Scrutiny of Arms Export Controls (2009): UK Strategic Export Controls Annual Report 2007, Quarterly Reports for 2008, licensing policy and review of export control legislation - Foreign Affairs Committee Contents


Examination of Witness (Questions 63-79)

MR OLIVER SPRAGUE, MS MARILYN CROSER AND MR ROY ISBISTER

11 MARCH 2009

  Chairman: Good morning. Before I ask our witnesses to introduce themselves for the record, I will ask a new member of the Committee, Adam Holloway, to declare any relevant interests.

  Mr Holloway: As a reporter on News at Ten I worked in the so-called Investigative Unit and did a number of pieces which included working with or getting stuff from independent, London-based arms dealers and also dealing with the anti arms trade campaigners, Omega, in Manchester. Also, I plan at some point to do an interview for the Parliament Trust Fellowship with BAE Systems in order to learn about UAVs.

  Q63  Chairman: Thank you very much indeed. Roy, would you like to introduce yourselves and your colleagues for the record, please?

  Mr Isbister: Sure. I am Roy Isbister from Saferworld. I am joined by Marilyn Croser from Oxfam GB and Oliver Sprague from Amnesty UK.

  Q64  Chairman: Welcome and thank you for your written submission to the Committee. Adam has mentioned UAVs. Perhaps I could start with an issue that arose in our last evidence session with the Minister, and it was an issue to which you referred in your submission, about whether unmanned aerial vehicles (UAVs) operated by the Israeli Defence Force contain engines manufactured in the UK. Can we try to bottom this one out. In your submission you say, "In January 2009, evidence was published suggesting that UAVs (piloted drones) operated by the Israeli Defence Forces and manufactured by Israeli company Elbit Systems may contain engines manufactured in the UK." You went on to say, "UAV Engines (UEL) based in Lichfield has stated that it manufactures the engines for Hermes 450 UAVs produced by its parent company, Elbit Systems of Israel." In the letter we received from Ian Pearson, the Economics and Business Minister, dated 19 February, he made two comments. First, he confirmed that export licences have only been granted on the UK company mentioned to supply UAV Engines to Israel for incorporation into complete UAVs which were then re-exported to other countries, and he went on to say, "The UK exporter has advised us that Elbit, its parent company, the Israeli defence manufacturer, attached prestige to the engines supplied from the UK and for those reasons the term UEL has become a designator of a type of engine rather than an indicator that it was UK manufactured. It is therefore possible that engines used by the Israeli armed forces would be referred to as UEL even though they would have been made in Israel itself." My question is—forgive me for the long background but it is to clarify this, given your submission—Do you accept that the Government is right to say there is some confusion over terminology here in relation to what is a UEL engine? Given that, do you believe there is any evidence that UK manufactured engines were supplied to Elbit for use in UAVs in the occupied territories?

  Mr Sprague: I will start off with that because the case is most closely associated with us, Amnesty. I think it is important to say, first, that we have never said that we have categorical proof that UK engines or parts or components from UK sources are in UAVs operated by the Israeli Defence Forces. We have pointed to established, we would say credible, sources suggesting that the engines used in these drones, even from the company themselves, are of UK origin. For us, the onus now is on the UK Government to ascertain the origin of engines, components, and all technology in the UAVs operated by Israel, because the credible sources suggest there may well be the UK connection. I can go on to all the reasons why that might be. There still is no other listed engine supplier for the Hermes 450, the particular variant of the UAV. The engine itself is a specialised Wankel-designed rotary engine. I have heard comments that there are a significant number of manufacturers of UAV engines that could be used in drones. Whilst that is true, and I am not the fount of all wisdom on UAVs, it would appear that the engine manufacturers of this particular variant, the specific rotary engines listed as UEL engines, are made by a very small handful of companies. I think I could find eight companies, none of which are based in Israel, and there is no public record citing source of any other manufacturer. Of course it is entirely possible that we are talking about transfers, and it is a supplementary point to our evidence submission that examples may well go back a long time in history. The Israeli Defence Force first acquired the Hermes 450 in 1997 and it was at that time that the experts from Jane's Defence reported the first-reported use of UEL type engines, so it is entirely possible that the original batch of engines may well have been exported more than ten years ago and they may well have been exported by the previous administration, for example. The question is now, therefore, not just about whether or not whole engines have been supplied by this Government but have UK engines at any stage in the development of the Hermes 450 been supplied and have we supplied any follow-up components, parts, spares or technology since then? I looked through the UK companies' annual reports prior to coming here and in both 1997 and 1999 they made technology transfers for know-how and related technology for their engine designs: one of £200,000 to the Israeli parent company who owns the engine supplier and, in 1999, a further £376,000 to an unspecified supplier. That does give some indication that technology has been supplied for these engines, which raises the possibility that they could be manufactured in other countries, which would obviously raise concerns around licensed production issues or technology transfer issues.

  Q65  Sir John Stanley: I would like to ask each of you to respond to this question, if you would. It has been the policy of successive British governments that there should be no approval of military exports from this country of offensive weapons—and I stress "offensive" not defensive—into areas of conflict or potential conflict. The question I would like to ask each of you: Do you consider against that criterion that there are any breaches of that policy that have been taking place in respect of any particular weapon or weapon component to any particular country?[1] 1

  Mr Isbister: Any particular country? It is quite difficult to think about such a general question and then think about specific instances. I certainly would say that we have concerns on "balance of risk" questions; that is, the Government is making its decision not on the basis of certainty but on the basis of risk. Regarding the consolidated criteria, there will be occasions where on the balance of risk, on imperfect information/less information than the Government has, I may well have come to a different decision.

  Q66  Sir John Stanley: That is all very generalised. I am asking each of you whether you wish to cite any particular weapon or weapon component which you consider the Government is approving of an offensive nature that is going to a country which is either in conflict or is in an area of potential conflict.

  Mr Sprague: I would to back to what Roy said that this is a risk-based system. We are not the end-use monitoring agency. It is very difficult for us, especially when we are talking about component parts. The drone example is a classic example. The answer to the question lies in the drones operated by the IDF, all we can do is point to a reasonable risk and evidence to suggest that somebody needs to check the origin of the engines. In the Israeli example, because it is current and topical—the Committee has raised it, we have raised it in the past—the decision to change the incorporation guidelines in 2002 did allow, specifically stated, components for offensive weaponry—not just the F16s, but the same rules probably apply to things like Apache helicopter—there probably are other technologies that have been licensed using a similar policy—to go to Israel.

  Q67  Member of the Committees: Via the United States?[2] 2

  Mr Sprague: Yes. We have not found the UK component in equipment used in Israel because that is something we cannot know. Just as a matter of interest, Amnesty has just done an assessment mission in Gaza. We went to view some of the damage from the military shelling and bombing. We did look at components that were in wreckage from things like the hellfire missiles on the ground that had been used in indiscriminate attacks. Whilst there is not a UK connection, it does show the international connection. Whilst this is an American missile system, one of the electronic components had a "Made in France" insignia on it, so one of the components for hellfire missiles used in indiscriminate attacks in Gaza had come from France. The possibility—and I say possibility—exists, because UK manufacturers are also involved in similar kinds of transactions via the United States, for that to have happened. There are also numerous examples that we have cited in evidence, that the Committee has raised itself, going back through history. I could cite Indonesia, for example, and military vehicles. We might well come onto this but there are issues around the re-export from licensed production facilities. All of these issues would lead us to believe that there are some instances where UK policy has directly contributed to violations.

  Mr Isbister: I suppose there is more than that as well. We had issues a number of years ago with some of the decisions that would be taken on the promotion of sales of equipment into India at a time, I would say, of heightened risk of conflict—conflict did not break out but, again, we are talking about the basis of risk and the possibility of conflict. There is also some of the supply of equipment into Iraq, and that is obviously complicated because it is a conflict that involves the UK but there is a concern over the end use of equipment that is going into conflict situations where there are doubts about the quality of end-use control—where equipment may find its way into the hands of those who are not the intended recipients.

  Ms Croser: I do not really have a great deal to add to what has already been said.

  Q68  Malcolm Bruce: You have kind of identified the problem. This Committee was obviously very unhappy about suggestions that British equipment might have been used in the recent conflict. The question really is would an arms embargo solve that problem. Your difficulty in answering these questions gets to the heart of that. Do you have a view as to whether there should be a UK arms embargo towards Israel and, if so, how it might operate? In that context, the Palestinian human rights group Al-Haq is looking for a judicial review, effectively arguing that the Government has an obligation not to assist Israel in doing that kind of thing. It is under judicial review and you cannot determine that, but do you think they are justified in making that call?

  Mr Sprague: There are two parts to that question. First, Amnesty International is on public record as calling for an international arms embargo on all sides of the current conflict, given the tremendous devastation that has been unfolding in Gaza. Also, we need to factor in the 18-month blockades that have been going on and the use of naval equipment, for example, in that blockade, basically collectively punishing up to 1.5 million Palestinian civilians. The situation in Gaza is very serious. There are credible reports of very serious violations of international human rights and humanitarian law and indiscriminate attacks on civilians. In those circumstances, we feel it is wholly appropriate for the international community to place an embargo on all sides.

  Q69  Malcolm Bruce: I personally have no difficulty with that, but our concern is with the UK Government's policy and the extent to which a UK arms embargo is going to make a difference or whether it would, perhaps alternatively, be an indicator that might apply pressure to the international community.

  Mr Sprague: Obviously that is true. Any government signal of that nature has a political and diplomatic lever and would hopefully cause the various protagonists in the conflict to think differently about how it might conduct its operations. Israel does have its own defence industry. We know that: it is an established industry, it does make its own munitions. But our evidence also suggests that it is very reliant on a whole range of international suppliers, including some EU governments, for its military equipment, and therefore it seems reasonable that those suppliers should seek to put very tight restrictions in the current circumstances. Just to go back to your point about the judicial view, it is something on which we cannot specifically comment because it is not our judicial review, but on the general point of whether or not government policy should be scrutinised through the courts on legal challenges, of course we wholly support that. Any system needs to be tested. On that particular issue, I would like maybe for the focus to be on specific types of equipment, where there is risk that they have been used. Because of the way that the annual reports present information on end users and because we do know that a significant number of licenses are not licensed for use by the Israeli military, I think it might be a mistake to assume that every single licence issued over a specific period would automatically facilitate human rights violations. It would be better maybe to focus on specific examples; for example, the incorporation licences, and look at head-up displays, look at specific weapon systems that we know have been used (the Apache, the F16) and look at the licensing decisions around those, and maybe the drones as well. There still is a case to answer for the origins of engine components and the technology for the drones.

  Mr Isbister: The impact of a unilateral UK embargo is clearly limited. We know, as Ollie said, that Israel is one of Israel's main suppliers and the other is the US, so the practical impact of a UK decision is clearly limited but it has a symbolic value and it has the value of example as well.

  Q70  Mr Holloway: I have just been in Gaza and I am under no illusions about the incubator of mass radicalisation that has been created there, but our troops are in conflict too and the whole UAV sector is racing ahead and the Israelis are at the front of it. Is there not a real point about us needing them in order to protect our own troops?

  Mr Sprague: That is a valid point but it is something that Amnesty I think would be unwilling to comment about because, essentially, we are a humanitarian organisation dealing with human rights violations and for us the absolute bottom line on these things is that you should not licence any equipment where there is a reasonable risk that that equipment will be used in the commission of a human rights violations. That, in our view, is a fundamental golden rule that cuts across export controls, and other considerations cannot break that fundamental golden rule.

  Q71  Mr Holloway: Therefore there is a limitation to your view.

  Mr Sprague: In what respect?

  Q72  Mr Holloway: You are not looking at the complete picture, you are looking at it from a very specific angle.

  Mr Sprague: It is beyond our mandate to talk about industrial defence considerations which I understand that others would say would be important, yes.

  Q73  John Bercow: Is it realistic to think that the Government will ever be able fully to regulate non controlled goods on a military end-use basis outside of this, given the variety of items that this will cover and the ingenuity of those who would seek to avoid controls?

  Mr Sprague: The Government is now on record of working to enhance military end use. It has perceived there to be a need, which we fully support, to try to enhance controls in this area. The controls are not the magic solution, so they are never going to control all situations where a variety of components or other civilian items may be used. It is like the arguments around the torture end-use control. It does allow control to be applied when evidence comes to light that such things are being used. At the moment it is simply not possible to do that, outside the fairly limited scope of the current dual-use controls, the military end-use catch-all clause that specifies that the goods have to go into a military system in an embargo destination. We fully support the Government's view that there is a case to be made to extending that beyond embargo destinations to sensitive destinations and, also, to introduce an end-user provision that is not just about listed military equipment. It is also about unlisted military equipment. The classic example here is utility vehicles that have been used in the commission of human rights violations and other violations in a number of different countries. I guess our supplementary point here is that we are concerned that that process will not involve the component parts and we might be in danger of creating a control that does not address the main example that was brought to light about why these things are important. Would the proposals cover the export of assembly kits of vehicles which will be assembled in what is essentially a NATO country? That is a question for the Government to answer. The other supplementary point I would like to add is that we had these discussions in 2007, and we are now in 2009, and I think these are really, really important discussions for how we view export controls because, like the torture end-use control, they change the emphasis onto the use of equipment rather than just a technical specification of equipment and it is the use that we should be really, really concerned with. There are very difficult discussions currently ongoing within the ATT process—we will probably come on to that later—about what types of equipment should be covered. The issue of military end use is pretty important in the discussion around dual-use goods and whether to include dual-use goods. It is going to be extremely difficult and slow to get agreement on this within the EU Dual-Use Regulation, and we have not even started that yet, so I would urge a sense of speed from the Government to start introducing this at the EU level and, if possible, get something at the UK level first.

  Q74  John Bercow: In the light of what you have just said, which implies perhaps a degree of frustration at the snail's pace of progress—my language, admittedly, not yours—do you have any indication that the Government is planning any action, even if it has not got around to the action itself. Is it planning any action in the EU to initiate discussions on military end-use control?

  Mr Sprague: It is a question you would have to ask colleagues in government. I do not know if Roy knows any better, but my impression is that discussions have not yet happened at an EU level, either via the Council of Ministers, the COARM grouping, or within the dual-use working group.

  Q75  John Bercow: That is quite an interesting, though arguably disturbing, reply, because if you had read the report of the last meeting of this Committee, which you may very well, for all I know, have done, you will see that there was one particular substance that featured in the minutes and that was grass, and in particular long grass, in relation to a particular subject about which we were quizzing ministers. You, of course, have all the notable courtesy for which most of our witnesses are renowned, but I have a hunch that you are fearful that this subject might be headed in a similar direction.

  Mr Isbister: Yes, long grass features in my thinking of it as well. I get no sense of urgency—I will use similar language. Also, the Dual-Use Regulation is under review at the moment to bring it into line with the UN Security Council Resolution 1540. The timing is unfortunate in that the Government has announced that it is willing to look at this just after quite a lot of work has been done on the Dual-Use Regulation already. The line we get is that it is very difficult to do this now because you are going to revisit something which has only just been worked on. It feels like there is very little urgency at the moment. The Government have said, if I recall correctly, that if there was no progress at the EU they would look at doing this at the UK level, so if they believe there is no likelihood of progress at the EU level then it is perhaps time they did move unilaterally.

  Q76  John Bercow: Could I be clear, because I am just a humble lay person—or at any rate a lay person who ought to be humble—if we are talking about improvised explosive devices, our understanding, as a Committee, is that because these are improvised non-standard weapons they may not be covered by the UK Military List which covers only devices associated with IEDs for handling, operating, detonating or jamming which are specifically designed for military use. Exporting unlisted components for improvised IEDs, however sophisticated and deadly their consequences, may therefore not be controlled, even with intelligence that the components were destined for IED production. That presumably, am I right, is the nub of your concern on the matter.

  Mr Sprague: Yes. It is an extremely complex area and there may well be other bits of law to do with terrorism controls and things that would apply. We do not have an end-use control on goods that you would want to control for very real security grounds. These devices are regularly used to attack UK forces in Iraq and Afghanistan and elsewhere. Our understanding of the current controls is that—we use an example of a thing called an inclinometer, which in a US case has recently been successfully prosecuted on because of its potential use in Iraq for improvised explosive devices. In the UK system that kind of equipment would not be controlled. An end-use control that we would like to see would allow the ability to put controls on that technology where the exporter or the Government had reasonable knowledge to suggest that it was going to be used for those purposes.

  Mr Isbister: There is a slight additional element here. It is about the change in technology and the change in the use of technology. A few years ago IEDs were not quite the issue they are now. By having an end-use control, you allow flexibility of response rather than having to go through a potentially laborious process of updating from law.[3] 3


  Q77 John Bercow: Forgive me saying so, but I was rather foxed and befuddled by your answers to Sir John, because Sir John asked a very, very, very specific question, deliberately so, I am sure, and I was slightly surprised that you either did not want or felt unable to specify an offensive weapon that you thought was being wrongly exported to an area of actual or potential conflict. The reason that surprised me is that I would have had the general sense that there would be quite a number of examples that could be adduced by campaigners in this field.

  Mr Isbister: The danger of being asked such a specific question and being on the record is that if we do not have our facts exactly right then it can come back to bite us. Could I suggest that we send you something written afterwards?[4] 4

  John Bercow: That would be very helpful. Thank you.

  Chairman: That would be very helpful. Thank you very much indeed.

  Q78  Mr Hamilton: Could I move us on to extra-territorial trade controls. I know the NGOs have broadly welcomed the new three-tier trade control system and I know that you are currently in the process of trying to widen some of the category B controls in your discussions with EGAD. Has the Government indicated to you that they are considering moving anti-vehicle landmines into Category B at any time in the near future?

  Ms Croser: No, we have not had that indication, but we feel that AVMs should be included into category B as a matter of urgency. The decision not to include them in category B runs counter to the UK's existing commitments in that area, as AVMs have clearly been identified as items of heightened concern and the UK Government is at the forefront of efforts to reduce the risk of their proliferation. Following the third Review Conference of the Convention on Certain Conventional Weapons in November 2006, the UK was committed to preventing the transfer of AVMs to certain end users and those commitments should be implemented immediately. The Government have argued that AVMs have not been identified through a process of international consensus as being as of heightened concern, and, as such, that is the decision not to include them in Category B. But we do not accept that, because if you look at cluster munitions, there is now an international prohibition on cluster munitions, although a number of notable governments do not accept that prohibition, and yet cluster munitions are still included in Category A. Obviously there are a number of humanitarian security concerns around AVMs: the way that they prevent the movement of civilian vehicles, including, for instance, ambulances, aid vehicles; the fact that they can be triggered by civilians on foot, not just people in vehicles; the ease with which they can be transferred, similarly to small arms light weapons; and, also, as people have discussed this morning, the potential risk of the use of parts of AVMs in the IEDs (improvised explosive devices). We would like to see AVMs included in Category B as a matter of urgency.

  Mr Isbister: I think it is bizarre. I just do not get it, I just do not understand, and I would hope that the Government could move very quickly to change this.

  Q79  Mr Hamilton: It is quite baffling. Can you please let us know where you have got to in your discussions with EGAD over widening Category B controls?

  Mr Isbister: We have been in discussions for some time, and we have probably got as far as we can together, talking about the way that you could possibly use registration and flexible record keeping as a way of extending the scope of extraterritorial control to allay business concerns about bureaucratic burden, et cetera. So we have some ideas that we have thrown around but it now needs to go back to government. I do not really think we are in that position to go public with what we have come up with. We now need to get back together with Government, because obviously it is not for us to make the decision and there are some questions that only Government can answer.


1   1 Ev 84 Back

2   2 This question was asked by one of the Members of the Committees on Arms Export Controls but on the uncorrected transcript was incorrectly attributed to one of the witnesses. It is not possible to identify the questioner from the sound and video recordings. Back

3   3 Note from witness: the potentially laborious process would be to update a list of equipment and amend the law. Back

4   4 Ev 84 Back


 
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