Memorandum from BAE Systems UK
INTRODUCTION
The notice announcing the Defence Committee's
intention to hold an enquiry into the UK-US Defence Trade Co-operations
Treaty invited views from industry and others on the Treaty and
its implementing arrangements. The purpose of this memorandum
is to set out BAE Systems' views on the published Treaty. The
associated implementing arrangements are not yet available to
industry and are not therefore addressed in this paper.
SUMMARY
BAE Systems fully supports the aims of the UK-US
Defence Trade Co-operation Treaty and believes that once implemented
it will significantly improve the ability of defence companies
in the United Kingdom and the United States, working with the
two governments, to leverage their respective skills and technologies
in meeting the needs of our armed forces, now and in the future.
BAE SYSTEMS
BAE Systems is the third largest global defence
company, the largest British defence company and the 6th largest
US defence company. Of its 96,000 highly skilled people, 43,500
work in the US and 32, 400 in the UK. Prior to the acquisition
of Armor Holdings earlier this year the US accounted for 36% of
overall sales and the UK accounted for 38%.
THE TREATY
The preamble to the Treaty recognises that,
in order to develop closer security and defence co-operation between
the UK and the US and, in support of that objective, to be able
more effectively to capitalise on the strengths of the security
and defence industries in both countries, there is a need for
a new bilateral framework to facilitate the movement and defence
material and technology within an approved community of organisations
while, at the same time, ensuring that there are proper safeguards
in place to prevent unauthorised access to such material and technology.
BAE Systems is confident that the arrangements
proposed in the Treaty—subject to the implementing arrangements
still under negotiation between the two governments—will
make it possible for companies within the approved community to
co-operate more effectively and more quickly, to share their collective
skills and knowledge in support of the armed forces of the two
countries and to do so within a security environment, based in
the UK on the Official Secrets Act, that will ensure that shared
information and technology is properly safeguarded.
Our primary objective is to ensure that the
capabilities that exist not only within our own operations in
the UK and the US but also in the wider UK and US defence industries
are fully exploited to deliver the most capable and effective
platforms and systems to the British and US armed forces and their
ability to operate together. But we also believe there will be
real benefits both to British and American taxpayers and to the
U K and US companies within the approved community in terms of
making more efficient and effective use of their combined investment
in the technologies and skills that will be needed to ensure the
UK and the US have the battle-winning capabilities of the future.
BAE Systems firmly believes that the UK-US Defence
Trade Co-operation Treaty provides an opportunity that must be
seized to mirror the closeness of the political, security and
military relationship between the UK and the US in the way in
which the two defence industries work together. This will be to
the advantage of the armed forces, the governments and the industries
of both countries.
BAE Systems hopes that Parliament and Congress
will give the Treaty full and early endorsement.
14 November 2007
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