New Clause 1 - End-use monitoring
Export Control Bill
10:00 am
Dr Vincent Cable (Twickenham, Liberal Democrat)
I beg to move, That the clause be read a Second time.
The two new clauses deal with issues of some substance and importance, which are partly overlapping but remain distinct. One issue is that of the end use of arms and the other is that of overseas production, which I shall deal with later. We all understand the problem of end use—arms can be exported in an entirely proper and appropriate way and in good faith, but the purposes to which they are put are completely unexpected and very damaging. There should be a process to ensure that that is controlled. It is fair to say that the Government's approach shows that they understand the problem. There are mechanisms in place for dealing with end use—I am not suggesting that we are dealing with an entirely blank sheet of paper. There is a mechanism, but the question is whether that mechanism is adequate.
As I understand it, the procedures envisaged by the Government will involve checking with companies that apply for licences that they have received guarantees from importing countries that they will not improperly use equipment and that there is a pre-licensing checking process in place. I would ask whether that is sufficient. The purpose of the new clause is to suggest that a post-licence system for checking that the agreements and guarantees are being honoured and observed is required.
I should like to return to some examples of what has happened in the UK in the past to suggest that this is not an academic issue; there are real, practical problems. At our previous sitting, we discussed the problems that arose as a result of the export of Hawk aircraft to Indonesia. Assurances and guarantees were given by the Indonesian military that the weapons would not be used in East Timor, but it subsequently emerged, and was demonstrated, that they were. A similar problem arose in relation to the contracts with Zimbabwe. It was intended that the aircraft should be used for Zimbabwe's self-defence, but in fact they were used in the Congo.
There is another, more topical example, which shows the elusive nature of the problem of end use. British companies have been involved in the export to Israel, not of final products but of components for attack helicopters and air-to-surface missiles. There is no reason why British companies should not be involved in the supply of equipment to Israel for its self-defence. People have different views on the Arab-Israeli dispute, but that seems to be a reasonable starting point. However, entirely unknown to the Government who authorised the transactions, some of those weapons have been used as the weapons of first choice in the intifada. Buildings have been strafed by the attack helicopters, for example, which was not the original intention of the supply. I use those examples to show how armaments are used for entirely unpredictable purposes. It is not adequate to have assurances at the time that they are being properly used; checks need to be made after the event.
The Government might introduce a somewhat stricter regime. We are not arguing for blanket prohibitions, but for a somewhat stricter regime than is currently proposed. Precedents exist of other countries that operate such a system, which seems to be administratively efficient and effective.
I can cite examples of contrasting cases from two different types of country. Belgium is a marginal supplier of armaments but is involved in a lot of transshipment and brokerage. The Belgians have a system of end-use certificates that require a written guarantee by the importing agency that it will not re-export arms. Three months after the goods have been exported, the Belgian Government monitor the process and require proof of delivery and details of transit and travel plans. That is an ex-post checking system.
Some may regard the process employed in the United States as more credible than that of the Belgians. No one would accuse the United States of being sentimental on arms export matters, but they have every reason to be diligent in ensuring that arms are not misused and do not fall into the wrong hands. They have developed a system similar to that of the Belgians, which appears to be effective. Exporters must submit a non-transfer end-use certificate in the first instance. They are required to comply with United States law and to ensure that their exports are confined to purposes specified in defence agreements and treaties between the United States and recipient countries. They must provide full details about the articles or data being exported and the end use, which extends to states that receive retransferred United States weapons.
The American machinery for implementing this system is called the blue lantern programme. Controversies have arisen in the United States about how diligently and effectively that is implemented. However, it has introduced some 4,000 checks, roughly 10 per cent. of which show unfavourable results—in other words, the United States Government are not satisfied that end-use requirements have been met. Those contracts are then terminated. The United States has a system, then, which at the very least exercises deterrents to ensure that exporters act in compliance with the spirit of the law.
I ask the Government to give careful thought to whether our system could be brought up to the standards of best practice, which those of us who have followed developments in this field would regard as exemplified by the United States.