Quadripartite Select Committee Minutes of Evidence


Examination of Witnesses (Questions 40-59)

25 FEBRUARY 2004

RT HON JACK STRAW MP, MR EDWARD OAKDEN CMG AND MR DAVID LANDSMAN

  Q40 Chairman: There is a logic problem here.

  Mr Straw: —and a logical difference between the final equipment and the components that go to make it up. There just is. Obviously, for some things the issues are very similar where you are dealing with equipment which is plainly aggressive or can upgrade the aircraft. Where you are dealing with an awful lot of components then you have to judge it, as the criteria say, on a case-by-case basis, and a lot of the issues where I am asked for my decision on components come into this area, for example, where although the equipment into which they are going to be installed, for sure, has a purpose as a weapon or part of a weapons system, the equipment itself—an ejector seat or fire control system—does not have that purpose at all. Now, there is the other issue you raise, which is about incorporation. I know Ms Squire was concerned about this last year but I am happy to go into further detail about that. There is just a reality that the international defence industry has become more and more internationalised; the production lines are international now and they are not just national or local. That is one of the reasons why there has been an increase in the total number of licences for components, because increasingly British companies are supplying components to other companies. I think there is now only one completely UK-made military aircraft, which is the Hawk; all the others are now made in different parts of Europe or between Europe and the United States. So we are in this production line situation. The judgment I then had to make when I came to consider what became called the Incorporation Policy is whether we were making a strategic decision, effectively, to cease to play our part in those production lines where otherwise the production was consistent with the consolidated criteria. This may be an uncomfortable position for some people but the country has made a strategic decision on an all-party basis that we have a defence industry, that it needs to be controlled properly—as it is—but within that it has to prosper. If that is the case, then colleagues have got to accept that as   circumstances change, and the increasing globalisation of production is one of the major changes in circumstances, then the way in which we have to deal with licences also has to change, although the criteria have not changed, nor the rigour with which we put them into force.

  Q41 Rachel Squire: I think the Foreign Secretary may have advanced the issue because I was going to ask about the Government allowing the temporary export to China of a variety of training and combat aircraft demonstration models and mock-ups, saying this was for exhibition purposes. Am I right to conclude that that does indeed suggest that we are ensuring British companies will be well-placed to sell to the Chinese, perhaps, when, rather than if, the current embargo is lifted or relaxed?

  Mr Straw: I have a feeling, Ms Squire, that these particular approvals predated the decision of the European Council to review the embargo. So I do not think there is any direct cause and effect there, but I can check on that. What, however, is the case is that there is plainly a difference between a licence for use in the particular country and a licence for exhibition where it is not for use in a country, and again we look at it on the basis of the consolidated criteria. I remember reading a note about this and I have been trying to find it in my extensive brief.

  Q42 Chairman: Perhaps you could drop us a line on that one.

  Mr Straw: I may even turn it up, but I have definitely seen it on the page.

  Q43 Mr George: Secretary of State, on 4 May 10 new nations join the European Union. My questions, which are related, relate to how well these 10 new countries are going to fit into European practices and the European Code of Conduct. The impression I have from what the Government have said is that they are reasonably happy with the 10 countries' administrative procedures but I do not know if the Government—and we will find out in a moment—is satisfied with their implementation of the European Code of conduct or their ability or willingness to implement properly. The question then is, of these 10 new countries, none of them appear to have a very strong tradition of export control. What have we been doing to ensure that these 10 new members of the European Union do not become the weakest link in the export control system, in terms of both the standards and enforcement?

  Mr Straw: Mr George, it is an issue which we, as a Government, and I as Foreign Secretary, take very seriously. What we have been doing specifically is we have organised two seminars for accession states about the code's criteria and how they should operate, because it is not just what is on the paper it is about what approach individual officials should take when they are looking at arms applications. One took place in Estonia and the other in Slovakia. The seminars focused upon how concretely you need to take licensing decisions. Although the accession countries have been applying the criteria for a number of years as part of their accession arrangements, we thought it important to provide them with strategic information. There was also a session in the seminars on transparency, focusing on the information provided by almost all Member States in their annual reports, albeit that some of their annual reports are limited. There is also the issue of ensuring that all the EU accession states become members of the non-conventional weapons group regimes, like the Australia Group, the MTCR, the NSG, the Wassenaar and the Zangger groups. I was checking through this in preparation for this Committee hearing. The EU WMD action plan provides for the setting up of a task force to assist accession states on export controls and discussion with the EU regulation. 10 cluster groups of three countries per group have been set up. The UK is in two such groups; the first with Ireland and Malta, the second with Greece and Cyprus. Within each group a visit will be made to each country to discuss customs issues, transhipment, identification of goods in the regulation and technical control issues. Customs and Excise are working closely with these countries. There is then the Australia Group, which is a group—as you know, Mr George—of like-minded countries which aim to limit and frustrate the proliferation of biological and chemical weapons through the implementation of export controls. Five of the EU accession states are expected to join the Australia Group this year—they are: Malta, Slovenia, Latvia, Lithuania and Estonia—and we are supporting the applications. The other five are already members of the regime. In respect of the Missile Technology Control Regime, again, Cyprus, Estonia, Latvia, Lithuania, Malta, Slovakia and Slovenia are applying to join the MTCR and the other accession states are already members. These are going to be considered at a meeting in May. Then again, for the Nuclear Suppliers Group, Malta, Estonia and Lithuania have applied to join the regime, the other accession states are already members. The other two groups are not directly relevant, the Wassenaar and the Zangger. Just to give you an indication that we are concerned about the point you raise, ticking the box that you agree the criteria is only the first stage; you have got to make sure you apply it. So we are very concerned it is applied, both in respect of conventional and non-conventional weapons. We have a good relationship with the accession states, for all sorts of reasons of which you are aware, and we intend to continue to stay alongside them on this. Their arms industries, as with their size, varies a great deal.

  Q44 Mr George: You are getting close to a related point on the peer review process. Are you satisfied it is working? It seems a bit like the whipping system in the House of Commons, where these wonderful people are able to coax, cajole, persuade and arm-twist. We are amongst the best of the countries in relation to the implementation of arms-control regimes. Are you really satisfied that this peer review control, peer review system is really working? It will take more than a few seminars. Again, the impression I have is that the Americans are rather better at it than we are. At the end of the day, on 5 May will you be able to say "Well, look, I think now we have made very significant and successful steps to getting these guys into the regime that we regard very highly"?

  Mr Straw: I am going to ask Mr Oakden to answer your specific point, but let me make this clear point, that I am satisfied that as from 1 May the regime which these countries will operate under, and its enforcement, will be better than it has been in previous years in these countries. The very fact that they are joining the European Union is a way of raising their standards of law enforcement generally. Whether it is at the level which we would regard as wholly satisfactory is another question, but it is moving in the right direction, and you only have to look at some of the other former Soviet Union nations which are not joining the EU, so we do not have the same control over them, to see what the problems are.

  Mr Oakden: It is a serious issue and I think it is recognised across all the accession states as being a serious issue. Clearly, for the larger states with bigger bureaucracies, implementing these detailed obligations is maybe less of a challenge than for some of the smaller ones. However, as the Foreign Secretary has just gone through, for each of the supplier regimes, including Wassenaar, all of the EU Member States are in the control regimes and all the accession states either are already or will be members. That has entailed a substantial effort, not just bureaucratically but in terms of the commitment of their officials to follow through what that actually means in practice. Clearly, it will be an on-going challenge but it is one that has quite a high priority.

  Q45 Tony Baldry: Foreign Secretary, sometimes sitting here it seems a planet away from the impact of the irresponsible use of weapons on individuals elsewhere in the world. I was in Sierra Leone last week and amongst the things I was looking at were camps for amputees. The indictment for the UN Special Court for Sierra Leone makes chilling reading. We saw last weekend a massacre in Northern Uganda by the resistance army and the continuing abuses in the DRC. These are all innocent people out there who get killed, maimed and injured by the irresponsible use of weapons. Last October Oxfam and Amnesty International launched a campaign for an international arms trade treaty "to prevent arms being exported to destinations where they are likely to be used to commit grave violations of international human rights and humanitarian law." One does not have to look far for instances of that and, of course, there is still a UN War Crimes Tribunal in Rwanda. I understand the Government's line on arms is that HMG "supports the goal of an international instrument on arms transfers, but argues that for it to be effective such a treaty would have to enjoy the support of all major arms exporting countries." So, on that, I would just like to ask two very simple questions: what do you consider to be the prospects of all major arms-exporting countries supporting an international arms trade treaty, and can you tell us which countries are reluctant to establish such a treaty? What are we doing to gain their support? Is this something we are passively sitting in Whitehall saying, "If the others do it we will do it"? Or is this something where you and colleagues are pro-actively suggesting to other major arms-exporting countries that we need to have a new international instrument to try and prevent future substantial violations of international human rights and humanitarian law?

  Mr Straw: We are at an early stage but let me say I do welcome the proposals which have been made by Oxfam and others in respect of this, and their concern. The issue, however, and where you always have to make a judgment with these international draft instruments, is how effective they would be and whether it is going to be possible to gain support for them; in a sense, what diplomatic and other price would you have to pay? You asked me what countries have supported it up to now. I am aware of reports that Finland has offered support but it has offered support for the treaty's principles but not the text. The Netherlands have, I think, given support in rather similar terms, saying that (according to my information) they support agreements which strengthen the control on arms trade but they are not convinced an arms treaty is feasible yet. So we are having consultations on this. It goes without saying that if I felt an arms control treaty would deal with many of the problems which you have raised and we could get it through, I would be in favour of it. After all, we have signed up to all sorts of instruments in terms of arms control and there is no argument there, in principle, between us, it is just whether this is going to work. The examples that you use, I think, are quite interesting because you talk about Sierra Leone and Uganda, where there have been the most terrible massacres. Most of the loss of life and the damage in both of those conflicts has been caused through small arms. It happens, as you know, that we have a large defence industry and small arms plays a tiny part in that in the UK. We have made a lot of efforts better to control the trade in small arms. In respect of that, we are well ahead of the proposals for the arms trade treaty, but it has been very, very hard going. A lot of people make a lot of money out of small arms and they are also relatively easy to produce in unlicensed, uncontrolled premises. It is difficult. We have already got international treaties and instruments in respect of chemical, biological and nuclear weapons and I have issued proposals this morning better to enforce those regimes. We have got the Missile Technology Control Regime, of which we are members. There is no issue at all about what we want to do, it is just whether this is the right way of doing it. I remain open on it.

  Mr Oakden: Can I just add one point? We have talked about this somewhat in the European Union. There is, I think, a general agreement that the real countries that we need to be getting at are not the other countries of the European Union, they are not a problem, it is the countries which are the major exporters of small arms. Our experience hitherto, including on all the work we are doing on small arms, is that if western countries, EU countries, get out in front and say "We want to do this" that actually makes it harder, very often, to bring either some of the developing countries on board because they feel that they are being made to sign up to somebody else's agenda, or, indeed, some of the big exporters of small arms. So what we are trying to do is, at this stage, talk through—and ministers have been involved already—with the NGOs exactly how best to go about this. Clearly, we will do what we can, both nationally and within the European Union, to try to create a movement from this that goes wider than the western consensus. When we have discussed this within the European Union that seems to be where the centre of gravity is about where we should be going forward on this treaty.

  Q46 Tony Baldry: I think we would all welcome the restrictions on small arms exports to Africa. Indeed, the Prime Minister on 9 December of last year said in the House of Commons: "In respect of small arms we already prevent their sale into Africa, which is the single most important thing that we can do." However, when I look through the annual report on strategic export controls I note that the number of African countries receiving UK open export licences for small arms has increased from four in 1999 to 11 in 2002. This includes machine guns to Senegal, components for mortars to Cameroon, Angola and the Ivory Coast and Namibia, and grenade launchers to Tunisia. I can see that grenade launchers go a bit beyond small arms, or AK47s, but there seems to be a kind of disparity between what the Government is saying about small arms and Africa and what is actually happening.

  Mr Straw: I have not got the details directly in front of me of those applications. By definition, I am happy to go into detail there. I do not think there is a disparity, Mr Baldry. I am happy to provide you with more detail. We are very, very careful about our arms exports anywhere, particularly to Africa, for reasons which are well understood.

  Mr Landsman: If I can just add to that. On some of those we can obviously provide some more details, but some of those will be for the use of humanitarian agencies in certain circumstances or for UN peace-keeping forces.

  Q47 Tony Baldry: I cannot imagine humanitarian agencies using heavy machine guns in Senegal, but I will be very interested to hear the details of that.

  Mr Straw: There was some concern, not in respect of Africa but another country, about armoured vehicles which looked as though they were military vehicles but, in fact, they were for a well-known broadcasting organisation. We were about to be pilloried for providing armoured vehicles to a country which had a record which some questioned. We cannot give full details of these exports because they are confidential, but the armoured vehicles were for a well-known broadcasting company. So sometimes there is an explanation which may even satisfy this Committee.

  Q48 Sir John Stanley: Foreign Secretary, I want to turn to the very key recommendation which was made unanimously by this Committee last year in our report HC620. We said this: "We recommend that the Government should seek to extend extraterritorial control to all trafficking and brokering which if conducted in the UK would not be granted a licence." Sadly, this unanimous, all-party recommendation from these four Select Committees of the House has not been accepted by the Government. Indeed, in practical terms it has been rejected to the tune of 90% plus, because as you are well aware the only weapons to which the extraterritoriality provisions as far as trafficking and brokering is concerned that are currently being applied are to missiles in excess of 300 kilometres range and limited amounts of items which have a torture connotation, such as handcuffs. Everything in between is excluded. This, as you will be aware, was the major issue of policy which was the subject of the Committee's debate in Westminster Hall on 6 November. I must put it to you that in the contributions that were made by all those who took part from all parties the argumentation put forward by the Members of the Committee and other Members of the House who took part for the policy position of the Quadripartite Committee, I believe, the argument was won absolutely conclusively in relation to the—I thought—wholly unpersuasive and thoroughly inadequate defence of the Government's line that Mr Nigel Griffiths put forward. I know it is incredibly difficult for you, as Secretary of State, in front of a Committee to indicate that the Quadripartite Committee may have got the policy right whereas the Government has got it wrong, but that is what I invite you to respond to the Committee by saying. If you do not think this is a serious issue I am going to come to some very serious questions to you, Foreign Secretary. I put it to you, this is a serious life and death issue, to which I am going to come in a moment. I put it to you that the Government's policy is jeopardising life.

  Mr Straw: Of course it is a serious issue, but I was smiling at what I thought was a witticism of your own but, there we are, maybe I made a mistake there. Of course these are issues of life and death by definition, but it is perfectly possible for colleagues to disagree about how you deal with these issues in an honourable way without it being implied that because we have come to one view about this discrete issue of extra-territoriality therefore we are less assiduous in terms of trying to protect people's lives than those who have come to the opposite view. On balance these are always judgments but I have to say that I have always been sceptical about this issue of   extra-territorial control and extra-territorial offences except in very specific circumstances. We are members of various international instruments which make genocide, torture and so on, crimes which are try-able internationally, slightly different from extra-territorial jurisdiction but they are try-able internationally. Also we have very strongly resisted efforts by the United States to impose an extra-territorial jurisdiction on otherwise perfectly lawful activities, for example of United Kingdom businessmen, both operating here and in third countries. There are businessmen in this country, and your Party complains about this as much as mine, who are absolutely sound, who are not involved in any improper conduct, and yet are subject to all kinds of restrictions because on the basis of our law, not that of the United States, they happen to make decisions to trade with other countries to which the United States takes exception and there are various extra-territorial offences as well. This also arises in taxation. This is a subject of some difficulty for us and other European countries and the US. The US does have a system of extra-territorial controls, however we have not been made aware of one single successful prosecution which has been made under US extra-territorial brokering controls, for example. I am open to further information on this. It is not an ideological position I am taking, I am simply taking a position on the balance of the arguments; if the arguments change I am happy to change. In contrast, I am told that for over 25 years Germany has operated a system of brokering controls applying to activities done on German territory similar to the United Kingdom controls with regular prosecutions resulting in custodial sentences. That is our approach so far. I am very happy to look again at the debate that took place in Westminster Hall and the report. This is not an idle view we have come to. I appreciate the position of the Committee. It is much in my interests to agree with the Committee wherever I can, and I do, because why should I not, you have great expertise and you look at these things. I do not open your reports with the view that I am going to disagree with what you say, I open the reports with the view that I should agree with them whenever I can take the recommendations on board. It has not been possible here so far, as I say, but we are always open to argument.

  Q49 Sir John Stanley: Foreign Secretary, at no point have I suggested idleness or any lack of assiduousness on your part. I am sure this is an honest difference of view and I, and I am sure other Members of the Committee, wish to persuade you that the Government has got the policy wrong. This is not an issue about British businessmen conducting themselves legally. The Quadripartite's position is quite clear: the extension of extra-territoriality that we are seeking is in relation to trafficking and brokering which if conducted in the UK would not be granted a licence. I suggest you have to defend the position why should it be legitimate for a UK broker outside the territorial area of the UK to make a sale of a particular item to a particular country which if conducted inside the United Kingdom would require an export licence. It would seem to me, and to the rest of the Committee, that as far as people who are British citizens are concerned, and therefore liable to British law, the same boundaries of the business should apply whether they are operating inside the UK or not. Can I come to a specific weapon? Here we have an individual case where I must put it to you the Government has been put on to very, very clear notice of the risks that it is running. I put it to you also, Foreign Secretary, it is not an issue as to how many successful prosecutions there have been or not, the issue is whether the law in place is a law which will, as far as possible, do all that can be done in legal terms to protect the lives of British and, indeed, other people from the activities of British citizens. The case that I am referring to, which has been widely reported in the press, is the case of Mr Hemant Lakhani who, following clearly a very successful intelligence operation, as has been widely reported, and British Intelligence Services should be congratulated, was arrested in the United States—I stress Mr Hemant Lakhani is a British citizen—whilst he was allegedly trying to sell up to 50 Russian surface-to-air missiles. The question which I believe you and your colleagues in Government need to ask yourselves with the utmost seriousness is given the absolutely known risks from the proliferation of surface-to-air missiles today, and the media have been full of reports on British and other aircraft from such attacks, and we have already suffered the loss of several lives in Iraq from surface-to-air missiles, how can you defend the situation when you are clearly on notice of a British subject already having been subject to arrest on allegations of trying to procure Russian surface-to-air missiles of not including surface-to-air missiles in    the extra-territoriality provisions that the Government has now passed into law?

  Mr Straw: On the detailed point that you raise, Sir John, Mr Oakden can go into this in more detail in the closed session. I think you are asking about MANPADs and we already have tight controls on the export of these. It does not matter if they were a UK National or not, if they were engaged in the same activity in the UK they would prima facie be committing a criminal offence in the UK, so I am not entirely clear what point it is you are making. Of course we take these things seriously.

  Q50 Sir John Stanley: Can I just put it very clearly. If this particular gentleman, as a British citizen, was engaged in the brokering of surface-to-air missiles outside the UK's territorial jurisdiction, that particular individual would not be the subject of the offences which you have laid down in the Secondary Legislation which the House has now passed. That is the legal position.

  Mr Straw: Hang on. There are other provisions, for example the Terrorism Act, which do necessarily have extra-territorial effect. We can go into detail about the specific case in the closed session. Sir John, I am very happy to look again at this issue and your recommendation. The only question is, is it going to work? It is not an issue of principle here whatsoever, we are all in favour of the toughest enforcement in this area. There may be arguments about the judgments, and sometimes they can lead to sharp arguments, but there is no issue of principle. Let me say I have got form as long as your arm for introducing all sorts of further criminal offences on to the criminal calendar, principally as Home Secretary but also as Foreign Secretary, so that does not worry me at all, it only worries me is it going to work. I will promise you I will look at it again.

  Chairman: I am very conscious of the time. Can we have quick questions and quick answers, please?

  Q51 Sir John Stanley: You suggested, as did Mr Griffiths in replying to the debate, that this issue, this huge lacuna of everything between handcuffs and missiles with ranges in excess of 300 kilometres, was in some way going to be covered by the terrorism legislation. Mr Griffiths said: "The trafficking in shorter range missiles by terrorists, or for the purposes of terrorism, is covered in many circumstances by the anti-terrorism legislation which has extra-territorial effect". That is one of these ministerial statements which probably we have all been guilty of from time to time which is factually correct but inadvertently is actually profoundly misleading in the impression it conveys.

  Mr Straw: You may be guilty of that, Sir John, but—

  Q52 Sir John Stanley: I just want to finish my point. Why it is profoundly misleading is that this trade is not conducted by people who are clearly terrorists, absolutely not, it is conducted by middle men, people who are disguising very, very carefully their activities and doing their utmost to shield themselves from any association with terrorism. For that reason, and you as a lawyer will understand this, if you are going to make a prosecution you have got to do it on the basis of proving a connection with terrorism and I believe under those circumstances you will virtually never achieve it. If you are going to mount a prosecution on the fact of brokering, which is what the extra-territorial provision should extend to, you have got a much greater chance of succeeding with a prosecution and I ask you to consider that issue.

  Mr Straw: I will look at it again.

  Q53 Mr Blunt: Secretary of State, just to come back to the international arena. To quote from an American academic study, it says: "Having four regimes that appear to policymakers to be doing the same thing, regulating weapons-related technologies and items, has resulted in a lack of sustained high level political attention in almost all Member States, including the United States", I think with the honourable exception of this Committee. "In this context one can understand the complaints from firms and their clients about confusing and overlapping regulations and the consequent introduction of piecemeal solutions by individual legislators. In most countries that we have studied, the issues appear so esoteric to national policymakers that few high level political resources are invested to rationalise the national export control system as a whole". Do you agree with that?

  Mr Straw: I think it is a fair criticism, Mr Blunt. It is complicated. These systems have grown up on a bespoke basis. Personally, as I have already made clear, one of my great concerns—this is a personal concern—is about the lack of enforcement mechanisms for biological and toxic weapons. I published a Command Paper about this two years ago and have been arguing for it internationally. However, those who are opposed to a more substantial enforcement regime argue that if you go down this route you have then got a problem of interference with the pharmaceutical industry, for example, which is at the heart of the argument over biological weapons control. Then the issue is it is better to ring-fence biological weapons in order that at least you can have a reasonable regime in respect of chemical weapons and nuclear weapons. That is why these things have grown up. I do not defend these arrangements. It would be good if they could be rationalised and it would also be good if senior people at all levels in other governments paid the same kind of attention that I believe we do in the UK Government.

  Q54 Mr Blunt: Does it not mean, as Mr Oakden said, talking with NGOs about how we might approach this at this stage is really not good enough? If we are going to get a single international control regime, now is the time to strike because now is the time that the full attention of the United States is engaged following 9/11.

  Mr Straw: The US are engaged in a number of initiatives, including the ones which I talked about yesterday, and that was part of the purpose of President Bush's speech that he made on 11 February as I recall. They have taken a lead over things like the global partnership to clean up WMD, particularly in Russia and former Soviet countries, and much else besides, but if you take the issue of biological weapons, the control and enforcement regime, one of the countries which take a different view from us is the United States. It is on the record. There was an international conference about this towards the end of 2001. We sought to achieve at least a consensus that could continue the process of discussion but although the United States' Government is very committed indeed to counter-proliferation and generally to arms control, there are some of these issues, and BW is a good example, where their view of what is required is different from ours. Their view, in a nutshell, is that it is so difficult fully to enforce a BW regime that it may not be appropriate to try and we have a different view. You have to deal with these things on a case-by-case basis, I think.

  Q55 Mr Blunt: I am conscious that we are pressed for time. Does the need for the Proliferation Security Initiative demonstrate the limitations of current arrangements and does that initiative not really demonstrate that we are now in effect carrying out other countries' export controls on WMD and missiles by proxy?

  Mr Straw: We need the Proliferation Security Initiative because although there are many countries which observe the high standards to which every other country in the world, bar a tiny handful, are committed, there are other countries which sign up to international instruments but do not enforce or, even if they wish to enforce, lack the capacity to do so. Of course it is right, and in a sense this is a good example of us using extra-territorial arrangements in a practical way, that we should seek to take action to enforce rules which the originating countries should have enforced themselves. The best example, and I hope this is of some reassurance to Sir John, is the proposal in respect of the transport of WMD, their delivery systems and related materials, on commercial vessels on the high seas where we want agreement with the flag countries to be able to interdict and not just for drug purposes.

  Q56 Mr Battle: Foreign Secretary, could I focus on arms exports to developing countries and perhaps try to make a modest but constructive proposal because, as we all know, the Export Credit Guarantee Department offers subsidised insurance cover for arms sales to actually encourage arms companies and recipient countries to take up arms sales that might not be otherwise economically viable and which might have a massive negative impact on their economies. I think we should welcome the Government's introduction of what is called the productive expenditure criteria for arms sales to all the HIPC countries, the highly indebted poor countries. Would an extension of that productive expenditure criteria to all the international development association countries, all the poor countries listed under the UN, not dissuade them from taking up arms and taking on more unsustainable debt and also release money for the alleviation of poverty? I would just suggest that as a practical suggestion, it would get widespread common support. What arguments could there possibly be against that modest extension?

  Mr Straw: I am very happy to look at it is the answer, Mr Battle. I do not think you were suggesting that countries in that category should not have any kind of defence arrangements at all, because plainly they need them, but it has got to be proportionate. We are applying this criterion of proportionality pretty rigorously, as we have done in the refusal to which your attention has been drawn, and we can no doubt discuss that in closed session if you wish. I will certainly follow it up.

  Q57 Mr Colman: Foreign Secretary, some very brief questions around what I understand to be the Government's intention to give two short take-off and landing aircraft to Nepal. First of all, you said that you wished to keep us as a Committee informed, but in this case the decision to give these two aircraft emerged via the press in Nepal rather than through a statement to Parliament or even a letter to this Committee. Plainly by the look on your face you are concerned that this is so. The second point, while I still have your attention, is as we said last year in terms of the supply of helicopters, again this Committee did not oppose that, we were surprised that the money for these two aircraft should come from the global conflict prevention pool, and again we were surprised that these aircraft were supposedly there to prevent conflict. We were a bit surprised that this pool was used to fund it. First of all, could you perhaps assure us that this was a one-off and should such gifts occur in the future, and we support Nepal, you would inform us before the event rather than us hearing about it through the press? Secondly, would you again like to reconsider using the conflict prevention pool money?

  Mr Straw: Mr Colman, we do not at the moment have a system of prior scrutiny. There is an argument in favour of that, but we have retrospective scrutiny, so it is appropriate that the committee is told once a licence has been issued, but not in advance. There is nothing particularly secret about this at all, but the reason I was looking puzzled was that I have written quite a number of letters about this and I thought perhaps one of them was to the committee but I have certainly written letters to colleagues who have followed this up on behalf of constituents. I think you said we need to support Nepal. We have had to take a strategic decision that the government of Nepal needs support, subject to some clear conditions, because of the very severe threat it faces from the Maoists. I do not say for a second that I regard the human rights record of the government of Nepal as satisfactory; in a number of respects it is not, but I also say that the human rights records of the Maoists is infinitely worse and the strategic consequences of us either supporting them or washing our hands of the issue would be very serious, so we have to make a difficult choice in an imperfect world and that is the choice that we have made. It is not an oxymoron for us to use the global Conflict Prevention Fund to support, for example, the operation of short take-off and landing aircraft because sometimes you have to prevent conflict and its scale by making use of military action; there is no other way. Again, it is an unpleasant world we live in but it is a world that we do live in. It may be helpful to provide the committee, Chairman, with information about these aircraft. They are twin-engined Islander aircraft with a normal carrying load of around seven persons, including the crew. They will be capable of conducting non-lethal activity such as search and rescue but are not combat aircraft and do not have a substantial military lift capability. The aircraft are used by some UK police forces for similar roles to that anticipated for these aircraft in Nepal, and we would arrange for an agreement between ourselves and the RNA that the aircraft would be strictly limited to a logistical, medical and humanitarian role, so I hope that is helpful. With respect to the two helicopters, they were gifted during 2002 for transportation and were not designed for offensive purposes. Their supply to the Royal Nepalese Army was on the condition that they were used solely for troop and equipment carrying, medical evacuation and humanitarian purposes. We stipulated that combat or attack roles were excluded to the lifetime of the aircraft, including the fitting of weapons, allowing soldiers to fire from doorways whilst airborne or the dropping or ordnance. It may, however, sadly be known that one of the two aircraft crashed on 3 April whilst on a re-supply task with one fatal casualty and a number of serious injuries, but that was not to do with the nature of the aircraft, I understand.

  Q58 Chairman: Could not almost any arms sale be justified on the grounds that it is conflict prevention?

  Mr Straw: No. You have got to make judgments here, Dr Berry. The Conflict Prevention Fund is not a pacifist programme. What we have done in Sierra Leone, which was raised earlier, has been very significant in preventing conflict not only in Sierra Leone but also elsewhere in West Africa. It does involve the use of arms.

  Q59 Chairman: It was a good question though.

  Mr Straw: But a better answer, if I may say so!


 
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