Select Committee on Foreign Affairs Minutes of Evidence


Examination of Witnesses (Questions 199 - 219)

WEDNESDAY 28 NOVEMBER 2007

DR KIM HOWELLS MP, ANTONY PHILLIPSON AND PAUL ARKWRIGHT

  Chairman: Good afternoon everybody. I ask members of the public to switch off their mobile phones.

  Kim and your colleagues, welcome. As you know, the Committee is undertaking an inquiry into Iran. We had an interesting visit there two weeks ago, some details of which will no doubt come out in the questioning. Obviously, now is an important topical time, and we might touch on some neighbouring countries and related issues in our question session.

  Kim, we are pleased that you are able to be with us yet again. We remember fondly the sessions that took place last year. Perhaps you would introduce your colleagues to us, and I will then begin questions.

  Dr. Howells: Thank you very much, Mr. Gapes. It is a pleasure to be back here. On my right—and to your left—is Antony Phillipson, our Iran co-ordinator. Antony has been playing a leading role in all matters Iranian. He will be on the Committee of Experts, which will meet in Paris on Saturday to attend the meeting of E3+3 Political Directors. Paul Arkwright is head of our counter proliferation department. He comes with great experience. Of all our proliferation worries at the moment, this is probably the most worrying.

  Q199  Chairman: Absolutely. On that point, what is the Government's assessment of Iran's current nuclear capabilities? What is your assessment of Iran's nuclear intentions?

  Dr. Howells: A lot of my answer has to be instinct rather than what we know from intelligence—that is, the bare facts. We think that we know something of the capability of the Iranians at the moment. We believe that they have gone some way down the enrichment track. We do not think that they have a large amount of highly enriched uranium, and we hope very much that our reading of that—more importantly, Dr. el-Baradei's reading of it—is accurate.

  We think that the Iranians have a long way to go before they get the enrichment process right, and that means that there is time for them yet to engage with the international community and not go down that path to accumulating sufficient highly enriched uranium to have enough to create an atomic bomb of some sort or other. Their declared intentions are for a civil nuclear programme, and we do not have a problem with that. In fact, part of the E3+3 offer has to been to help them to develop a civil nuclear programme, with the offer of help with light water nuclear reactors, for example. However, everyone else, including their neighbours, seems to believe that they in fact want to develop a nuclear weapon. That is our reading too, and it is very difficult to try to square some of the technical developments that have been going on in Iran with wanting a purely civil programme.

  I think it was Javier Solana who said last week that developing or enriching uranium to the degree that the Iranians seem to be pressing for is like trying to manufacture petrol before you have taken your driving test or even bought a car. It does not make much sense. There is only one civil nuclear reactor being constructed at the moment, and that is the one at Bushehr, being constructed by the Russians, who have already told the Iranians that the very highly engineered fuel rods that will be required for that reactor will be supplied by Russia. So, it is very difficult to see what the Iranians would require highly enriched uranium for, other than a nuclear bomb programme.

  Q200  Chairman: You said that it might take some time, but is it not true that Dr. el-Baradei has said that the Iranians now have almost 3,000 centrifuges at Natanz, and that if it were working properly, it could produce enough highly enriched uranium for a nuclear bomb within approximately a year or so. Is that not the case?

  Dr. Howells: Dr. el-Baradei is certainly very worried about the potential for what some people call industrial-scale production of highly enriched uranium. However, 3,000 centrifuges sounds a lot, but it is not in fact an awful lot, if you want to produce sufficient quantity to be able to engineer an atomic bomb. You need more than that. More importantly, you need to be able to make them work properly.

  We have certainly seen from Dr. el-Baradei's reports that the Iranians, like many others who have tried, have had a lot of difficulty with this centrifugal system. The centrifugal cascades are not easy to operate. The engineering has to be incredibly precise, and I doubt whether there has ever been a nation on Earth that has tried it that has not experienced great problems with it. However, it depends on whose assessment you read or listen to on this. Some Israelis, for example, are telling us that they think it could happen within a year or two, but the time lines in Dr. el-Baradei's report are much longer. It is a possibility. I do not think that any of us has detailed intelligence on this so as to be able to say that the Iranians could create a bomb within a year, or three years, or 10 years.

  Q201  Chairman: Is not the problem the fact that, since the decisions were taken to have the two sanctions resolutions at the Security Council, the Iranians have reduced their co-operation with the International Atomic Energy Agency, and as a result, we have less information now about what they are up to than we had before.

  Dr. Howells: Yes, Dr. el-Baradei says that it is difficult to monitor exactly what is going on inside at least some of the plants—particularly Natanz and Esfahan, and in Arak, of course, where a heavy water reactor is being worked on—and the ability to monitor is diminishing.

  Q202  Mr. Keetch: Minister, the west's record in identifying and calculating nuclear programmes—of identifying where there are nuclear programmes, and how advanced they may or may not be—is, let us be honest, not a particularly good one. However, I want to draw you back to the correct point that you made that it is one thing to create nuclear fusion, but a very different thing to put that into a mechanism that can then be delivered to be used as a bomb.

  Going back even to the early attempts by the Nazis to form nuclear weapons, we know that they had their delivery systems far more advanced than their fusion programmes and the miniaturisation to put the two together. Is there any evidence that Iran is not just seeking to do what you have already described and what Dr. el-Baradei has described, but trying to build the mechanism to take the fusion into a bomb form that can then deliver that bomb as a weapon?

  Dr. Howells: There is a question about some plans that were found by Dr. el-Baradei's team some time ago—I am sure that Antony could tell us the exact year—which described how to engineer uranium metal into hemispheres. That looked like the design for a warhead or bomb. You also need lots of other things, of course, including trigger mechanisms and all manner of very sophisticated technology, to be able to do that. The delivery system is a separate issue.

  The Iranians have announced just this week—or made a claim—that they have a rocket that is capable of reaching Israel, for example, and delivering a payload, which presumably they are claiming is heavy enough for a very substantial bomb of some sort or other. I have not been able to deduce whether it is an atomic bomb or not.

  The Iranians need a lot more technology and it is not easy to engineer such a thing. It is still, we believe, a long and difficult process. I think that that has to be added to Mr. Gapes's point. Further to his question about how close are they to getting enough highly enriched uranium, at the moment I doubt whether they are much past getting a component that has within it about 20% of highly enriched uranium of the correct isotope—U235, I think—let alone getting it up to 90%, which is what you need for an atomic bomb. You can create a dirty bomb, of course, with much lower amounts of irradiated material.

  Q203  Mr. Purchase: We have recently been to Tehran and Washington, and frankly the rhetoric from both ends is pretty worrying. It is difficult to discuss these matters. Not many round this table—or, I suspect, elsewhere—could enter into an intelligent discussion about nuclear physics or just what state of play obtains in Tehran. We are, regrettably, given our experiences in Iraq, using guesswork, which some call political game playing.

  I am trying to understand things. From what I heard in Tehran from people whom I thought were moderate in their views, there is no purpose in Tehran's developing a bomb that will quickly be discovered, with counter-action that will be too difficult to contemplate. Furthermore, those who take a religious view of this matter assured us that the Koran would almost certainly expressly forbid the development of weapons of mass destruction.

  If the Archbishop of Canterbury were speaking for the British Government and he made a statement saying that we would or would not do something, would it be believable in a political context? If so—or if not—how should we take the words of the clerics in Tehran, and Iran more widely, to indicate that their intentions are also honourable?

  Q204  Dr. Howells: That is a very good question. I think, first, that it is necessary also to say that another Islamic nation has a bomb—that is, Pakistan. There are clear links between the Pakistan bomb and the plans that A. Q. Khan stole from the research institute in Holland to create the enrichment facility in Pakistan that enabled Pakistan to develop a bomb. He either sold on or passed on some of those engineering secrets to Iran.

  I do not think that we can just depend on the words of some clerics. There will be others inside Iran—whoever they may be—some of whom are, I have no doubt, extremely pious individuals who nevertheless believe that it is the destiny of Iran to have a nuclear bomb. I take your point that Iran is very different from many other countries; it is not North Korea. It has a different attitude to the world and it has 5,000 years of history, of which it is very much aware, as it is of its identity.

  Iranians do not like to be called Arabs. They see themselves differently from many of their neighbours and feel that they are just beginning to punch their weight internationally, in so many ways.

  In a sense, my greatest fear is that the Iranians believe that by developing a bomb they will add to their cachet in international circles, in the same way that, at the end of the second world war, many countries felt that if they had an atomic bomb they would become a big power in the world.

  Q205  Mr. Purchase: My question is, are we employing double standards? I think you know what I am saying.

  Dr. Howells: No, I do not think that we are, because it is not a better world if 10 nations have bombs rather than five. I am very wary of that argument.

  We have a good record in this country—better than anyone in the world—for reducing our number of warheads and the technologies that we employ for delivering them, and so on. Iran signed up to that co-ordinated reduction, which we have all aimed at and which the non-proliferation treaty is about. We want the Iranians to abide by the rules that they signed up to—nothing more, nothing less.

  Q206  Ms Stuart: Dr. Howells, before I move on to sanctions, may I press you a little more on nuclear capacity? I fear that we may be in a situation like the one we were in with the 45 minutes in Iraq, in which we were not entirely sure what we could do within the 45 minutes. Have you made an assessment and differentiated between the acquisition of nuclear weapons and the ability to deploy them, and what would the time scale on that be?

  Dr. Howells: We do not believe that the Iranians have a nuclear weapon. We think that they probably have a rocket system that is capable of delivering powerful weapons over quite long distances and we have some idea about how they have acquired them. We know that they have the wherewithal, at least in intent, and that it is part of their science and engineering base to build a nuclear bomb, but that is a lot easier in theory than in practice. I come back to the point that I made to the Chairman, which is that you can have 3,000 centrifuges, you can arrange them in cascades, you can get your pipework right and you can do all kinds of things, but you have to make the thing work properly.

  Q207  Ms Stuart: So the UK Government think that the Iranians have the delivery mechanism?

  Dr. Howells: Yes, I think that they probably have a rocket powerful enough to deliver a large payload—certainly on to one or other of their neighbours, probably as far as the Mediterranean.

  Q208  Ms Stuart: The reason that I am questioning that is that on one of our visits to Russia, not long ago, a suggestion was made to us that a flaw in our reasoning is that Iran, as a country, is not big enough to test any of those delivery mechanisms and that the Iranians would require nuclear navy carriers, which they were not developing. So, the Russians were slightly relaxed in saying that, even if the Iranians had delivery, they had no mechanism for testing it. Do we not agree with that assessment?

  Dr. Howells: No, I certainly would not agree with it. Iran is a very big country—it is six and a half times bigger than Britain—and some of it is extremely remote. The same argument could be made for a similarly sized country: Pakistan. However, the Pakistanis certainly tested their bombs in the Chagai hills down on the Afghan border and managed to disguise that pretty well from most countries. I am not sure whether we were aware of what was going on. I think that there is enough room there for the Iranians to conduct testing on rockets. Many other countries have done it already. Germany did in the second world war.

  Q209  Ms Stuart: That is very helpful, thank you.

  May I take you on to economic sanctions, briefly? One of the constant responses we received in Tehran was that the Iranians thought that economic sanctions hit us much more in the west. It would be helpful to get some idea of the extent to which you think the population of Iran and those who ought to be hit by our sanctions are actually being affected by them. From my observation, I was quite struck by the fact that the petrol sanction does not seem to have had much impact, certainly not on the traffic in Tehran.

  Mr. Hamilton: It is 5p a litre.

  Ms Stuart: Yes, it is 5p a litre. They were just not travelling long distances and were flying rather than using the car. What is your assessment of the genuine effectiveness of the sanctions structure that is in place?

  Dr. Howells: I just asked Antony if there is a petrol sanction. There is not a petrol sanction, but there is petrol rationing. That has been caused by President Ahmadinejad to try to limit the amount that is being sold because the Iranians are desperately short of fuel, especially good quality fuel such as petrol and diesel. That is because no one is investing in the Iranian hydrocarbon industry. That is a big worry for them. It looks as if this year they will produce less gas and oil than last year, despite the fact that the price of oil is up to near $100 a barrel.

  I think that the Iranians are quite desperate to get substantial investment—not just little dribs and drabs—to replenish their hydrocarbons industry and to bring it up to modern standards. I think that the population are very aware that they could be making a lot of money out of that. After all, President Ahmadinejad came to power on the promise that he was going to address and alleviate the great poverty that exists among so many people in Iran. He has not done that and I notice that the Iranian Government are becoming very repressive in terms of clamping down on internal critics of his economic record. He calls them traitors. Radio stations get interfered with or closed down. All sorts of things are happening.

  I do not know what that tells us about the effect of the sanctions, but they have been very precisely targeted to hit not the great mass of people living in Iran, but particular individuals and the nuclear and missile programmes.

  Q210  Ms Stuart: We saw the scrambling of television stations such as CNN and BBC News 24. Whenever they got interesting, they got scrambled. If we pursue the sanctions at the UN, what about the Gulf states? Is the co-operation of the Gulf states sufficiently tight that this does not allow Iran an opening for sanctions busting?

  Dr. Howells: This is a question that you probably have better answers to than I do, Mr. Chairman. There is a population of somewhere between 200,000 and 400,000 Iranians in Dubai alone. Admiring their entrepreneurial qualities, I will say that this is an area that has a long tradition of sanctions busting. They know how to break sanctions, believe me. Curiously, there is almost a contradiction between what a lot of Iran's neighbours will tell you in private and what they will utter in public.

  It is, however, very interesting that at the Istanbul Iraq neighbours conference a couple of weeks ago, Prince Saud, the Saudi Foreign Minister, spoke very directly against Iran's expansionist policies in Iraq and elsewhere. That was the most forthright critique that I have heard. It is a tough neighbourhood, and one where the general ethos is to try to get on with each other. They know just how incendiary the whole situation is and are very aware of the key strategic position of the Persian Gulf and the Straits of Hormuz in terms of the world's energy. Like it or not, it is the most strategic seaway there is.

  Q211  Chairman: On the question of sanctions, leaving aside the economic impact or the ability of people to avoid them and get around them, is not there a danger that they are actually used by a regime to solidify domestic support and make it more likely that the hardliners retain power because the internal problems can be blamed on the foreigner?

  Dr. Howells: Yes, there is always a fine judgment, as sanctions can generate a kind of siege mentality, as you implied. President Ahmadinejad has been very clever at using external international pressure against his policy on nuclear questions. He has used that to fly the Iranian flag and stir up nationalist feelings within Iran. However, that is a balance that the international community has to judge exactly. The UN Security Council has been pretty solid on that. Remember, there was only one vote against the initial decision for sanctions, from Qatar. That had nothing to do with Iran because the vote took place in the middle of the war between Israel and Lebanon and Qatar felt that Lebanon should have been the subject of discussion at that UN Security Council session.

  Q212  Chairman: But the existing UN sanctions are quite limited. Security Council resolutions 1737 and 1747 do not really get to the heart of the issue, which is Iran's gas and oil exports. Is there any prospect that there will be tightened UN sanctions with Russia and China going along with it?

  Dr. Howells: I will ask Antony to speak about that, as he will be involved in those discussions directly.

    Antony Phillipson: The sanctions were limited, and deliberately so. As the Minister has said, they were targeted on the nuclear and missile programme because that was the issue that the UN Security Council was addressing. With regard to their effectiveness, they have had some economic effect. It has not been great or dramatic because they were not very harsh, partly so as not to allow the regime to say that we were hitting the Iranian people.

  However, they had a political effect. The Iranians were surprised to have two 15-0 votes in December 2006 and March 2007, and we all want to work hard to protect that unity with the E3+3 this weekend and within the broader UN Security Council when we get there. The honest answer to your question is that there is no prospect of the next UN resolution hitting investment in the oil and gas sector, but there will be an escalation of the sanctions and a tightening of the screw.

  Q213  Chairman: That leaves the European Union acting on its own, even if there is not another UN Security Council resolution. I have picked up that there are also differences within the EU on those issues. Is there any immediate prospect of an agreed EU strengthening of sanctions? Are countries that have bigger business interests in Iran than we do, principally the Germans, content to go down the same route?

  Dr. Howells: I will ask Antony to come back to that in a moment. There are obvious differences within Europe; there is no question about that. The E3+3 has not been a vehicle that has been universally admired within Europe. However, despite the doubts of some significant countries, there has been a remarkable degree of solidarity in supporting the general direction that E3+3 negotiations have taken. I am not as pessimistic about that as I am about most things. However, it is a problem, and we have to make those arguments. As you have said, Mr. Gapes, the EU measures are already tougher than the UN measures, but that does not say a hell of a lot because the UN measures were not that tough. Paul knows about the effect of the key measures, which were designed to limit the ability of the Iranians to push forward with a nuclear bomb programme.

  Paul Arkwright: Regarding the effect of the sanctions on the proliferation-sensitive technologies in both the nuclear and missile-related areas, clearly the intention was to target specific types of goods and technologies which would be of particular utility to the programme. The sanctions have had two effects. First, there is some evidence that we have been able to slow down the programme. Some said that they would have expected Iran to have built and be operating a 3,000-machine centrifuge facility before now, and one could ascribe some of that delay to the sanctions, which is a fair point. The other point is about raising international consciousness about the Iranian programme, and about the types of goods—in particular dual-use goods, which are obviously difficult to identify at times—and the value of those goods to the Iranian programme, which is a very important aspect of sanctions. We have managed to raise the level of knowledge on that around the world, in particular in countries which could be either supplying those goods or acting as a trans-shipment route for those goods. We have been making it clear that under the UN Security Council resolutions it would be illegal to transfer those goods to Iran, so the sanctions have had an impact on the programme in that sense.

  Antony Phillipson: On the record of the EU to date and what might happen next, as the Minister said, we pushed very hard for the EU to complement and, indeed, go further than the UN after the last two resolutions, and we achieved that through common positions in February and then April this year. We did that in order to have the EU do its bit and also because what the Iranians try to do when they look at the international community taking action against them is to look for comfort and for people who have not taken action. The EU, acting on the back of the UN, reinforced the political message of the UN sanctions regime. That is what we are pushing for again now with partners within the EU. There is no doubt that there is still a preference within the EU—and, indeed, it is our preference—for the UN to be the principal vehicle because it applies the broadest possible waterfront of sanctions. We will be pushing very hard for the EU to be in a position to reinforce anything that the UN does, or if the UN track fails, for the EU to be in a position to try to fill the gap, because otherwise the result will be no pressure at all on Tehran.

  To make a point about the effectiveness of the sanctions on Tehran, one thing that is interesting about Iran is that although it is by our standards repressive, in terms of social and political freedoms, as I think you probably found during your visit, it is actually also reasonably open; people will meet you and talk to you. I was struck from talking to our colleagues in the embassy that you went from a meeting with the secretary of the Supreme National Security Council to a meeting with a Nobel peace prize winner—it is that kind of society.

  There is a debate under way, which is quite an open debate. Anyone else who receives BBC monitoring will see that there are people criticising the record of the regime and the President himself on economic matters. They do it in coded language because deliberately standing up and criticising him is not very constructive, but whether it is 57 economists writing a letter saying that his handling of the economy is appalling, or a former nuclear negotiator saying that the way that foreign policy decisions are being handled is damaging to the country, a debate is under way and the UN and EU sanctions regimes play into that.

  Q214  Andrew Mackinlay: On the suggestion, which has now been actively canvassed and which I support, that a third country should carry out the enrichment—ie Russia—I recall that about a year ago people, even in evidence to the Committee, pooh-poohed that idea, although I do not think that it was you, Minister.

  Dr. Howells: By the Iranians?

  Q215  Andrew Mackinlay: No, by the United Kingdom Government. It is slightly irritating, because the suggestion that the original architects of this were the Russian Federation was pooh-poohed by a UK Foreign Office spokesperson. Why did he pooh-pooh it and what has changed?

  Dr. Howells: I cannot remember pooh-poohing anything about a year ago, but it is a fair question. I shall ask Paul, if I can, whether he knows anything about that.

  Q216  Andrew Mackinlay: Am I right or am I wrong?

  Paul Arkwright: If you are talking about Russia providing fuel for the Bushehr plant, that has never been something that we have had any objection to. We would have no problem with Russia supplying nuclear fuel to Bushehr, provided that adequate safeguards are in place under the IAEA. That brings us to a separate point about the ability of the agency to discover what is really going on in Iran. If you are talking about the recent Saudi proposal that Prince Saud raised in a number of newspaper interviews, then it is an idea worth exploring. We would come back to the UN Security Council resolution obligations and to the requirement for Iran to suspend its enrichment activities as a starting point.

  Q217  Andrew Mackinlay: Yes, but with respect to my question, am I right or am I wrong that the United Kingdom dismissed the proposal of the Russian Federation which we have now endorsed? That is that we would guarantee a civil nuclear programme with enrichment carried out in a third country, likely Russia—

  Dr. Howells: As Antony says, he thinks that he knows the answer.

  Q218  Andrew Mackinlay: So I did not dream it.

  Antony Phillipson: No. This is one of those issues that surfaces in the ongoing debate between Iran and the international community—that after the event is held to be a lot more significant than it was at the time. The episode that you are referring to is when a proposal surfaced that Iran might give up its right to enrich on Iranian soil, in return for a guarantee of supply of fuel from some form of international consortium. At the time it was held to be a Russian proposal. I was not involved in the dossier at the time, but I think those who were would say that when the Russians were asked about it, they said that it was not their idea, and when the Iranians were asked, they also claimed that it was not their idea. The Iranians then slipped back into defending their rights to enrich on their own soil and the thing slipped away. It has now come back on the agenda because of the comments made by Prince Saud during his recent visit, and an article in the Middle East Digest.

  The other comment that I want to make is about the nuclear co-operation on offer as part of the E3+3 offer mentioned by the Minister a few minutes ago. It is possible to have a discussion about that type of facility in the context of an overall negotiation. However, before we can have that discussion we need to get into the negotiation, and Iran needs to suspend its enrichment programme—

  Q219  Andrew Mackinlay: It was purely the narrow point that the idea of Russia had been rubbished when in fact it was a sensible idea. It was rubbished because it was Russia's idea.

  Dr. Howells: No, I do not think that that is true.


 
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