Campaign Against Arms Trade magazine Feb–March … · Who holds the key to Number 10? See page 3 CAAT news Campaign Against Arms Trade magazine Feb–March 2004/Issue 182 £1.00

Whoholdsthe key toNumber10?See page 3

Whoholdsthe key toNumber10?See page 3

CAATnewsCampaign Against Arms Trade magazine Feb–March 2004/Issue 182 £1.00

tel 020 7281 0297email [email protected]

web www.caat.org.uk

In the news 3The Cook report: Former minister spills beans on Tony’s arms pals

Arms trade shorts 4–5

Events 6Eurosatory and Farnborough 2004 arms fairs

Campaigns 7Outlining the Clean Investment Campaign for 2004

CAAT in depth 8–9Emma Mayhew on just how far BAE’s tentacles stretch

Parliamentary 10Aceh activist’s legal case against the UK government

Beginners guide to the arms trade 12–13

PlusFundraising 14Get active 15Campaigns diary 16

CAATnewsIssue 182

Editor Andrew FowlerProduction Richie AndrewContributors Chris Cole, Kathryn Busby,Ann Feltham, Ian Prichard, Glen Reynolds

Cover photo Julian Makey/Rex Features

Thank you also to our dedicated team ofstuffers: Assal, David, Lilian, Lucy, Samantha,Sheila, Stephen, Sue, Sylvia and Ted

Printed by Russell Press Limited onrecycled paper

Copy deadline for the next issue is 16March 2004. We shall be posting it theweek beginning 29 March 2004.

If you would like to receive this issue ofCAAT News in audio format or in largeprint, please call the CAAT office (0207281 0297)

Contributors to CAAT News express theirown opinions and do not necessarilyreflect those of CAAT as an organisation.Contributors retain copyright of all workused.

CAAT was set up in 1974 and is a broadcoalition of groups and individualsworking for the reduction and ultimateabolition of the international arms trade,together with progressivedemilitarisation within arms-producingcountries.

Campaign Against Arms Trade (CAAT)11 Goodwin Street, London N4 3HQtel: 020 7281 0297; fax: 020 7281 4369email: [email protected]: www.caat.org.uk

Treat If you use Charities Aid Foundationcheques and would like to help TREAT(Trust for Research and Education onArms Trade), please send CAF cheques,payable to TREAT, to the office. UnlikeCAAT, TREAT is a registered charity(No.328694) and will be able to use yourdonation for education and research.

CAAT News is part of INK, theIndependent News Collective.www.ink.uk.com

Contents

Just who is in charge? UK government-armsindustry links – see pages 8–9

Ab

u D

hab

i 20

03

arm

s fa

ir P

ho

to: C

AA

T

One or two gaffes at a Christmas bash arepar for the course of anyone’s festivities,and most end up sunk well under thegloomy carpet of a New Year hangover.Not so for BAE’s outgoing chairman.

Renowned for establishing smoothrelations with politicians from across thepolitical spectrum during his long career atBAE, Sir Richard Evans told a gatheringof BAE executives, senior MPs andministers of an arms deal he personallymade with Saddam Hussein, the formerIraqi dictator. Evans said: “He handed overa cheque for £40m and then we suddenlyrealised there had been a misunderstand-ing. He thought he was buying Tornadojets. In fact I was trying to sell him Awacs(Airborne Warning and Control System)planes. As I handed back the cheque Isaid, ‘this is going to hurt me more than itis you’.”

Evans was awarded the CBE in the1986 Queen’s Birthday Honours List for“services to export”, during the height ofWestern arms companies and the USSRstriking deals with Iraq. Political attendeesat the bash in Whitehall expressed “a sortof disbelieving silence”. “Labour ministerslooked aghast; the Tories just lookedembarrassed,” reported the Sunday Times.

The comments were all the moreembarrassing as they were made just threedays after the capture of I raq’s formertyrant. Though the Arms to Iraq inquiryby Lord Scott in 1996 was thought tohave documented most UK arms suppliesto Baghdad, a new chapter of revelations islikely to spill into the public domain overthe next few years as omnipresent coalitionauthorities stumble across vast amounts ofunused conventional weapons from theWest, and the former Soviet Union, Ba-athist Iraq’s largest military supplier.

A documentary shown by ITVprovided a taste of things to come, when itrecently filmed a vast desert park north ofBaghdad heaving with military platformssuch as tanks, artillery howitzers, and jetsfrom Russia, the US, France and the UK.Challenger tanks manufactured by Vickersin the UK, described as being in goodcondition by a special-forces soldier, wereshown in The Secrets of the Iraq War,

broadcast on Sunday 11 January.Despite Labour clearly not being

responsible for Mrs Thatcher’s ‘Arms toIraq’ scandal, BAE and Sir Richard Evans’scontinued links to the corridors of powerafter the Tories lost power threaten toembarrass Tony Blair, potentially renderinghim ‘guilty by association’ in the eyes ofthe public, many of whom lack theforensic attention to political and historicaldetail which consumes their elected partyanoraks.

Recent revelations in Robin Cook’sbook, The Point of Departure, were at theirsharpest when recording concerns over 10Downing Street’s close relationship withBAE.

The book penned by the formerCabinet minister was hardly seeping withexcess vitriol overall. In fact, it was sogenial and accommodating in many places(if not deliciously indiscreet in others) thatone would be surprised if Cook was notasked to return to the ministerial fold ifLabour win a third term in office and Blairdeparted.

But in one attack against the primeminister, for overruling Clare Short’sconcerns at BAE supplying a £28mmilitary radar to Tanzania in December2001, Cook wrote: “In my time I came tolearn that the Chairman of BritishAerospace [Sir Richard Evans] appeared tohave the key to the garden door toNumber 10. Certainly I never once knewNumber 10 come up with any decisionthat would be incommoding to BritishAerospace.” Cook then went on to citeBlair overruling Cook himself, whoopposed the sale of Hawk jet upgrades toRobert Mugabe in Zimbabwe while hewas foreign secretary.

Cook also lambasted the PM forslavishly subordinating UK interests to thecause of relations with a US “administra-tion dripping in oil executives,” which is“committed as a matter of principle to USsupremacy without any need to count onallies.” Such positioning is domesticallyunpopular, and comes at the expense ofties with “our immediate neighbours” inEurope, who back the multilateral order,he argues.

Cook’s diary entry of 8 July 2002 againuses an occurrence in the UK arms tradeto accentuate his concerns. “Ben Bradshawwaits behind [after a Commons meeting]to share with me his anxiety over thedecision Jack Straw is announcing todaythat we will allow the US to incorporateBritish avionics in the F-16s that they areexporting to Israel. He is visibly upset byit, as he regards it as a flat breach of ourown domestic ban on the export ofweapons to Israel, and he personallyresisted it during his time as the juniorminister responsible for the Middle East.”

Without going into the gory details,maybe the plight of Israel and thePalestinians is a good anecdote for a BAEChristmas dinner some years down theline.

Robin Cook’s book, The Point Of Departure,is published in London by Simon & Schuster(ISBN 0-7432-5255-1)

n the news... in the news... in the news... in the news... in the news... in the news... in the news... in the news...

3

in the news

Cook’s book blows lid offgovernment-industry links

EditorialHappy New Year for 2004, andhopefully this one will be a wholelot more peaceful than the last.Though with day-to-day conflicthappening from Indonesia to DRCongo – we must ensure that wenever become just narrowlyfocused on events that bleep theradar of our Iraq and War-on-Terror-obsessed media at home.

This edition focuses on govern-ment levers pushing the UK armstrade. On this page, Robin Cook ’snew book offers prescient insightsinto the close relationship betweenTony Blair and BAE Systems. CAATSteering Committee member EmmaMayhew summarises her academicPHD findings with an in-depth lookat BAE’s links t o the UK’s c orridorsof power (pages 8–9). Finally, readexclusively about an Acehneserefugee’s legal fight to make theGovernment adhere to the EUcriteria over arms exports toIndonesia (page 11).

Stay positive! Comments to:[email protected]

PPPPP.S. C.S. C.S. C.S. C.S. Calling all football fans!alling all football fans!alling all football fans!alling all football fans!alling all football fans!While Ed. was researching the previousarms trade short, he came across thefollowing, part of BAE’s ‘Corporate SocialResponsibility – Working in Communi-ties’ programme for 2002. The pro-gramme included: “Two Saudi footballcoaches... were funded on an internationalfootball licence course run by the EnglishFootball Association .”(www.baesystems.com/corporatesocialresponsibility/community/index5.htm)

Ebay – rivals for BAE?The famous UK Second World Waraircraft carrier, HMS Vengeance, founditself languishing on Ebay’s internetauction site before Christmas and subjectto frantic bidding of up to £4m. The16,000-ton vessel was put up for sale byan agent acting on behalf of its secretowner. The ship was launched in 1944,before being loaned to the Australiansafter the war, then it was bought by Braziland renamed Minas Gerais in the mid-Fifties. It was decommissioned in2001and is furnished with modernsatellite communications equipment –though jet aircraft and missiles will have tobe bought elsewhere, such as at otherinternet sites like www.baesystems.com orwww.raytheon.com.(www.telegraph.co.uk, 10/1/2004)

Thales face fraud claimAn arms broker is taking legal actionagainst French arms-giant, Thales, to claimhundreds of millions of Euros that he sayshe has been defrauded of, after fixing adeal on the company’s behalf with SaudiArabia. Lebanese businessman, Nasr AbuDiwan, argues that Thales used him andhis late brother as intermediaries to secure$8.9bn worth of contracts to supplyborder military equipment to the king-dom. But Thales cut the Diwans out ofthe deal in 2000, then presented theirfeasibility studies and proposals to theSaudi government in an attempt to winthe business. The French governmentsigned a protocol with Saudi Arabia in1994 to boost the oil-rich country’sborder security. Diwan’s claim, madethrough his Paris lawyer, is for two percent of the value of the planned contract.Thales arms and telecommunicationsprojects have recently cropped up all overSaudi Arabia. Thales maintains a dedicatedbranch in the kingdom; its Air Defencesubsidiary, charged with maintaining andbuilding missile systems, is based inRiyadh. Thales also provides IT manage-ment systems to Saudi armed forces. Lastyear the company gave almost £1.5m toAl-Faisal University, a new science andtechnology campus in the kingdom. Theywere awarded “co-founder” status alongwith another international donor, BAESystems. (Associated Press, 9/1/2004)

Indo-Russian tank topsTwo days after India’s prime minister metwith Pakistan’s president to agree historicpeace talks, India produced its first locallymanufactured T-90 Russian battle tank.At India’s state-owned heavy vehiclesfactory in Avadhi, the first batch of 210 T-90s, being made under license with aRussian company, finally materialised.Production follows a deal signed inFebruary 2001, whereby Russia’sUralvagonzavod State Enterprise suppliedIndia with 100 combat-ready tanks overthe past three years and will now ship theremaining 210 in a partially-disassembledstate. Indian engineers will add gun-barrels, thermal imaging sights and firecontrol systems. However, timing of theinitial deal in 2001 was as cloddish as thismonth’s production run. Just days beforethe £550m collaboration deal was signedwith Russia, 30,000 Indians were killedby an earthquake in the poverty-wrackedIndian state of Gujarat. The quake alsodecimated property worth some £4bn.Nevertheless, India maintained it had tobuy the tanks because Pakistan hadbought 320 T-80 main battle tanks fromUkraine in 1996.(www.defensenews.com, 6/1/2004)Watch out for CAAT’s forthcoming report onthe arms trade in India and Pakistan,authored by former CAAT Media Co-ordinator, Richard Bingley, due out inSpring 2004!

Boeing deal hit by PentagonA contract worth $20bn to US aerospaceand arms-giant Boeing has been sus-pended by the Pentagon, pendinginvestigations into unethical conduct bythe company. The corporation had won acontract last year to supply the US AirForce with 100 air-to-air refuellingtankers, 20 of which would have beenleased while the other 80 purchasedoutright. But Paul Wolfowitz, US DeputyDefence Secretary, told the Senate ArmedForces Committee that he was ordering apause in the “execution” of the deal. Just aday prior to this hammer-blow, Boeingstaff had already been stunned by thesudden resignation of their enigmaticgroup Chief Executive, Phil Condit. Butthe USAF deal has been suspendedbecause Boeing fired its chief financialofficer, Mike Sears, for discussing potentialemployment with the USAF’s head ofprocurement for the deal, DarleenDruyun. Ms. Druyun quickly joined

arms trade shorts

Turkey turnswater into armsTurkey is to ship millions of gallons of fresh water to Israel, in return for Israeli tanksand air force technology. Israel’s Prime Minister, Ariel Sharon, and Turkey’s EnergyMinister, Zeki Cacan, agreed the deal in Jerusalem which is set to provide Israel withup to three per cent of its domestic water needs, helping the country escapereliance on its alarmingly depleted reservoirs and lakes. To deliver the water –earmarked for the next 20 years for farming and industrial development – Israel willbuild a fleet of giant water tankers to ship around 50 million cubic metres of waterper year from the River Manavgat in Anatolia. For Turkey, sales could generatehundreds of millions of dollars per year in hard currency and provide access toIsrael’s advanced arms and military upgrade programmes. Israel already provideshuge amounts of military technology to Turkey. During 1997, Israel Aircraft Indus-tries won a $600m contract to upgrade Turkish F-4E fighter jets up to IsraeliPhantom 2000 standard. In March 2002, Israel Military Industries tied the twocountries together even more closely by winning a $668m deal to upgrade 170 M60Turkish Army tanks.

(The Guardian, 6 January 2004) (For information on arms sales to Turkey go to:www.caat.org.uk/information/publications/countries/turkey-0303.php)

4developments in the global arms trade

A special meeting of Derry CityCouncil has passed a motion oppos-ing the city’s participation in theinternational arms trade.

The world’s largest missile manu-facturer, US firm Raytheon, set up a sitein the city a couple of years agofollowing intensive lobbying by theSDLP leader at the time, Nobel peaceprize laureate, John Hume. Humeargued that the city needed invest-ment and that the Derry plant wouldnot get involved in any militarymanufacturing.

But critics found that the company,which makes the legendary Toma-hawk cruise missile back in the US, wasdeveloping military software in Derrycalled I-Orion to enhance its weaponsdesigns.

A campaign group quickly grew tocounter the controversy. The FoyleEthical Investment Campaign (FEIC)inspired local councillors to pass amotion seeking clarification ofRaytheon’s activities in the area andsigned up the city to a ban onbecoming involved in internationalarms trading.

As councillors discussed their

5

developments in the global arms trade

historic decision, FEIC activists tookpart in a vigil outside Derry’s Guildhall.They included prominent backers:Patricia McKenna, an Irish Republic

Green MEP; Church of Ireland cleric, theRev Brian Smeaton; Bloody Sundayauthor and eyewitness, Don Mullan,and the actor and writer Donal O’Kelly.

Celebrating afterwards, Peter Doranof FEIC, said: “It is as much as we couldhave hoped for and is probablyunprecedented for a city to formallyreject the arms trade as a source ofjobs creation.” He added: “We obvi-ously hope that this will inspirepeople, not just in Ireland but aroundthe world.”

Elsewhere in N. IrelandActivists for the Belfast and LisburnEthical Investment Campaign staged aprotest outside Belfast City Hall on 7January. Castlereagh Council andseveral media offices were also thesite of demonstrations against ThalesAir Defence company being located inthe city. Thales Air Defence (formerlyShorts Brothers in Belfast), who design,upgrade, manufacture and exportadvanced missile systems, werehanded a letter from the protesterscalling on the company to ceasemilitary production and develop moreethical wares.

(PA News, 7/1/2004)To contact the FoyleEthical InvestmentCampaign contactAngela Hegarty on 077106 207 96.

Boeing – but has also now been sacked bythe company. Ms. Druyun is also facinginvestigations by the Pentagon that shesold sensitive commercial data to rivalEuropean company, Airbus, which istrying to enter the lucrative US militaryaerospace market.(The Guardian, 3/12/2003)

Vlad the Impaler’s African missionAmnesty International has asked theSlovakian government to stop exportingweapons to Uganda because of continuedhuman rights violations and the Africancountry’s role in exacerbating civil war inneighbouring Congo (DRC) througharms shipments. Slovakia sold ninecannons and six rocket launchers toUganda in 2002, while Uganda’s army isproviding assistance to four guerrilla

groups in DRC. An estimated 4 millionpeople have been killed in the DRC’s civilwar since conflict last broke in 1998.Uganda is one of the world’s poorestcountries, where the average annualincome is equivalent to around £800 peryear. But it is the third largest armsimporter on the continent after SouthAfrica and Nigeria, spending between$100m and $140m on weapons everyyear.

But AI’s request has already beenundermined. Just days later, Moscowsigned a military protocol with Ugandaenabling the country to “make contactswith producers and receive high-qualitymilitary hardware.” Former Eastern blocfirms have made substantial in-roads intothe continent during the past few years.Recently, Belarus sold 90 T-55 tanks toEthiopia; Kazakhstan provided eight

122mm artillery pieces to Angola; andUkraine sold 14 helicopters, 32 combatvehicles and 27 tanks to Algeria in the late1990s. Russia arms Angola, Ethiopia,Cameroon, Congo, Nigeria, Tanzania andZambia and aims to build regional centresto repair Russian weaponry in Algeria,Libya, Ethiopia and South Africa. Andhow do the citizens of Africa pay for thesefine acquisitions? According to Russiansecurity journal NVO: “Russia proposesalternative and flexible payment schemes,taking into account specific features of theregion. For instance, Russia is prepared toissue short-term credits, take African goods(diamonds, wood, cotton, palm-oil, coffee,and more) and create joint-ventures inAfrica.” How thoughtful of them.(Slovak Spectator, 1/12/2003; NezavisimoeVoennoe Obozrenie, No. 43, 5–18/12/2003)

Huge anti-arms success in N.IrelandP

ho

tos

by

Irel

and

In

dym

eda

– w

ww

.ind

ymed

ia.ie

6

events

companies with displays and pavilions.For anti-arms activists wishing to

attend the Farnborough protests contact:[email protected] or phone theoffice on 020 7281 0297. For more information on Farnborough or toattend as an accredited journalist go to:www.farnborough.com

Paris-Nord Villepinte, 14–18 June 2004The international Exhibition for Landand Land Air-Defence is the largest armsfair in Europe (and the world, claim itsFrench MoD patrons) this year and hasbeen described by CAAT activists in thepast as the “DSEi of France”. The armsbazaar draws protesters to France everytwo years to oppose both buyers andsellers. At the last Eurosatory in 2002,arms companies from India, Israel,Singapore, Thailand, United ArabEmirates, South Africa andTunisia joinedtraditional suppliers from Europe (such asBAE Systems), the US and Brazil. Overall39 national delegations exhibited and 122countries officially attended.

Marketing material for journalists told

this year’s potential attendees: “The year[2003] has seen military campaignsaround the world and key developmentsin European defence and security policy,thus emphasising Eurosatory 2004’sinternational and economic relevance.”Well, all the more reason to join us therethen!

The Eurosatory media relations service(for press passes) can be contacted at:Eurosatory 2004, Trimedia Communica-tions, 10 Rue de la Pepiniere, 75008 ParisTel: 00+33 (0) 1 55 30 70 90 or email:[email protected]

For anti-arms activists wishing toattend Eurosatory protests [email protected] or phone theoffice on 020 7281 0297.

Fermons Eurosatory 2004!CAAT ActionNetwork –get involvedDid you take part in the Shut DSEiprotests and want to get involved inopposing another arms fair?

Has reading CAAT News motivatedyou to go out and oppose the armstrade?

Do you have ideas for how CAATcould make an impact through non-violent direct action?

Then this is your chance!

CAAT’s Action Network needsvolunteers to get involved inprotests, vigils and direct actionduring 2004.

We are focussing our attention onthree arms trade events:

BAE Systems Annual GeneralMeeting (AGM), London – 5 May

Eurosatory arms fair, Paris – 14-18JuneFarnborough arms fair – 19-25July

We need volunteers to:

think creatively about how wecan make an impact at theseeventshelp with planning and organi-sationparticipate in public demonstra-tions and vigils

take non-violent direct action

attend the AGM and ask difficultquestions

It doesn’t matter whether you are aveteran activist or have never somuch as picked up a placard; if youwant to get involved, we want tohear from you. Email us [email protected] or call uson 020 7281 0297.

FarnboroughAir ShowHampshire, 19–25 July 2004International ‘jet-setter’ campaigners (orthose that reject the aviation industry andtravel alternatively!) will be glad to knowthat within the space of a month they cantravel from protests outside a Paris armsfair to the benign sounding Farnborough“Air Show”. What a wonderful summeranti-arms trade activists are facing!

Farnborough is not just a civil andmilitary aircraft show but is an exhibitionteeming with missiles and militarydelegations. For instance, at Farnborough

2002, of the 79 aircraft from 14 countriesused in displays, 40 (the majority) weremilitary planes. 1,260 exhibitors from 32countries attended and over $9bn ofbusiness was signed and sealed at the UK’smost famous biennial “air show”.Raytheon (the world’s largest missileexporter and manufacturer of theTomahawk cruise missile), LockheedMartin (producer of F-16 jets and air-to-ground Hellfire missiles – used notoriouslyand repeatedly against Palestinian targetsby Israel during the latest uprisings), BAESystems and their small arms and artillerydivision, Royal Ordnance and MBDA(Europe’s largest missile manufacturer) willbe just a few of the world’s largest arms

7

The shareholdersCAAT’s investigation of some of the lessobvious financial backers of the arms tradeis just around the corner. At the end ofMarch, CAAT will be publishing itsresearch into many of the organisationsthat own shares in BAE Systems, Alvis,GKN and friends. The informationfocuses on organisations that CAATsupporters can (or should be able to)influence, such as local authorities, wherenearly everyone has rights as a council tax-payer. Other categories include religiousorganisations, charities, trade unions anduniversities.

CAAT’s supportersThe campaign is popular with the pressand the CAAT office does its best to raisethe issue nationally. However, it is oftenpossible for CAAT supporters to reachmany more people at a local level and callmore effectively for organisations they areinvolved with to sell their arms companyshares.

EngagementThis is an area of real concern to CAATand a main theme for this year’s launch.‘Engagement’ is where shareholders (or,more commonly, investment managers)enter into dialogue with a company topersuade it to commit to, and implement,improved practices. This can be animportant part of an ethical investmentpolicy but is toothless unless the sanctionof disinvestment is available should acompany fail to respond. Unfortunately,the toothless variety of engagement isbecoming a widespread excuse for SociallyResponsible Investment. Many people(from individual investors to charitytrustees and local councillors) are beingsold investment policies as SociallyResponsible even if they feature onlyengagement and have NO impact on theshares held.

A key task for CAAT is to inform thoseinvolved in investment policy decision-making to let them know that a genuinelysocially responsible investment policy

Clean InvestmentCampaign 2004

campaigns

CAN and MUST EXCLUDE the majorarms producing companies.

Obtaining the shareholding figures andmore informationIf you would like last year’s campaign packand shareholding figures, you can findthem at www.caat.org.uk/campaigns/clean-investment-2003/cic.phpor contact the office for a paper copy. Thisyear’s figures will be placed on the websiteas soon as the campaign is launched andwill be highlighted on the front page ofthe site.

Will SelfCompetitionWinnersAuthor and journalist Will Selfoffered one lucky CAAT supporterthe chance to have their name usedfor a character in his next novel, TheBook of Dave. Congratulations to JulieBlunt, who won first prize and willsee her name in print when thenovel is published in 2005.

Three runners up, Teresa Mitchell,Robert Cummins and Iona Lister, willeach receive a signed copy of thebook. The competition raised £210for CAAT – thank you to everyonewho entered.

their own staff... for free. Michael Portillo, former DefenceSecretary (1995-1997), now a Non-Executive Director of BAE,joins a long line of illustrious figures, especially long in the case ofthe heads of DESO, the MoD’s arms export promotion depart-ment. It has almost always seconded its head from and deliveredthem back to military industry employment, particularly BAEemployment. James Blyth ran DESO from 1981 to 1985 beforebecoming a Non-Executive Director of British Aerospace (1990–1994). Colin Chandler was Group Marketing Director at BritishAerospace until he ran DESO (1985–1989) during which timemore than half his salary was paid for by British Aerospace. Now,to avoid any conflict of interest with the ‘defence’ industry, thehead of DESO’s salary is topped up by the Defence IndustriesCouncil, a Council made up of senior military company execu-tives and their trade associations. After Charles Masefield ranDESO (1994–1998) he became Marketing Director and Vice-Chair of BAE. In the biography that used to be posted on theBAE Systems website, Masefield boasted of “direct access to Majorand Blair” and “close personal relationships with prestigious PrimeMinisters and royal families around the world.” The existing head,Alan Garwood, had worked for BAE since 1977, becomingDeputy Chief Executive of BAE’s Matra BAe Dynamics in 1998just before it merged with two other companies to becomeMBDA missile systems, of which BAe owns a third.

Outside DESO, at least 17 senior MoD staff have moved intoemployment with arms-producing companies, five to BAE, sinceLabour came to power in 1997. They include former Chief ofDefence Staff, Lord Inge, now a consultant to BAE Systems;former MoD Chief Scientific Advisor, David Davies, now aMember of the Strategy Board at BAE Virtual University; and

The government spends up to an estimated £990m of taxpayers’money every year, possibly more, promoting and subsidising armsexports. To justify this expense, New Labour keeps talking aboutexports maintaining a significant number of jobs, about thesavings they bring to MoD procurement costs, about how exportshelp support a ‘British defence industry’ and their contribution tointernational stability. But when each of these claims, and others,are subject to scrutiny I have found that either the governmenthas failed to prove its case or that the case is simply unsustainable.

So if it’s not about what’s good for Britain, why does NewLabour continue to support arms exports? One way of answeringthis is to look at the relationship between New Labour and UK-based military giant BAE Systems, formerly British Aerospace. Abrief survey of just some of the links between BAE and LabourMPs, Labour Peers, party funding and the MoD suggests that thetwo are deeply interconnected.

MPs and Peers linked to BAEMPs enjoying BAE hospitality include former Junior DefenceMinister John Reid who used a BAE-supplied helicopter to fly toa shipyard in Glasgow in January 2001. He was upgraded to aprivate jet belonging to the Chairman of BAE for the returnjourney to Northolt. Barry Jones, then Labour MP for theconstituency covering BAE’s Broughton factory, visited Toulouseand, accompanied by his wife, the Royal Opera House as guests ofBAE. There are a number of other Labour MPs enjoying these

kinds of benefits but all have an interest in BAE’s spending habitssince the members of the House reportedly held an undisclosedamount of BAE shares in their pension fund until at least June2001. Their value went up after NATO began bombing Serbia in1999 and after 9/11.

MoD activities in these conflicts, and more generally, arescrutinised by the Defence Select Committee. Until Autumn2003, the group included Conservative MP Patrick Mercer. Hissecretary/research assistant, Caroline Flynn-MacLeod, was head ofParliamentary Affairs and Senior Business Analyst at GEC (nowowned by BAE) from 1997 to 1999. She is currently a partner inthe government relations company Terrington Managementwhose clients include BAE. Terrington’s other partner is GeoffreyPattie, former Tory Minister for Defence Procurement and formerChair of Marconi Electronics (1990–1999), now owned by BAE.

Given Caroline Flynn-MacLeod’s background she probablyhas no need for the IT training offered to the staff of all MPs paidfor, in part, by BAE. ‘Learning for Work in the ParliamentaryWorkplace’ involves Parliamentary staff working through CD-

ROM courses at a base in Westminster.Unfortunately the training offered by BAE at Westminster

doesn’t include any business courses, which may have been of useto Labour Peer, Lord Simpson of Dunkeld. He is best known forenjoying more than £1 million p/a as Chief Executive of GECwhile its shareholders enjoyed a 96 per cent fall in the value oftheir shares during his reign from 1996 to 2001. Simpson is lesswell known as having been Deputy Chief Executive of BritishAerospace (1992–1994), Director (1990–1994) and as oncebeing listed as one of the ten most globally influential people inthe ‘defence’ industry. Called an “impeccable Blairite” whose“support was eagerly sought and gladly given to New Labour atthe election” Simpson was one of 58 Chairs/CEOs who wrote toThe Times in May 2001 urging all business leaders to support theLabour Party.

Sitting alongside Simpson is Labour Peer and party donor LordTaylor of Blackburn. A consultant to BAE, Blackburn appears tohave a close relationship to Jack Straw, contributing more than25% of the Foreign Secretary’s election expenses during 2001.

But much closer to the heart of BAE was Lord Clive Hollick.His five year Directorship of British Aerospace ended in 1997 justas he became a Special Advisor to Margaret Beckett at the DTIand thereafter to Peter Mandelson. By this time Hollick wasallegedly an “important behind the scenes player in the Labourhierarchy” whose influence in Downing Street is reportedlyblamed for undermining Robin Cook’s attempt to implement thetighter regulation of arms exports. This allowed the late 1990sexport of 16 BAE Hawk-209’s, 50 Alvis armored vehicles and 8Tactica water canons to Indonesia despite continuing genocide inEast Timor and the potential for their use in Aceh and West Papua.

BAe’s contribution to the New Labour projec tHollick reportedly donated between £25,000 and £50,000himself to the party sometime during 1997, a year which heended as a board member of BAE. But it was his job running theparty’s Business Relations Unit at Millbank from 1996 whichallowed him to become one of the very central players in bringingcorporate money flowing into Labour’s current account at a timewhen the party’s overdraft had hit £4.5 million. BAE havechipped in by spending anything above £5,000 sponsoring“activity and commercial marketing” in 1998, 1999 and 2000. Ithas sponsored a whole series of conference fringe meetings andreportedly spent £12m on the mind zone at the millenniumdome when Labour really needed to attract corporate money tothe project.

The revolving door in full swingBut BAE’s goodwill has gone much further. Such is their generos-ity that BAE has consistently helped out those working at theMoD by offering them jobs, sometimes even lending the MoD

9

government-industry linkscaat in depth

By Emma Mayhew, a fourth year PhD candidateat Bristol University and member of CAAT’sSteering Committee

8

former Chief of Staff, RAF Strike Command Graeme Robertson,who became Military Adviser to British Aerospace.

Also whisked from BAE by June 2002 were at least eight staffworking on secondment for free at the MoD. Since April 2000 13of 29 secondees in the department were from BAE, some workingat the MoD for up to three years. In reverse, from the six seniorMoD staff seconded to military industry, two went to work atBAE, one for two years.

It is difficult to see how BAE will gain no advantage from theseand many more activities including its work in government taskforces, lobbying groups, think tanks and education funding. Afterall, why bother with all this if it is of no value?

ConclusionMy research has shown that if arms exports are about pursuingBritish interests as the government claims, then the government’scase just doesn’t hold up. At the same time a picture emerges ofboth an overly close arms industry – New Labour relationship andof an overly high political profile for the arms industry in theenvironment where the government operates. It is this picturewhich, in my view, provides a better way to understand whyexport support continues, a picture which suggests that arms-producing companies and the government are brothers in arms.

For further information and references see Emma Mayhew, ‘A DeadGiveaway: A critical analysis of New Labour’s rationales forsupporting military exports’ and ‘Brothers in Arms: The close relation-ship between New Labour and arms-producing companies’ atwww.naspir.org

Brothers in arms: BAE Systems and New Labour

BAE has consistently helped out those working at the MoD by offeringthem jobs, sometimes even lending the MoD their own staff... for free

UK MoD-sponsor ed demo at an arms bazaar in A mman, Jordan, 2002 Photo: CAAT

An indicted war criminal has become thefrontrunner in this year’s Indonesianpresidential election race in July. Wiranto,an Indonesian general, is one of eightsenior officers charged with directingcrimes against humanity by a specialinternational panel in Dili, East Timor.But he is now also the official candidatefor Golkar, the party of genocidal GeneralSuharto, who ruled the archipelago withan iron fist and machine-gun diplomacyfrom the 1960s until 1999. East Timorauthorities judge Wiranto’s behaviour inthe same vein as his political Godfather. Inthe wake of Indonesia’s violent exit fromthe former Portuguese colony in 1999,and under Wiranto’s watch, at least 1,000East Timorese were killed and 200,000

forced across the border to West Timor.UN-backed panels in Dili have so far

indicted 369 people, including Wiranto,for crimes against humanity, of which 281remain at large in Indonesia. However, inorder to arrest Wiranto if he travels abroad,a warrant first needs to be issued by UNinternational judges or Interpol. UNjudges have so far refused to issue awarrant for Wiranto and other seniorofficers involved. But after East Timor’schief-prosecutor appealed, the UN-funded judges have recently issued awarrant for a key Wiranto henchman. EastTimor’s chief prosecutor claims that theUN’s reluctance to issue a warrant forWiranto is due to their mandate ending inEast Timor this May. But the UN is also

10

parliamentary

the arms trade in the corridors of power

impaled by its innate, often stifling, senseof diplomacy. Some East Timorese politicalleaders, such as the foreign minister, JoseRamos Horta, and President XananaGusamo, oppose Wiranto’s indictmentbecause it could harm the new relation-ship their country is trying build withIndonesia. More likely to deliver justice forEast Timor, is the new state’s recentmembership of Interpol, and the possibil-ity that Wiranto would be arrested usingan Interpol warrant during a visit to theUS or Europe. (Sydney MorningHerald, 14/1/2004)

Arms to Indonesia, byNicholas Gilby, isavailable to buy fromthe office for £3.00

Indonesian war criminalstands for presidency

As readers of the last CAAT News willknow, on 28 September 2003 the SundayTimes alleged that a private securitycompany – Threat Response International,headed by Evelyn LeChene – had beenspying on CAAT for BAE Systems.Information was gathered on many CAATactivists and even those giving financialsupport. At one point, CAAT’s entiredatabase was apparently copied. Thisincluded details of donations and thebank accounts of those giving by standingorder. Correspondence, particularly withMPs, was also sent on to BAE.

Office security measures are beinglooked at. However, there is a limit to whatcan be done when someone is absolutelydetermined to get information in this way.We also need to be mindful of CAAT’sopen ethos and CAAT cannot be closedand paranoid as a result of this.

The Sunday Times article further said

that one of Threat Response Internation-al’s Board members is Barrie Gane,identified in the media as a former deputyhead of M16. This raises the question as towhether the security services, as well asBAE Systems, were involved.

One positive step that could happenwould be for a thorough investigation bythe Information Commissioner, whoenforces the Data Protection Act as well asthe Freedom of Information Act andreports directly to the UK parliament.

Take actionPlease write to your MP, House ofCommons, London SW1A 0AA urgingher or him to press the InformationCommissioner to investigate theallegations made in the Sunday Timesarticle.

Those “spying”allegations

SupporterRepresentativeson CAAT SteeringCommittee

CAAT’s ultimate decision-makingbody, the Steering Committee, ismade up of representatives of theSponsoring Organisations (e.g. CND,Quaker Peace and Social Witness)and Special Interest Groups, such asChristians, as well as paid staff. Theyare joined by eight elected Sup-porter Representatives and, for thefirst time since 1997, more peoplestood to serve in 2004 and 2005than there were places. A total ofeleven people were nominated. Fourwere elected for the full two-yearterms (2004 and 2005):

Janet Williamson – 213 votesSam Perlo-Freeman – 208Emma Mayhew – 191Jim Footner – 165.

Two others will sit on the SteeringCommittee in 2004 to fill vacantplaces:

Nick Gilby – 162 votesGideon Burrows – 150.They, along with the two sitting

Supporter Representatives, DorothyForbes and Mike Kavanagh, areeligible to stand again for a fulltwo-year term.

1 1

On Human Rights Day, 10th December,a human rights activist from the Acehregion of Indonesia issued legal proceed-ings against the UK government throughhis solicitors, Leigh Day & Co.Aguswandi, who has been granted refugeestatus in the UK, is being backed byCAAT and by TAPOL – the Indonesiahuman rights campaign.

Aceh, at the northern tip of Sumatra,has been in conflict for over 25 yearsbecause of the fight between pro-independence group, Free Aceh Move-ment (GAM), and the Indonesianauthorities. The situation declineddramatically in May 2003 when theIndonesia military started an offensive inthe region and martial law was declared.According to the police and military, bySeptember over 1,300 people had beenkilled, including hundreds of civilians.Independent human rights monitors havebeen refused access and the area is noweffectively closed to the outside world.

Aguswandi’s case challenges the UKgovernment’s continued provision ofexport licences for Indonesia. Hawkaircraft made by BAE Systems andScorpion armoured vehicles manufacturedby Alvisv are currently being used inAceh.

The UK government says it considers

applications for export licences against theConsolidated EU and National ArmsExport Licensing Criteria. These clearlystate that export licences should not beissued if “there is a clear risk that theproposed export might be used forinternal repression”. It would seem thatthe continued licensing of military exportsbound for Indonesia is absolutely contraryto this. The only explanation would

appear to be that, once again, the UKgovernment puts its friends in militaryindustry before the lives of those sufferingat the hands of Indonesia’s security forces.

The government has until the end ofJanuary to deliver its defence. After thatthe court will take an initial decision onwhether to allow the Judicial Review ofthe government’s adherence to its statedpolicy.

Courts to decide if continuing armssales to Indonesia are legal

CAAT is lookingfor a MediaCo-ordinatorPart-time (3 days per week)Salary £21,240 pa (pro rata)For further information visitwww.caat.org.uk or send an A446p SAE: CAAT, 11 GoodwinStreet, London N4 3HQClosing date: Ist March 2004

ChristianNetwork 2004The CAAT Christian Network would like toinvite Christian supporters of CAAT to aspecial meeting to discuss its work and reflecttogether on how we can encourage Churchinvolvement to end the arms trade. All arewelcome.

The meeting will take place at 6.30pm at StPancras Church, opposite Euston Station, onWednesday 24th March.For more details contact 020 7281 0297 oremail: [email protected]

A peaceful rally in protest against the imposition of martial law in Aceh

Phot

o: D

adan

g T

ri/Re

uter

s

12

facts and figures

For years now we’ve always hadpositive feedback about thequality of CAAT News and thecontent of its information, butwhat about those that are newto the arms trade?

We all know instinctively that itwrong to sell weapons thatmight lengthen wars, entrenchpoverty, assist illegal territorialclaims or those who abusehuman rights. But who are theculprits?

We look at the manufacturers,sellers and buyers in our briefguide to the world’s arms trade.

Table 2: Armsdeliveries todevelopingnations: leadingrecipients in 2002(current US$ billions)

1 Saudi Arabia 5.22 Egypt 2.13 Kuwait 1.34 China 1.25 Taiwan 1.16 UAE 0.97 India 0.98 Israel 0.79 South Korea 0.610 Pakistan 0.6

(Source: IISS, The Military Balance2003–04)

Beginners guide to the glo

Table 1: Armsdeliveries – leadingsuppliers in 2002(current US$ billions)

1 USA 10.22 UK 4.73 Russia 3.14 France 1.85 China 0.86 Ukraine 0.67 Germany 0.58 Italy 0.49 Israel 0.310 Brazil 0.2

(Source: International Institute forStrategic Studies (IISS), The MilitaryBalance 2003-04)

Editor’s note: deliveries refer to the networth of weapons systems actuallydelivered by a supplier, in contrast tocalculating the value of signed contracts(arms transfer agreements).

Table 3: Value oftotal global armstrade deliveriesbetween 1995–2002 (current US$ billions)

1995 44.51996 43.51997 48.91998 42.61999 42.82000 35.62001 272002 25.4

(Source: IISS, The Military Balance2003–04)

Illu

stra

tio

n b

y A

lain

Pri

gen

t

13

facts and figures

Useful websites andinformation sources totrack developments inthe international armstrade

http://defence-data.com

Defence Systems Daily: Internet basedarms and aerospace daily news reportswith free coverage of every region of theworld.

http://www.fas.org/asmpFederation of American Scientists(FAS): FAS’s ‘Arms Sales MonitoringProject’ runs one of the leading internetsites with descriptions, costs and picturesof weapons systems, and expert analysis ofthe trade trouble-spots.

http://www.iansa.org

International Action Network on SmallArms Transfers (IANSA): A network towhich CAAT belong, who campaign toprevent the proliferation and misuse ofsmall arms. Information, diary and localcontacts provided.

http://janes.com/defence/

Jane’s Defence Weekly: You can buyJane’s Defence Weekly in magazine format,which breaks down arms sales by theregions of the world. Alternatively, visittheir subscription-based website.

http://www.sipri.se

Stockholm International Peace Re-search Institute (SIPRI): SIPRI re-searches international peace and securityissues and publishes authoritative armssales information either through their‘Arms Transfers Project’ available on thewebsite or by reading the famous redSIPRI yearbook.

bal arms tradeTable 4: Top ten arms companiesRank HQ Arms sales ($US billions)

1 Lockheed Martin USA 18.02 Boeing USA 17.03 Raytheon USA 14.04 BAE Systems UK 13.25 General Dynamics USA 6.56 Northrop Grumman USA 5.67 EADS France 4.68 Thales France 4.39 United Technologies USA 4.110 TRW USA 4.0

(Source: Defense Ne ws Top 100, 30 July 2001)

And, finally, a stonking good read for yournext holiday is Anthony Sampson’s TheArms Bazaar in the Nineties: From Kruppto Saddam, (London, Coronet Books,1991). A refreshingly-light and engagingread, Sampson tells of the gruesomepersonalities, politicians and clandestinestate and corporate dealings throughoutthe entire history of the arms trade, fromthe days of the ‘dynamite King’, AlfredNobel, up to the $70bn arming of Iraqidictator Saddam Hussein.

Table 5: Top small arms sellers

Rank Country Value of sales (US$ millions)

1 USA Over 1,2002 Germany 3843 Russia 100–1504 Brazil 100–1505 Austria 606 Czech Rep. 597 UK 448 South Korea 439 Sweden 4010 Poland 40

(Source: Small Arms Survey 2001)

Scenes from the ‘Peaceful Resolutions’ club night

Workers Beer CompanySummer seems very distant when theevenings are still so dark and cold, but ifyou are a fan of festivals then it’s time tothink about whether you would like tovolunteer for CAAT in this summer’sWorkers Beer scheme.

Every year the Workers Beer Companyruns beer tents at the major music festivals,including those in Glastonbury, Readingand Leeds. Charities and voluntaryorganisations such as CAAT providevolunteers to work in the tents and thewages earned by each person are donatedto the charity or organisation theyrepresent.

As a CAAT volunteer you would getfree entry to the festival, secure campingwith private showers and toilets, as well asfree travel to and from the Festival. Youwould work six hours per day, leaving youwith plenty of time to watch yourfavourite bands and enjoy the atmosphere.If you are interested in volunteering,please do let me know as soon as possible. Iwill add you to my mailing list andcontact you when I get the list of festivalsfrom the Worker’s Beer Company.

That’s all from me, but please do get intouch if you have any fundraising ideas orplans for 2004. I look forward to hearingfrom you!

Kathryn Busby

Happy New Year! The New Year is a timefor planning and preparation in theCAAT Office, as we embark on the nexttwelve months of campaigning. It alsomarks the start of our financial year andwe have a challenge ahead if we are to raiseenough money to complete all the workwe have planned for 2004.

Thank you all very much for givingyour time and money in 2003; CAATsimply could not exist without you. Wework very hard to minimise costs andstretch every donation as far as possible. Infact, it is one of CAAT’s great strengthsthat we achieve so much on such a tightbudget. However, we still need to raisenearly £280,000 this year and as ever itwill be you, our supporters, who we turnto.

If each person who reads CAAT Newsmakes a New Year’s Resolution to help ourfundraising effort – perhaps by setting upa standing order, doing some local groupfundraising, or taking part in a sponsoredevent – we will be well on the way topaying for this year’s campaign. Whateveryou do, thank you, it really does make adifference.

New York Marathon SuccessI am delighted to announce that the totalraised by Edward Bradley in his sponsoredNew York Marathon run was a magnifi-

cent £2,675.70! Thank you so much toeveryone who sent in a donation. Ourspecial thanks go, of course, to Edward forthe time and energy he put into complet-ing his first Marathon and for using thisgreat challenge as an opportunity tosupport CAAT.

Peaceful RevolutionsFriday 12th December was certainly anight to remember, when the BrixtonTelegraph hosted ‘Peaceful Revolutions’,the Matrix-themed club night organisedby Maz and the Seaside Tribe, whichraised £120 towards CAAT’s work. TheTelegraph was packed with people andbeautifully decorated (see pictures below)with fairy lights, flowers, drapes – and ofcourse a CAAT banner!

The event was organised to raiseawareness for CAAT among the club’saudience, as well as to raise money.Performers and participants ranged fromDJs to face-painters, from belly-dancers tosaxophonists and from the Taiku Mean-time drummers to the Rhythms ofResistance samba band. There isn’t spacehere to mention all the people who gavetheir time and energy to making this suchan amazing evening, but our thanks go toyou all and particularly to Maz, who wasthe inspiration and driving force behindthe event.

14

Fundraising

Local actionIf you are able or would like to put leaflets or CAAT News out into local libraries orhealth food shops, or give them out at meetings, hold a stall at a local event andrequire materials, join a local group or become a local contact, get in touch with PhilipBarrett.

Email [email protected] tel 020 7281 0297

Letter-writingYou can never write too many letters on behalf of CAAT. Most MPs can be reached atthe House of Commons address ([Your MP], House of Commons, Westminster, London SW1A0AA). You can also make an appointment to see your MP in person at their surgery.Contact Ann Feltham if you need advice on this.

Email [email protected] tel 020 7281 0297

Demonstrate!CAAT demonstrations are peaceful, inclusive and fun. The more people who come, themore effective they are. Have a look at the campaigns diary on the back page, orcontact the office for more information.

Email [email protected] tel 020 7281 0297

Make a donationCAAT always needs your financial support. If you are able to make a donation, pleasesend a cheque (payable to CAAT) now, to: CAAT, Freepost, LON6486, London N4 3BR.Alternatively, you can use the form on the back page to set up a standing order, givingCAAT an urgently needed regular income.

Email [email protected] tel 020 7281 0297

CAATpostcardAvailable for distribution locallyFollowing the Iraq conflict, CAAT hasbeen very successful in highlighting thefact that the UK armed Saddam in thefirst place. Our campaign postcardoutlines six questions about the armstrade.

Thousands of these post-cards havebeen distributed at demonstrations andother events against the war, and havehelped CAAT to gain many newsupporters.

Now we’re asking CAAT supporters tohelp distribute these cards locally. Couldyou take 100 or more to hand out atrelevant local events? They’re free fromthe office, but we estimate it costsabout £4.00 in printing, postage andpacking to produce 100. If you canmake a donation, it would help us toproduce more campaign materials.

Good luck, and thanks for your helpincreasing support for the campaign.

get active!get active!The campaign thrives on your participation. Below is how

you can get involved and stop the arms trade with CAATMaterials CAAT publicationsavailable from the office

15

ReportDSEi 2003: international arms marketAvailable in print (£3.00) and online at www.caat.org.uk

During protests against Defence Systems Equipment International (DSEi) atthe beginning of September, the event’s organisers began putting out theline to journalists that DSEi was not an arms fair. Even the show’s dailynewsletter on Wednesday 13th September made this claim, while illustrat-ing the article with pictures of fighter aircraft, a military communicationssytem and a warship.

Thanks to months of dedicated research, CAAT was able to quickly andeasily dismiss the claim for the spin it was. On the eve of DSEi, CAATpublished our ground-breaking report on the arms fair illustrating indetail some of the worst arms companies selling weapons at the fair, andhighlighting concerns about some of the arms buyers. Hundreds ofjournalists were either sent the report, or accessed it over the web – andThe Guardian, The Mirror and the BBC all featured data from it.

With entries on more than 25 arms companies, briefings on more than10 arms buying countries and data on issues from cluster munitions tocorruption, landmines to globalization, this DSEi report will now serve as avital background document to inform the work of all arms trade cam-paigners, or to simply to help build your knowledge on the trade.

Subscribe to CAAT NewsSubscription is voluntary, but we need your support. We suggest £22 waged,£12 low income and £30 for groups. Please give more if you are able, or less if not.

Name

Address

Postcode

Tel Email

I enclose a cheque/postal order for £ Tick the following box if you do not want to receive an acknowledgment

Please give by standing order. It helps CAAT plan ahead more effectively andcosts less to administer, so more money goes directly to campaigning. Just £3 a month makes a real difference.To The Manager of Bank Bank Address

Postcode Sort code Account No.

Please pay: The Co-operative Bank Plc, 1 Islington High Street, London, N1 9TR (sort code 08 90 33) for the account of CAMPAIGN AGAINST ARMS TRADE

(account number 50503544) the sum of pounds (£ ) starting on and monthly/annually thereafter.

Signed

Fill in your name and address with the bankers order and return the whole form to CAAT, not your bank.Please make cheques payable to CAAT and send with this form to: CAAT, Freepost, LON6486, London N4 3BR.If you DO NOT wish to receive CAAT News, please tick here

CAAT use onlyPlease quote ref:

on all payments

Please separate along line

11 Goodwin Street, London N4 3HQtel 020-7281 0297 fax 020-7281 4369

email [email protected] www.caat.org.uk

Pro

nce

An

dre

w a

t th

e So

fex

2002

arm

s fa

ir P

ho

to: C

AAT

Campaigns diary5 May BAE Systems AGM14–18 June Eurosatory, Paris-Nord, Villepinte, France19–25 July Farnborough arms fair

See www.caat.org.uk for more information on arms trade events throughout the year

Government-industry links: pages 8–9