this represents a fundamental failure of the Government's information systems. The apparent inability of officials to access accurate information about licensing decisions has much wider ramifications than this one licence. In considering current licence applications, the Government needs know what previous relevant decisions have already been taken. We conclude that the failure of officials to identify for a period of more than a year the fact that an open licence had been issued for the export to India of Hawk components and production equipment suggests that the information systems used for retrieving licensing information are inadequate. We recommend that the Government investigate how this oversight was possible, and that it report back to us on what steps have been taken to ensure that such an error cannot recur.

Handcuffs

63. In a written answer of 28 July 1997, the Government announced that it "would take the necessary measures to prevent the export or transhipment from the UK" of various equipment designed primarily for torture, including "leg-irons, gang-chains, shackles—excluding normal handcuffs—and electric-shock belts designed for the restraint of a human being". It also announced that it was examining how to take forward its commitment to ban the manufacture and possession of such goods.[83]

64. In a letter to the Committee Clerk of 20 February 2003, the Government explained that it had implemented the undertakings regarding export and transhipment, and that:

    the necessary amendment to the Export of Goods Control Order came into force in December 1997 ... Since the relevant amendments to the Export Control Act, HM Customs and Excise have discovered no evidence of attempts to illegally export instruments of torture from the UK.

It added that:

    having further considered the issue of the manufacture of the specified items it has been decided that there would be little reason to ban the manufacture or sale of equipment covered by the ban. There is no market for leg irons and shackles. British police do not use them and their export is banned. Any misuse would give rise to a separate offence such as assault.[84]

65. Over-sized handcuffs, defined as handcuffs with a locking circumference of 240mm or greater, require a licence to be exported from the UK.[85] There is a legitimate need for such handcuffs in escorting and transporting prisoners with particularly large wrists. But there is also a risk that such cuffs could be used as leg irons. In answer to a written question from the Committee, the Government explained that it "carefully assess[es] the risk of such handcuffs being used as manacles, in contravention of the Government's ban on the export of such items. We would not grant a licence if there were a clear risk of such misuse".[86]

66. In 2001, handcuffs were licensed for export to Australia, Canada, Hong Kong, New Zealand, Sweden and the USA. We have no concerns about the majority of the licences granted. In these cases, we can accept the Government's assurances that "the handcuffs were for use either in escorting or transporting prisoners" and that "there was no clear risk of use for internal repression".[87]

67. In one case, we questioned the Foreign Secretary in private session as to why a particular licence for handcuffs had been granted, in the light of other applications which had previously been refused. When questioned on this point in private evidence, Mr Dowse told us that "these involved different types of handcuffs in each case". The approved licence involved "normal over-sized handcuffs". The Government "did not believe that there was a clear risk" that they would be used "in any way other than as over-sized handcuffs". In the case of another licence the Government had "no particular grounds for concern" that the equipment would be misused, but "did nevertheless judge that there was a clear risk that it could clearly easily be disassembled and re-assembled in the form of leg-irons and therefore was covered by the scope of our export ban". In the view of Mr Dowse, this "is an example … of the really rather detailed care that we do give in assessing individual licences case by case".[88] Although it seems unlikely that the handcuffs licensed for export in this case will have been used as leg irons, we are concerned that they may nonetheless be used in other ways which are contrary to the Government's policy statement of 28 July 1997. We conclude that it is doubtful whether the Government should have granted a licence for oversized handcuffs in one particular case, given the nature of licence applications which the Government had previously refused. We do, however, accept that in this case a judgement was reached after detailed and proper consideration. We have been asked by the Government not to identify the destination of the cuffs.

68. In the case of another destination, Mr Dowse's claim that the Government exercises "rather detailed care" to its consideration of licence applications is less convincing. We have examined easily accessible official information published by the end-user of the handcuffs. This reveals that the end-user employs this specific make of over-sized handcuff in a way which is clearly contrary to the Government's ban.[89] However, the Government "did not seek assurances" about the use of the handcuffs, because it "had no end-user concerns".[90]

69. As the Secretary of State for Trade and Industry told us as recently as 3 April:

    We take a view on oversized handcuffs that we would not want them to be used for the purpose of leg irons, we regard that as an unacceptable practice, certainly when we look at export controls for oversized handcuffs or export licences we look very closely at whether there is a risk they would be used for the purpose of leg irons … we will continue to enforce our view of those oversized handcuffs.[91]

70. We would not expect oversized handcuffs to be the Government's top priority among military exports of potential concern. Nonetheless, they have the potential for being used in ways which the Government has explicitly condemned. A political ban on the export of equipment deserves to be properly implemented, even where the end user, as in this case, is reputable and properly regulated.

71. In another case, we conclude that oversized handcuffs should not have been licensed during 2001 for export to a particular destination (which we have been asked by the Government not to identify). Basic checks on the end-user of this equipment from information easily accessible in the public domain would have revealed concerns about how the oversized cuffs might be used. We therefore conclude that basic checks were not conducted. We regard this as an administrative failure that should be investigated.

Tanzania

72. We commented at some length in our last Report on the Government's decision to grant licences for the export of a military air traffic control system to Tanzania.[92] The main concern about the export was whether it would "seriously undermine the economy or seriously hamper the sustainable development" of Tanzania. The Government is required to take these considerations into account when considering export licence applications.

73. The licences for the air traffic control system were granted in December 2001, and therefore are listed in the 2001 Annual Report.[93] Although the total value of the system as widely reported in the media was £28 million, the total value of individual export licences granted for Tanzania in 2001 was only £19.5 million. This discrepancy may be explained by an error in the value of the equipment as reported in the media, or it may be that parts of the system were not subject to the export licensing regime. The actual cost of an export is central to whether it would hamper the sustainable development of a country. We recommend that the Government explain in its response to this Report the apparent discrepancy between the value of the licences issued in 2001 for export to Tanzania, and the reported total value of the air traffic control system being sold to the Tanzanian Government.

74. We asked the Government in writing, and then in oral evidence, whether the export of the system had yet taken place. We were told by Mr Dowse on 27 February that:

    when an export has been completed, the licence is then exhausted and is returned to the DTI. To date, I understand the DTI has not received the exhausted licences for the air traffic control system.[94]

75. We are surprised that the Government has no other means of identifying whether an export has occurred. In the case of Tanzania, the proposed export had gathered an enormous amount of public attention, and we would expect the Government to be keeping a close eye on developments. The Government must also have ways of ensuring that exports are halted where, exceptionally, it has cause to revoke a licence. Customs and Excise are presumably an important part of this process. In its response to this Report, the Government should explain what links exist between Customs and Excise concerning the actual export of military equipment, and other Government departments concerning the legality of their export.

76. In our first Report of this Parliament, we stated that we expected "to receive shortly the summary of the cost-benefit analyses prepared within Government before the decision on the application to export an air traffic control system to Tanzania was determined". In its response to our Report, the Government stated that it was "still considering", in line with an undertaking from the Foreign Secretary of 21 March 2002, whether "detailed calculations about the licensing decision could be released to the Committee". It is unacceptable that it has taken the Government well over a year to decide whether to provide us with analytical information about the application to export an air traffic control system to Tanzania.

Sri Lanka

77. Sri Lanka has been prey to a long-running internal conflict between the Sri Lankan forces and a rebel group, the Liberation Tigers of Tamil Eelam (LTTE). Licences for Sri Lanka in 2001 included grenade launchers, 75 sniper rifles, small arms ammunition, special forces craft, and weapon night sights.[95] We recognise that there is a strong case to be made for assisting a Government to use force to preserve law and order, as long as that force is used in accordance with international human rights standards. However, according to the US State Department, in 2001 the Sri Lankan security forces committed "serious human rights abuses" in areas affected by the internal conflict, including "numerous extrajudicial killings", disappearances, the torture of detainees and the rape of women in custody.[96]

78. In our last Report, we recommended that the Government undertake end-use monitoring of the use of similar equipment licensed for export during 2000, to ensure that "undertakings are being honoured and human rights violations are not occurring".[97] In its response, the Government stated that:

    Our post in Sri Lanka has reported a number of recent incidents involving the Sri Lankan armed forces. We cannot at this stage say whether British equipment was used, nor if it were, whether it was misused.[98]

79. At the time, the Government undertook to "write to the Committee again with further details".[99] We have now belatedly learned from the Government that it has "concluded that there has been no misuse" of British equipment by the Sri Lankan armed forces.[100] We recommend that the Government should continue to take measures to minimise the risk that military equipment supplied to the Sri Lankan armed forces from the United Kingdom will be misused.

Nepal

80. Since 1996 the Nepalese Government has been fighting a Maoist insurgency, which has led to thousands of deaths. In this section, we look at the Government's policy in relation to two types of export to Nepal: the licensing of small arms in 2000 and 2001, and the more recent presentation of military helicopters and other equipment as a gift from the British Government.

Small arms

81. In 2001, the Government licensed the export of 6,780 assault rifles and other small arms including grenade launchers to Nepal.[101] This followed the licensing in 2000 of the export of 320 semi-automatic pistols.[102] In his evidence to us, the Foreign Secretary gave a forthright defence of the Government's policy on exporting military equipment to Nepal:

    you have there a very, very serious terrorist insurgency. You also have a fragile government which is the subject of considerable criticism. We have had to take a strategic decision about how best we can support Nepal, against a background, number one, that it is important that we should not allow countries, where we can, to descend into insurgency and terrorism—and we all know what can happen there—but number two, that if we do, the consequences are not only pretty grave for that country, but also for surrounding countries, including in this case India which has a very natural regional interest in the stability of its neighbours … in order sometimes to prevent wider conflict, you have to arm armed forces and make sure they are effective, because one of the major problems leading to the insurgency has been the lack of equipment, some lost through accident and others through lack of training by the Royal Nepalese Army.[103]

82. We have no hesitation in agreeing with the Foreign Secretary that the Maoist rebels fighting in Nepal are "vicious beyond belief".[104] We also consider the Government to be right in stating in its interpretation of the consolidated criteria that "in some cases the use of force by a Government within its own borders, for example to preserve law and order against terrorists or other criminals, is legitimate". We note, however, that this is only so "as long as force is used in accordance with … international human rights standards".

83. There have been numerous reports of human rights violations by the Nepalese authorities. Amnesty International, for example, has reported that since the deployment of the army in November 2001:

    the people of Nepal have experienced unprecedented levels of political violence. By the end of October 2002, according to figures made public by the Ministry of Home Affairs and the Royal Nepal Army, the number of people killed in the conflict since November 2001 had reached 4,366 … at least half of these killings may have been unlawful. The vast majority of the victims were civilians targeted for their real or perceived support to the CPN (Maoist); others were Maoists deliberately killed after they were taken prisoner or killed instead of being arrested. In addition, torture is widespread and at least 66 people are reported to have 'disappeared' since November 2001 after they were seen being taken into custody by the security forces. The total number of 'disappearances' reported to Amnesty International in the context of the 'people's war' is over 200.[105]

In its own Annual Report on Human Rights for 2002, the Government has commented that "in addition to concerns about civilian casualties from crossfire, there is now widespread anxiety about the level and brutality of abuses and violations by both sides to the conflict".[106]

84. Another, more practical concern is the security arrangements for stocks of small arms held by the Nepalese authorities. Small arms are, by their nature, particularly easy to hide, transport and use. Maoist rebels have made army barracks a priority target, with the aim of seizing weapons during their attacks.[107] As the Foreign Secretary has told us, the Royal Nepalese Army has suffered from a "lack of equipment, some lost through accident and others through lack of training".[108] It would be unfortunate to say the least if small arms intended to support the Nepalese authorities ended up in the hands of rebel forces owing to inadequate security.

Gifts: military helicopters

85. On 22 July 2002,[109] the Government presented to the House of Commons a Ministry of Defence Departmental Minute proposing to make a number of gifts to the Government of Nepal at a total cost of £4.077 million, including two MI 17 support helicopters at a cost of £2.6 million. All of the items were to be purchased using funds from the Global Conflict Prevention Pool.[110]

86. The normal practice when the Government proposes to make a gift of an unusual nature or of a value exceeding £100,000 is for a Minute to be presented to the House of Commons, and for the Government to wait 14 working days after the issue of the Minute before making the gift. In this case, however, owing to an oversight, a number of gifts described in the Minute—not including the helicopters—had already been made before the Minute was presented to Parliament. We asked the Government for an explanation of this oversight, and were told that it had "occurred because of confusion over whether equipment funded from the Global Conflict Prevention Pool needed to be treated as a gift".[111] We regret that gifts of military equipment were made to Nepal without Parliament having been informed beforehand. We trust that procedures are now in place to ensure that this oversight does not recur.

87. An unusual aspect of this gift is its source of funding: the Global Conflict Prevention Pool. This fund was established in April 2001 as a pooled resource between the FCO, Department for International Development and Ministry of Defence "to improve the effectiveness of the UK contribution to conflict prevention and management, leading to a reduction in the number of people whose lives are affected by violent conflict and a reduction in the potential sources of future conflict".[112] It funds projects across the world, except for sub-Saharan Africa, which is funded from a separate pool. Its stated goal for South Asia is "to contribute to the resolution of civil conflicts in the region and the prevention of international conflict by engaging with governments, the military and civil society".[113]

88. We do not object to the gifting of the helicopters and other equipment per se. An agreement "restricts the use of the helicopters exclusively to logistical, medical and ongoing humanitarian tasks" and "combat or attack roles are excluded for the lifetime of the aircraft, including the fitting of weapons, allowing soldiers to fire from the doorways whilst airborne or the dropping of ordnance".[114] The gifts seem to us to be an appropriate and useful token of the Government's support for the Nepalese authorities.

89. We are concerned, however, that the Conflict Prevention Pool was used to fund the purchase of the equipment. These are gifts which will, by the Foreign Secretary's own admission, assist the combat capabilities of an army which is currently involved in combat operations.[115] When we pressed the Foreign Secretary on this point, he told us that "in order to prevent conflict, you have to use force in many circumstances, and that is certainly true in Nepal".[116] Such an argument stretches the sense of the term "conflict prevention" to breaking point. Using the same logic, it could be argued that any justifiable arms sale is an exercise in conflict prevention. The fact that a gift of military equipment is desirable does not justify paying for it from a fund specifically devoted to conflict prevention, any more than building a new road should be paid for from a fund for the protection of the environment.

90. It is not in our view always unacceptable to fund the gifting of military equipment from the Conflict Prevention Pools. We believe that a recent gift to Kenya of de-mining equipment was a proper use of these funds,[117] as was the use of the Pools to supply explosive ordnance disposal equipment to Nepal. This is equipment which has a clear role in preventing death and injury, rather than equipment which is likely to be used in logistical support for combat operations, albeit in the pursuit of longer term stability and peace. While we support the Government's decision to provide military support helicopters and other equipment to Nepal, and the conditions attached to the use of the helicopters, we conclude that the Global Conflict Prevention Pool should not have been used to fund the gifting of this equipment.



18   Ev 21 Back

19   Ev 29 Back

20   Ev 22 Back

21   Ibid Back

22   Ibid Back

23   Classified information (not printed) Back

24   Ev 26 Back

25   HC (1999-2000) 467, para 50 Back

26   Ev 26 Back

27   Ev 23 Back

28   Ev 24 Back

29   Ibid Back

30   Ev 25 Back

31   Rating ML6 covers ground vehicles and components thereof specifically designed or modified for military use. Back

32   Ev 25 Back

33   2001 Annual Report, pp 37-38 Back

34   Classified information (not printed) Back

35   Ev 22 Back

36   Ibid Back

37   Ibid Back

38   US State Department, Country Report on Human Rights Practices in El Salvador for 2001, published online at www.state.gov Back

39   Ev 22 Back

40   Ev 23 Back

41   www.saferworld.co.uk Back

42   Press release, 19 July 2002 Back

43   HC (2000-01) 212, para 27 Back

44   Ev 27 Back

45   Ibid Back

46   Ibid Back

47   See paras 130-154 Back

48   Ev 24 Back

49   Classified information (not printed) Back

50   "Kashmir most dangerous place on earth, says US official", Agence France-Presse, 12 October 2001; "The most dangerous place in the world", New York Times, 30 May 2002 Back

51   Ev 23, 24 Back

52   Ev 26 Back

53   Classified information (not printed) Back

54   See paras 51-62 Back

55   Ev 23 Back

56   Ev 19 Back

57   Ev 52 Back

58   Eg. "Rumsfeld: Syria should halt supplies for Iraq", Associated Press, 28 March 2003 Back

59   Saferworld, An Independent Audit of the 2001 UK Annual Report on Strategic Export Controls, p 65; 2001 Annual Report, pp 36 and 72 Back

60   HC (1999-2000) 225, paras 42-43 Back

61   Classified information (not printed) Back

62   Ev 27, 28 Back

63   £9,837,000. See HC Deb 9 January 2003, Col 296W Back

64   Ev 21 Back

65   See paras 72-76 and 107-115 Back

66   2001 Annual Report, pp 153-154 Back

67   Ibid, p 157 Back

68   Ibid, p 251 Back

69   Identified in the 2001 Annual Report by the rating 'End Use'. Back

70   See paras 37-38 Back

71   HC (2001-02) 718, para 58 Back

72   HC Deb 10 April 2002, col 19W Back

73   Saferworld, 2001 Audit, p 87 Back

74   See paras 105-106 below for comment on the involvement of the Government in both the promotion and regulation of arms exports. Back

75   HC Deb 16 May 2000, Col 141 Back

76   Ev 23 Back

77   http://www.baesystems.com/programmes/airsystems/hawk2.htm Back

78   Ev 24 Back

79   Ev 14, Q 85 Back

80   Ev 14, Q 87 Back

81   Eg. Voice of America, 11 February 2000, BBC News, 4 January 2002, The Guardian, 31 May 2002  Back

82   A letter to the Chairman of the Quadripartite Committee is classified, but an unclassified letter in very similar terms was written on the same day to Mr Michael Ancram MP and Mr Menzies Campbell MP. Citations are from this letter, House of Commons Library Deposited Paper 02/1972. Back

83   HC Deb 28 July 1997, Cols 65-66W Back

84   Ev 38 Back

85   Ev 25 Back

86   Ibid Back

87   Ibid Back

88   Ev 14, Q 88 Back

89   Ev 15, Q 89 Back

90   Ibid Back

91   Defence, Foreign Affairs, International Development and Trade and Industry Committees, First Joint Report of Session 2002-2003, The Government's Proposals for Secondary Legislation under the Export Control Act, HC 620, Ev 21, Q 126. Back

92   HC (2001-02) 718, paras 119 to 135 Back

93   2001 Annual Report, p 321 Back

94   Ev 10, Q 50 Back

95   2001 Annual Report, p 301 Back

96   US Department of State, Bureau of Democracy, Human Rights and Labor, Country Report on Human Rights Practices for Sri Lanka for 2001. Published online at www.state.gov Back

97   HC (2001-02) 718, para 50 Back

98   Cm 5629, p 2 Back

99   Ibid Back

100   Ev 52 Back

101   2001 Annual Report, p 222 Back

102   Ministry of Defence, Foreign and Commonwealth Office, Department of Trade and Industry, Strategic Export Controls: Annual Report 2000, July 2001, p 187 Back

103   Ev 11, Q 61 Back

104   Ev 11, Q 64 Back

105   Amnesty International, Press Notice IOR 41/025/2002, 1 December 2002. See also for example: Observer, 2 February 2003, Independent, 30 January 2003, Washington Post, 30 January 2003. Back

106   FCO Annual Report on Human Rights for 2002, Cm 5601, p 101 Back

107   Ev 12, Q 66. See also Washington Post, 2 January 2003.  Back

108   Ev 11, Q 61 Back

109   A revised minute was presented to Parliament on 30 August 2002. Back

110   Revised Departmental Minute dated 30 August 2002 concerning the gifting of non-lethal military equipment to the Government of Nepal Back

111   Ev 31 Back

112   Cm 5601, p 89 Back

113   Cm 5601, p 90 Back

114   Ev 31 Back

115   Ev 11, Q 62 Back

116   Ev 11, Q 64 Back

117   Departmental Minute dated 5 March 2003 concerning the gifting of de-mining equipment to the Government of Kenya Back


 
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