Ninth Report of the Foreign Affairs Committee Private Military Companies Session 2001–2002 Response of the Secretary of State for Foreign and Commonwealth Affairs Presented to Parliament by the Secretary of State for Foreign and Commonwealth Affairs by Command of Her Majesty October 2002 Cm 5642 £6.00
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Ninth Reportof the
Foreign Affairs Committee
Private Military Companies
Session 2001–2002
Response of the Secretary of State forForeign and Commonwealth Affairs
Presented to Parliamentby the Secretary of State for
Foreign and Commonwealth Affairsby Command of Her Majesty
October 2002
Cm 5642 £6.00
© Crown Copyright 2002
The text in this document (excluding the Royal Arms and departmental logos) may bereproduced free of charge in any format or medium providing that it is reproducedaccurately and not used in a misleading context. The material must be acknowledged asCrown copyright and the title of the document specified.
Any enquiries relating to the copyright in this document should be addressed toThe Licensing Division, HMSO, St Clements House, 2-16 Colegate, Norwich, NR3 1BQ.Fax: 01603 723000 or e-mail: [email protected]
1
NINTH REPORT OF THE FOREIGN AFFAIRS COMMITTEE
PRIVATE MILITARY COMPANIES
SESSION 2001–2002
RESPONSE OF THE SECRETARY OF STATE FOR FOREIGN ANDCOMMONWEALTH AFFAIRS
1. The Government welcomes this important and thorough report from the Foreign AffairsCommittee and has taken careful note of it.
2. The Government welcomes the Committee’s positive assessment of the Government’sGreen Paper on “Private Military Companies: Options for Regulation”. It notes theCommittee’s judgement that “such companies have the potential to make a legitimate andvaluable contribution to international security. The challenge of regulation is therefore not onlyto prevent PMCs from inflicting damage, but also to establish how the Government should workwith them to maximise the benefits that a properly regulated private military sector can bring”(paragraph 4).
3. The Consultation period on the February 2002 Green Paper “Private Military Companies”(PMCs) ended on 12 August. There were a total of 39 responses: 16 from Companies and TradeAssociations, 6 from NGOs, 7 from academics, 3 from Members of Parliament and 7 others. Alist is attached at Annex A. As part of the Consultation process, the Foreign andCommonwealth Office and the Department for International Development sponsored aSeminar at the Centre for Studies in Security and Diplomacy at the University of Birminghamon 24 June 2002. There was widespread support in responses to the Consultation, including froma number of PMCs, for some regulation. Options proposed ranged from prohibition of allmilitary activity to self-regulation.
4. Contributors raised a number of key concerns about policy towards PMCs, including:
– the risk of damage to legitimate security-related business interests by over-regulation.Some contributors argued against regulation on these grounds, and on the groundsthat regulation might be complex and expensive.
– possible threats to human rights, national sovereignty and development in poorcountries from the activities of PMCs
– lack of transparency and accountability in the sector, including links to otherbusinesses, in particular extractive industries
5. Contributors also identified potential benefits from legitimate PMC activity, such as:
– assistance to weak but legitimate governments in establishing the security needed fordevelopment
– provision of services of direct social and economic benefit, such as de-mining
– assistance to the UN in peacekeeping
– protection of legitimate commercial and NGO activity in dangerous areas
– raising the professional standards of local armed forces
– economic benefits to UK businesses
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6. The Government considers that the case that has been put forward, in particular by theForeign Affairs Committee, for Regulation of PMCs needs careful further consideration. TheGreen Paper Consultation and the Committee’s Report have made clear that the question ofregulation raises complex policy issues. They include:
– the balance of advantage between regulation and allowing companies to conductlegitimate business of economic benefit to the UK without undue hindrance
– whether any activities should be prohibited, and how heavy any regulation should befor those permitted
– the form of any regulation, who should be responsible for it, and how it would be paidfor
– defining who and what might be covered
– the compatibility of any regulatory system with EU and International Law
– addressing concerns about the transparency, probity and attitude to human rights ofPMCs
– minimising the risk that any regulatory regime would be seen as the UK endorsingundesirable activities.
7. In addition, the Committee, and a number of contributors to the Consultation, have drawnattention to the experience of the United States and other Governments in regulating PrivateMilitary Companies. The views and experiences of international institutions such as the UnitedNations and the European Union are clearly also of importance. The Government thereforeproposes to seek further information on these as part of its further consideration of the issues,before taking any view on the way forward.
Recommendations
Existing Regulatory Measures
(a) We conclude that the lack of centrally held information on contracts between GovernmentDepartments and private military companies is unacceptable. We recommend that theGovernment take immediate steps to collect such information and to update it regularly.We further recommend that in its response to this Report the Government publish acomprehensive list of current contracts between Government Departments and privatemilitary companies and private security companies, and provides the information requestedby the Committee in the Chairman’s letter of 18 June to Denis MacShane, which isreproduced in full at page Ev.44 (paragraph 17).
The Government agrees with the Committee on the value of such information. Attached at AnnexB is a list of current contracts overseas with private military and security companies known toForeign and Commonwealth Office posts.
The Department for International Development (DFID) has no contracts with private militarycompanies. A survey has been undertaken of the DFID offices overseas to see whether any havecontracts with private security companies for the provision of post security separate to thatprovided under FCO contracts. The outcome of the survey is included at Annex B.
It has not been possible in the time available to collect similar information for the Ministry ofDefence given the very broad spectrum of activities, including logistics support, training,maintenance, catering and accommodation for which the Ministry of Defence lets contracts. Suchcontracts are let by all three Services for all types of deployment, from UN mandated peacesupport, peacekeeping and enforcement, to exercises and training. Considerable work would berequired to define and identify the contracts which might fall under the Committee’s request.
3
(b) We recommend that the Government, as it considers national regulatory measures, alsodevelop a new draft international convention to regulate PMCs which might replace theexisting UN Convention against the Recruitment, Use, Financing and Training ofMercenaries (paragraph 25).
The Government agrees that the UN Convention is unlikely to provide a workable basis forregulation, but does not believe that there is any realistic prospect of developing a replacement forthe time being. The Government will continue to develop UK policy.
(c) We recommend that, in considering options for regulation, the Government examinecarefully the United States government’s regime for regulating and monitoring theactivities of private military companies (paragraph 28).
The Government notes that the Green Paper draws attention to the United States legislation, andwill examine the experience of the United States and other governments, such as South Africa, inmore detail as consideration of the issues continues.
(d) We recommend that the Government work with European partners towards including theservices provided by PMCs in the existing EU Code of Conduct for Arms Exports(paragraph 30).
The Government agrees that there will be value in promoting a common EU approach to PMCs.It will initiate consultation with EU partners and report to the Committee.
The debate on Private Military Companies
(e) We recommend that, before bringing forward legislation to regulate PMCs, theGovernment consider how to deal with the possible involvement of these companies in theoverthrow of established states (paragraph 50).
The Government will consider this.
(f) Although the services provided by PMCs will not by themselves solve underlying problemsin unstable countries, we conclude that the employment of professional, responsible andwell regulated PMCs could, in some circumstances, contribute to the establishment ormaintenance of relative stability, under which lasting solutions to such problems might beworked out. We further conclude that PMCs may have a legitimate role to play in helpingweak governments to secure revenue streams, for example by protecting border points andhighways (paragraph 67).
The Government agrees that PMCs have the potential in some circumstances to play a positiverole.
(g) We recommend that the Government prohibit private military or security companies fromusing names similar to those of British regiments or fighting units, or from the use of anyemblem, symbol or distinctive item of uniform similar to those of the British armed forces(paragraph 71).
The Government considers that there is a case for prohibiting private military companies fromadopting names, logos or other appearances that imitate those of the Armed Forces.
4
Potential benefits of a regulated private military sector
(h) We conclude that the Government should consider carefully whether the greater use ofPMCs in UK humanitarian and peace support operations might help to reduce militaryover-stretch (paragraph 101).
The Ministry of Defence let contracts with private companies where appropriate to support a widevariety of deployed commitments, including peacekeeping and humanitarian operations. Thesecontracts are primarily for logistical support, including troop deployment, food supply andmaintenance of accommodation and equipment. The availability of reputable companies toprovide such support means that the UK may be in a better position than might otherwise be thecase to respond positively to requests to take part in such operations.
The Government sees no difficulty of principle in private companies offering support tohumanitarian or peacekeeping missions directly to the UN or to other international bodies thatmandate or co-ordinate such missions. But when the UN formally requests the Government tocontribute to such operations, it does so in the expectation that the front-line tasks will beundertaken by the UK’s Armed Forces, with their known skills and experience. The Governmentwould therefore not consider it appropriate for the UK to agree to undertake such tasks and then,as it were, to sub contract them to private companies. If the existence of other commitments meantthat the Armed Forces were not able to undertake new peacekeeping or other humanitarianoperations themselves, the Government considers that it would be preferable to decline themission at the outset.
Options for Regulation
(i) We conclude that an outright ban on all military activity abroad by private militarycompanies would be counterproductive (paragraph 102).
The Government agrees.
(j) Though the Green Paper argues that “the distinction between combat and non-combatactivities is often artificial,” we conclude that such a distinction can and should be drawnfor the purposes of regulation. We do not underestimate the difficulties inherent in thisprocess (paragraph 107).
The Government agrees that a workable distinction would be an important element of anyregulatory regime in spite of the difficulty of drawing one up.
(k) We recommend that private military companies be expressly prohibited from directparticipation in armed combat operations, and that firearms should only be carried — andif necessary, used — by company employees for purposes of training or self-defence(paragraph 108).
The Government will consider this carefully. As the Committee says, “PMCs may have alegitimate role in helping weak governments to secure revenue streams, for example by protectingborder points and highways” (paragraph 67). This may require the use of firearms.
(l) We recommend that the Government give very careful consideration to imposing a ban onall recruitment by PMCs for combat operations and other activities, which are illegal underUnited Kingdom law. We further recommend that the Government consider thepracticality of a complete ban on recruitment for such activities of United Kingdom citizensby overseas-based or offshore PMCs (paragraph 114).
5
The Government will consider this recommendation. It might be possible to address the issue aspart of a regulatory regime. The question of the relation of any regulatory regime to existing UKlaw such as the 1870 Foreign Enlistment Act would require careful consideration.
(m) We recommend that, to prevent the inappropriate use of knowledge gained throughemployment in the British armed forces, the Government examine whether restrictionsshould be placed on former British service personnel who wish to move into related activityin the private sector, such as a ‘cooling off’ period similar to that which applies to formercivil servants and government advisers (paragraph 115).
The principles governing the acceptance of business appointments by officers of the CrownService after leaving the Services are already covered in the Queen’s Regulations for each of thethree Services. The regulations state that “before accepting, within two years of leaving the Service,an offer of employment, all officers must obtain the approval of the Ministry of Defence. Anofficer of or above the rank of Rear-Admiral, Major-General or Air Vice Marshal must obtainapproval to take up any paid employment whether or not with a defence contractor or foreigngovernment”. This procedure is necessary to ensure that when an officer accepts outsideemployment there should not be cause for suspicion of impropriety.
(n) We recommend that each contract for a military/security operation overseas should besubject to a separate licence, with the exception of companies engaged in the provision ofnon-contentious services for whom the Government considers a general licence wouldsuffice (paragraph 123).
The Government will consider this. Any regulatory regime would need to strike a balance betweencovering what needs to be covered, and avoiding unnecessary burdens on the private sector.
(o) We recommend that the Government consider carefully how to ensure that a licensingregime allows companies to operate with the necessary speed without compromising theeffectiveness of the vetting process (paragraph 124).
The Government agrees that this would be a key issue for any regulatory regime.
(p) Despite private military companies’ concerns about client confidentiality, we conclude thatthe need to ensure that the sector is properly regulated overrides the private interests ofPMCs and their clients (paragraph 126).
For any regulatory regime to be successful disclosure would be necessary, but a balance wouldneed to be struck between the need for informed decision making and client confidentiality.
(q) We recommend that the Government should consider whether exemptions to the project-specific licensing procedure described above should apply with respect to contracts withtrusted organizations of which the United Kingdom is a member, such as NATO, theUnited Nations or the European Union and with responsible governments (paragraph129).
The Government agrees that this could be a useful component of any regulatory regime. It wouldreduce the regulatory burden, and encourage legitimate business.
(r) We recommend that private military and security companies be required to obtain ageneral licence before undertaking any permitted military/security activities overseas(paragraph 134).
The Government will consider this recommendation.
6
(s) We recommend that, as part of the application procedure for registration, private militarycompanies be required to disclose to the Government in some detail the companystructures, the experience of permanent personnel, recruitment policies, and other relevantinformation (paragraph 135).
The Government will consider carefully the information disclosure that would be necessary for aneffective regime.
(t) We conclude that a voluntary code is insufficient to regulate the private military industry,because it would not enable the Government to prevent the activities of disreputablecompanies which were detrimental to the United Kingdom’s interests (paragraph 137).
The Government notes this conclusion, and notes that some private military companies have alsosuggested a voluntary code. It considers that it would in any case be in the interests of reputableprivate military companies to draw up a voluntary code of conduct. Adherence to this code couldbecome a factor in any decisions taken under a regulatory regime.
(u) Given the costs inherent in regulating the private sector to perform the tasks discussed inthis Report, we recommend that the Government weigh these costs carefully against theoption of developing a publicly funded armed service cadre to provide on a commercialbasis the tasks currently being undertaken by PMCs (paragraph 141).
The Government will consider this. There would be risks inherent in setting up an operation whichmight be seen as amounting to a publicly owned PMC.
(v) We conclude that improving controls over the trafficking and brokering of arms would curbsome of the most damaging activities of private military companies. We further concludethat, because of improved international intelligence cooperation since the terrorist attacksof 11 September, policing such controls should be possible. We recommend that theGovernment apply extra-territorial jurisdiction to the brokering and trafficking of arms atthe earliest opportunity (paragraph 149).
The Export Control Act 2002 contains a new general power allowing controls to be imposed ontrafficking and brokering in arms and other sensitive equipment. Controls may be imposed underthe Act in relation to trafficking and brokering activities carried out by persons in the UK or byany UK person overseas.
The Government has proposed to use the new Act to control trafficking and brokering in militaryequipment to any destination, where any relevant part of the activity takes place in the UnitedKingdom. The Government has also proposed to use the new power extra-territorially to controltrafficking and brokering in military equipment to embargoed destinations, and trafficking andbrokering in equipment used for torture (the export of which is already banned) and in long-rangemissiles to any destination. Trafficking and brokering of this latter kind is subject to widespreadinternational condemnation and the Government believes that UK persons living overseas mayreasonably be expected to know that such activities would be likely to constitute an offence.
The Government expects that the Export Control Act and the new controls to be introduced underit, including those on arms trafficking and brokering, will come into force during the second halfof 2003.
7
(w) We recommend that any prospective regulatory regime for private military companies beco-ordinated with the Government’s existing export controls, to ensure that arms used by aPMC in fulfilment of a contract do not remain in a country subject to embargo (paragraph150).
The Government agrees that a degree of co-ordination with existing export controls would bedesirable. However any regulatory regime for PMCs would not absolve them from the provisionsof arms export control legislation, including the observance of arms embargoes.
(x) We recommend that the Government consider establishing an informal appraisal andcomplaints mechanism, which would operate through consultations between UK officials inposts and the organizations operating alongside PMCs in the field (paragraph 153).
The Government would expect posts to report on the operations of PMCs as necessary as part oftheir normal business, and pass on any complaints. But any regulatory regime should include aformal complaints procedure.
(y) We recommend that the Government establish as an integral part of any regulatory systeman appropriate monitoring and evaluation regime, and make full co-operation with thatregime a condition of the granting of licences to PMCs (paragraph 157).
The Government will consider this.
(z) We conclude that procedures similar to those for Parliamentary scrutiny of arms exportlicences should apply to any regulation of PMCs, with prior parliamentary scrutiny beingapplied to any licence applications that might involve PMCs in provision of armed combatservices (paragraph 160).
The Government agrees that scrutiny procedures for any regulatory regime should be consistentwith those for arms export licences.
(aa) We recommend that the Government consider very carefully how to ensure that thebenefits of permitting a regulated private military sector to operate from the UnitedKingdom are not outweighed by the costs of establishing and maintaining a regime for theirregulation (paragraph 163).
The Government considers that the balance between the costs of a regulatory regime and the costsand benefits of the activities of PMCs lies at the heart of the issue.
Annexes
A: List of responses to the Consultation on the Green Paper
B: List of current contracts between Government Departments and private military/securitycompanies reported by FCO and DFID posts as at 21 October 2002.
8
Annex A
A LIST OF RESPONSES TO THE CONSULTATION ON THE GREEN PAPER
Rt Hon Bernard Jenkin MPRt Hon Bruce George MP and Simon H CooperRt Hon Menzies Campbell QC MPArmor Group Services LimitedAssociation of Police and Public Service Providers Blue Sky Strategy Consulting LimitedControl Risks GroupDefence Manufacturers Association EOD Solutions Gurkha InternationalHart GroupInkerman Group LimitedInternational Peace Operation AssociationJoint Security Industry CouncilRMZ LimitedRubicon International Services LimitedSandline InternationalStrategic Consulting International Society British Aerospace Manufacturers British Red CrossCampaign Against Arms Trade Centre for Democracy and Development International AlertInternational Red Cross and Red Crescent MovementUnited Nations Association for Great Britain and Northern Ireland Christopher Kinsey MSc (Econ), Department International Politics, University College WalesDr Elke Krahmann, Harvard UniversityMajor Wilson, Major Kite, Major Dangerfield, Major Robinson and Major Henry Cummins,Royal Military College of Science, University of Cranfield RAND EuropeRoyal United Services Institute for Defence StudiesChristopher Spearin, Centre for International and Security Studies, University of TorontoJosh Arnold-ForsterMark BrigginsJohn ChampneysBrian Johnson-ThomasDavid IsenbergChristopher SpearinItalian Ministry of Foreign Affairs
9
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