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Lord Redesdale: I thank the Minister for his reply and am grateful for the Government's move to widen the concept of licensed production overseas to an EU-wide context. However, I feel that an opportunity has been lost in not including it in the Bill. I realise that this is an area which has been covered in another place. It may well be an area to which we return at the next stage. I beg leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Lord Redesdale moved Amendment No. 20:
The noble Lord said: The purpose of Amendment No. 20 is to introduce end-user certificates and monitoring controls. This is an area which has also been discussed at length in another place and is something which we feel strongly should be introduced into the Bill.
At the moment it is a great weakness with any movement of arms that they can be used in other countries and misdirected. We hope that this amendment will fill a gap in ensuring that weapons go to the destination stated in the export order. I beg to move.
The Lord Bishop of Manchester: I support Amendment No. 20, which seeks to introduce a clear system in the Bill for end-use certification and monitoring.
Over the past five or 10 years we have witnessed a number of incidents where arms of UK origin have been diverted for purposes or to destinations contrary to the Government's intentions. While the Government say that they are now taking greater consideration of the possibility of arms being diverted to undesirable users or usages and have already put in place a number of proceduresI am aware of that and they are welcomewe do not yet have a comprehensive system of end-use monitoring. We need to make it more comprehensive than it is at the moment. We must back up the present controls to give a signal not only to the people who might abuse the system, but also internationally, that we are taking end-use seriously.
I heard the Government's argument about this in the other place and also in this Chamber; that is, that we already have an adequate end-use monitoring process. But that is largely based on stringent risk assessment at an early stage of the licensing, rather than putting resources into a system of end-use monitoring. That seems to happen before rather than afterwards. While I accept that risk assessment on licensing is very important, we also need some kind of monitoring of our export regime.
One example which will be well known to Members of the Committee concerns the UK-made Hawk jets in East Timor and the Democratic Republic of the Congo. As I understand the history, repeated assurances were given by the United Kingdom Government over the years that the United Kingdom-supplied equipment would not be used in East Timor. The Chief of the Indonesian Armed Forces admitted on 15th July 1999 that a British-made Hawk jet was flying over East Timor as part of a programme of intimidation against the people of East Timor, who were then striving peacefully for independence. Despite the continued evidence of violation of human rights in East Timor, the United Kingdom GovernmentI am a United Kingdom citizen so I am guilty tooargued that we were contractually obliged to maintain supplies of such military equipment.
Such concerns about end-use and contractual obligation arose more recently with the UK transfer of spare parts for military aircraft to Zimbabwe in January 2000, despite reports that Zimbabwe was using those very same jets in a conflict in the neighbouring DRC, then subject to a European Union arms embargo. Following a public and parliamentary outcry and a worsening human rights situation in Zimbabwe, in this case the licences were eventually suspended in May 2000. But it took a lot to get them suspended and we had to go through all that agony and horror in order for it to happen.
Such misuse of UK arms and equipment results in human rights violations against some of the poorest people in the world. We need a system of end monitoring and a process to halt further UK supplies in order to ensure that further misuses do not continue. An end-use monitoring system would help the Government by providing them with information in future about pre-delivery licensing and assessment,
I have heard the Government argue that it is almost impossible to put in place such systems and we have heard today about the so-called failings of the system in the United States. However, the failings there should not mean that we do not attempt to introduce a system in principle. We could learn from America's mistakes, tighten up the system and do rather better.
The US system is not entirely a failure. The Blue Lantern system is working to catch cases of diversion and misuse. More than 4,000 checks have been made since the programme's inception, with 360 initiated during 1999. Of those, typically 5 to 10 per cent result in unfavourable results, which may lead to denials or revocations of licences, the imposition of sanctions or the prosecution of suspected law violators. State Department officials in the United States believe that the Blue Lantern programme has had some effect. It may not be perfect, but it does have a deterrent effect on would-be diversion.
Rather than saying that the United States system is not perfect, let us accept the principle of monitoring and an end-use system and see whether we can learn from its mistakes and do rather better.
It is also said that the Government should not be the monitoring system; we should rely on NGOs and the media. There were many comments earlier, from both sides of the House, about the media getting their stories right. It is therefore a bit rich for the Government to argue that we should rely on the media for information. NGOs are more reliable, but I still argue that it is a responsibility of the Government and not the NGOs.
It would be good to engage NGOs because they have vast experience throughout the world. I do not need to list them all; they are well represented here tonight. However, it should be on the face of the Bill that it is a government responsibility. There is no guarantee that a future government would stay in partnership with NGOs, even if this Government said that they would be very glad to do so.
I support the amendment. I hope that we will get a comprehensive, end-of-use monitoring system instituted. If we do not get it right first time, let us work at it and make it better.
Lord Judd: The right reverend Prelate referred to East Timor, but there are other examples. I suggest to my noble friend the Minister that the Government's own annual report on strategic exports for 2000 gives a good deal of ground for concern. Let me be specific.
Listed in regard to Hong Kong are 24 small arms, a range of pistols, rifles and revolvers, including 15 sub-machine guns; a range of crowd control equipment, including ammunition; and CS hand-grenades and tear gas. But Hong Kong is now part of mainland China, which is under a European Union arms embargo.
Listed for Jordan are 102 small arms, including 53 sub-machine guns and 42 assault rifles; components for combat aircraft and large calibre artillery ammunition. But Jordan was named as a conduit for arms to Iraq in the Scott report.
For Paraguay there was listed 100 sub-machine guns plus components and technology. Paraguay has been named as a major transhipment route of all small arms to the illicit market in Brazil. Singapore is listed for 3,342 sub-machine guns, 744 rifles, 301 semi-automatic pistols, two sniper rifles, small arms, ammunition, components for combat aircraft and armoured personnel carriers. In the Bemarc case, British naval cannon which was sold to Singapore ended up in Iran.
Against this background, I hope that my noble friend will be able reply to two specific questions. First, what specific plans do the Government have to check whether in the instances I have mentioned the arms remained with the end-user? Secondly, does he agree that enshrining powers to monitor end use in law would strengthen the Government's ability to ensure that the weapons they are exporting are not being diverted or used in contravention of our national interest? The Export Control Bill could surely be undermined if there is no muscular mechanism to ensure that the arms we sell are with the correct end user and being used for the prescribed end use.
The Earl of Sandwich: I wish to speak to Amendment No. 49 in this important group of amendments. I make no apology for delaying the Committee. This is one of the crucial stages of the Bill.
The Government believe that they already have the power to revoke licences, but in practice any decisions are open to challenge from exporters on the grounds of their contractual obligations and the perceived need for Britain to maintain its reputation.
It is the view of many in NGOs, who have taken legal advice on the matter, that by including a revocation clause the Government would be given the necessary power in primary legislation and, in the event of any breach of a stated obligation, so reduce the likelihood of a legal challenge. In legal language, an individual's "legitimate expectations" can be overridden only by the statutory duties of the public body or by some overriding policy interest.
On end-use monitoring, the Government have decided to introduce stronger controls and to carry out risk assessment at the time of licensing. That is welcome. However, Ministers know that it is inadequate. I believe that the Minister in this House will take the issue seriously and take it away.
Mr Derek Fatchett, the former Foreign and Commonwealth Office Minister, who is highly respected, admitted in 1999 that no systematic monitoring takes place once defence equipment has been exported.
On 30th January last year, the then Foreign Secretary, Robin Cook, said to the Quadripartite Select Committee:
Here I want briefly to mention the case of Israel. I have given the Minister notice of this. I know that Israel is a country to which the Government will apply the strictest controls in any export licensing. Defence exports to Israel are worth about £12.5 million a year, which is a tiny amount in the context of the arms trade and indeed of Israel's own arms industry. The UK has not sold significant equipment such as tanks or aircraft since 1997, although it has sold components for combat helicopters and related technology, small arms and ammunition. I am glad to say that in the year 2000 one application to export CS gas to Israel was turned down. According to a Written Answer given on 3rd July last year to Dr Phyllis Starkey, 84 standard individual export licences were issued covering the export of goods on the military list to Israel between January and May last year.
This is a country which is not only illegally occupying Palestinian territories but is using considerable force of weaponry to enforce the occupation. Apparently, it also uses civilian equipment for house demolition and road building which can in themselves be a form of internal repression.
The position of Her Majesty's Government has been made very clear, both through the Foreign Office and through the DTI. And yet, as I said at Second Reading, the latest annual report on strategic export controls includes equipment licensed for export which has a potentially offensive use to Israel. We are still exporting weapons and equipment without specific limitations or end-use conditions.
I do not doubt the Government's good intentions. I appreciate that they have stated more than once that they will not issue licences where there is a clear risk that the equipment might be used for internal repression. I have also read the Government's response last July to the Select Committee (Cm. 5141) which re-states that position with regard to civilians in South Lebanon.
But the point is that a great deal can happen after exports. This is where the amendments proposed by the noble Lord, Lord Redesdale, are intended to be helpful. In due course, possibly on Report, we shall examine the consequences of such amendments for the Government, which should not be exaggerated.
I am slightly concerned, like the right reverend Prelate, to hear the Government's plea of limited resources and the possible need to involve NGOs in the
"END-USE MONITORING CONTROLS
(1) The Secretary of State may by order require that, for any activities in relation to which controls are capable of being imposed by an order under section 1, 2, 3 or 4, provision shall be made for follow-up monitoring of the use made of the goods exported, the technology transferred, the technical assistance provided or the goods traded.
(2) In this section "follow-up monitoring" means the undertaking of activities designed to verify that the use to which the goods, technology or technical assistance are put, and the identity of the end-users of the goods, technology or technical assistance, are consistent with the obligations stipulated in the relevant licence or end-use documentation.
(3) In subsection (2) "activities" may include, but not be limited to, physical inspection of the designated goods or technology within the territory of the state, or the jurisdiction of the end-user stipulated in the relevant licence or end-use documentation."
9 p.m.
"I have to be candid with the Committee and say, having licensed equipment there is a limit to the extent to which we can then subsequently, when it has left our shores, verify where it is".
Perhaps I may quote from Saferworld's latest briefing, which is backed up by the United Nations Association:
"Without a system of end use monitoring and a process to halt further UK supplies, misuses will continue to occur and the recipients continue to receive more arms and equipment enabling them to commit further human rights violations".
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