DSEi 2003 international arms market Published in the UK by Campaign Against Arms Trade 11 Goodwin Street, London N4 3HQ

September 2003

ISBN 0 9543329 3 8 Contents

4 Summary Issues Arms export subsidies 35 6 Introducing DSEi Cluster bombs 23 Company influence 37 8 DSEi statistics Conflict 13 Corruption 36 Invitations to DSEi 8 Depleted Uranium 18 Companies at DSEi, listed by home country 10 Development 16 World top 20 arms companies 10 Globalization of the arms industry 38 Human Rights 17 11 The companies Landmines 15 Small arms 20 AgustaWestland (see GKN) Son of Star Wars 29 Alvis 11 Arsenal Co. 11 BAE Systems 13 Chemring 15 Denel 16 EADS 17 FN Herstal 19 General Dynamics 19 GKN 21 Heckler & Koch 21 INSYS 22 Israel Military Industries 22 Lockheed Martin 24 MBDA (see EADS) MKEK 25 Northrop Grumman 26 Pakistan Ordnance Factory 30 PW Defence (see Chemring) QinetiQ 30 Conflicts and countries Rafael 30 Raytheon 33 Democratic Republic of Congo 22 Rolls Royce 33 Indonesia 12 SAAB 34 India & Pakistan 31 Smiths Group 35 Iraq 28 Thales 36 Israel 32 Saudi Arabia 27 39 Company references South Africa 34 Turkey 26 USA 25 Summary

Every two years, arms dealers commercial activity. The fencing, arms companies and politicians gather in the UK for the Defence police presence and secrecy confirm that it is an extraordinary, Systems and Equipment surrounding the event suggests that and an extraordinarily damaging, International (DSEi) exhibition. The it is not. Consideration of the business. This report sets out to assumption behind the exhibition is weapons, the conflicts they are used highlight some of the many issues of that selling arms is just a normal in and the relationships between concern.

Issues tional transactions’. Arms exhibitions are a crucial element of this ‘official’ arms trade. See page 36 Arms export subsidies Depleted Uranium Even though arms account for only around 2% of UK Depleted Uranium (DU) is a toxic heavy metal used in exports, they form the most heavily subsidised sector armour-piercing weapons. It has been estimated that over apart from agriculture. The UK government provides a 100 metric tonnes were used during the invasion of Iraq, range of services for arms exporters including face-to-face often in densely populated areas. Few studies have been marketing by Tony Blair and his ministers, assistance with carried out on people exposed to DU, though experiments financing and, most obviously, the 600-person MoD on animals have indicated that internal exposure may lead Defence Export Services Organisation (DESO) which is to kidney damage, cancer and central nervous system entirely dedicated to the arms trade including support for problems. At least two producers of DU shells will be arms exhibitions. See page 35 exhibiting at DSEi. See page 18 Cluster bombs Development Cluster bombs dispense a number of submunitions that Money spent on arms cannot be spent on education, are supposed to explode on impact. But many do not. water, health or housing. It is essentially unproductive. UK They lie waiting to be disturbed, possibly years after a arms export controls are supposed to take ‘the technical conflict has ended. It has been estimated that more than a and economic capacity of the recipient country’ into thousand children have been injured in Iraq by unexploded account, but it is difficult to find an example where this has munitions, including cluster submunitions, since the end of happened. Two cases where it clearly didn’t were a multi- the 2003 conflict. The UK alone delivered over 100,000 billion dollar deal with South Africa, where there is massive cluster submunitions during the invasion and at least 2,000 social need and no relevant military need, and Tanzania, of these remain unexploded and potentially lethal. DSEi will where a military air traffic control system was exported feature companies that helped leave this legacy. despite opposition from the World Bank and cabinet minis- See page 23 ters. Both South African and Tanzania have been invited to Company influence DSEi 2003. See page 16 UK government support for arms companies seems irra- Globalization of the arms industry tionally strong. It supports DSEi, promotes arms sales to The arms industry has metamorphosed since the end of countries against its own guidelines, subsidises these the Cold War, changing from mainly nationally-owned exports, and allows companies like BAE Systems to enterprises into privately-owned internationally-structured demand domestic contracts and increase prices. There is companies. International production is able not only to no convincing economic or political reason for this; the provide a cheaper source of labour for the dominant west- motive appears to lie somewhere between the influence of ern arms companies but also has the effect of undermining the arms companies and the desire of ministers to strut the national export controls. Arms exhibitions have changed in world stage. See page 37 parallel with the industry. DSEi’s forerunners were show- Conflict cases for UK companies. Now companies come from all Every hour, about 35 people are killed as a direct result of over the world and sales are arranged that are not subject armed conflict. Arms sales increase the likelihood that ten- to UK export controls. sions will lead to fighting and prolong conflicts once they See page 38 begin. Since the Labour government was elected in 1997, Human Rights the UK has licensed arms and military equipment to 20 Israel, Turkey, Saudi Arabia, the US, Colombia, China and countries engaged in serious conflict. 14 of these countries Russia all received UK arms in 2002, and have all received were invited to DSEi 2001 and many have received invita- invitations to DSEi 2003. The willingness to invite human tions to DSEi 2003. See page 13 rights abusing governments to arms fairs and to licence Corruption arms exports to them provides implicit approval of their The secrecy together with the huge amount of money actions. See page 17 involved in arms deals, provides ideal conditions for cor- Landmines ruption, generating demand where none might otherwise In 2001 there were new mine/unexploded ordnance victims exist. Transparency International has estimated that ‘the reported in 69 countries, and around 230 million anti-per- official arms trade accounts for 50% of all corrupt interna- sonnel mines remained in the world’s arsenals. However,

4 there is some cause for optimism – 128 states, including Iraq the UK, have ratified the Ottawa Teaty which obliges coun- Following the invasion of Iraq, the UK and US govern- tries to destroy stocks. The UK Landmines Act makes it ments and arms companies seem very keen that the illegal for any person to be involved in the production, sale, wrong lessons are learnt. Rather than accepting the promotion or transfer of anti-personnel landmines. The absurdity of arming repressive regimes, they are pushing restrictions cover all activities in the UK, but two alleged for more military spending at home and, at the same time, breaches during and post-DSEi 1999 did not lead to any continuing their relentless pursuit of exports. In Iraq itself, charges. See page 15 US ‘private military companies’ are training a new army Small Arms and, incredibly, the US-led authority has ordered 34,000 Small arms are the weapons that produce actual mass AK-47 assault rifles for their use. See page 28 destruction, killing more than 500,000 people every year. Israel There are already over 600 million of the weapons world- Israel uses an array of imported weaponry in its illegal wide but several major small arms producers will be hop- occupation of the West Bank and Gaza and its oppression ing to use DSEi to add to that number. of the Palestinian people. It has used its many relation- See page 20 ships with western, primarily US, companies to build up a Son of Star Wars military industrial base that, in turn, is willing to export to It would be hard to dream up a corporate welfare package almost anyone. Israel has been invited to DSEi 2003 and that competes with the US’s Ballistic Missile Defense pro- its military industry will be represented by five companies. gramme – the new face of Star Wars. But the waste of See page 32 resources is only one of the problems. BMD is an aggres- Saudi Arabia sive system. It is designed to give the US the freedom to In the 1980s, Saudi Arabia signed the huge Al Yamamah intervene wherever and whenever it chooses. It will lead to arms deals with the UK, deals that amounted to ‘the missile proliferation, probably among enemies but certainly biggest [UK] sale of anything to anyone’. An investigation among present ‘allies’. Most of the major US BMD compa- of corruption allegations relating to the deals was carried nies will be at DSEi, alongside UK companies pushing for out but its findings were, and continue to be, suppressed. US dollars and a UK-government sign-up. Post-September 11th, UK and US government views of See page 29 Saudi Arabia appear to be rapidly changing, but the coun- try remains one of the UK’s most important arms markets Countries and will be, as always, present at this year’s DSEi. See page 27 Democratic Republic of Congo South Africa Congo’s rich mineral deposits should be its fortune but Despite urgent social needs and the lack of a military instead these resources have been plundered by militias threat, European companies have managed to sell the and foreign armies in conflicts that began in 1998 and country $4.8 billion worth of advanced military equipment. have left an estimated four million dead. Angola, Namibia After much internal debate in South Africa, the package and Zimbabwe all sent troops to fight for the post-Mobutu was finally secured by incredible offers of industrial ‘com- regime against rebels backed by Rwanda and Uganda. pensation’. Allegations of corruption have surrounded the The governments of Angola, Namibia, Zimbabwe and deal and one prominent politician has been sentenced to Uganda all received invitations to DSEi during the war. See page 22 four years in prison for fraud. Both the vendor companies and South Africa will be well represented at DSEi. In fact, Indonesia no fewer than 36 South African exhibitors are listed. See In May 2003, Indonesian troops launched an all-out page 34 offence against Aceh separatists. Despite Indonesian Turkey assurances that UK-supplied equipment would not be Turkey has an appalling record of human rights violations used offensively or in violation of human rights anywhere in against Kurds and has used imported weapons in carrying Indonesia, Alvis Scorpion tanks and BAE Systems Hawk out these abuses. Its military spending has increased jets are in use in Aceh. The Indonesian military seems to steadily since 1990 despite the country’s relative poverty have little knowledge of these assurances and little interest and serious financial problems. Much of this spending has in the UK government’s embarrassment-induced concerns. been used to purchase arms from abroad to build up an As Indonesia was invited to DSEi 1999 despite orchestrat- indigenous high-tech arms industry. US and European ed violence around the East Timorese referendum, it per- companies are heavily involved in this process and many haps has good reason to take any protestations with a of these are exhibiting at DSEi, as is MKEK, a major pinch of salt. See page 12 Turkish small arms manufacturer. See page 26 India and Pakistan USA Despite, or perhaps because of, teetering on the brink of The US government appears to have a preferred means of war a year ago, India and Pakistan continue to be prime solving problems – military means. It seeks the ability to sales targets for weaponry. BAE Systems has been trying control any situation on its own and unashamedly terms to sell its Hawk jets for years and even at the height of the this ‘Full Spectrum Dominance’. This is perhaps not sur- tension over Kashmir it had the enthusiastic support of UK prising given the enormous influence of both the arms government ministers including Tony Blair. Earlier this year industry and right-wing think tanks in the US administra- Lord Bach spearheaded the Hawk pitch at the AERO India tion. The US arms companies dominate the international 2003 arms exhibition. Both India and Pakistan have arms market and, as such, will be a key part of DSEi, with received official invitations to DSEi 2003. See page 31 over 100 companies exhibiting. See page 25

5 Introducing DSEi

This report provides an overview of DSEi, including short The Defence Sales Organisation (DSO), as the DESO profiles of some of the main companies attending and was then known, was set up by the Labour government in information on many of the damaging aspects of the arms 1966. Denis Healey, Minister of Defence at the time, said: trade. The companies are presented in alphabetical order ‘While the government attach the highest importance to throughout the report and the main issues and countries making progress in the field of arms control and are considered in information boxes near relevant disarmament, we must also take what practical steps we companies (see Contents for an alphabetical list). can to ensure that this country does not fail to secure its rightful share of this valuable commercial market.’1 The DSEi DSO changed its name to the Defence Export Services From 9th–12th September 2003, East London will be taken Organisation in 1985 to ‘more accurately reflect its role’ 2, over by arms dealers. Defence Systems and Equipment namely to ‘assist British defence industries to promote and International (DSEi) is a weapons fair and conference of sell their goods abroad’. enormous proportions and is likely to be one of the world’s Today, DESO has over 600 staff in London and in its largest ever arms exhibitions. overseas offices.3 Its net cost was £11,077 million in The ExCel centre, a modern complex in London’s 2001/2.4 It is headed, as it always has been, by a docklands, will host over 1,000 arms companies, selling secondee from an arms company, giving the industry a small arms, missiles, planes, tanks, military electronics and powerful voice inside the government. The current warships, as well as surveillance and riot control incumbent is Alan Garwood, whose career has been with equipment to buyers from all over the world. One in three BAE Systems. of the world’s governments will be at the arms fair, shopping for military equipment. Adversaries will shop DSEi’s forerunners side-by-side for weapons to use against each other. All Prior to 1999, DESO organised the government’s military this will take place in secret, behind heavily protected export exhibitions. From 1976 until 1991 the British Army security fences and police lines. Equipment Exhibition (BAEE) and the Royal Navy Equipment Exhibition (RNEE) were held in alternate years DESO – the government’s arms dealer in Aldershot and Portsmouth respectively. In September DSEi is run in association with the MoD’s Defence Export 1993 the first combined Royal Navy & British Army Services Organisation (DESO), whose mission is ‘to Equipment Exhibition was held in Aldershot and others maximise legitimate UK defence exports in co-ordination followed in 1995 and 1997. Overseas delegations attended with industry’. DESO is central to the UK government’s by invitation only. Some of the visiting delegations came support of the arms trade. It is responsible for the from governments with poor human rights records such as promotion of UK arms exports and co-ordinates arms Indonesia and Chile, or from countries in conflict. In 1986 trade support within Whitehall and the MoD. Iraq was represented at the BAEE by a five-strong

6 delegation led by its Director of international relations imperatives are delegates to arms exhibitions like Armaments and Supplies, despite considered in the process.’7 DSEi provides countries with not only having already been at war with Iran There is also a second invitation the opportunity to buy the weapons for almost six years. list, provided by Spearhead. The and tools with which they can On display at these exhibitions extent to which the MoD is involved perpetrate human rights abuses, but was everything that might be of use in discussions and decisions about also gives moral and political support to the armed forces, from tanks and the content of this list is unclear. to their actions. frigates to footwear and musical What is clear is that the MoD does DSEi is also directly engaged in instruments, as well as support not object to the presence of any of fueling conflict around the world, services like banking. the governments invited. The allowing arms companies to sell Spearhead lists have contained weapons to countries on the brink of, DSEi – public or private? around 20 more countries than the and actually in, conflict. Without the With the arrival of ‘New’ Labour and official lists, some of which are highly international arms trade, countries its obsession with privatisation, the controversial. (DSEi invitation lists are could not go to war on the scale they Royal Navy & British Army Equipment collated in Table 1 overleaf.) do, civilian and military casualties Exhibition was pushed out to the On August 28th 2003, Spearhead would be far less, and the world commercial sector. An exhibitions firm stated that it would not be hosting would simply be a safer and better called Spearhead Exhibitions Ltd international delegations this year, place. India and Pakistan have both launched DSEi 1999 at Chertsey in and that it had produced ‘1/2 million been officially invited to this year’s Surrey, with boats on display at flyers to be inserted in defence DSEi. Angola, Namibia, Uganda and London docklands. Though Zimbabwe have received run by a private firm, the invitations to previous DSEi government arranged exhibitions regardless of their invitations and contributed involvement in the horrors of £250,000 and hundreds of the Democratic Republic of military personnel to help run Congo conflict. the show. DSEi 2001, which As if this acceptance of took place at the Excel conflict and human rights centre, London docklands, abuse was not shocking received even more enough, DSEi appears to be government support, with ambivalent about terrorism. Defence Secretary Geoff Though the US and the UK Hoon, and Foreign Secretary may have accused countries Jack Straw in attendance. like Syria and Pakistan of This year’s DSEi shows no sponsoring or supporting let up in government terrorism, both of these assistance. The MoD countries were invited to estimates that DSEi will set it previous DSEi exhibitions back £400,000 in ‘direct and have both received costs’, and ‘in addition, official invitations for DSEi representatives of Her 2003. Majesty’s Government may On 11th September 2001, carry out activities just as terrorists were flying associated with the airplanes into the World exhibition, as part of their Trade Centre and the normal duties, which could Pentagon in the United be identified only at disproportionate journals to generate the 20,000 States, 11 different Middle Eastern cost.’5 DESO activities at DSEi visitors expected to attend DSEi’.8 nations were shopping for weapons include ‘conducting Army equipment However, the following day a list of at DSEi 2001, side by side with the and waterborne demonstrations’.6 countries became available from US, Israel, Australia and the UK. DSEi is still very much the UK Spearhead, introduced with the While thousands of other events government’s arms fair, and the sentence ‘Invitations to attend DSEi across the world were cancelled out government’s responsibility. 03 were sent to the following London of respect for the dead, arms dealers based Embassies by the organisers carried on selling weaponry at DSEi The invitation lists of DSEi 03’. The countries included for three more days. The official invitation list is entirely a Afghanistan and Israel, neither of product of the UK government. As which were on the official list. 1 Hansard, 25.1.66 DESO states in its introduction to this 2 Hansard, 9.6.86 3 Hansard, 1.7.02 year’s official list, ‘the Defence Export Human rights abuse, 4 Hansard, 24.3.03 Services Organisation prepares the conflict, terrorism... in 5 Hansard, 20.5.03, Col. 677/8W list of countries to receive official association with DSEi 6 www.deso.mod.uk/events.htm, accessed invitations. In doing so they take Eighty countries have received 27.8.03 account of current marketing invitations to DSEi 2003. These have 7 www.deso.mod.uk/latest.htm, accessed 27.8.03 campaigns and longer-term been sent to governments of some of 8 Letter from Alex Nicholl, Project Director DSEi, prospects for business with the the world’s worst human rights 28.8.03 countries concerned. Political issues, abusing states, including Colombia, arms embargoes and current Israel and Saudi Arabia. Inviting

7 DSEi statistics

Table 1. Invitations to DSEi The UK government column refers to countries that have received official invitations from the UK MoD. The Spearhead columns refer to invitations from the exhibition organisers.

Region Country 2003 UK 2003 2001 UK 2001 1999 UK 1999 government Spearhead government Spearhead government Spearhead

Africa Algeria 9 9 9 9 Angola 9 9 9 Botswana 9 9 9 9 9 9 Egypt 9 9 9 9 9 9 Ghana 9 9 9 9 9 9 Kenya 9 9 9 9 9 9 Mauritius 9 Morocco 9 9 9 Namibia 9 Nigeria 9 9 9 9 South Africa 9 9 9 9 9 9 Tanzania 9 9 Tunisia 9 9 9 9 Uganda 9 Zimbabwe 9 9

Americas Argentina 9 9 Barbados 9 9 9 Brazil 9 9 9 9 9 9 Canada 9 9 9 9 9 9 Chile 9 9 9 9 9 9 Colombia 9 9 9 9 Ecuador 9 9 9 Jamaica 9 9 9 Mexico 9 9 9 9 9 Peru 9 9 Trinidad and Tobago 9 Uruguay 9 9 9 US 9 9 9 9 9 9 Venezuela 9 9 9 9 9 9

Asia-Central & Afghanistan 9 South Bangladesh 9 9 9 India 9 9 9 9 9 9 Kazakhstan 9 9 9 Pakistan 9 9 9 9 9 Sri Lanka 9 9 9 9

Asia-East & Brunei 9 9 9 9 9 9 South East China 9 9 9 9 9 Indonesia 9 Japan 9 9 9 9 9 9 Malaysia 9 9 9 9 9 9 Philippines 9 9 9 9 9 9 Singapore 9 9 9 9 9 9 South Korea 9 9 9 9 9 9 Thailand 9 9 9 9 9 9 Vietnam 9 9 9 9 9

Australasia Australia 9 9 9 9 9 9 New Zealand 9 9 9 9 9 9

8 Invitations to DSEi (continued)

Region Country 2003 UK 2003 2001 UK 2001 1999 UK 1999 government Spearhead government Spearhead government Spearhead

Middle East Bahrain 9 9 9 9 9 9 Israel 9 9 9 9 Jordan 9 9 9 9 9 9 Kuwait 9 9 9 9 9 9 Lebanon 9 Oman 9 9 9 9 9 9 Qatar 9 9 9 9 9 9 Saudi Arabia 9 9 9 9 9 9 Syria 9 9 9 9 Turkey 9 9 9 9 9 9 UAE 9 9 9 9 9 9 Yemen 9

Europe Austria 9 9 9 9 9 9 Belgium 9 9 9 9 9 9 Bulgaria 9 9 9 Croatia 9 Czech Republic 9 9 9 9 9 9 Denmark 9 9 9 9 9 9 Estonia 9 Finland 9 9 9 9 9 9 France 9 9 9 9 9 9 Germany 9 9 9 9 9 9 Greece 9 9 9 9 9 9 Hungary 9 9 9 9 9 9 Ireland 9 9 9 9 Italy 9 9 9 9 9 9 Latvia 9 9 Lithuania 9 9 Luxembourg 9 9 Netherlands 9 9 9 9 9 9 Norway 9 9 9 9 9 9 Poland 9 9 9 9 9 9 Portugal 9 9 9 9 9 Romania 9 9 9 9 9 9 Russia 9 9 9 9 Slovakia 9 9 9 9 Slovenia 9 9 9 9 9 Spain 9 9 9 9 9 9 Sweden 9 9 9 9 9 9 Switzerland 9 9 9 9 9 9 UK 9 9 Ukraine 9 9 9

UN 9

9 DSEi statistics contd.

Table 2. Companies at DSEi, Table 3. World’s top 20 arms listed by home country companies (Defense News, 21 July 2003) 20031 20012 2002 Country Confirmed at UK 589 265 (US unless DSEi 20031 otherwise stated) Other European 1 Lockheed Martin 9 Austria 24 1 2 Boeing Belgium 10 5 3 Raytheon 9 Bulgaria 2 4 BAE Systems UK 9 Denmark 15 10 5 Northrop Grumman 9 Europe (Eurofighter) 1 6 General Dynamics 9 Finland 7 6 7 Thales France 9 France 28 18 8 EADS Netherlands 9 Germany 46 48 9 Finmeccanica2 Italy 9 Ireland 1 2 10 Honeywell Italy 6 1 11 United Technologies Italy & UK 1 12 L-3 Communications 9 Netherlands 15 13 13 SAIC Norway 14 10 14 Mitsubishi Heavy Ind Japan Romania 1 15 General Electric 9 Russia 1 16 DCN France 9 Spain 1 17 Rolls Royce UK 9 Sweden 9 8 18 GKN3 UK 9 Switzerland 18 5 19 Computer Sciences 20 Alliant Techsystems 9 North America 1 www.dsei.co.uk/exhibit_list_2003.htm, the list is dated 17.8.03 and Canada 24 17 was the most recent list as of 29.8.03 US 113 49 2 Exhibiting as AgustaWestland and MBDA 3 Exhibiting as AgustaWestland Other Australia 26 21 China 1 Israel 5 10 Malaysia 3 1 Pakistan 1 Singapore 1 2 South Africa 36 32 Thailand 1 Turkey 1 UAE 1 1

Total 1002 525

1 www.dsei.co.uk/exhibit_list_2003.htm, the list is dated 17.8.03 and was the most recent list as of 29.8.03 2 DSEi 2001 Show Guide

10 Companies exhibiting at DSEi 2003

The following is a selection of some of the largest East Asia and/or most controversial companies attending DSEi. East Asia has also been, and remains, an important market. Unless otherwise indicated, the basic company figures Malaysia provided the first customer for the Stormer, oper- refer to 2002 and world ranking (by military sales), ates the Bv206 armoured vehicle (including a long-term military sales and military sales percentage are support contract with Alvis), and has trialed the Cv90120 sourced from Defense News (21.7.03) tank. Brunei confirmed the selection of Alvis for the upgrade of its Scorpion vehicles in June 2002. In January 2002 an order was made for Bv206 armoured vehicles for the South Alvis [UK] Korean armed forces. More coyly, Alvis states that a ‘Far World ranking: 79 Eastern Army’ has received an initial quantity of Supacat Total military sales: $362m vehicles and has now ordered a second tranche.5 Military sales as % of total sales: 100% Employees: 2,5001 Indonesia Military products include: armoured vehicles and tanks Alvis has a long-standing relationship with the Indonesian military, having sold 15 Saracen armoured personnel carri- Alvis plc, 34 Grosvenor Gardens, London SW1W OAL ers to the Indonesian Army in 1955, 30 Ferret armoured cars Tel: + 44 (0) 207 808 8888 in 1958, 15 Saladin armoured cars in 19606 and, more www.alvis.plc.uk recently, the Stormer armoured vehicle.7 Moreover, after coming to power in 1997, the Labour government honoured an export order of 50 Scorpion light tanks worth £100m, Background which had been approved by the Conservative govern- Alvis is dedicated to the production of armoured vehicles ment.8 Scorpions have been deployed to Aceh (see page and tanks and has a long history of providing vehicles for 12), in contravention of restrictions placed on their use by both UK and overseas armed forces. Its website proudly the UK government at the time of sale. states that it has exported military vehicles to more than 60 countries. In September 2002 Alvis acquired Vickers Defence Systems from Rolls-Royce, making it the sole Arsenal Co. [Bulgaria] armoured vehicle manufacturer left in the UK. Alvis’s UK World ranking: outside the top 100 operations now take place under the auspicies of Alvis Employees: over 4,0009 Vickers Ltd, a subsidiary of Alvis plc, which has facilities in Military products include: assault rifles, grenade launchers, Newcastle upon Tyne, Telford, Leeds and Wolverhampton. anti-aircraft guns Alvis also has major manufacturing facilities in Scandinavia and South Africa (through a 75% stake in Alvis OMC).2 Arsenal Co., 100, Rozova Dolina St., 6100, Kazanluk, Bulgaria Exports www.arsenal-bg.com

Middle East The Middle East is a favourite market for Alvis. The Piranha Background armoured vehicle has been sold to Oman, Qatar and Saudi In 1999 Arsenal was sold to its management team for $2.1m Arabia and is ‘currently under detailed consideration by sev- by the Bulgarian government as part of its privatisation pro- eral other GCC [Gulf Cooperation Council] countries.’ 3 In gramme.10 addition to Piranhas, Oman operates Stormer and Scorpion armoured vehicles. Jordan also operates the Scorpion and What it makes both countries have selected Alvis for Scorpion upgrades. In Arsenal produces many models of assault rifles, grenade October 2002 Jordan declared that it had chosen Alvis as launchers and anti-aircraft guns including small quantities of the supplier for gunnery training equipment for the Al NATO calibre weapons.11 Its most notable weapon is the Hussein Main Battle Tank. Kuwait operates hundreds of Kalashnikov, ‘regarded as one of the East bloc’s finest, and Warrior infantry fighting vehicles, the UAE operates the RG- over 1 million of the submachine guns found their way from 12 armoured personnel carrier, and a new armoured vehicle here (Bulgaria) to the armies and armed gangs of the (the RG-32) is now ready for production with a version hav- world’.12 ing been specifically developed for sales to the Middle East.4 Exports The Piranha is to be produced in Turkey for the Turkish Once the Cold War ended, Bulgaria was left with huge armed forces following an agreement signed at DSEi 2001 stocks of arms that had no market in Eastern Europe. It (on the day following the attack on the World Trade Centre). turned its attention to other areas of the globe and, as a 1999 Human Rights Watch report noted, ‘earned a reputa-

11 Indonesia

Indonesia has been at the centre of where Free Aceh Movement (GAM) violation of human rights anywhere controversy over UK arms exports rebels have been fighting for in Indonesia. On June 1st 2003 for decades. Indeed, the 1997 independence since 1976, collapsed Jakarta rejected UK appeals not to Labour government’s first important in 2003. More than 12,000 people, use Hawk aircraft in its current arms export decision was to refuse mostly civilian victims of the TNI, military offensive against GAM to revoke licences for Hawk jets and have died in the Aceh conflict.5 In rebels, saying it has a right to do so. Scorpion tanks to Indonesia, early May 2003 more than 2,000 On June 22nd 36 Scorpion tanks ditching the brand new ‘ethical Indonesian government troops were were deployed to Aceh.10 Moreover, foreign policy’. deployed to Aceh to reinforce a the senior military spokesman in 26,000-strong force already there. Aceh, Col. Ditya Sudarsono, said the East Timor On May 19th the Indonesian Scorpions will be used offensively as Opposition to arms exports government placed the province “a key part of our campaign to finish focussed on the massive human under martial law and the Indonesian off the [GAM]”.11 A useful overview of rights abuses in East Timor by the army, or TNI, launched an all-out the use of UK equipment in Aceh Indonesian military and surged offensive against GAM. has been provided by Tapol, the during the orchestrated violence Indonesia Human Rights surrounding an East Timorese UK exports to Indonesia Campaign.12 independence referendum in 1999. It In the 1990s, the Conservative is generally accepted that the government licensed the sale of 40 DSEi Indonesian Army created, financed, Hawks (24 in 1993 and 16 in 1996) The two major UK suppliers to and ran paramilitary death squads and 50 Scorpion light tanks (worth Indonesia are BAE Systems, which which carried out the majority of the £100m). After coming to power in make the Hawk, and Alvis which has violence against civilians (though 1997, Labour honoured these deals supplied several types of armoured Indonesian Army and Police units despite introducing new export vehicle including the Scorpion tank. were also directly involved in criteria that stated the government There may be many other supplying violence).1 would ‘take into account respect for companies, but official secrecy Eventually, at the peak of this human rights and fundamental means we do not know. Both BAE violence, the UK supported an EU freedoms in the recipient country’.6 Systems and Alvis are exhibiting at arms embargo, though it lasted a From 1997 to the end of 2002, the DSEi. Indonesia received an official mere four months and was Labour government has issued a invitation for DSEi 1999, though not conveniently situated in a gap total of 377 arms export licences for for DSEi 2001. between Hawk deliveries. The Indonesia. According to the licences affected by the embargo government’s Annual Reports on 1 etan.org/news/2001a/04dunnrl.htm, were extended by four months. Two Strategic Exports Controls, the value accessed 15.8.03 2 www.unhchr.ch/huridocda/huridoca.nsf/ weeks after the embargo was lifted, of licences granted to Indonesia (Symbol)/A.54.726,+S.2000.59.En, accessed the UN-backed International increased from £2m in 2000 (29 15.8.03 Commission of Enquiry2 and the licences issued) to £15.5m in 2001 3 www.etan.org/action/issues/smh.htm, Indonesian National Human Rights (60 licences issued) to £41m in 2002 accessed 15.08.03 4 tapol.gn.apc.org/st020717.htm accessed Commission (KOMNAS HAM) both (184 licences issued).7 Items covered 17.8.03 reported that grave violations of by the 2002 licences include aircraft 5 tapol.gn.apc.org/st020131.htm, accessed human rights abuses had taken cannons; components for missile 15.8.03 place in 1999, and KOMNAS HAM launching equipment; components 6 Hansard 28.7.97 described them as crimes against for combat aircraft, combat 7 tapol.gn.apc.org/st030702.htm 8 Observer, ‘British-made tanks lined up 3 humanity. helicopters, and tanks; and against rebels in Indonesia’, 11.5.03 armoured all wheel drive vehicles. 9 Times, ‘British-made jets used in attack on Continued conflict Indonesian villages’, 26.5.03 Following East Timorese UK arms used in Aceh 10 Jakarta Post, ‘TNI deploys British tanks to Aceh’, 23.6.03 independence there was optimism UK-built Scorpion tanks8 and Hawk 11 Guardian, ‘Scorpions move in on rebels as 9 surrounding other Indonesian aircraft are in use in Aceh despite Indonesia reneges of weapons pledge to conflicts. But human rights abuses assurances by the Indonesian Britain’ continued unabated in West Papua4 military that UK-supplied equipment 12 www.tapol.gn.apc.org/st030702.htm and peace moves relating to Aceh, would not be used offensively or in accessed 17.8.03 tion as an anything-goes weapons bazaar where obtained documents that allegedly named Arsenal as a sup- Kalashnikov assault rifles, mortars, antitank mines, ammuni- plier of arms to Sierra Leone in breach of a UN embargo.15 tion, explosives and other items are available for a price – no Saferworld reports that, since 1998, the Bulgarian gov- matter who the buyers are or how they might use the dead- ernment has ‘repeatedly promised to tighten national con- ly wares.’13 trol on arms trading to bring them into line with model inter- Arsenal was one of the beneficiaries of these deals. national standards’.16 There appears to have been some Saferworld quotes a 2001 Sofia Novinar article that report- progress in terms of sales to Africa, but vast numbers of ed that Arsenal ‘sold arms for $7-8 million to Chad and small arms and light weapons continue to flow out of Angola’.14 And in 1998 the Sunday Times said it had Bulgaria. In 2000, a contract was reported to have been

12 agreed for 300,000 Kalashnikovs for India and the following Systems has a strong presence in the US, through BAE year Turkey received over 1,000 heavy machineguns from Systems North America, and sells more to the Pentagon the Arsenal factory.17 than it does to the UK MoD. Over the past couple of years the company has received a vast amount of media attention. Some has resulted from BAE Systems [UK] domestic practices: its poor project management relating to World ranking: 4 the Nimrod and Astute programmes; its aggressive sales Total military sales: $15bn posture towards the MoD; its boardroom machinations; and Military sales as % of total sales: 77% a dive in its share price. Other coverage has resulted from Employees: more than 100,00018 (approx. 43,000 in the UK)19 its plethora of overseas sales, many of them controversial. Military products include: fighter and trainer aircraft, warships, submarines, torpedoes, radar, tactical communications Subsidiaries and joint ventures systems and missiles. BAE Systems’ joint ventures and interests include: RO Defence (100% – see below), AMS (formerly Alenia Marconi BAE Systems (Headquarters), Farnborough, Hampshire Systems, 50%), missile-maker MBDA (37.5%), Eurofighter GU14 6YU GmbH (33%), Aerosystems International (50%), Airbus Tel: + 44 (0) 1252 373 232 (20%), Flagship Training (50%), Fleet Support Ltd (50%) and (Registered Office), 6 Carlton Gardens, London SW1Y 5AD STN Atlas (49%) although BAE Systems has recently agreed www.baesystems.com with Rheinmetall DeTec AG of Germany to split STN Atlas into two companies, Atlas Elektronik, which will be wholly owned by BAE Systems, and Rheinmetall Defence Background Electronics.20 BAE Systems holds a 35% state in Sweden’s BAE Systems is the result of the 1999 merger of British SAAB which produces the Gripen fighter. In August 2003, Aerospace and Marconi Electronic Systems. It has offices BAE purchased GKN’s 29% stake in Alvis plc for £73m. throughout Europe, Asia and North America, as well as in Australia and Africa. Less than 20% of its output is sold to the UK. A similar amount is sold to the Middle East but the real focus of BAE Systems’ activity is North America. BAE

Conflict

The World Health Organization Algeria, Angola, Burundi, Colombia, Organisation, is tasked with pro- estimates that around 191 million India, Indonesia, Israel, Kenya, actively pushing arms sales around people lost their lives because of Nepal, Nigeria, Pakistan, Peru, the world, including to an official list armed conflict in the 20th century.1 Philippines, Russia, Senegal, Sierra of 20 ‘UK Priority Markets’. While the But tragically war is not a thing of Leone, Sri Lanka, Turkey, Uganda government will not disclose the the past. The WHO also estimates and Zimbabwe. current list, the list for 2001/02 has that currently around 35 people are Fourteen of these countries were been released and included India killed every hour as a direct result of invited to DSEi in 2001 and two of and Turkey.3 In the past, it has been armed conflict. Harrowing as these the others were invited to DSEi in reported that India and Pakistan have figures are, there are other, perhaps 1999. been identified as ‘highly valuable less obvious costs, including the priority markets’.4 They have both enormous numbers of people forced UK export controls been officially invited to DSEi 2003. to flee their homes because of The UK government’s export criteria As one of the largest producers conflict. While some people argue specifically refer to ongoing conflict. and exporters of arms and military that war is inevitable and there is Criteria three and four state, equipment in the world, the UK has little that can be done to prevent it, respectively: to take a large measure of there is growing evidence of the z ‘The Government will not issue responsibility for fanning the flames direct connection between the licences for exports which would of conflict around the globe. DSEi is proliferation of weaponry through the provoke or prolong armed one of the UK government’s arms trade and the likelihood of conflicts or aggravate existing mechanisms for selling arms, but it disputes breaking out into armed tensions or conflicts in the is also an opportunity for companies conflict. Once conflict has started, country of final destination.’ from all over the world to ensure that the arms trade helps sustain it. z ‘The Government will not issue an countries in conflict and regions of Contrary to constant assurances export licence if there is a clear tension are not left wanting for arms. from the government, the UK risk that the intended recipient continues to sell arms and military would use the proposed export 1 World Health Organisation, ‘World Report on Violence and Health’, 2002 equipment to countries engaged in aggressively against another 2 CAAT, ‘Fanning the Flames’, January 2003 conflict. Earlier this year, CAAT country or to assert by force a 3 Letter from Lord Bach, MoD, 17.3.03 research2 showed that the UK has territorial claim’. 4 Hansard, Memorandum submitted by The exported arms and military These criteria appear to be British Defence Manufacturers Export equipment to 20 countries engaged irrelevant while a government Licensing Group to the Select Committee on International Development, 7 February 2000 in serious conflict since 1997: agency, the Defence Export Services

13 What it makes competition for the fighter trainer aircraft for the RAF, demanding instead that it just be given the contract. It had Aircraft already persuaded the government to drop its plan for a pri- Well known for its seemingly ubiquitous Hawk trainer and vate finance initiative contract.28 However, the Treasury was light combat jet, BAE Systems also produces the troubled pushing hard for an open competition and estimated that Nimrod maritime surveillance aircraft and is a partner in the this would save the tax-payer around £1 billion.29 Set against Cold War legacy Eurofighter project. It has a significant this, BAE Systems had announced that if it was not given stake in the US/Lockheed Martin Joint Strike Fighter pro- the contract by July 31st it would make 470 workers at its gramme, with work amounting to 10-15% of the total, worth Brough plant redundant.30 No one seemed to notice that £1 £25bn.21 3,000 JSFs are due to be built for the US and UK billion amounted to over £2 million for each of the much-dis- (the UK possibly ordering 60-land and 150-carrier-based cussed 470 jobs. On July 30th, the day before BAE models) and the manufacturers are anticipating selling a Systems’ deadline, the government gave the company a similar number around the world. £800m contract to supply the RAF with 20 Hawk 128 train- er jets with an option for a further 24 aircraft. Naval The precise extent to which potential exports influenced BAE Systems produces underwater weapons, warships the Hawk purchase will never be known, but there are plen- including frigates, destroyers, auxiliary vessels and sub- ty of indications that it was important. BAE Systems was marines (including the over-cost Astute class nuclear sub- reported as saying that if the government did not support marine) and, they hope, aircraft carriers. It is the prime con- the Hawk it would ‘ruin the company’s chances of selling tractor for the UK Navy’s Future Carrier project, which is due the aircraft abroad’,31 and Patricia Hewitt, the industry sec- to see two new carriers enter service in the mid 2010s. retary, highlighted the Hawk’s ‘significant export potential’ in her reflection on the decision.32 Missiles The company owns 37.5% of MBDA, the world’s second Exports largest missile manufacturer. MBDA has 32 missile pro- BAE Systems has export markets across the world. Its grammes underway and a further 23 in development22 (see Hawk jets alone have been sold to Brunei, Indonesia, EADS, page 17). Kenya, Kuwait, Malaysia, Oman, Saudi Arabia, South Africa, South Korea, UAE and Zimbabwe. In the past year there has Ballistic Missile Defense been angry reaction to the use of its Hawks in Aceh, to the BAE Systems is a member of the new UK Missile Defence sale of head-up displays for US-built F16s destined for Centre launched on July 18th 2003. The centre is a joint UK Israel, and to the marketing of arms to India in the midst of government and industry project that is intended to provide conflict over Kashmir. It has also been the subject of allega- an interface with the US Missile Defense Agency.23 BAE tions of bribery regarding deals with the Czech Republic, Systems had already signed up with Boeing in July 2002 India and South Africa, and of UN allegations of sanctions and Lockheed in June 2003 to work on Ballistic Missile busting to arm Zimbabwe. BAE Systems has denied both Defense, and its North American arm is working on THAAD bribery and sanctions-busting allegations. (a US BMD programme missile interceptor). Zimbabwe RO Defence British Aerospace supplied 12 Hawk jets to Zimbabwe in the RO Defence, formally Royal Ordnance, is a wholly-owned early 1980s. In May 2000 an arms embargo was imposed on subsidiary of BAE Systems which specialises in munitions Zimbabwe by the UK in protest at the violent treatment of and armaments. It currently employs 3,500 staff located in President Robert Mugabe’s opponents.33 This was followed the UK, USA, Germany and the Netherlands and has an by an EU arms embargo in February 2002. However, it has order book of nearly £1 billion.24 RO Defence’s products, been reported that this did not prevent Hawk spares and which are exported to almost 50 countries worldwide, other military equipment getting through to Mr Mugabe’s include high explosives, artillery and artillery ammunition, regime. A United Nations Security Council panel published small arms and medium calibre ammunition, mortars and a report in October 2002 that stated: multiple launch rocket systems.25 It also makes 105mm and ‘John Bredenkamp, who has a history of clandestine mil- 120mm Depleted Uranium-tipped shells.26 itary procurement, has an investment in Aviation Consultancy Services Company (ACS). The Panel has con- Playing the ‘Jobs’ card firmed, independently of Mr Bredenkamp, that this compa- Though it studiously dropped ‘British’ from its name in 1999, ny represents British Aerospace, Dornier of France and is majority foreign-owned, and is searching for a US part- Agusta of Italy in Africa. Far from being a passive investor in ner/buyer, BAE Systems still wraps itself in the Union Jack ACS as Tremalt representatives claimed, Mr Bredenkamp when bidding for MoD contracts. It is very willing to go to actively seeks business using high-level political contacts. the press and play its ‘Buy British’ or ‘jobs’ card, however In discussions with senior officials he has offered to mediate meaningless that is in an internationalised arms industry. sales of British Aerospace military equipment to the And it often succeeds. In January 2003 it won the MoD’s air- Democratic Republic of the Congo. Mr Bredenkamp’s rep- craft carrier competition despite not having the best design. resentatives claimed that his companies observed The cost of constructing the carriers was put at £2.8bn at European Union sanctions on Zimbabwe, but British the time, but a few short months later BAE Systems ‘told the Aerospace spare parts for [Zimbabwe Defence Forces] Ministry of Defence that it would cost up to £4bn to con- Hawk jets were supplied early in 2002 in breach of those struct the pair’.27 sanctions. Mr Bredenkamp also controls Raceview July 2003 provided another, even more spectacular, Enterprises, which supplies logistics to ZDF. The Panel has example of the level of BAE Systems’ influence (also see obtained copies of Raceview invoices to ZDF dated 6 July Company Influence, page 37) and marketing abilities. The 2001 for deliveries worth $3.5 million of camouflage cloth, company let it be known that it would not enter an open batteries, fuels and lubricating oil, boots and rations. It also

14 has copies of invoices for aircraft spares for the Air Force of Zimbabwe worth another $3 million.’ 34 Landmines South Africa In June 2003 the Guardian alleged that ‘BAE Systems paid The ‘Convention on the Prohibition of the Use, millions of pounds in secret commissions’ to win a South Stockpiling, Production and Transfer of Anti-Personnel African Hawk jet contract.35 Astonishingly, it reported that Mines and on Their Destruction’, or Ottawa Treaty, the UK government had confirmed the payment, but refused came into force on March 1st 1999. The UK was an to reveal the amount paid. The DTI did, however, say it was active supporter of the treaty and, along with 127 other ‘within acceptable limits’. (see Corruption, page 36) states, has ratified it. Unfortunately some of the world’s most prolific users of landmines, including China, Czech Republic Russia and the US, have not. The Treaty obliges In December 2001, the Czech cabinet selected Gripen signatory countries to destroy stockpiles within four International’s bid to supply 24 Gripen fighters in a £1bn years, to clear minefields within 10 years, to assist mine deal after rival bidders pulled out of the process. The victims and to report annually on progress. It also Guardian reported that it had seen documents that demon- prohibits them from manufacturing, trading or strated that the ‘US has accused Britain’s biggest weapons advertising landmines. company, BAE Systems, and its British government spon- Landmine Monitor estimates that there remain about sor of “corrupt practice” over the deal.36 The Czech 230 million anti-personnel mines in the arsenals of 94 Republic withdrew funding for Gripens’ purchase following countries, with most estimated to be held by China (110 the floods in summer 2002. million), Russia (60-70 million), United States (11.2 million), Ukraine (6.4 million), Pakistan (6 million), India India (4-5 million), and Belarus (4.5 million).1 The same report In July 2003 the Sunday Times reported details of a televi- identifies 90 countries that are affected by landmines sion interview given by Indian Defence Minister George and/or unexploded ordnance (UXO) and estimates that Fernandes. He was quoted as saying, ‘I am afraid that AJT there were new mine/UXO victims reported in 69 [Advanced Jet Trainer] may wait for another two or five years countries in 2001. 46 of these countries were at peace, because the Americans have said that British Aerospace ... not war. are bribing people, including the people in India.’37 The 1998 UK Landmines Act brought the Ottawa Treaty into UK law. It rules that any person involved in the production, sale, promotion or transfer of anti- Chemring [UK] personnel landmines should face up to 14 years in World ranking: outside the top 100 prison. The restrictions cover the activities of all Total military sales: £64m 38 companies on UK soil and should therefore cover arms Military sales as % of total sales: 66% 39 exhibitions, including DSEi. However, there have been Employees: 1,575 40 embarrassing lapses, including two at DSEi. Military products include: countermeasures and military pyrotechnics DSEi 1999 At DSEi 1999, an undercover journalist revealed that a Chemring Group plc, 1650 Parkway, Whitely, Fareham, Romanian state arms firm, Romtechnica, had Hampshire PO15 7AH promotional material for anti-personnel landmines on its Tel: + 44 (0) 1489 881 880 stand, and that he had been told the equipment could www.chemring.co.uk; www.pwdefence.com be supplied.2 Other undercover journalists were offered anti-personnel landmines by Pakistan Ordnance Factory a couple of months after having met company Background representatives at DSEi.3 The police investigated both Chemring Group dates back to 1905 with the incorporation cases but failed to bring any charges. of the British, Foreign and Colonial Automatic Light Controlling Company Ltd. In 1986 Chemring acquired Chemring Salisbury-based Pains Wessex Ltd and the Group now has A further embarrassment for UK authorities came as a operations in the UK, US and Australia. result of allegations by the BBC that the Overseas Sales Chemring’s military business includes countermeasures, Manager of a UK company, PW Defence (a subsidiary made by Chemring Countermeasures in the UK, Kilgore and of Chemring Group), had offered to supply anti- Alloy Services in the US, and Pains Wessex Australia; and personnel fragmentation mines to an undercover BBC military pyrotechnics, made by PW Defence in the UK and journalist in April 2002.4 Chemring denied the Pains Wessex Australia. 44% of sales are to the UK, 17% to allegations and stated that the product was no longer the US, 12% to Europe and 27% to the rest of the world.41 manufactured and had not been sold since 1997. Again, a police investigation followed the allegations and no Countermeasures charges were brought. In 2002, nearly half of Chemring’s turnover was from coun- termeasures42 – expendable decoys for air, land and sea. It 1 International Campaign to Ban Landmines, ‘Landmine Monitor Report claims that it is the largest supplier of infra-red and radio fre- 2002’, September 2002 2 Gideon Burrows, ‘The No-Nonsense Guide to the Arms Trade, Verso, 43 quency passive expendable decoys worldwide, with sales 2002 to the Pentagon forming an important source of revenue. 3 Gideon Burrows, 2002; Observer, ‘Whatever happened to Diana’s Alloy Services, in conjunction with Raytheon, is involved landmines legacy?’ 25.8.02 with the Comet pre-emptive decoy which has been demon- 4 www.bbc.co.uk/radio4/today/reports/archive/features/landmines.shtml, strated on the A-10 ‘Tankbuster’ and Lockheed Martin’s accessed 16.8.03

15 Development

Money spent on arms is wasted; it is Tanzania Prime Minister Tony Blair, Foreign fundamentally unproductive. Arms In 2001, the UK government granted Secretary, Jack Straw, and Defence do not promote education, health, an export licence for a £28m military Secretary, Geoff Hoon, were said to housing or improve the water-supply. air traffic control system to the have argued for the deal. Blair Two recent UK deals that stand out Tanzanian government. Tanzania has obviously having forgotten the as being tailor-made for companies eight military aircraft. Many papers commitment he made at the rather than people, are those to were highly critical, with several previous Labour Party Conference to South Africa and Tanzania. using cartoons (‘Fight poverty with a tackle poverty in Africa. BAE Systems weapons deal’, South Africa suggested Steve Bell in The UK export licensing In 1998, European companies Guardian) and running opinion The UK does have an export obtained contracts worth $4.8 billion pieces. Criticism of the proposed licensing criterion (Criterion Eight) from South Africa for advanced export had already come from the that states that account will be taken fighter and trainer aircraft, utility World Bank, which said that the of the ‘compatibility of arms exports helicopters, warships and system ‘is primarily a military system with the technical and economic submarines. South African and can provide limited support to capacity of the recipient country’, organisations concerned with civil air traffic control purposes. The with this information to be gathered development, the environment and purchase of additional equipment from bodies such as the World Bank human rights, as well as church would be required to render it useful and the IMF. Clearly, the adverse bodies, have opposed the deal. They for civil air traffic control’.1 A civilian information gathered concerning are concerned that it will severely air traffic control system, costing a Tanzania and South Africa did not undermine their country’s economic quarter of the price, would have met overcome BAE Systems’ lobbying and social development, and will Tanzania’s needs. However, the and the Prime Minister’s predilection further aggravate the poverty of system had already been built by to sell arms. most South Africans. Many live in BAE Systems on the Isle of Wight. shacks, whilst the provision of clean Chancellor Gordon Brown and DSEi water and electricity remains a International Development Secretary BAE Systems and other companies luxury for all but the elite. Perhaps Clare Short were against the deal, involved in the South Africa deal will most urgently, South Africa is facing which would add to Tanzania’s debt be exhibiting at DSEi, and both horrific problems as a result of burden and do nothing to help the Tanzania and South Africa have HIV/AIDs. (See page 34) half of its population lacking clean received invitations. water, or the one in four of its children who, because of poverty, 1 World Bank technical study, quoted in die before the age of five. However, Guardian, 21.12.01

C130 transport aircraft. Kilgore has commenced production stated that the fragmentation grenade combined with the of Lockheed Martin’s F/A-22 countermeasure decoy.44 trip-wire mechanism had not been sold since April 1997 and that it had removed the product from its PW Defence cata- logue in 1999.52 However the trip-wire mechanism and the Military Pyrotechnics grenade were listed as ‘in production’ in the 2001-2002 edi- PW Defence, based in Derby, evolved from the merger of tion of Jane’s Infantry Weapons. Landmine Action states the military division of Pains Wessex Ltd, Haley & Weller Ltd that, ‘at the very least PW Defence have been marketing and Schermuly Ltd, all of which are subsidiaries of anti-personnel landmines’.53 Chemring.45 PW Defence’s military pyrotechnics include flares, smoke flares, rockets, smoke grenades and incendi- Zimbabwe ary grenades.46 In 2002, military pyrotechnics accounted for In November 2001, following a police gas attack on 19% of Chemring’s turnover.47 University of Harare halls of residence, Amnesty On June 5th 2003 the MoD signed a ‘Partnering International examined canisters left lying at the scene. Agreement’ with PW Defence covering the procurement and They claimed that one canister, date-stamped June 1999, through-life management of a range of pyrotechnics.48 PW showed ‘markings that appear to be identical to those of Defence also supplies the canopy cutting charges for the Pains Wessex’.54 The company denied making the tear gas UK’s Hawk, Harrier, Jaguar and Tornado aircraft.49 in question or selling it to Zimbabwe.

Landmine allegations In May 2002 the BBC reported that, the previous month, a Denel [South Africa] BBC journalist posing as a member of a security firm in World ranking: 93 London had been offered five hundred illegal anti-personnel Total military sales: $277m landmines by PW Defence’s regional marketing manager.50 Military sales as % of total sales: 80% According to Landmine Action, the weapon offered was a Employees: 10,000 55 ‘high explosive fragmentation grenade fitted with a trip- Military products include: artillery, ammunition, missiles and wire... therefore it is an anti-personnel mine and banned helicopters under the Landmines Act 1998.’51 In response, Chemring

16 Denel (PLY) Ltd, Denel building, Jochemus Street, Erasmuskloof, Pretoria Human Rights www.denel.co.za

Israel carries out extra-judicial executions, collective Background punishment and torture in its occupation of the West Denel was formed in 1992 with the South African govern- Bank and Gaza; Turkey has a record of brutal treatment ment as the sole shareholder. In the late 1990’s the govern- of the Kurdish population within its own borders and in ment began a restructuring programme in which Denel was Northern Iraq; Saudi Arabia’s human rights abuses have scheduled for at least partial privatisation, and in 2000 long been the subject of concern but have worsened named BAE Systems as its preferred strategic partner for since September 11th; the US has led the way in Denel. BAE Systems was to take a 30% equity stake, but jettisoning human rights in the name of counter- the deal fell through unexpectedly in 2003. terrorism, not least, but not only, at Guantanamo Bay; The company is organised into Aerospace, Ordnance Colombian paramilitaries continue to receive the and Commercial businesses, with a number of subsidiaries support of the army in their attacks on opposition in each. Aerospace subsidiaries include Eloptro and supporters; China executed at least 1,060 people in Kentron, and Ordnance subsidiaries include LIW, Naschem, 2002, many without a fair trial;1 and Russia continues its PMP, Somchem, Swartklip Products, and Vector. All of these widespread abuses in Chechnya. are exhibiting at DSEi 2003 And all these countries have been invited to DSEi 2003. What it makes As well as the physical ‘benefit’ of military equipment Denel manufactures a wide variety of military products which could be used directly in repression, the including artillery and artillery ordnance, missiles, avionics, willingness of countries to supply arms gives moral the Rooivalk attack helicopter, unmanned aerial vehicles, support and credibility to the recipient. It undermines infantry weapons and ammunition, thermal imaging prod- local attempts at controlling the military, moderating the ucts and communication and control systems. excesses of autocratic regimes, or finding non- militaristic solutions to problems. In addition to the Exports countries mentioned above being invited to DSEi, they Over 50% of Denel’s sales are now from exports.56 It defines all received UK arms in 2002. its markets as: Europe, North America, South America, Middle East, Asian Pacific and Africa (including South 1 Amnesty International Report 2003 Africa).57 Its ‘leading ordnance technologies... find ready (web.amnesty.org/report2003/index-eng) export markets in the North Atlantic Treaty Organisation (NATO) and elsewhere.’58 Its deals include a 1998 agreement with the Algerian the Netherlands. EADS shares are mainly controlled by the government to supply unmanned surveillance planes worth German car builder DaimlerChrysler, the French media US $25m, at a time when the Algerian government was group Lagardère and the French state.62 It has more than 70 involved in violent conflict with Islamist opponents.59 It is facilities in France, Germany, Spain. While Airbus is its dom- presently trying to sell a new variant of its G5 towed how- inant project it has a wide range of military interests and is itzer to meet the Indian Army’s requirement.60 seeking to increase the proportion of its turnover that is mil- itary-related.

European Aeronautic Defence EADS in the UK and Space Company (EADS) EADS has UK locations in Broughton (Airbus), Coventry, Filton (Airbus), Milton Keynes, Newport, Newcastle, [Netherlands] Portsmouth (Astrium) and Poynton (Astrium), as well as MBDA locations in Bristol, London, Lostock and Stevenage. World ranking: 8 Total military sales: $6.3bn EADS and MBDA in London: Military sales as % of total sales: 20% MBDA (Headquarters), 11 Strand, London WC2N 5RJ Employees: 104,000 61 Tel.: +44 207 451 6000; www.mbda.co.uk Military products include: fighter and transport aircraft, helicopters, missiles What it makes EADS is a partner in the Eurofighter programme, manufac- Head Offices tures military transport aircraft, owns Eurocopter which pro- EADS Deutschland GmbH, P.O. Box 801109, 81663 Munich, duces the Tiger attack helicopter as well as military utility Germany helicopters, is a co-owner of MBDA, the world’s second EADS France S.A.S., 37, boulevard de Montmorency, 75781 largest missile company, has military space programmes Paris, Cedex 16, France through Astrium and produces nuclear missiles. www.eads.net Missiles EADS brings together the products of missile manufacturers Background MBDA and EADS/LFK-Lenkflugkörpersysteme, resulting in EADS was established on July 10th 2000 from the link-up of over 40 guided missile programmes. EADS also develops Deutsche Aerospace Agentur (DASA) from Germany, and manufactures, both alone and in joint ventures, missile Aerospatiale Matra from France, and Constructionnes subsystems such as warheads, guidance systems and Aeronauticas S.A. (CASA) from Spain, and is registered in propulsion units.63

17 Depleted Uranium

What is it? GmbH of Germany, which deploys lead to symptoms such as fatigue, Depleted uranium (DU) – or an M829 Armour-Piercing shell shortness of breath, lymphatic Uranium238 – is a toxic heavy metal. featuring a DU penetrator.9 There are problems, bronchial complaints, It results from the enriching of two types of M829 DU anti-tank weight loss and an unsteady gait.15 natural uranium for use in nuclear ammunition made by General Though few studies have been reactors. Natural uranium consists Dynamics Ordnance and Tactical carried out on humans, studies on primarily of a mixture of two Systems; the M829A1 ‘silver bullet’, rats indicate that the short-term isotopes of uranium, fissile which is compatible with all standard effects of internal exposure to DU Uranium235 (0.7%) and Uranium238 NATO smooth bore 120mm tank may include kidney damage while (99.3%). Nuclear reactors require cannons; the newer M829A2.10 long-term effects may include Uranium235 to produce energy and, cancer, central nervous system as such, natural uranium has to be The use of DU in Iraq problems, immune system disorders enriched to obtain Uranium235 by No conventions apply specifically to and reproduction effects.16 removing a large part of the the use of DU shells so their use is Uranium238.1 covered by the same provisions of DSEi DU is used in weaponry because international law that apply to all BAE Systems, the owner of RO of its high density and pyrophoric weapons.11 The total number of DU Defence, will be exhibiting at DSEi, qualities, causing it to burn shells fired by US and UK forces in as will General Dynamics. spontaneously on impact. These Iraq in 2003 is not known. What we properties make DU ideal for use in do know is that, according to the UK 1 www.globalsecurity.org/military/systems/ armour-piercing anti-tank weapons. MoD, Challenger tanks ‘expended’ munitions/du.htm, accessed 1.8.03 2 Communication with Dan Fahey, According to one source, amounts 1.9 tonnes of DU during the Iraq Communications Director at Greenbelt of DU used in bullets, shells and 2003 conflict, approximately twice Alliance, 13.8.03 bombs vary from 85 grammes to 4.7 as much as in the 1990–1991 Gulf 3 Guardian, ‘Uranium hazard prompts cancer kilograms,2 although there is war.12 One study estimates that ‘100 check on troops’, 25.4.03 speculation that some missiles may to 200 metric tons [of DU] was shot 4 Hansard, 15.3.01, Col. 675W 5 www.globalsecurity.org/military/systems/ 3 contain larger quantities. DU is also at tanks, trucks, buildings and aircraft/systems/gau-8.htm, accessed 6.8.03 used in tank armour and for people in largely densely populated 6 www.globalsecurity.org/military/systems/ radiation shielding, ballast in missiles areas’ by US and UK forces during munitions/pgu-14.htm, accessed 6.8.03 and aircraft counterweights. this year’s Iraq conflict.13 (the study’s 7 www.atk.com/productsPrecision/ descriptions/products/medium-cal- author has since revised the ammo/gau-8.htm, accessed 6.8.03 Equipment using DU estimate to between 100 and 150 8 www.army-technology.com/projects/abrams/, The Challenger 2 tank’s 120mm DU- tons.) The use of DU munitions in accessed 6.8.03 tipped (CHARM 3) shell, made by densely populated areas throughout 9 www.globalsecurity.org/military/systems/ RO Defence, contains DU from Iraq has put large numbers of Iraqi ground/m1a1.htm, accessed 1.8.03 10 www.gd-ots.com/TankOpe.html, accessed Starmet Corporation procured from civilians, as well as UK and US 6.8.03 the US Department of Energy.4 The troops, at risk of exposure to DU, 11 Hansard, 8.4.03, Col. 139W A10 Thunderbolt II ‘Tankbuster’ and has the potential to contaminate 12 www.mod.uk/issues/depleted_uranium/ aircraft carries a GAU-8/A Avenger land, water and livestock. middle_east_2003.htm, accessed 1.8.03 13 Dan Fahey, ‘The Use of Depleted Uranium in 30mm seven-barrel Gatling gun the 2003 Iraq War’, 24.6.2003, made by Martin Marrietta Armament Health effects (http://www.antenna.nl/wise/uranium/pdf/duiq Systems,5 now part of General DU is a toxic heavy metal with a 03.pdf) Dynamics. The Avenger fires the DU- radioactive half-life of four and a half 14 Frida Berrigan, ‘Weapons of Mass Deception’, 20.6.03 (inthesetimes.com) tipped PGU-14/B Armour Piercing billion years.14 While it is not as 15 Frida Berrigan, ‘Weapons of Mass 6 Incendiary made by the Minnesota- radioactive as Uranium235, it is an Deception’, 20.6.03 (inthesetimes.com) based Alliant Techsystems.7 alpha radiation emitter, which, if 16 Dan Fahey, ‘Science or Science Fiction? The US Army’s Abrams tank, inhaled or ingested in dust or Facts, Myths & Propaganda in the Debate made by General Dynamics Land particle form, can cause damage to over Uranium Weapons’, 12.3.03 Systems, incorporates steel encased human health. According to a 1998 DU armour.8 The M1A1 Abrams tank report by the US Agency for Toxic has a M256 120mm smoothbore Substances and Disease Registry, cannon, developed by Rheinmetall the inhalation of DU particles can

MBDA, owned by EADS, BAE Systems (37.5% each) and a co-operation protocol with EADS and Russia’s Sukhoi Finmeccanica of Italy (25%)64 is the world’s second largest Corporation and sales agency Rosoboronexport.68 guided missile manufacturer (after Raytheon).65 In 2002, MBDA’s main missile programmes are: airborne (air-to-air MBDA had 10,000 employees, sales of 2bn Euros, an order and air-to-ground) and surface-to-air. Air-to-air missiles book of more than 13bn Euros and 70 customers world- include Meteor which has been selected to arm Eurofighter, wide.66 It has 32 missile programmes in production and a Rafale and Gripen fighter aircraft. MBDA supplies the RAF further 23 in development.67 MBDA is working in coopera- with the ALARM air-to-ground tactical anti-radar missile, 45 tion with India’s Bharat Dynamics and in June 2003 signed of which were used in Iraq this year.69 MBDA also developed Storm Shadow, a conventionally armed cruise missile

18 deployed on RAF Tornado for the first time in March 2003 the P90 submachine gun.75 Herstal also supplies machine against Iraq. Surface-to-air missile systems include Rapier, guns, mounts, pods and rocket launchers to equip helicop- Gill/Spike, ATM, Gepard, Mistral 2 and Milan. ters and aircraft.76

Nuclear missiles Exports and licensed production EADS Launch Vehicles, and its predecessors are reported to FN Herstal’s products are used by the Armed Forces of have been responsible for the design and production of more than 100 countries.77 Its FN FAL automatic rifle is pro- every French ballistic missile since 1960. This includes a duced under licence in ten countries including Brazil, Israel, December 2000 contract with the French government for India, Mexico, South Africa and Venezuela.78 It has also built the new generation of sea-based missiles, the M-51, which an ammunition factory in Eldoret, about 300 kilometres will be equipped with a nuclear warhead. The other compo- north east of the Kenyan capital Nairobi. The factory pro- nent of Frances nuclear force is missile for strike aircraft. In duces 20 million 7.62 NATO-standard rounds of ammunition December 2001 Aerospatiale Matra Missiles (a subsidiary of a year.79 EADS) was contracted for the initial development and pur- In 2002, FN Herstal received Belgium government chase of such medium-range nuclear missiles.70 approval to export 5,500 Minimi machine guns to Nepal.80 Despite a public outcry and subsequent delay to the deal, Ballistic Missile Defense delivery began in December 2002.81 In addition to being involved in nuclear deterrence, EADS, like many other nuclear weapons companies, is involved in the contradictory strategy of a missile ‘shield’. EADS has General Dynamics [US] been involved in a NATO feasibility study into ‘Theatre World ranking: 6 Missile Defense’, is part of the Medium Extended Air Total military sales: $9.8bn Defense System (MEADS) programme, and in 2002 it Military sales as % of total sales: 71%: announced that it was linking with Boeing to work on Employees: 64,60082 (900 in the UK)83 Ballistic Missile Defense. ‘We believe ballistic defence to be Military products include: nuclear submarines, warships, an important focus in the shifting defence environment and armoured vehicles, ammunition key to ensuring peace in a free world,’ said EADS joint chief executives Phillipe Camus and Rainer Hertrich.71 General Dynamics, 3190 Fairview Park Drive, Falls Church; Virginia 22042-4523 Exports Tel: 00 1 703 876 3000 EADS has so far had little success in its search for www.generaldynamics.com Eurofighter customers, but other programmes have seen more impressive results. It has sold Cougar helicopters to Brazil, Super Pumas to Indonesia, Exocet missiles to Oman Background and Qatar, anti-tank missiles to Turkey and Mistral missiles General Dynamics was established in 1952. It includes to South Korea. It has sold hundreds of military transport Electric Boat, which built the first nuclear-powered subma- aircraft to more than 89 operators in 38 countries including rine, USS Nautilus. In 1982, it added its first Combat Argentina, Chile, Ecuador, Indonesia, South Korea, Oman, Systems unit, Land Systems, which makes armoured vehi- South Africa, Turkey, Thailand; Poland, The United Arab cles and in 2003, it increased this area of work with the Emirates.72 acquisition of the Canadian GM Defense. In 2002, General Dynamics registered a 25% growth in military business. The company is headquartered in Virginia, US, and employs FN Herstal SA [Belgium] people in the US, Canada, Mexico and the UK.84 World ranking: outside the top 100 Employees: 1,300 73 General Dynamics in the UK Military products include: small arms and light weapons, General Dynamics UK Ltd, headquartered in South Wales, ammunition employs 900 people.85 It professes to be a world leader in the supply of advanced electronics to military industry and FN Herstal, SA, Voie de Liège 33, B-4040 Herstal, Belgium is one of largest avionics suppliers to the Eurofighter Tel: + 32 4 240 81 11 Typhoon programme.86 In 2001 General Dynamics UK Ltd www.fnherstal.com was awarded the £1.7bn Bowman communications pro- gramme by the UK MoD. On June 26th 2003, it received a related contract worth more than £25m from the MoD for Background the provision of ground-to-air data connections with the FN Herstal SA is part of the Herstal Group, headquartered in British Army Apache helicopters. Liège, Belgium. The Group has offices in nine other European countries, North America and Asia.74 The Herstal General Dynamics UK Ltd (Headquarters), Bryn Brithdir, Group produces weapons under the brand names FN Units 3&4, Oakdale Business Park, Oakdale, South Wales Herstal, Browning and Winchester. NP12 4AA; Tel: + 44 (0) 1495 236 300; www.generaldynamics.uk.com What it makes FN Herstal designs and manufactures firearms and ammu- General Dynamics UK Ltd (London office), 11-12 nition for the military and law enforcement agencies, includ- Buckingham Gate, London SW1E 6LB; Tel: + 44 (0) 20 ing pistols, rifles and submachine guns. Its products include 7932 3400 the NATO-standard M16A2 assault rifle (also produced by Colt Manufacturing); the M249 Minimi machine gun; the M240 armour machine gun; the FN FAL automatic rifle; and

19 What it makes Combat Systems General Dynamics designs, manufactures and supports Marine Systems land and amphibious armoured vehicles, including tanks General Dynamics designs and builds nuclear-powered and armoured personnel carriers. The company’s Abrams submarines, surface combatants, auxiliary ships and large tank, currently in service with the US Army, was deployed to commercial vessels. It is the leading supplier of combat ves- Iraq in 1991 and 2003. It also makes suspensions, engines, sels to the US Navy. Electric Boat, located in Connecticut, transmissions, guns and ammunition handling systems and built and supports the US Navy’s fleet of Ohio class nuclear- ordnance. powered ballistic missile submarines. It is responsible for manufacturing Los Angeles and Seawolf attack subs and General Dynamics and depleted uranium shares construction of the first four Virginia class sub- General Dynamics Land Systems’ Abrams tank features marines with Northrop Grumman Newport News. depleted uranium armour and deploys a 120mm shell which contains a DU penetrator. General Dynamics Ordnance and Information and Technology Tactical Systems make two types of DU-tipped anti-tank An expanding business area for General Dynamics, special- ammunition (see Depleted Uranium, page 18). The compa- ising in command, control, communications, computing, ny is also responsible for the ‘Avenger’ 30mm Gatling gun intelligence, surveillance and reconnaissance (C4ISR) solu- on the A10 ‘Tank-buster’ aircraft. Martin Marrietta tions. Armament Systems originally manufactured the ‘Avenger’ but in 1994 Martin Marietta merged with Lockheed Martin and two years later General Dynamics acquired Lockheed Martin Defense Systems (combat vehicles) and Armament

Small arms

The real weapons of mass companies producing weapons in 98 Africa’s Denel; Pakistan Ordnance destruction countries.5 Factory; and Austria’s Steyr Small arms, such as assault rifles, The table below shows the Mannlicher. BAE Systems subsidiary machine guns, submachine guns world’s five largest producers of RO Defence makes ammunition as and pistols are causing devastation different categories of small arms. does Giat of France. in many parts of the world. There are Western European companies an estimated 639 million small arms feature strongly, including Heckler & 1 www.smallarmssurvey.org/Yearbook/ worldwide1 and they kill over half a Koch of Germany and FN Herstal of SAS%20press%20release%202003.pdf, accessed 22.08.03 2 million people every year. The effect Belgium. Much of these companies’ 2 Small Arms Survey 2001, Oxford University on civilians is perhaps most production is carried out under Press, 2001 disturbing, with non-combatants licence in other countries, produced 3 Klare Michael, ‘The Kalashnikov Age’, Bulletin accounting for between 30% and for the armed forces of that country of Atomic Scientist, 1999, vol.55, No.1, 90% of conflict-related deaths. and also for export (see Heckler & pp.18-22 cited in www.bicc.de/weapons/gtz_studien/small_ar Small arms can greatly Koch and FN Herstal sections, ms.pdf, accessed 8.08.03 exacerbate or even create political pages 21 and 19 respectively). 4 Small Arms Survey 2001, Oxford University instability. Charles Taylor, the former Press, 2001 leader of Liberia, triggered a civil war DSEi 5 www.smallarmssurvey.org/Yearbook/ yb2003_en_presskit_ch1.pdf, accessed costing 200,000 lives using a group The table indicates in bold the 22.08.03 of 150 combatants armed with AK- companies that will be at DSEi 2003. 6 www.smallarmssurvey.org/Yearbook/ 47s.3 But the tragedy does not stop However, there will be many other yb2003_en_presskit_ch1.pdf, accessed even when war ends. Once weapons small arms producers exhibiting 21.08.03 have flooded a conflict zone, they including: Arsenal Co. and Arcus Co. remain and undermine efforts to from Bulgaria; Turkey’s MKEK; South return to normality. The Small Arms Survey reports that ‘civilian death rates are known to remain constant MILITARY SIDE RIFLES SUB MACHINE MACHINE SMALL ARMS ARMS GUNS GUNS AMMUNITION or even rise in post conflict situations’4 as insecurity leads to a Heckler & Koch Heckler & Koch Heckler & Koch Heckler & Koch Giat (France) (UK/Germany) (UK/Germany) (UK/Germany) (UK/Germany) vicious circle of higher demand for FN Herstal FN Herstal Israel Military FN Herstal FN Herstal small arms. (Belgium) (Belgium) Industries (Belgium) (Belgium) Small arms suppliers Smith and Norinco (China) Norinco (China) Norinco (China) Nammo Wesson (US) (Finland/Sweden/ Many of the small arms and light Norway) weapons in circulation come from Central and Eastern Europe, Colt (US) Colt (US) KBP (Russia) Saco Defense Winchester Olin (US) (US/ Belgium) particularly since the end of the Cold War. However, small arms Berrata (Italy) Izhmash (Russia) Izhmash (Russia) Israel Military Sellior and Bellot Industries (Czech Republic) proliferation now has a much wider geographical base with 1,134 Source: Small Arms Survey 2003 6

20 Systems for $450m.87 The Avenger has a cyclic rate of 3,900 also has a 32% share of the NH-90 helicopter programme, rounds per minute and can fire DU-tipped PGU-14/B partnering Eurocopter and Fokker. Armour Piercing Incendiaries. 88 AgustaWestland Exports AgustaWestland has delivered over 7,000 helicopters to GKN [UK] more than 80 countries.98 400 Lynx helicopters have been World ranking: 18 sold to the armed forces of 11 countries, with the latest Lynx Total military sales: $2.1bn variant, the Super Lynx 300, having been purchased by Military sales as % of total sales: 30% Oman, Thailand and South Africa. Though no longer in pro- Employees: 48,60089 (10,900 in the UK)90 duction by Westland, the Sea King helicopter has been Military products include: helicopters, aircraft components exported to Australia, Egypt, Germany, India, Norway, Pakistan and Qatar, and the Wasp has been sold to GKN plc, PO Box 55, Redditch, Worcestershire B98 OTL Indonesia and New Zealand. The AB412 military utility heli- Tel: + 44 (0) 1527 517715 copter, one of a long line of helicopters produced by Agusta London Office, 7 Cleveland Row, London SW1A 1DB under licence from Bell, is in service in Bahrain, Ghana, Italy, Tel: + 44 (0) 207 930 2424 Lesotho, Sweden, UAE, Uganda and Zimbabwe. www.gknplc.com; www.agustawestland.com In early 2002 AgustaWestland signed a deal with Denel of South Africa for the licensed production of the A109 heli- copter. Denel will be allowed to market and sell the A109 to Background specified markets in Africa, South East Asia and the Middle GKN is ‘a global engineering company’ with operations in East.99 more than 30 countries. Its activities are divided into Automotive and Aerospace businesses. The Aerospace business is comprised of the helicopter manufacturer Heckler & Koch [Germany] AgustaWestland, a joint venture with Finmeccanica of Italy, World ranking: outside the top 100 and Aerospace Services, a designer and manufacturer of Total military sales: Euros130m100 various propulsion systems such as fighter ducts and tur- Employees: 700101 bofan cases.91 In 1998, GKN sold its armoured vehicle divi- Military related products: small arms sion to Alvis Vehicles, retaining a 29.9% stake in Alvis plc and a seat on the board. On August 22nd 2003, GKN sold Heckler & Koch GmbH; P.O. Box 1329; 78722 Oberndorf; its stake in Alvis plc to BAE Systems for £73m in cash. Germany Some 80% of the revenues of Aerospace Services and Tel: + 49 7423 79 2305 AgustaWestland are military-related’.92 As the GKN 2002 www.heckler-koch.de Annual Report states, ‘this focus on defence is a significant strength, particularly during the current downturn in civil aerospace.’ Background In its own words, Heckler & Koch is ‘the global leader for Aerospace Services technologically advanced small arms.’ It is a German com- Aerospace Services supplies airframe, engine and other pany that was taken over by Royal Ordnance (now RO components to manufacturers including Boeing, Airbus, Defence, a subsidiary of BAE Systems) in 1991 but, in Sikorsky, Pratt & Whitney, Rolls-Royce and Lockheed December 2002, was sold to Heckler & Koch Beteiligungs Martin. It is a supplier for aircraft including the Joint Strike GmbH, a German registered company established for the Fighter, Eurofighter, SAAB Gripen, F/A-22 Raptor and F/A- purpose of its acquisition. The company has its headquar- 18E/F Super Hornet fighters; C17 Globemaster 111 and ters in Oberndorf, Germany, where 630 of its 700 employees C130J Hercules transporters; and the Comanche helicop- are based. Other offices are located in Sterling Virginia is the ter.93 USA; Switzerland; and Nottingham in the UK.

AgustaWestland H&K in the UK In 2000, GKN signed an agreement with Finmeccanica SpA Heckler & Koch (GB) NSAF Limited, PO Box 7151, to merge the two companies’ helicopter divisions in a 50:50 Nottingham; Tel: +44 (0) 115 9248723 joint venture. The resulting entity, AgustaWestland, operates out of Yeovil in the UK (GKN Westland Helicopters) and What it makes Cascina Costa in Italy (Agusta).94 Westland brought to the Heckler & Koch produces pistols, rifles (including the G3), partnership Lynx helicopters and a contract for the produc- machine guns, sub-machine guns (including the MP5), tion of 67 WAH-64 Apache attack helicopters for the UK grenade launchers and grenade machine guns. The 2002 armed forces (produced under licence from Boeing). Agusta Small Arms Survey states that it is one of the world’s largest brought with it utility and attack helicopters and a relation- producers of small arms, with its weapons in use in 90 ship with US Bell helicopters. GKN claims that, ‘on the basis countries. Over seven million G3 rifles alone have been pro- of reported revenues, AgustaWestland is the world’s No.1 duced and are in service in 60 countries.102 helicopter manufacturer.’95 At the heart of the joint venture is the EH101 medium-lift Licensed production military helicopter, in service in Canada, Italy, Japan and the Much of the manufacturing of Heckler & Koch weapons is UK.96 In July 2002, AgustaWestland and Lockheed Martin carried out under licensed production agreements, either for announced that they had signed a ten-year definitive agree- the armed forces of the producing country or for export. ment to jointly market, produce and support a US version of Such agreements have been made with a number of EU the EH101 for three ‘key markets’, estimated to represent a countries and also Burma (now Myanmar), Iran, Mexico, requirement of 200 aircraft over ten years.97 AgustaWestland Saudi Arabia, Pakistan, Turkey and Thailand. Heckler &

21 INSYS [UK] Democratic Republic of Congo World ranking: outside the top 100 Total military sales: £176m 105 The conflict Employees: 857106 In 1997 the dictator Mobutu, after a ruinous reign of Military products include: weapon and communication over thirty years, was deposed by opposition forces systems with backing from Rwanda, Uganda and Angola. Laurent Kabila was installed as President but there was INSYS Ltd, Reddings Wood, Ampthill, Bedfordshire MK45 2HD no happy outcome. In the following year Kabila Tel: + 44 (0) 1525 841 000 quarrelled with his Rwandan and Ugandan allies, and www.insys-ltd.co.uk the result was a bloody conflict which has taken an estimated four million lives. By ordinary reckoning this is one of the worst disasters of recent history. Background With the backing of Angola, Zimbabwe and to a INSYS is the new incarnation of Hunting Engineering Ltd fol- lesser extent Namibia, Kabila maintained himself in lowing a £42.3m management buy-out from Hunting plc in Kinshasa and the north-west, but most of the east 2001 (jointly funded by senior management and ABN came under the control of Rwanda and Uganda. In the AMBRO Bank). INSYS has three locations in the UK: north-east there has been confusion bordering on total Manufacturing facilities are located at the Ampthill site. The anarchy. At one point Ugandan and Rwandan soldiers facilities in Pershore, Worchester, and Dstl Porton Down, fought one another, and both countries have patronised near Salisbury, are test facilities. INSYS also has a joint ven- and armed local ‘rebel’ factions. Rwanda, Uganda and ture with Giat called Euro-Shelter, which is located in Angola had genuine security reasons for intervention, as Rennes, France. the Congo conflicts spilled across their borders, but the underlying source of the war is the country’s great What it makes wealth of natural resources. These have been INSYS’s ‘vision’ is ‘to be a preferred contractor to the UK unashamedly looted by Zimbabwe and Uganda - to the Ministry of Defence and partner of choice to the global personal benefit of leading political and military figures - defence industry.’107 Its main business areas are: as well as by local warlords. Communications and Information Systems, Battlespace Engagement (which ‘offers a warhead design, development UK Hawks and test capability’ which ‘provides our customers with an The arms used in the conflict have come from a variety unrivalled service.’108), Battlefield Support and of sources but do not include significant contributions Manufacturing. from the UK, with the exception of Hawk aircraft. In Hunting Engineering manufactured the BL755 cluster early 2000 the Zimbabwe government sought spares for weapon from the 1960s to mid-1980s and now INSYS is its Hawks, which were playing a major role in its Congo contracted by the Royal Air Force to test the safety and ser- campaign. Licences were approved in February of that viceability of existing stocks of cluster weapons.109 It is year, but a few months later the UK announced an arms unclear whether this includes supplying components for the embargo. Of the seven licences granted, five were weapon.110 Each BL755 comprises a main dispenser body returned unused, but most of the goods covered by one and 147 submunitions with fragmenting warheads.111 The licence and around 20% of another had been exported. refurbished RBL755 is equipped with a radar proximity sen- sor for deployment from medium and high altitudes. The DSEi failure rate of the submunitions is the subject of debate with Even though the foreign powers in the DRC were the MoD reporting a rate of 6%.112 It has been reported that engaged in a disastrous war and were apparently not the MoD has extended the use of BL755 – used in buyers of significant amounts of UK weaponry, several Yugoslavia and Iraq (1991 and 2003) – until 2006.113 of them still received invitations to DSEi during the INSYS has received recent contracts from MBDA and conflict. Angola, Namibia and Zimbabwe were all invited Celerg (a French rocket motor manufacturer) for Aster 15 to the 1999 event and Uganda and Angola received and Aster 30 missile launchers,114 and from the Defence invitations to DSEi 2001. Procurement Agency to design, build and test a system demonstrator of a rocket artillery system for the UK Army.115 It is involved in the Son of Star Wars project as part of a Koch have stated that the agreements with Burma and Iran ‘foundation group’ of five UK firms in the MoD-led Missile have lapsed.103 Defence Centre set up in July 2003.116 Licensed production has two main advantages for the licensee company and its country. Firstly, in-country manu- facture reduces the dependence on weapons imports, pro- Israel Military Industries [Israel] viding a cushion against arms embargoes. Secondly, it can World ranking: 73 provide export earnings, possibly including sales to coun- Total military sales: $410m tries and situations where it might be difficult or embarrass- Military sales as % of total sales: 100% ing for the country of the licensor to sell. This has obvious Employees: 4,100 potential for undermining export controls. If licensed pro- Military products include: small arms, ammunition, missiles, duction agreements do not contain production and export tank upgrades limits they blatantly undermine export controls. If they do provide limits then, as one commentator has stated, ‘they Israel Military Industries, 64 Bialik Boulevard, PO Box 1044 or are being violated with apparent impunity’.104 6604, Ramat Hasharon, 47100, Israel Tel: + 972 3 548 5617/9

22 Cluster bombs

A cluster bomb, or munition, carries UK: The MoD has acknowledged the Raytheon. INSYS is contracted by a number of individual bomblets, use of two types of cluster munition. the MoD to support the Royal Air known as submunitions, which are It stated that, as of May 28th, 66 Force’s arsenal of RBL755s (INSYS’s supposed to explode on or near RBL755 cluster bombs had been former incarnation, Hunting their target. They can be launched dropped on targets in Iraq.6 Each of Engineering, manufactured the by both aircraft and ground forces. A these bombs contains 147 BL755). IMI is reported to be the high proportion of cluster bomb bomblets, with a government- manufacturer of the L20 Extended submunitions fail to explode on reported failure rate of 6%.7 Also, the Range Cluster Shell used by the impact and remain dangerous for Royal Artillery fired 2,098 L20 Royal Artillery. Raytheon is the prime years. The actual failure rates are a Extended Range Cluster Shells contractor for the Tomahawk cruise matter of debate. While official around Basra.8 Each L20 shell missile and the JSOW AGM-154, military estimates place them at 6% contains 49 submunitions.9 both of which deliver BLU/97B or less, Landmine Action reports that Estimates by a UK MP indicate that submunitions. the failure rate of NATO cluster between 2,000 and 17,000 submunitions used in Kosovo in unexploded UK-delivered 1 Richard Lloyd, ‘No way to win the peace’, 1999 was between 7 and 11%, and submunitions remain on the ground New Scientist, 12.4.03 2 Air Marshall Sir Timothy Garden & General Sir 10 in 1991 up to 40% of cluster in Iraq. David Ramsbotham, ‘Dangers of cluster submunitions used in Iraq and US: The Pentagon has admitted bombs in Iraq’, Times, 9.8.03 Kuwait failed to explode.1 The using nearly 1,500 air-dropped 3 Richard Lloyd, ‘No way to win the peace’, submunitions are colourful and cluster munitions during the Iraq war New Scientist, 12.4.03 about the size of a soft-drinks can, but has not revealed information 4 Landmine Action, ‘Explosive remnants of war: a global survey’, 2003 11 making them particularly attractive about ground-launched weapons. 5 www.landmineaction.org/news215.asp, to children. The US Air Force dropped 818 CBU- accessed 12.8.03 103s Combined Effects Munitions 6 Hansard, 5.6.03, Col. 507W A long term problem fitted with the Wind Corrected 7 Hansard, 16.6.03, Col. 55W 8 Hansard, 16.6.03, Col. 55W 12 Unicef has reported that more than a Munition Dispenser (WCMD) and 88 9 Guardian, ‘British use of cluster bombs thousand children have been injured WCMD-equipped BBU-105 Sensor condemned’, 4.4.03 by cluster and other unexploded Fuzed Weapons in Iraq.13 Each 10 Guardian, ‘Up to 17,000 unexploded bombs munitions since the end of the 2003 WCMD is reported to carry 202 left in war zone, MP warns’, 4.7.03 11 Guardian, ‘Britain and US accused over conflict in Iraq.2 In the two years BLU/97B submunitions.14 On April cluster bombs’, 5.5.03 after the 1991 Gulf War, unexploded 3rd, the US reported that it had used 12 www.globalsecurity.org/military/systems/ cluster submunitions killed 1,600 B-52 bombers to drop six CBU-105 munitions/wcmd.htm, accessed 12.08.03 Iraqi civilians and injured 2,500 cluster munitions on Iraqi tanks 13 Jane’s Defence Weekly, ‘Flexibility key to more. In Kuwait, after the same around Baghdad.15 weapon mix’, 18.6.03 14 news.bbc.co.uk/1/hi/world/americas/ conflict, there were 1,609 deaths On April 1st an undetermined 2788569.stm, accessed 12.8.03 and injuries in the first ten months.3 number of BLU-97/B submunitions 15 www.globalpolicy.org/security/issues/iraq/ According to Landmine Action, at hit Hilla, with reports claiming that at attack/consequences/2003/0407irregular.htm least 92 countries are threatened by least 33 civilians were dead and , accessed 12.08.03 16 www.globalpolicy.org/security/issues/iraq/ unexploded cluster bombs or other around 300 injured.16 attack/consequences/2003/0407irregular.htm 4 explosive remnants of war. , accessed 12.08.03 DSEi Their use in Iraq A number of companies with cluster US and UK forces delivered at least bomb interests are exhibiting at 350,000 cluster submunitions during DSEi 2003, including INSYS, Israeli the invasion of Iraq.5 Military Industries (IMI) and www.imi-israel.com mortar ammunition, missiles, unmanned air vehicles, elec- tronics, rockets, aircraft equipment, chaff and flare dispens- ing systems and upgrades tanks.119 Background IMI is a state-owned military company. It has distributors Exports and contacts in Western Europe and North America.117 In IMI is a player on the global stage with 60% of its revenues, Europe, IMI’s small arms ammunition is sold under the name worth approximately $550 million, coming from exports120. Samson.118 Some of the export deals are listed below.

IMI in the UK US In the UK, IMI lists the London-based Eurotaas (Eura) Ltd In October 1998, IMI agreed a joint venture with US compa- as its contact: Eurotaas (EUTA) Ltd, 12 York Gate, London ny Primex Technologies in an effort to sell heavy ammunition NW1 4QS; Tel: + 44 (0) 208 458 6636 in the US and worldwide. This was apparently at the direc- tion of the Israeli Defence Ministry which has encouraged What it makes IMI to link up with foreign firms.121 Other collaborations with IMI manufactures small arms (including the Uzi submachine US companies include the development of a new shoulder- gun and Tavor and Galil rifles), grenades, tank, artillery and

23 launched multi-purpose assault weapon with Lockheed What it makes Martin. F-16 fighter UK Lockheed produces the ubiquitous F-16 Fighting Falcon, an IMI is reported to be the manufacturer of the British Army’s aircraft which Lockheed calls the ‘world’s premier multi-role L20 Extended Range Cluster Shells.122 Each shell contains fighter chosen by 24 countries around the world, with over 49 M85 dual-purpose submunitions and has a failure rate of 4,000 deliveries’.132 In fact, Lockheed boasts that over its at least 2%.123 Estimates by a UK MP indicate that between lifetime the F16 will have more foreign sales than all other 2,000 and 17,000 UK-delivered submunitions remain unex- western fighter aircraft combined. F-16 customers include: ploded in Iraq following the invasion in 2003.124 The bulk of Bahrain, Egypt, Israel, Jordan and UAE in the Middle East; these will be L20 submunitions. Indonesia, Pakistan, Singapore, South Korea, Taiwan and Thailand in Asia; and Greece and Turkey in NATO.133 In May India 2002, the US Air Force finalised a $280m contract with IMI has concluded a $30m agreement with India for 3,400 Lockheed to build ten F-16s for Chile under the US Foreign Tavor assault rifles and 200 Galil sniper rifles, as well as Military Sales programme.134 In April 2003, the Polish gov- night vision and laser range-finding and targeting equip- ernment signed four contracts worth $3.5bn for 48 F-16s.135 ment.125 The opening of an office in Delhi strengthens IMI’s Apparently Poland will purchase the F-16s using $3.8bn in links with India. loans from the US.136

Turkey Joint Strike Fighter (JSF) In late 2001, IMI won a $105m contract to co-produce heli- In late 2001, Lockheed won the bid for the JSF programme, copter Counter Measures Dispensing Systems with Turkish securing an initial $19bn development contract for the companies MKEK and Aselsan.126 In March 2002, Turkey $200bn project.137 It is the world’s largest-ever military air- signed a $668m deal with IMI to modernise Turkey’s fleet of craft project. The Pentagon plans to buy 3,000 land- and US-made tanks.127 carrier-based JSFs, the UK will procure around 200, and a further 2,000-3,000 are expected to be sold to other coun- tries. Northrop Grumman and BAE Systems are partners Lockheed Martin [US] with Lockheed in the programme. World Ranking: 1 Total military sales: $23.3bn Missiles Military sales as % of total sales: 88% Lockheed, through Missiles and Fire Control, is a major Employees: 125,000 128 manufacturer of missiles including Hellfire, Javelin, Military products include: fighter and transport aircraft, Longbow and Predator. The AGM-114 Hellfire anti-armour missiles, space systems air-to-surface missile is deployed on Bell AH-1W Super Cobra and Boeing AH-64D Apache Longbow attack heli- Lockheed Martin, 6081 Rockledge Drive, Bethesda, MD copters.138 A thermobaric variant of Hellfire was used in Iraq 20817, USA in 2003. Other weapons include Rafael-designed AGM-142 Tel: + 00 1 301 897 6000 ‘Popeye’ missiles, which were reportedly dropped on cave www.lockheedmartin.com complexes in Afghanistan by US Air Force B-52s.139

Nuclear weapons Background Lockheed Martin is the prime contractor for submarine- Lockheed Martin, headquartered in Bethesda, Maryland, launched long-range Trident nuclear missiles deployed on was formed in March 1995 with the merger of Lockheed US Ohio and UK Vanguard nuclear-powered submarines. In Corp. and Martin Marietta Corp. 80% of Lockheed’s busi- 2002, Lockheed secured a $248m follow-on production ness is with the Pentagon and US government agencies.129 contract for 12 Trident II D5 ballistic missiles for the US It has $70bn in orders. It is the world’s biggest arms pro- Navy.140 The company is also involved in the design, pro- ducer and is particularly dominant in terms of fighter aircraft. duction and testing of nuclear weapons with Scandia National Labs.141 Lockheed Martin in the UK Lockheed is also involved in the design and production of Lockheed Martin combines all its military, civil and commer- nuclear warheads and is the prime contractor for the Trident cial interests in the UK under a single registered company, II Submarine-Launched Ballistic Missile (SLBM).142 created in July 1999 and headquartered in central London. It has 75 business partnerships in the UK.130 Its military proj- Ballistic Missile Defense (BMD) ects include work on the Joint Strike Fighter programme, C- Lockheed Martin is the overall ‘BMD System’ systems inte- 130J Hercules transport aircraft and the Royal Navy’s Merlin grator with Boeing. It is also the lead contractor for the helicopter programme. Since 1968 Lockheed has provided Theater High-Altitude Area Defense programme designed to support for the Royal Navy Fleet Ballistic Missiles. The intercept medium-to-long range missiles; makes the Patriot company has sites at nine separate locations in the UK (PAC-3) missile (In early March 2003, the US Army gave including Aldermaston Atomic Weapons Establishment.131 Lockheed a $100m contract for 212 PAC-3 for use in the 2003 Iraq conflict143); and is engaged in the design and the Lockheed Martin International, Berkeley Square House, building of launchers of ‘kill vehicles’ for land-based BMD. Berkeley Square, London W1X; Tel: + 44 (0) 20 7412 0555; It is also prime contractor for SBIRS-High, an early warning www.lockheedmartin.co.uk satellite system for BMD.

24 The USA

US policy: Arms company influence: Pilger reports, ‘it recommended an The US government appears to be It might be assumed that the US increase in arms-spending by $48bn running amok. It has invaded Iraq administration is being influenced by so that Washington could “fight and under its new doctrine of pre- the arms industry, but the win multiple, simultaneous major emption; is threatening other relationship is much more intimate theatre wars”. This has happened. It countries including Syria and Iran; is than that. As the US Arms Trade said the United States should supporting military operations Resource Center has stated, ‘more develop “bunker-buster” nuclear around the world that have suddenly than any administration in history, weapons and make “star wars” a become counter-terrorist; is flouting the Bush team has relied on the national priority. This is happening. It the human rights of many it chooses expertise of former weapons said that, in the event of Bush taking to detain in its ‘war on terrorism’; contractors to outline US Defense power, Iraq should be a target. And has undermined or pulled out of needs. Thirty two Bush appointees so it is.’3 multilateral agreements that are former executives, consultants, constrained US interests; is or major shareholders of top Increasingly the US, with the UK in aggressively pursuing Ballistic weapons contractors, including tow, is responding to problems with Missile Defense regardless of the appointees with ties to major missile military ‘solutions’. The arms missile proliferation and instability it defense contractors Lockheed companies are a vital part of this might cause; is planning a new Martin, Raytheon, Boeing and approach, supplying the military’s range of ‘mini-nukes’; and, Northrop Grumman.’ 2 needs and assisting with the underpinning much of this, is rapidly administration’s foreign policy. They increasing its already massive The Project for the New dominate the international arms military expenditure. American Century: market and, as such, will be a key The US is unashamedly asserting The other dominant, but not part of DSEi. Over 100 US that it is, and will continue to be, the unrelated, component of US companies will be there, including world’s number one; and it is very policymaking comes from the four of the six largest arms happy to use force to achieve this. It conservative think thanks, the most producing companies in the world. explicitly seeks ‘Full Spectrum worrying of these being The Project Dominance’, i.e. ‘the ability of US for the New American Century. Set 1 www.defenselink.mil/news/Jun2000/ forces, operating alone or with allies, up in 1997, founders include Donald n06022000_20006025.html, accessed 18.8.03 to defeat any adversary and control Rumsfeld (US Defense Secretary), 2 Michelle Ciarrocca, Missile Defense, Vol 8, any situation across the range of Dick Cheney (Vice-President), Paul Number 1, May 2003 military operations.1 This, crucially, Wolfowitz (Deputy Defense 3 pilger.carlton.com/print/124759, accessed includes control of space. Secretary) and Jeb Bush. As John 18.8.03

Exports MKEK is difficult to come by – indeed its annual balance Lockheed is the world’s largest arms exporting company.144 sheet was classified until 1984. Though not ranked in the In addition to F-16s (see above), Lockheed Martin has top 100 arms companies by Defense News, SIPRI placed it exported other aircraft and a multitude of military equipment at 87th in 2000 and as high as 59th in 1998.149 including missiles and missile systems. Lockheed has deliv- ered over 2,200 C-130 transporters of which about 1,600 What it makes are still in service in more than 65 countries. MKEK is an integrated holding with 12 affiliated factories.150 It makes both military and civilian products, though it has been noted that as far as civilian production goes ‘these MKEK [Turkey] factories...allow MKEK to provide much of the machine World ranking: outside the top 100 tools and chemicals for arms production’.151 Current prod- Total military sales: $290m 145 ucts include small arms, mortar and howitzer ammunition, Military sales as % of total sales: 78%146 ammunition fuses, hand grenades, pistols, machine guns, Employees: 8,940147 automatic rifles, sub-machine guns, anti-aircraft guns, mul- Military products include: ammunition, small arms, rockets, tiple launch rocket systems, mortars, howitzers, anti-tank howitzers rockets, artillery rockets and explosives.152

MKEK General Directorate, Tandogan 06330, Ankara, Turkey Production under licence Many of MKEK’s products are, or have been, made under licence from foreign countries or corporations. Reported Background examples include production under licence from: MKEK’s roots go back as far as 1920. The General Hecker & Koch: In 1998, MKEK won a contract to Directorate of Military Factories, established in 1920, produce HK33 5.56mm assault rifles.153 MKEK has made became the Machinery and Chemical Industries G3A3 and G3A4 rifles under licence since the 1970s, and Establishment (MKEK) in 1950. It has always been state- MP5A2, MP5A3 and MP5K sub-machine guns since the owned. In 1987 MKEK had 20 factories and 20,000 employ- 1980s.154 ees148, but both the number of factories and employees Giat Industries (France): In 1992, MKEK won a contract appears to have decreased since then. Information on to produce 25mm ammunition under licence.155

25 US: In 1990 production of MLRS started under US and the UK; and in the first eleven months of 1998, 22 coun- licence.156 In 1987, MKEK made FFAR 2.75 inch rockets tries were reported to be its customers, including Bosnia, under US licence.157 Burundi, Tunisia and the UAE. The Turkish Ministry of Oerlikon (Switzerland): In 1988, 35mm gun production National Defence values MKEK’s 1999 exports at started under licence158; MKEK also makes 20mm $6,466,000.165 automatic guns under licence.159 Royal Ordnance Factories (UK): In 1987, MKEK made 105mm tank guns under licence.160 Northrop Grumman [US] Rheinmetall (Germany): MKEK have signed a licence World ranking: 5 production agreement for the production of the MG3 Total military sales: $12.3bn machine gun.161 Military sales as % of total sales: 71% Europe: In the 1980s, MKEK was a partner in the Employees: 120,000 166 European consortium which manufactured Stinger surface- Military products include: warships, radar and missile to-air missiles and Maverick air-to-ground missiles.162 systems, space systems

Exports Northrop Grumman, 1840 Century Park East, Los Angeles, A 2000 report noted that MKEK had ‘increased its exports CA 900067-2199 in recent years, including many weapons made under Tel: 001 310 553 6262 licence’.163 The report went on to catalogue known cus- www.northgrum.com; www.vinnell.com tomers for 1995–1998: in 1995, MKEK sold weapons to 38 countries including Botswana, Brazil, Chile, Ecuador, Hong Kong, Kuwait, Libya, Macau, Pakistan, Peru, Singapore, Background and Tunisia; in 1996 its principal customers were Jordan, Northrop Grumman was formed in 1994 when Northrop Norway, Pakistan, Switzerland, Tunisia, Northern Cyprus, Aircraft Co., which made B-2 stealth bombers, bought

Turkey1

Background spending has been declining from 1991 to December 2002, Turkey is seen as a key ally of the throughout the 1990s, Turkey’s manufactures sub-machine-guns in West in the Middle East and spending has gone in the opposite Turkey under licence. The Turkish Mediterranean, and as such has direction despite the country’s manufacturer, MKEK, then re- been one of the world’s major relative poverty and serious financial exports the guns – previous clients recipients of sophisticated arms for problems. Much of this military have included Bosnia, Chile, the past twenty years. This is spending is used to purchase arms Botswana, Kuwait, Libya, Pakistan, despite the leading role of the armed from abroad and build up an Peru, and the UAE. The UK is also forces within Turkish society and indigenous high-tech arms industry. involved, through MBDA, in a major government, its occupation of The latest available figures show that co-production deal with Turkey to northern Cyprus in 1974, its long Turkey’s historic dependence on the produce Rapier surface-to-air established military rivalry with US for its arms imports continues, missiles. Greece and its appalling human with 79% of Turkey’s arms imports rights record with respect to its coming from the US. US companies DSEi Kurdish population. During the long supplying Turkey with new attack MKEK, BAE Systems, Heckler & war against the Kurdistan Workers’ helicopters, military transport Koch and Land Rover are all Party (PKK) in the south-east of the helicopters, naval helicopters, exhibiting at DSEi along with other country, the region was depopulated AWACS aircraft and the Joint Strike suppliers from Europe, Israel, and, in an attempt to deny the area to the Fighter. especially, the US. A delegation from PKK. Two million people were Turkey has been officially invited. forcibly displaced and 3,000 Kurdish The UK role villages destroyed, involving massive The UK continues a steady but 1 Primarily sourced from Nicholas Gilby, violations of human rights and the relatively low level of arms exports to ‘Nurturing Turkey’s war machine’, CAAT, March 2003 2 laws of war . It has been Turkey, accounting for approximately 2 www.hrw.org/reports/1995/Turkey.htm, documented that weapons supplied 1% of Turkey’s arms imports. UK accessed 16.08.03 by the US, Germany, Russia and the companies have been involved in 3 See www.hrw.org/reports/1995/Turkey.htm UK have been used to commit important contracts supplying and Nicholas Gilby, March 2003 atrocities3. Western powers have Turkey’s military with the type of also contributed to the massive weapons it has used in the past to build-up of the Turkish military- commit human rights violations. industrial complex. Land Rovers are assembled under licence in Turkey and converted by Turkey’s military spending Otokar into armoured vehicles. In and suppliers 1995 and 2001 deals, these vehicles Though the proportion of NATO were then sold to Algeria. Heckler & countries’ GNP devoted to military Koch, a subsidiary of BAE Systems

26 Grumman Corp. in a $2.5bn deal. Since then, the company has acquired 17 companies including Litton Industries and Saudi Arabia Newport News in 2001. In December 2002, Northrop Grumman acquired TRW, the military and automotive group, for $6.7bn. Northrop sold TRW’s automotive business for The saviour of British Aerospace $4.73bn and retained the space and advanced technologies Like Iraq until 1990, Saudi Arabia was until 2001 businesses. Northrop Grumman has more than 300 loca- regarded as a crucial friend and ally of the West, tions worldwide and claims to employ people in 25 coun- especially the US and UK. It supplied vast amounts of tries and all 50 US states.167 oil at a generally moderate price, acting as a restraining influence within OPEC, and it recycled the proceeds by Northrop in the UK investing them in the West and buying large quantities Northrop Grumman Electrical Systems International, 16 of expensive Western armaments. In particular its Charles II Street, London SW1Y 4QU; Tel: + 44 (0) 20 7930 purchases of Hawk and otherwise unsaleable Tornado 4173 planes under the Al Yamamah agreements were the salvation of British Aerospace (now BAE Systems), What it makes yielding a cash flow of something like £2bn a year for Northrop Grumman professes to be the world’s largest most of the 1990s. The deals were negotiated by the shipbuilder.168 It is also one of the three dominant contrac- UK government and are generally believed to have been tors in military space and supplies nearly 60% of the US mil- greased by large payments to Saudi princes and go- itary’s airborne radar systems.169 betweens; the National Audit Office report on these transactions has never been published. Warships Northrop owns Newport News, the US’s sole builder and Post-September 11th refueler of nuclear-powered aircraft carriers and one of only Things began to change on 9/11. It was noted that not two companies, along with General Dynamics’ Electric only bin Laden but most of the Manhattan assassins Boat, capable of designing and building nuclear-powered were Saudis, and dark hints were dropped of the submarines. It has a contract to build four Aegis guided- government’s complicity. This was manifestly unfair, as missile destroyers, a contract to design the US Navy’s DD the regime, at least as much as Israel and the US, is the (X) destroyer, and develops and produces missile launching target of al Qaeda’s wrath. But US and UK politicians and handling equipment for submarine and land-based suddenly noticed that the Kingdom run by the House of weapons systems. Saud was not a liberal democracy or respectful of human rights. The fact is that the country has outlived Fire control radar most of its usefulness. When Iraq’s oil is in full flow Northrop Grumman makes fire control radar for fighter air- under US control, OPEC will be broken and Saudi craft including Lockheed Martin’s F-16 as well as BAE moderating influence will no longer be needed. The last Systems’ Hawk 200 jet. In 2002, it was awarded a $487m UK aircraft were delivered in 1998, and BAE Systems contract to provide engineering services and technical sup- now looks mainly to the US market to secure its future. port to the F-16’s fire-control system over a 23-year period. Rumours of Saudi interest in the Eurofighter/Typhoon This covers not only the USAF, but also the F-16s of 16 were denied by the company in 2002, and nothing has other air forces. It is providing the radar for the JSF, under a materialised. joint venture with Lockheed Martin, and, also with Lockheed, has developed and produced Longbow multi- The continuing connection mode radar and the AGM-114L Hellfire missile for the However, since the Saudi armed forces are unable to Apache attack helicopter.170 maintain (or indeed to fly) advanced planes, the company still benefits from a lucrative ‘support and B-2 stealth bomber services solution, including manpower for the Royal Northrop is the prime contractor for the B-2 Spirit high-alti- Saudi Air Force’.1 Without giving figures, the company is tude multi-role intercontinental stealth bomber. Each B-2 is pleased to note that ‘activity on the Al Yamamah reported to have cost $1.3bn.171 There are 21 operational B- programme remains strong, with cash flows benefiting 2s, each of which can carry 18,000kg of nuclear or conven- from the strong oil price which underpins programme tional munitions. They were deployed in Yugoslavia, funding’. According to the UK government’s admittedly Afghanistan and Iraq. incomplete figures, arms exports to Saudi Arabia amounted to £63.65m in 2002. And, of course, the Nuclear missiles and Ballistic Missile Defense Saudi government has been invited to DSEi. Northrop Grumman provides navigation systems for tactical missiles and nuclear-armed inter-continental ballistic mis- 1 BAE Systems Annual Report, 2003 siles (ICBMs). In 1997, it was awarded a 15-year contract to be the ICBM Prime Integration Contractor. The company has involvement in a number of Ballistic Missile Defense pleted projects on [five] continents in over 50 countries for a projects, particularly since its acquisition of TRW. variety of government and commercial customers’. It is, in other words, a private military company – the officially sanc- Vinnell tioned and sanitised face of mercenary operations. The Virginia-based Vinnell Corp, a subsidiary of Northrop Grumman, ‘is a recognised leader in facilities operation and Protecting the House of Saud maintenance, military training, educational and vocational In 1975, Vinnell received a $77m contract to train the Saudi training and logistics support in the [US] and overseas’.172 National Guard, or SANG. This is a force of around 55,000 The company reports that ‘Vinnell has successfully com- men that Jane’s Defence Weekly has described as ‘a kind of

27 Iraq

The supply of weapons to Iraq thousands of the AK47, the world’s equipment. For instance, Patriot Prior to the 1990 UN arms embargo, most prolific assault rifle. Apparently missiles used in the 1991 Gulf War Iraq was free to purchase arms Iraq’s administration wants the army received an incredible level of hype, wherever it pleased and the war with to have new, standardised weapons. and sales increased rapidly after the Iran did anything but put-off conflict. Only later was it revealed suppliers. Russia and France were Weaponry used in the that the missiles had missed virtually Iraq’s major suppliers and their sales invasion of Iraq all of the Scuds they targeted; Israeli included Scud and Exocet missiles, During Operation Iraqi Freedom, US- MoD data showed that only one of respectively. The UK was not in the led coalition forces used a multitude the 39 Scuds launched was big league as a supplier to either of weaponry to suppress Iraq intercepted.10 Unmanned Aerial Iraq or Iran, but nonetheless did play opposition forces over the course of Vehicles have received similar hype a vital role in maintaining both just one month. UK and US forces and post-conflict demand following military machines. used thousands of cluster munitions the attacks on Afghanistan and Iraq. Following the UN embargo, Iraq (see page 23), depleted uranium- had to rely on more clandestine tipped shells (see page 18), dumb as Post-war reconstructing supplies. Recent examples that have well as smart bombs, “bunker and training come to light include allegations that buster” munitions, napalm and In the aftermath of the war in Iraq, Ukraine sold Iraq four advanced thermobaric weapons. ‘private military companies’ are vying Kolchuga military radar systems for Though the Pentagon has denied for lucrative contracts. In late June $100m,1 said to have occurred in that napalm was used in Iraq, The 2003, Northrop Grumman’s Vinnell 2000.2 According to the International Independent has reported that Corp., the company responsible for Crisis Group, the government of the marine pilots confirmed an upgraded training the Saudi National Guard, Federal Republic of Yugoslavia, pre- version of the weapon was dropped won a $48m one-year contract to and-post President Slobodan on Iraqi troops during the advance train the nucleus of a new Iraqi Milosevic, provided military on Baghdad.6 These weapons, Mark Army.11 In April it was reported that assistance and weapons to Iraq 77 firebombs, each consist of 20kg the US concern DynCorp had won a including anti-aircraft systems, jet of polystyrene-like gel and 285 litres contract to re-establish police, engines and spare parts for MiG of jet fuel, which sticks to the skin of justice and prison functions in post- aircraft.3 Moreover, the UN embargo its victims as it burns. conflict Iraq.12 DynCorp’s record in did not stop Iraqi officials attending Thermobaric weapons are fuel- such matters is far from blameless; arms exhibitions alongside UK rich explosives reportedly developed in May 2001 DynCorp personnel delegations. Only last October by the US as a replacement for contracted to the UN police service (2002), Prince Andrew was seen napalm.7 Secretary of Defense in Bosnia were fired for alleged trying to avoid Iraqi officials at the Donald Rumsfeld confirmed that US sexual misconduct, including rape SOFEX 2002 arms fair in Jordan.4 forces had, for the first time, used a and child prostitution.13 new thermobaric variant of Learning the wrong lesson Lockheed Martin’s Hellfire laser- 1 Financial Times, ‘US may impose further The obvious lesson from Iraq is that guided missile during the conflict in sanctions on Kiev’, 2.11.02 2 Washington Post, Foreign Service, ‘Exile 8 arms should not be sold into areas Iraq. The weapon generates a lethal Accuses Ukraine Leader of Iraq Deal’, of conflict or to repressive regimes. blast wave in confined spaces such 11.5.2002 But that is not how the arms as bunkers, caves and inside 3 International Crisis Group, ‘Arming Saddam: industry and its governments think – buildings. It was reported to have the Yugoslav Connection’, 3.12.2002 there appears to be no concept of been developed in less than a year 4 CAAT, CAATnews, Dec 2002 – Jan 2003 5 The Times, ‘US guns for Iraqi Army’, 9.8.03 9 prevention. The lesson they have at a cost of $14.8m. 6 The Independent, ‘US admits it used napalm drawn from the recent conflict is that bombs in Iraq’, 10.8.03. more weapons are needed to fight Benefits for the 7 www.guardian.co.uk/uk_news/story/ future wars against similar regimes international arms industry 0,3604,418069,00.html, accessed 01.8.03 8 Jane’s Defence Weekly, ‘US used (presumably regimes that were once All this military equipment was thermobaric Hellfire in Iraq’, 31.5.03 as friendly with the West as Saddam produced by North American and 9 Flight International, ‘New hellfire strikes first in Hussein was?). US military spending European companies, with the likely Iraq’, 20.5.03. continues to rise and European arms inclusion of components from 10 Defense News, ‘Israelis Resolve to Bury Past, companies are frantically lobbying around the world. The arms Add Patriot Improvements’, 17.2.03 11 Defense News, ‘$48 Million To Train Iraqi for increases of their own. This business is already restocking Army’, 7.7.03. depressing mindset is graphically missile shelves, fixing damaged 12 Observer, ‘Scandal-hit US firm wins key illustrated by reports that the US-led hardware, and anticipating the contracts’, 13.4.03 authority in Iraq is to import 34,000 replacement of worn-out equipment. 13 Joshua Kurlantzick, ‘Outsourcing the Dirty Work’, The American Prospect, Vol. 14, AK-47 assault rifles for use by the Arms companies also make full use 1.5.03 new national army.5 Coalition forces of the opportunities that a conflict have already seized tens of shop window can provide for new

28 Son of Star Wars

What’s wrong with to threaten exports of its Patriot particularly convincing argument for Ballistic Missile Defense? (PAC-3) system! a sceptical UK public so it wheels The US ‘Ballistic Missile Defense’ But BMD is not only dangerous, it out the contracts, i.e. ‘jobs’, (BMD) programme is not the is a massive waste of resources and argument in a bid to sell the scheme. ‘defensive’ system that our a staggeringly generous donation to While the UK government freely politicians would have us believe. It arms companies. US arms admits it has not identified an is aimed at guaranteeing US ability companies, one of the main driving ‘immediate significant ballistic to intervene wherever it chooses and forces behind the programme, are in missile threat to the UK’,5 it says it involves developing technology with a feeding frenzy – not only are has identified an ‘opportunity for UK clear offensive potential. It will lead budgets rapidly expanding (presently industry to reap the benefits of to weapons in space and missile around $8 billion a year), but participation’ in the BMD proliferation around the globe, and democratic control of the spending programme.6 What it doesn’t say, will undermine other means of is being reduced. While the US is however, is that the bulk of the dealing with perceived ‘threats’ presently the main country throwing money that goes to UK-based including diplomacy, arms control its money down this drain, others companies won’t be from the US and international disarmament. will follow as soon as they are Department of Defense, but from UK Missile proliferation: Even if other persuaded to sign up to BMD. tax-payers. countries do not seek to obtain or Obviously, the UK’s arms increase missile technology as a The UK’s position companies don’t care where the response to the US system, The UK has made its first concrete money comes from. They are playing proliferation is already actively steps towards involvement. In along with the government underway by the US itself. Last year, February 2003, after the most token implication that US money will be Boeing was sent out into the world of consultations, the UK government coming their way but they know that to sign up partner companies which allowed the US to upgrade the the US arms budget is almost could pressurise their own Fylingdales early warning radar entirely spent within the US. While a governments into going along with station on the North Yorkshire Moors few contracts are likely to surface as BMD. It initially signed agreements for use in the BMD programme. In a quid pro quo for the use of with BAE Systems, Finmeccanica June 2003 the UK government Fylingdales and Menwith Hill, the and EADS, then moved on to CAE of signed a Memorandum of real prize for UK companies is for Canada and PIT of Poland. Boeing Understanding with the US the UK government to sign up to has stated that it is ‘scouring the government that ‘prepares the way BMD and start spending its money globe for similar agreements with for fair opportunities to be given to on a UK element of the US system. defense firms’1 while Lockheed UK industry to participate in the US Martin ‘would not rule out programme’3 and on 18th July the DSEi agreements with South Korean and MoD announced the launch of a new Major US BMD companies will be at even Chinese firms.’2 In addition to Missile Defence Centre. The MDC DSEi (Lockheed Martin, Northrop partnerships, actual exports of the has a ‘foundation group’ of AMS, Grumman and Raytheon) along with more progressed systems are in the BAE Systems, INSYS, MBDA and the UK companies (BAE Systems, pipeline. Most notably, Israel has QinetiQ, and ‘other UK companies MBDA, QinetiQ and INSYS) which held talks with India and Turkey and universities will be invited to hope, with government support and about purchasing the joint US-Israeli propose further participation in the money, to jump on board. Arrow system. Though Arrow MDC’. Funding is provided by the exports would require clearance UK government (£5m a year for up 1 Defense News, 17.2.03 from the US, this is reportedly being to six years) with ‘matching 2 Defense News, 17.2.03 3 Hansard, 12.7.03, Col. WA62 .4 pushed for by Boeing, Arrow’s co- contributions’ from UK industry 4 MoD press release, 18.7.03 producer. Meanwhile, opposition to Why is the UK government 5 MoD, ‘Missile Defence: a public discussion Arrow exports is coming from getting involved? Simply, it feels it paper’, December 2002 Raytheon which doesn’t want sales needs to go along with US 6 Hansard, 15.1.03, Col. 261 demands. However, this isn’t a

Praetorian Guard for the House of Saud, the royal family’s more, all Vinnell staff. In mid May 2003, in a series of bomb- defence of last resort against internal opposition.’173 One ings in Riyadh, at least nine employees of Vinnell were killed. report has alleged that ‘there is also circumstantial evidence to suggest that at times Vinnell employees in Riyadh want A new Iraqi army beyond training people to pull the triggers.’174 In 1998 Vinnell In late June 2003, Vinnell won a $48m contract to train the received a follow-on $831m five-year contract for SANG nucleus of a new Iraqi Army. Vinnell and its subcontractors training. began working at various locations on July 1st under this In November 1995, the SANG headquarters and an adja- one-year contract.175 cent building complex housing Vinnell employees was bombed. This event killed five Americans and wounded 30

29 Pakistan Ordnance Factory Group, acquired a 33.8% stake in QinetiQ in a part-privati- sation plan. It paid only £42m, despite the fact that the [Pakistan] QinetiQ had been valued at £500m.185 It has been claimed World ranking: outside the top 100 that legal and advisory fees cost UK tax-payers double the Employees: 40,000176 Carlyle payment. 186 Military products include: small arms and light weapons, ammunition, landmines What it does QinetiQ is involved in research and development. The com- Pakistan Ordnance Factory (POF), Wah Cantt, Pakistan pany states that ‘in the future [it] will be ideally placed to pofwah.com.pk conduct research and develop solutions for armed forces around the globe.’187 QinetiQ says it has expertise in: battle- space information; communications; electronic warfare; What it makes guidance and control; materials; platforms; propulsion and POF is a group of fourteen factories that produce automat- powerplants; sensors and weapons. Despite the company’s ic rifles, machine guns, mortar and artillery ammunition, air- civilian applications, the UK MoD remains QinetiQ’s largest craft and anti-aircraft ammunition, tank and anti-tank customer. ammunition, bombs, grenades, military pyrotechnics and Some examples of its work include: developing a landmines.177 phased-array missile seeker, designed to steer a missile’s Part of POF’s strategy is to manufacture weaponry in col- energy electronically;188 completing a New-Generation laboration with companies from other countries. It reports Operations Support and Software architecture demonstra- such collaboration with Royal Ordnance Factories of the tion for the UK MoD;189 ‘pioneering’ a new flight control sys- UK, Rheinmetal of Germany, ‘many’ with China and tem which has been accepted for the Lockheed Martin Joint Czechoslovakia and ‘an excellent joint venture’ with SAAB Strike Fighter.190 QinetiQ is also heavily involved with Ballistic for the production of commercial explosives.178 It produces Missile Defence and is one of the UK companies launching assault rifles, sub-machine guns and pistols under licence the new, ‘virtual’, UK Missile Defence Centre. from Heckler & Koch.179 The Carlyle Group Landmines The Carlyle Group, established in 1987, is one of the world’s POF has a history of involvement in landmine production. It largest venture capital groups. It is the 11th largest US mili- has previously produced six types of anti-personnel mines: tary contractor although the military sector makes up only minimum-metal blast mines P2 Mk2 and P4 Mk2; bounding 7% of its investments.191 The group has nearly 300 invest- fragmentation mines P3 Mk2 and P7 Mk2; and directional ment professionals operating out of offices in 12 countries fragmentation/Claymore mines P5 Mk1 and P5 Mk2.180 After to uncover ‘superior opportunities’ in North America, January 1997, it started production of new, detectable ver- Europe and Asia.192 sions of the P2 and P4 Mk2 mines. Former US Defense Secretary Frank Carlucci chairs the Carlyle Group. Other notable people involved with Carlyle Exports are: former UK Prime Minister John Major as Carlyle Europe POF has a strong export focus with one report stating that Chairperson; former US President George Bush Senior as its products are ‘in service in over 30 countries with an ever- Carlyle Senior Advisor; and former US Secretary of State expanding galaxy of satisfied customers.’181 The destina- James Baker as Carlyle Senior Counsellor.193 It is clearly an tions include countries in Europe, North America, Asia organisation based on contacts and influence. including the Central and East Asia, Africa and the Middle Part of QinetiQ’s role is to provide independent advice to East.182 By its own admission, there are very, very few coun- the MoD about military procurement. As such, there should tries it will not sell to (see India and Pakistan, page 31). be concern that its independence could be compromised by Carlyle’s extensive military interests.194 QinetiQ [UK] World ranking: 37 Rafael [Israel] Total military sales: $1.0bn World ranking: 45 Military sales as % of total sales: 80 Total military sales: $760m Employees: over 9,500183 Military sales as % of total sales: 100% Military products include: battlespace information Employees: 4,600195 management, ‘future concepts’ 184 Military products include: missiles, radar and communication systems QinetiQ, Cody Technology Park, Ively Road, Farnborough, Hampshire GU14 0LX Rafael Armament Development Authority Ltd, P.O.B 2250, Tel: +44 (0)1252 392000 Haifa, Israel 31021 www.QinetiQ.com Tel: 972 4-879 12 44 (public relations) Carlyle Group (UK), Lansdowne House, 57 Berkeley Square, www.rafael.co.il/web/rafnew London W1 6ER Tel: + 44 (0) 20 7894 1200 Background Rafael was founded in 1948 as Israel’s National Research Background and Development Defence Laboratory.196 It remains govern- QinetiQ was formed in July 2001 from the greater part of the ment-owned and is one of three companies that dominate Defence Evaluation and Research Agency (DERA). In Israeli military production, the other two being Israel December 2002, a US based private equity firm, the Carlyle Aerospace Industries and Israel Military Industries. Most

30 India and Pakistan

DSEi traditional suppliers. It has a less companies have continued to attend India and Pakistan were invited to advanced military industrial base arms fairs in both India and DSEi in 1999 and 2001, and have than India, focussed on the Pakistan,7 and government ministers both received official invitations for assembly and modification of major have unashamedly and frequently 2003. They will be shopping for weapons and the production of been trying to persuade the Indian equipment to target at each other small arms and ammunition.4 At the government to purchase a billion and there will be a host of IDEAS 2000 exhibition in Pakistan, pounds worth of Hawk jets from companies falling over themselves to General Musharraf called for BAE Systems, a deal that is once provide it. In addition, Pakistan ‘aggressive marketing’ by the new again said to be imminent. Past UK Ordnance Factory will be exhibiting state-owned arms industry to exports to Pakistan have included its array of small arms and increase its arms exports.5 Asked by small arms production equipment, of ammunition. Despite the conflict journalists about which countries particular concern given Pakistan’s between India and Pakistan over they wouldn’t sell to, the show willingness to export around the Kashmir, a nuclear arms race, and a organiser said, ‘I don’t think we have world. military regime taking power in a problem on that score. Maybe Pakistan, there is nothing Israel we wouldn’t like to sell 1 SIPRI Yearbook 2002 exceptional about their attendance weapons to’.6 2 Defense News, ‘Israel may become India’s top source’,10.3.03 at the exhibition. The arms market 3 David Isenberg, ‘India aims high for arms does not thrive on peace and UK exports exports’, Asia Times Online, 2.6.03 stability. The UK government has guidelines (www.atimes.com/atimes/South_Asia/EF03Df that should stop arms being sold 08.html) into conflict situations (see page 13) 4 SIPRI Yearbook 2002 The main suppliers 5 Jane’s Defence Weekly, Pakistan sets up Both India and Pakistan are highly but do not. While ministers and the export bureau to boost sales’, 29.11.00 dependent on arms imports and Prime Minister publicly called for 6 Guardian, ‘Pakistan enters arms market’, usually rank amongst the highest 15 calm and negotiations in response to 7.11.00 importers.1 a dramatic deterioration in relations 7 www.pakdef.info/ideas2002/; www.ukinindia.com/press/commercial/com_0 Though India still purchases most between India and Pakistan during 1.asp; of its advanced weapons systems 2001, the sales drive continued and www.ukinindia.org/ministerial/lordbach/press/ from Russia, it aspires to have a the value of arms exports increased press_01.asp; all accessed 22.8.03 strong indigenous arms industry and (see table below). Over the past 8 Strategic Export Controls Annual Reports for increasingly produces the major three years UK delegations and 2000, 2001 and 2002 systems under licence in India. Israel has become an important supplier, Table: UK export licence statistics8 with weapon sales of around $1.5- $2 billion each year compared to India 2002 2001 2000 over $2 billion worth from Russia.2 Other major suppliers to India Number of licences 897 728 699 include France, Germany and the issued UK. India’s arms exports are tiny in comparison to its imports, though it Value (£) 118.0m 62.5m 64.5m has recently announced that it is aiming for a significant increase this Pakistan 2002 2001 2000 year, to $20m-worth. It has also said it will soon begin selling missiles to Number of licences 190 154 88 ‘friendly countries.’3 issued Pakistan purchases most of its equipment from China, though the Value (£) 15.0m 14.0m 6.0m US and France have also been

Rafael manufacturing activity is composed of final assem- communications systems for land, sea and air. Well-known bly, testing and simulation. The manufacture of basic sub- products include the Derby and Python air-to-air missiles, systems and components is contracted out. Rafael has the David artillery computer, tank-crew protection gear, offices in Australia, Brazil, the Netherlands, South Korea, the night-vision equipment, the Popeye (AGM-142) air-to-sur- UK and the US.197 face standoff weapon and the Gill/Spike anti-tank guided missile.198 Rafael in the UK GlobalSecurity.org has stated that ‘The Rafael operation Rafael (UK Office), 3/5 Duke Street, London W1M 6BA; in Haifa is reportedly the location of a nuclear weapons Tel: + 44 (0) 207 224 4415 design laboratory (Division 20), a missile design develop- ment laboratory (Division 48) and a weapons assembly What it makes plant.’ 199 Rafael is Israel’s air-to-air missile specialist and develops missiles, weapon systems and electronic warfare, radar and

31 Israel

The conflict1 Military Industries and its subsidiary, Logistics, an Israeli company that In breach of international law, Israel Ashot Ashkelon Industries all due to markets UK military goods in Israel.9 continues to occupy Palestinian exhibit. In July 2002, to the outrage of land. Four major points of dispute – many, including a good number of Jewish settlements in the occupied Military imports its own backbenchers and the Daily territories, the status of Jerusalem, Israel’s arms imports are primarily Mirror, the UK government allowed water resources, and the fate of the from the US which provides Israel the export of components for F-16 Palestinian refugees – and ongoing with $3bn in annual aid and, in 2001 fighters being made by Lockheed Palestinian suicide bombings alone, sold Israel $2.95bn of arms. Martin for sale to Israel. Making the continue to stand in the way of a Since September 2001, the Israeli announcement, Foreign Secretary peaceful solution. Since the Defence Force, or IDF, has used US- Jack Straw set out new ‘factors’ to beginning of the al-Aqsa Intifada in made Apache and Cobra helicopters be considered when assessing September 2000, Israel’s military and F-16 aircraft to attack export licence applications. In a operations in the occupied territories Palestinian homes, buildings and nutshell, where components are to have included the killing of emergency services in the West be exported, the government will Palestinian civilians, extra-judicial Bank and Gaza. Germany is Israel’s look at the UK’s military industrial executions, arbitrary detention and next biggest arms supplier. Between relationship with the country where deportation of prisoners, collective 1996 and 2000 it supplied Israel with the equipment will be finally punishment, torture, attacks on weaponry worth $765m. France assembled. He effectively confirmed hospitals and ambulances, curfews exported major conventional that there was no such thing as an and other restrictions on freedom of weapons worth $50m to Israel independent UK arms industry and movement, and the wholesale between 1996 and 2000. abdicated to overseas governments, destruction of homes. Arms sales usually the US, decisions on the help Israel to continue this The UK’s role end-use of UK components. In the occupation, help prolong the conflict UK government approved arms case of the Head Up Display units and give legitimacy to its actions. export licences increased from bound for Israel, he said ‘Any £12.5m in 2000 (191 licences issued) interruption to the supply of these Israel’s military industry to £22.5m in 2001 (277 licences components would have serious In 2002, Israel passed a military issued) and then fell again to £10m implications for the UK’s defence budget of $9.8bn, 8.9% of its GDP, in 2002 (161 licences issued).6 relations with the United States.’ In ranking fiftieth in the world’s top However, actual deliveries increased other words it would jeopardise the military spenders.2 Israel also has a steadily over the three years. interests of BAE Systems. vibrant domestic military industry – Licences granted for 2002 included The failure of the UK government in 2002 it was the twelfth largest assault rifles, weapon day and night to implement a full, two-way military military exporter with main sights, components for combat embargo, leaves the UK effectively customers including Australia, aircraft, components for artillery condoning Israel’s flagrant disregard Belgium, Chile, India, Romania, rocket control equipment, anti- for international law and human Singapore, Turkey, USA and armour missiles and armoured all rights. Israeli has been invited to Venezuela.3 According to the Israeli wheel drive vehicles. While company DSEi 2003. MoD, Israeli military firms signed details are not provided in official $4bn in new contracts during 2002, figures, UK companies that have 1 Primarily sourced from Mandy Turner, ‘Arming a 64% increase on 2001.4 If supplied arms to Israel and who are the Occupation’, CAAT, October 2002 2 SIPRI Yearbook 2003 implemented through actually exhibiting at DSEi 2003 include: BAE 3 Personal communication from SIPRI, 15.8.03 deliveries, it was reported that this Systems, which has provided head- 4 Defense News, ‘Israel Unveils Improved level of new orders would put Israel up displays for US-built F16s Weapon Export Figures’, 16.6.03 in third place among the world’s supplied to Israel;7 Smiths Group, 5 Defense News, ‘Israel Unveils Improved leading arms-producing nations, which has supplied missile triggering Weapon Export Figures’, 16.6.03 6 UK Strategic Export Controls Annual Reports, 5 behind the US and Russia. Israeli systems for Apache attack 2000, 2001 & 2002 military industry is well-represented helicopters;8 and Civil Defence 7 The Guardian, 09.07.02 at DSEi with, as of 17 August 2003, Supply Ltd which (along with Hiatt & 8 Guardian, May 29th 2002. Rafael, Oceana Integrated Co Ltd) is involved with Paz 9 www.palestinecampaign.org; www.pazlogistics.com cited in Turner, 2002 Technologies, M-Systems, Israel

Collaborations and exports US markets;201 and a joint venture with the Eurospike Rafael collaborates with a wide range of non-Israeli compa- Consortium to make Gill/Spike missiles for sale in Europe.202 nies including BAE Systems, Boeing, General Dynamics, Rafael expects orders worth $600m for Gill/Spike from Lockheed Martin, MBDA, Northrop Grumman, Thales and Europe and seems likely to get them as the Netherlands, Raytheon.200 Examples include a joint venture with Finland and Poland203 have already ordered the weapon. Lockheed Martin that allows Rafael to sell its Popeye and Gill/Spike is also operational in Singapore.204 Python-4 missiles to the Pentagon; the production of two Other Rafael exports include the Barak ship-borne anti- new torpedo decoy systems, the Subscut and the Lescut, in missile system to Chile and Singapore,205 Popeye missiles to cooperation with BAE Systems and designed for the UK and

32 South Korea,206 and a co-production agreement with Turkey Ballistic Missile Defense for Popeye II missiles.207 Raytheon is one of the big four Ballistic Missile Defense (BMD) companies and has extensive involvement in each of the four main segments of the programme (boost, mid- Raytheon [US] course, terminal and sensors).219 Its involvement includes World ranking: 3 production of the Standard Missile-3, being systems inte- Total military sales: $15.3bn grator for the (Patriot) PAC-3 system and prime contractor Military sales as % of total sales: 91% for the ‘Exoatmospheric Kill Vehicle’ and both the X-band Employees: 76,400208 (approx. 1,750 in the UK) 209 and Upgraded Early Warning Radars. Military products include: missiles, surveillance and targeting systems Exports Raytheon exports billions of dollars worth of military equip- Raytheon Company, 141 Spring Street, Lexington, MA ment each year. In 2002 its total exports amounted to $2.6 02421, USA billion.220 Its client list includes Israel, Egypt, Saudi Arabia, www.raytheon.com Turkey, Indonesia, Malaysia, Oman, Singapore, Greece, Taiwan and South Korea.221 The AIM-120 air-to-air missile alone has been sold to more than 20 countries, including Background ‘recent controversial offers’ to Thailand and the United Arab Raytheon has four business areas: Missile Defense; Emirates. 222 Intelligence, Surveillance and Reconnaissance; Precision Engagement; and Homeland Security. It is most famous for missiles – as Raytheon says, its ‘range of weapon systems Rolls-Royce [UK] needs little introduction. The company is a global leader in World ranking: 17 the development and deployment of advanced technology Total military sales: $2.2bn missile systems and air combat and strike systems.’ 210 Military sales as % of total sales: 24% Employees: 37,000 (22,000 in UK) 224 Raytheon in the UK Military products include: aero engines and marine propulsion Raytheon’s UK subsidiary, Raytheon Systems Ltd, is head- systems quartered in London and has facilities in England, Scotland and Northern Ireland.211 Raytheon weapons in use by the UK Rolls-Royce plc; 65 Buckingham Gate, London SW1E 6AT include Paveway II and Paveway III bombs, AMRAAM air-to- Tel: + 44 (0) 20 7222 9020 air Missiles and Tomahawk cruise missiles. Raytheon www.rolls-royce.com Systems Ltd provides integration and support for these. The UK MoD recently selected Raytheon to provide the Paveway IV precision-guided bomb, a deal worth more than What it makes £300m including aircraft integration.212 Rolls-Royce is the world’s second largest military aero engine manufacturer, powering approximately 25 per cent of Raytheon Systems Ltd, 80 Park Lane, London W1K 7TR; the world’s military aircraft. Less well known is the fact that Tel: + 44 (0) 20 7569 5500; www.raytheon.co.uk it is also a major producer of marine propulsion systems. It has equipment installed on 2,200 warships and powers all What it makes of the UK’s nuclear submarines. In 1999 Rolls-Royce pur- chased Vickers for its marine propulsion systems. However Missiles for the ‘free world’ it was keen to offload the non-core armoured vehicle and Probably the best known of its long inventory of missiles are tank elements of the business and in September 2002 sold the Stinger family of surface-to-air missiles and the Vickers Defence Systems to Alvis. Tomahawk cruise missile. However, there are plenty more Rolls-Royce’s results for 2002 show a substantial shift examples including Paveway bombs, Javelin anti-tank mis- towards the military market. Engine deliveries for civil aero- siles, Joint Standoff Weapons, Sidewinder and AIM-120 air- space fell by 37 per cent over the year while military engine to-air missiles and Maverick air-to-ground missiles.213 The deliveries increased by 32 per cent. The trend seems set to Maverick guided missile has been in service with the US Air continue with Rolls-Royce anticipating steady growth in the Force since 1972214 and, according to Raytheon, ‘is the most military market, not least because of ‘increasing regional widely used precision-guided missile in the free world’.215 tensions in many parts of the world.’225 Since 1999, both the Tomahawk cruise missile and the AGM-154A Joint Standoff Weapon have been used against Exports Yugoslavia, Afghanistan and, most recently, Iraq. Both of Rolls-Royce does not just sell its engines to prime contrac- these missiles can be equipped to deploy cluster submuni- tors such as BAE Systems, Boeing and Lockheed Martin tions.216 and leave it there; an important part of its service is the sup- port given ‘right up to the front line to the 100 armed forces Radar and targeting and 30 navies who use our engines to power their aircraft, Raytheon also specialises in radar, surveillance and target- helicopters, ships and submarines.’226 ing systems. These are in use on most US-produced com- Some of the more famous aircraft to carry Rolls-Royce bat aircraft including the Special Forces AC-130U and AC- engines include the Jaguar, Harrier, Tornado and Eurofighter 130H airborne gunships.217 One group of such systems is combat aircraft, and Apache and Tiger attack helicopters. referred to as the ‘Terminator family of targeting systems’ All BAE Systems Hawk jets use Rolls-Royce Adour engines. which is in use in the F-18 Hornet fighter and the Global Hawks have been sold around the world including to Saudi Hawk unmanned aerial vehicle.218 Arabia, Oman, Bahrain, UAE and Kuwait in the Middle East,

33 Indonesia, Brunei, Malaysia and South Korea in Asia, and SAAB in the UK South Africa, Kenya and Zimbabwe in Africa. SAAB has a number of contracts with the UK armed forces, including the supply of laser weapon simulators for the Apache attack helicopter.230 However, SAAB’s most obvious SAAB [Sweden] interest in the UK is via Gripen International, the BAE World ranking: 25 Systems/SAAB 50:50 joint venture. Total military sales: $1.4bn Military sales as % of total sales: 75% Gripen International (UK Office), Warwick House, P.O. Box Employees: 14,000229 87, Farnborough Aerospace Centre, Farnborough, Military products include: fighter aircraft, missiles, electronics Hampshire GU14 6YU; Tel: + 44 (0) 1252 373 232; www.gripen.com SAAB AB, P.O. Box 70365, 10724 Stockholm, Sweden Tel: + 46 8 463 0250 What it makes www.saab.se The SAAB Group includes SAAB Aerospace which manu- factures aircraft, aircraft subsystems including avionics and electronic warfare systems, and SAAB Bofors which pro- Background duces infantry weapons, underwater systems, and missiles SAAB AB of Sweden, founded in 1937, is an aerospace and and missile systems. military company, now separate from the General Motors- owned car manufacturer. SAAB has been making jet aircraft Gripen fighter aircraft since the late 1940s and is now 35%-owned by BAE Gripen International is a Swedish registered company with a Systems. core staff of 70 employees.231 It is headquartered in Stockholm and has offices or representation in Austria, Brazil, Czech Republic, Hungary, Poland, South Africa, the

South Africa1

The 1999 deal threat, and peace-keeping in Africa contracts but actively promoted The government of South Africa is needs troops and light equipment, them. South Africa’s decision to currently purchasing warships and not warships, fighter planes and rearm was in part the result of military aircraft to the value of $4.8 tanks. The sheer inappropriateness sustained external pressure, billion from UK and other European and expense of most of the culminating in a visit by Tony Blair to suppliers: from the UK, 24 BAE purchases naturally led to allegations Pretoria in January 1999 which is Systems Hawk trainer aircraft and 4 of corrupt inducements and the said to have clinched the deal. GKN Westland Super Lynx naval imprisonment of Tony Yengeni, the London’s motives (and doubtless helicopters; from Sweden, 28 SAAB ANC’s Chief Whip at the relevant Berlin’s and Rome’s) were those Gripen fighters, in which BAE time, for fraud. which have so long sustained the Systems has a half share; from The deal was not concluded until arms export trade. The jobs Germany, 3 submarines and 4 September 1999, after five years of argument, though carrying surface warships, variously anxious debate within the country considerable public-relations weight, described as corvettes and frigates; and the government. The balance has little economic validity. More from Italy, 30 Agusta utility was eventually tipped in favour of important is the deep-seated helicopters. A similar procurement the militarists by two factors: the conviction that a flourishing arms package for the Army, including easy financial terms which South industry is a badge of national main battle tanks and hundreds of Africa was able to negotiate in a status. other armoured vehicles, has been global buyers’ market (including UK So the deal supports the mutual deferred but is expected to go Export Credits Guarantee interests of the European and South ahead before long. Department loans) and the promise African politico-military-industrial Some of the usual objections to of ‘offset’ expenditures (counter- complexes. The real needs of the arms-trade activities do not apply purchases and ‘industrial South African people do not figure. here. South Africa is a democracy participation’) amounting, highly which is entitled to make its own optimistically, to more than twice the DSEi choices and it is not at war or likely value of the purchases. DSEi will play host to BAE Systems, to be at war. Nevertheless there are SAAB, AgustaWestland and 36 grounds for deep concern about the The sellers South African companies. A South transaction and especially about the The vendor companies benefited African delegation has been officially UK’s part in it. South Africa urgently from both the actual sales and the invited, as it was in 1999 and 2001. needs to spend money on the opportunity to gain effective control development of civil industry, water over the South African arms industry 1 Primarily sourced from Chris Wrigley, ‘The supplies, education, housing and to help secure future business. South Africa deal: a case study in the arms trade’, CAAT, June 2003 health, above all on mitigation of the The vendor governments, catastrophe that is AIDS. On the especially that of the UK, did not other hand, it faces no military merely help to lubricate the

34 UK and the US.232 Gripen International acts as a prime con- tractor and is, with BAE Systems, responsible for marketing, Arms export subsidies selling and supporting the Gripen fighter aircraft worldwide. The Gripen fighter is in service with the Swedish Air Force and has been selected by South Africa and Hungary. A sale Arms exports are widely perceived as a vast money to the Czech Republic was cancelled after the serious earner for the UK. But this is not the case. The UK floods of summer 2002. The deal had been the subject of government provides subsidies through a whole range US government allegations of corruption (see page 15). of dedicated services in support of arms deals. These The Gripen was displayed at the 2003 Paris Air Show, range from government ministers travelling the world to with a weapons package reported to include Rafael mis- push arms exports, through financial support for siles.233 individual deals, to the Defence Export Services Organisation (DESO) and direct support for arms exhibitions such as DSEi. Some subsidies are a matter Smiths Group [UK] of official record and some, due to commercial World ranking: 31 confidentiality, are rendered almost unquantifiable. Total military sales: $1.1bn However, CAAT has estimated that the level of subsidy Military sales as % of total sales: 25% provided to the UK arms industry for exports is around Employees: 33,000 (9,200 in the UK) 234 three quarters of a billion pounds per year.1 Military products include: aircraft components, chemical and The main areas of subsidy are: biological agent detectors Marketing and Promotion: Marketing support includes everything from the costs of DSEi and DESO, to the use Smiths Group plc, 765 Finchley Road, London NW11 8DS of military personnel and defence attachés to support Tel: + 44 (0) 20 8458 323 bids for weapons contracts. In addition, high-level www.smiths-group.com official visits from the Prime Minister downwards, support companies trying to win contracts Financing: Financing comes through export credit Background guarantees organised by the Department of Trade and Smiths is a wide-ranging group with Aerospace, Medical, Industry’s Export Credits Guarantee Department Sealing Solutions and Industrial businesses. Its military (ECGD). These guarantees underwrite arms payments work is concentrated in the dominant Aerospace business, with tax-payers’ money – essentially providing cheap which includes a rapidly expanding ‘Detection’ section, pro- insurance cover for exporters. While guarantees are ducing devices to detect explosives, narcotics and biologi- available to any sector, more and more cover is going to cal and chemical agents. Though a UK-based company, arms companies. While only about 2% of exports are nearly 50% of its production is in the US, with 29% in the military, these claimed 50% of ECGD cover last year. UK, 15% in the rest of Europe and 7% elsewhere.235 MoD procurement: When a contract for equipment for the UK armed forces comes up, it is often possible to What it makes buy cheaper (and arguably better) military equipment Smiths Group, through its Aerospace business, is a first-tier from abroad. However, government ministers often ‘buy supplier to UK and US aircraft and engine manufacturers. It British’, helping companies sell their equipment abroad. produces ‘integrated aerospace systems, including elec- In July 2003, BAE Systems sources were reported as tronic and actuation systems and components for civil and saying that export orders were ‘a vital factor’ in the military aircraft. Also equipment for land, naval and marine recent decision by the government to buy BAE Systems and other defence applications.’236 Gun pods for Hawk jets, Hawk jets.2 The Treasury had estimated that opening gun-turret actuators for Apache attack helicopters and the bid to competition from other companies would cockpit control panels for the B-2 bomber, F-16 fighter and save the UK tax-payer £1 billion. Choosing more the A-10A ‘tank-buster’ provide a few examples of their expensive equipment in order to support exports is a products.237 direct subsidy to the arms trade. The proportion of Smiths’ work that is military is steadily Research and Development: The UK government’s increasing. Smiths’ 2002 Annual Review states that the budget for military R&D is approximately £2.5 billion. reduction in civil aircraft production ‘was counterbalanced This spending supports exports as well as domestic by rising requirements for our military aerospace and detec- procurement and the MoD is supposed to charge a levy tion products. We have established strong market positions on exports to recoup some of the costs. However, the in both military and detection and expect sales to grow levy is drastically watered down to ‘what the market will strongly over the next few years.’238 The Annual Review goes bear’. The difference between the actual levy income on to state that ‘the biggest business win of the year was and a realistic levy amounts to a subsidy of several the F-35 fighter aircraft [the Joint Strike Fighter], where we hundred million pounds. have secured business worth around $1m per plane... More Given the 70,000 employees estimated to be working than 3,000 F-35s are planned to be built and the programme on military exports,3 a subsidy of three quarters of a should make a major contribution to the division’s long-term billion pounds amounts to nearly £11,000 for each job, growth.’ The Joint Strike Fighter (JSF) is set to replace the each year! F-16, the most numerous western fighter in service, and is anticipated to be exported around the world. Israel and 1 CAAT, ‘Subsidies factsheet’, February 2002 Turkey are already formally involved in the programme, even 2 Times, ‘Cabinet battle over British jet contract’, 31.7.03 3 MoD, ‘UK Defence Statistics 2002’, The Stationery Office, 2002 before the aircraft is ready for production.

35 Corruption

Transparency International (UK) The official UK and ‘bribes’ and how these relate to estimates that ‘the official arms government position? other obscuring terms such as trade accounts for 50% of all corrupt A Defence Export Services ‘facilitation payments’. international transactions’ and Organisation (DESO) webpage, considers that ‘a conservative dated 1st March 1999 but still Secrecy estimate of the level of commissions displayed in December 2002, had a Corruption thrives in conditions of paid is 10%’.1 It needs stressing that section entitled ‘Special secrecy and the only way to address this refers to the ‘official’ arms trade. Commissions’ which said that all it is to open up the world of arms What is happening at DSEi is the requests to give commissions deals. Arms export licences need to official arms trade. What the should be referred to DESO which be made available for comment in government promotes is the official would confirm whether such advance of deals, allegations of arms trade. payments could be made.6 corruption need to be thoroughly Arms deals often involve huge The Export Credits Guarantee investigated and, as an easy first sums of money and are always Department (ECGD) is not exactly step, the National Audit Office shrouded in secrecy. This critical of commissions either. In investigation into the massive Saudi combination renders them liable to response to a parliamentary Arabian deals of the 1980s should corruption. Corrupt payments can question on 9th June 2003 about the be released (the Public Accounts generate a demand for weaponry ECGD and BAE Systems’ deal with Committee decided not to publish where none should exist, potentially South Africa, Trade & Industry the report, despite the fact that most diverting resources from social Secretary Patricia Hewitt said, the of its members were not even needs, including health and ‘ECGD’s application process allowed to read it!). development. requires certain details of agents’ Unfortunately, the government Though there appears to be little commission to be disclosed to support for DSEi and the secrecy will to investigate allegations of ECGD in order that it can follow its surrounding it does not give much corruption, they seem to keep due diligence procedures. In this grounds for optimism. cropping up. In just the past year case such due diligence procedures BAE Systems alone has faced four were followed and no irregularities 1 www.transparency.org/ sets of allegations involving deals were detected. For reasons of pressreleases_archive/2002/2002.04.25.arms trade_tiuk.html, accessed 16.8.03 2 with South Africa, the Czech commercial confidentiality specific 2 Guardian, 30.6.03 Republic,3 Qatar4 and India.5 The details of the commission paid 3 Guardian, 12.6.03 company denies the allegations. cannot be revealed.’7 4 Observer 2.6.02; Private Eye 4.4.03 What does all this mean? DESO 5 Sunday Times, 6.7.03 and the ECGD should explain the 6 Guardian, 13.6.03; Susan Hawley, ‘Turning a Blink eye’, The Cornerhouse, June 2003 difference between ‘commissions’ 7 Hansard, 9.6.03

Exports Background In 2002, Smiths received unwelcome attention amid the In 1998, the French government arranged for the reorgani- growing concern over Israeli activities in the Occupied sation of Thomson-CSF, Alcatel, Dassault Electronique and Territories – it was reported by the Guardian that missile Aerospatiale, to consolidate the military electronics busi- trigger systems made by Smiths Group were used in US- nesses under Thomson-CSF. In June 2000 Thomson-CSF made Apache attack helicopters supplied to Israel.239 acquired Racal Electronics for £1.3bn, which both increased However, such revelations are rare – not because Smiths’ its focus on military electronics and established a major equipment is not being used by oppressive regimes or in presence in the UK, and in December 2000 it agreed to form regions of conflict or tension, but because we generally hear a joint venture with Raytheon of the US (Thales-Raytheon only about the company that markets the complete Systems). That same month, Thomson-CSF adopted the weapons system. Smiths’ military involvement is far less name of Thales, an ancient Greek philosopher, in a move to widely known than its size merits. change perceptions of the rapidly expanding company. Thales Group is France’s largest military company. It has 65,000 employees worldwide, half outside France, with a Thales [France] presence in nearly 50 countries and industrial operations in World ranking: 7 30.242 The French government holds a 33% stake in Thales, Total military sales: $7.7bn Alcatel SA, the French telecommunications equipment pro- Military sales as % of total sales: 66% ducer, owns 16% and Dassault Aviation owns 6%. Employees: 65,000240 (14,000 in the UK) 241 Military products include: missiles, avionics, naval systems, Thales in the UK radar, optronics Thales has swallowed up such familiar names as Racal, Thomson Marconi Sonar, Shorts Missile Systems, Thorn, Thales, 173 Blvd Haussmann, 75008 Paris, Cedex 08, France Avimo and Pilkington Optronics,243 and is now the UK’s sec- Tel: + 33 1 53 77 80 00 ond largest military supplier. It is involved with the UK’s new www.thalesgroup.com aircraft carrier programmes, is to provide sonar suites for the Astute class submarine and it states that ‘our advanced

36 Company influence1

The UK government is giving its full sponsoring party events or DESO: Heads of DESO are support to DSEi, it dedicates the 600 government projects. For big deals, seconded from arms companies, staff of the Defence Export Services they can use media pressure and giving the industry a direct voice into Organisation (DESO) to helping threats of job losses, as BAE the very heart of government. They companies export arms, it provides Systems blatantly and successfully are tasked with co-ordinating financial support for arms exports, did to win the trainer aircraft government support for arms its ministers and the prime minister contract in July 2003. exports. The current incumbent, Alan use overseas visits to push arms Advisory bodies: There are also a Garwood, was seconded from BAE deals, and government controls on plethora of government advisory Systems. arms export (not to say domestic bodies that can be used - ways in Personal contacts: though often procurement rules) appear flexible in which favoured individuals, hard to identify, personal contacts the extreme. organisations or companies can feed are perhaps the most important Such enthusiasm implies that into government thinking. Bodies piece of the jigsaw. The revolving there must be a very good reason such as the National Defence door still exists and some high- for exporting arms, but what is it? Industries Council, the National profile MoD ‘revolvers’ include: The usual justifications revolve Defence and Aerospace Systems Michael Portillo (Secretary of State around the financial benefits Panel and the Aerospace Innovation for Defence, 1995-97) who became (implicitly ‘jobs’), foreign policy, and and Growth Team are primarily made a non-executive director of BAE protecting the UK’s military industrial up of arms company representatives Systems, a company he pushed base. However, each of these is together with a sizeable contingent contracts for whilst in office; Roger flawed. The subsidies provided for of ministers and/or civil servants and Freeman (Minister of State for arms exports and the few jobs the occasional academic or union Defence Procurement, 1994-95) who involved undermine the presumed official. It would be surprising if such became the Chairman of Thales plc; financial arguments; the willingness bodies did not make and Jonathan Aitken (Minister for to export to almost anyone, recommendations based on the Defence Procurement, 1992-94) who including both sides of a conflict, needs and desires of the arms obviously became very confused undermines any strategic argument; companies (though of course we do about his role vis-à-vis arms and the existence of an independent not know as their discussions and, companies. He went to prison for military industrial base must be a usually, their conclusions are perjury after attempting to conceal thing of the past if a French private). his role in sales of weapons from UK company, Thales, is the UK’s second The advisory body system is also companies to Saudi Arabia.2 biggest arms supplier and more than useful in Europe. The STAR 21 group Tony Blair is an enthusiastic 80% of BAE Systems sales are was set up to analyse the state of supporter of arms exports. He has outside the UK. the European aerospace industry personally lent his support to BAE So what does that leave in the and assess its long-term policy Systems sales drives including to way of possible reasons? Is the needs. It consisted of India, South Africa and the Czech answer simply a combination of the representatives of seven European Republic, and has supported licence desire of our leaders to strut the arms companies, two MEPs, the EU applications for highly controversial world stage as military players and High Representative and, deals to Zimbabwe and Tanzania. the massive influence of the arms astonishingly, five European The Observer has quoted ‘an companies? Possible elements of Commissioners! Unsurprisingly it industry insider’ as saying that Dick the latter are discussed below. called for more money. A similar Evans (BAE Systems’ Chairman) is body exists for naval manufacturers. ‘one of the few businessmen who Influencing the The existence of these high-powered can see Blair on request.’3 government bodies appears to have coincided Companies can try to affect with a move from member states 1 Primarily sourced from CAAT, ‘The Political government thinking by employing towards unprecedented central Influence of Arms Companies’, April 2003 2 www.guardian.co.uk/aitken/Story/ lobbying companies, directly European Union funding for military 0,2763,208518,00.html, accessed 10.2.03 approaching politicians, mobilising Research & Development spending. 3 Observer, 18.3.01 unions and making donations or missile electronics products are used in almost every UK Aerospace provides for both civil and military markets. In its missile.’244 Defence business, Thales claims to be ‘present on all types of air, sea and ground military platforms’.245 And in its IT&S Thales UK plc (Thales Defence Ltd), 2 Dashwood Lang business, ‘We create incremental value from dual-use tech- Road, The Bourne Business Park, Addlestone, Weybridge nology developed in our Aerospace and Defence sectors Surrey KT15 2NX; Tel: + 44 (0) 1932 824 800; and put it to work for customers in the IT&S segment. These www.thalesgroup.co.uk cost-effective products are then re-injected back into the Defence and Aerospace sectors.’246 What it makes Thales places a strong emphasis on military electronics Thales is divided into three business areas: Aerospace, and missiles, hence its tie-up with Raytheon. Avionics also Defence and Information Technology & Services (IT&S). features highly as do naval systems including radar, tracking

37 Globalization of the arms industry

The arms industry has changed Exports Germany or Sweden maintaining radically since the end of the Cold Corporate manoeuvrings are not just their traditionally more restrictive War, primarily due to the reduction in about dividing up US and European export policies against pressure military spending during the early- domestic markets. The globalization from, say, France or the UK. mid 1990s (military spending has of production has an impact on been growing again since 19981) and further exports in two main ways: DSEi widespread company privatisations. z Companies in industrialising Arms fairs have changed in parallel Military industry is no longer countries are purchased or pulled with the arms industry. The Royal comprised of discrete companies, into partnerships to provide both Navy and British Army Equipment but of ‘a labyrinth of licensed a cheaper source of labour and Exhibitions, forerunners of DSEi, production, joint venture, an additional, almost guaranteed, used to be showcases for domestic conglomerates, strategic home market. The country might arms producers. But now over 400 partnerships, and Co-operative also have fewer export controls, of the 1000 exhibitors at DSEi are Armament Programmes.’2 providing a further source of non-UK. There are companies from Western companies outside the income. Israel, Turkey, Pakistan, Bulgaria, US are torn between global z Companies demand reduced Romania, Russia and Singapore, as aspirations and dependence on their export controls to help their new well as many from South Africa, ‘home’ governments for preferential cross-border collaborations to Europe and the US. As an MoD treatment. BAE Systems is a prime function, and then it is only a letter has stated, the ‘move to the example. It is desperate to be an small step to restructuring export private sector with the launch of international company (though being controls for further afield. A prime DSEi in 1999 reflected the a US one would do) and dropped example of this is the so-called increasingly transnational nature of the ‘British’ from its name ‘Six Nation Framework the defence equipment industry’.3 accordingly. Its shares are now held Agreement’ between France, DSEi has become a centre for, and a primarily outside of the UK and it Germany, Sweden, Spain, Italy symbol of, the international, has acquired parts of Lockheed and the UK. One purpose of the globalizing arms trade, where sales Martin to provide access to US Agreement is to reduce the export are being arranged on UK soil that spending. However, it still expects to controls between the six are not subject to UK licensing receive exactly what it wants from countries but, for each individual arrangements. the UK government and demands arms programme, participants will political favour on the basis of its agree a list of ‘permitted 1 SIPRI Yearbook 2002 history and of UK jobs. The present destinations’ to which the 2 Christopher Wrigley, ‘The Arms Industry’, CAAT, March 2001 government is willing to oblige, equipment can be sold. The lists 3 Letter from Dr Lewis Moonie MP, MoD, though the demise of the national will be kept secret and are likely 29.7.02 military industrial base may one day to permit exports according to the become too obvious for this position lowest common denominator – it to be sustained. is hard to see countries like and weapons, and optronics including lasers, night vision and 6% from the ‘Rest of World’.247 Thales is prime contrac- and precision guidance. Its activities range from delivering tor for the Sawari 2 programme, which involves supplying onboard computers for GIAT Industries’ Leclerc tank to a three frigates to Saudi Arabia equipped with the Arabel cooperation agreement with MBDA to produce seekers for multi-function anti-air fire control radar and Aster missile the Aster, Mica and Meteor missiles, to supplying the inte- system.248 In Indonesia and Japan, Thales has won con- grated communications system for the French-Italian tracts for maritime patrol systems. Thales is prime contrac- Horizon frigates. tor for electronic warfare systems for naval vessels and was selected by Brunei for its Waspada ships and by the UK for Exports Type 45 destroyers.249 Shorts Missile Systems, which is now In 2002, 23% of Thales’ revenues came from France, 13% owned by Thales, has delivered over 60,000 missiles to 56 from the UK, 19% from ‘Other Europe’, 13% from Asia- armed forces worldwide.250 Pacific, 16% from the Middle East, 10% from North America

38 Company references

1 Alvis Group company literature, April 2003 found at tear gas site’, 22.11.02 2 www.alvis.plc.uk accessed 15.6.03 55 www.armsdeal-vpo.co.za/special_items/reports/denel_2002-04-24.html 3 www.alvis.plc.uk accessed 15.06.03 accessed 15.08.2003 4 Supplement to Jane’s Defence Weekly, 19 February 2003 56 www.southafricanemb.se/ssda1.htm 5 www.alvis.plc.uk, News Release, 3 July 2002 57 www.denel.co.za/ accessed 16.8.03 6 Mark Phythian, ‘The Politics of British Arms Sales since 1964’, 58 www.southafricanemb.se/ssda1.htm accessed 16.8.03 Manchester University Press, 2000. p.183 59 www.hrw.org/worldreport99/arms/arms4.html accessed 7.08.2003 7 Supplement to Jane’s Defence Weekly 19 February 2003 60 Jane’s Defence Weekly 7.03.2002 8 Nicholas Gilby, ‘Arms Exports to Indonesia’, CAAT, October 1999 61 EADS Annual Report 2002 9 www.arsenal-bg.com/profile.htm, accessed 14.08.2003 62 www.vredesactie.be/html/EADS_report_eng.htm, accessed 24.8.03 10 Jane’s Defence Weekly, ‘Bulgaria Doubled Arms Exports in Late 2001’, 63 http://www.eads.com/eads/en/index.htm, accessed 27.08.03 10.04.02 64 www.mbda.net/ehistoire.html, accessed 15.07.03 11 Jane’s Defence Weekly, 10.04.02 65 www.eads.com/eads/en/index.htm, accessed 15.07.03 12 www.iht.com/IHT/PG/98/pg081198a.html accessed 24.07.2003 66 http://www.mbda.net/een_bref.html, accessed 24.08.03 (International Herald Tribune) 67 http://www.baesystems.com/ocs/intpartners/mbda.htm, accessed 13 Human rights Watch, ‘Bulgaria; Money Talks’, April 1999 22.8.03 (www.hrw.org/reports/1999/bulgaria/) 68 Joint press release of EADS, Sukhoi, MBDA and Rosoboronexport, 14 www.saferworld.co.uk/Bulgaria.pdf accessed 11.08.2003 18.06.03. 15 www.times-archive.co.uk/news/pages/sti/98/05/17/stifocnws02002.html? 69 Hansard. 20.06.03. Column 516W 1621558 accessed 15.08.2003 70 www.vredesactie.be/html/EADS_report_eng.htm, accessed 24.8.03 16 www.saferworld.co.uk/Bulgaria.pdf accessed 11.08.2003 71 Guardian, ‘Boeing recruits EADS for defence’, 24.7.03 17 www.saferworld.co.uk/Bulgaria.pdf accessed 11.08.2003 72 www.vredesactie.be/html/EADS_report_eng.htm, accessed 24.8.03 18 www.baesystems.com/facts/plc.htm, accessed 19.8.03 73 www.fuse-network.com/fuse/demonstration/29/24683/, accessed 31.7.03 19 BAE Systems Annual Report 2002. Estimated using the geographical 74 www.fnherstal.com/html/Index.htm, accessed 27.8.03 origin of sales 75 www.worldpolicy.org/projects/arms/reports/smallarms.htm#fn, accessed 20 The Guardian, ‘BAE splits joint venture’, 8.8.03 27.8.03 21 CAAT, BAE Systems Alternative Report 2002, April 2002 76 www.airforce-technology.com/contractors/weapons/fn_herstal/index.html, 22 www.baesystems.com/ocs/intpartners/mbda.htm, accessed 22.8.03 accessed 27.8.03 23 BAE Systems news release, 1.8.03 77 www.worldpolicy.org/projects/arms/reports/smallarms.htm#fn, accessed 24 www.baesystems.com/ocs/rodefence/index.htm, accessed 28.8.03 31.7.2003 25 www.baesystems.com/ocs/others/rodefence/index.htm, accessed 78 www.worldpolicy.org/projects/arms/reports/smallarms.htm#fn, accessed 15.7.03 27.8.03 26 Dan Fahey, ‘Science or Science Fiction? Facts, Myths & Propaganda in 79 www.worldpolicy.org/projects/arms/reports/smallarms.htm#fn, accessed the Debate over Uranium Weapons’, 12.3.03 8.8.2003 27 Financial Times, ‘£1.2bn gap in warship projects, warns BAE’, 14.7.03 80 www.parliament.the-stationery- 28 Financial Times, ‘BAE wins argument for keeping private finance out of office.co.uk/pa/cm200203/cmselect/cmdfence/474/474ap11.htm, £10bn Hawk jet contract’, 28.6.03 accessed 27.8.03 29 Guardian¸ ‘Wrangling ends with order for Hawks’, 31.7.03. 81 Katmandu Post, 28.12.02 30 Times, ‘Cabinet row over jet deal threatens BAE jobs’, 17.7.03 (www.nepalnews.com.np/contents/englishdaily/ktmpost/2002/dec/dec28/i 31 Times, ‘“No favours” for BAE over RAF planes contract’, 26.6.03 ndex1.htm, accessed 30.7.2003) 32 Guardian¸ ‘Wrangling ends with order for Hawks’, 31.7.03. 82 www.generaldynamics.com/, accessed 26.8.03 33 The Guardian, ‘UK inquiry into jet parts for Mugabe’, 8.11.02 83 www.generaldynamics.uk.com/news/default.htm, accessed 26.8.03 34 United Nations Security Council, ‘Final Report of the Panel of Experts on 84 www.generaldynamics.com/, accessed 26.8.03 the Illegal Exploitation of Natural Resources and Other Forms of Wealth of 85 www.generaldynamics.uk.com/news/default.htm, accessed 26.8.03 the Democratic Republic of Congo’, October 2002. Point 56. 86 www.generaldynamics.uk.com/mission_systems_old/default.htm, (www.reliefweb.int/w/rwb.nsf/vID/706B89B947E5993DC1256C590052B3 accessed 26.8.03 53?OpenDocument, accessed 27.08.03) 87 www.nrdc.org/nuclear/nuguide/ngonucl.asp, accessed 6.8.03 35 The Guardian, ‘BAE “paid millions” to win Hawk jets contract’, 30.6.03 88 www.globalsecurity.org/military/systems/aircraft/systems/gau-8.htm, 36 The Guardian, ‘US accuses British over arms deal bribery bid’, 12.6.03 accessed 6.8.03 37 Sunday Times, ‘India may snub BAE in £1bn Hawk deal’, 6.7.03 89 GKN plc Annual Report 2002. Includes subsidiaries and joint ventures 38 Chemring Group plc, Annual Report, 2002 90 GKN plc Annual Report 2002 39 Calculated from Chemring Group 2002 Annual Report. Total sales £96.3m 91 www.gknplc.com/default.asp?section=businesses, accessed 13.08.03 (2002). 92 GKN plc Annual Report 2002 40 Chemring Group plc, Annual Report, 2002 93 www.gknplc.com/default.asp?section=aerospace, accessed 15.08.03; 41 ww7.investorrelations.co.uk/chemring/index.jsp (‘Corporate Profile’), GKN Annual Report 2002 accessed 16.8.03 94 www.gknplc.com/businesses/aerospace/agusta/main.asp, accessed 42 Chemring Group plc, Annual Report, 2002 13.08.03 43 Chemring Group plc, Interim Report, 2003 95 GKN plc Annual Report 2002 44 Chemring Group plc, Interim Report, 2003 96 www.gknplc.com/businesses/aerospace/agusta/main.asp, accessed 45 www.pwdefence.com/history.htm, accessed 26.3.03 15.08.03 46 www.pwdefence.com/products.htm, accessed 16.8.03 97 GKN plc Annual Report 2002 47 Chemring Group plc, Annual Report, 2002 98 www.gknplc.com/default.asp?section=aerospace, accessed 15.08.03 48 Chemring Group plc, Interim Report, 2003 99 www.caat.org.uk/information/publications/companies/gkn.php, accessed 49 www.pwdefence.com/c_profile.htm, accessed 16.8.03 15.08.03 50 www.bbc.co.uk/radio4/today/reports/archive/features/landmines.shtml, 100 Figure refers to 2001. Heckler & Koch Press Release, December 2002 accessed 28.8.03 101 Heckler & Koch Press Release, December 2002 51 Landmine Action, ‘Attempt to sell illegal landmines’ – new evidence 102 Small Arms Survey 2002, Oxford University Press, 2001 contradicts UK company’s claims,’ 14.5.02 103 Pete Abel, ‘Manufacturing Trends – Globalising the Source’, in Lora 52 Chemring Group plc, Press release: Statement regarding the Today Lumpe (Ed.), ‘Running Guns’, Zed Books, 2000 programme, 10.5.02 104 Pete Abel, 2000 53 Landmine Action, ‘Attempt to sell illegal landmines’ – new evidence 105 Figure refers to 2001, www.insys-ltd.co.uk, accessed 31.10.01 contradicts UK company’s claims’, 14.5.02 106 Figure refers to 2001, www.insys-ltd.co.uk, accessed 31.10.01 54 Amnesty International, ‘Zimbabwe: British company linked to canisters 107 www.insys-ltd.co.uk/about/about.htm

39 108 www.insys-ltd.co.uk/battlespace/warheads.htm 170 www.northgrum.com/who_we_are/noc_today.pdf, accessed 24.08.03 109 www.abnamro.com/pressroom/downloads/letter_sp.pdf, accessed 171 news.bbc.co.uk/1/hi/world/americas/2551685.stm, accessed 24.07.03 11.08.03 172 www.vinnell.com/, accessed 24.08.03 110 CAAT, CAATnews, June/July 2003 173 Jane’s Defence Weekly, Jan 1996, quoted in William Hartung, 111 www.eurofighter.starstreak.net/common/AG/bl755.html, accessed ‘Mercenaries Inc.: How a US Company Props Up the House of Saud’, 11.08.03 The Progressive, April 1996. 112 Hansard, 16.6.03. Col 52/3W 174 William Hartung, Los Angeles Times, ‘Bombings Bring US ‘Executive 113 Jane’s Defence Weekly, ‘UK to extend use of cluster bombs’, 5.12.01 Mercenaries’ Into the Light’, 16.05.03. 114 Defense News, ‘INSYS Snags Aster Contracts’, 3.3.03 175 Defense News, ‘$48 Million To Train Iraqi Army’, 07.07.03. 115 Jane’s Defence Weekly, ‘UK awards rocket launcher contract’, 6.8.03 176 www.fas.org/nuke/guide/pakistan/facility/wah.htm, accessed 31.7.03 116 Ministry of Defence Press Release, 18.7.03 177 www.fas.org/nuke/guide/pakistan/facility/wah.htm, accessed 31.7.03 117 www.matimop.org.il/newrdinf/company/c335.htm#general, accessed 178 pofwah.com.pk/faq.htm, accessed 28.8.03 15.06.03 179 Pete Abel, ‘Manufacturing Trends – Globalising the Source’, in Lora 118 Jewish Institute for National Security Affairs, Lumpe (Ed.), ‘Running Guns’, Zed Books, 2000 www.imisammo.co.il/profile.htm, accessed 15.06.03 180 www.icbl.org/lm/2002/pakistan.html, accessed 8.8.2003 119 www.imi-israel.com/, accessed 11.08.03 181 www.army-technology.com/contractors/machine_guns/pakistan/, 120 www.globalsecurity.org/military/world/israel/industry.htm, accessed accessed 28.8.03 14.08.2003 182 pofwah.com.pk/faq.htm, accessed 28.8.03 121 Jerusalem Post, ‘IMI and US firm to enter joint marketing venture, 183 education.guardian.co.uk/Print/0,3858,4561991,00.html, accessed 15.10.98 15.08.03 122 Terry Gander (Ed), Jane’s Ammunition Handbook 9th edition 2000-2001 184 www.qinetiq.com/markets/defence.html, accessed 15.08.03 123 Hansard, 16.06.03, Col. 55W 185 The Independent, ‘MoD research arm valued at £500m in cut-price Carlyle 124 Guardian, ‘Up to 17,000 unexploded bombs left in war zone, MP warns’, sale’, 6.12.02 4.7.03 186 Private Eye, ‘Commons Assault’, 21.2.03 125 Jewish Institute for National Security Affairs, ‘India-Israel Military Ties 187 www.qinetiq.com/technologies/military.html, accessed 27.08.03 Continue to Grow’, 8.4.03 (www.jinsa.org) 188 Flight International, ‘UK’s QinetiQ moves on with seeker sensor tests’, 20- 126 Sourced from Nicholas Gilby, ‘Nurturing Turkey’s War Machine’, CAAT, 26.5.03 March 2003 189 Jane’s Defence International, ‘QinetiQ architecture double bonus’, July 127 Associated Press¸’Turkey likely to Stay Israeli Friend’, 29.04.02 2003 128 www.lockheedmartin.com/about/index.html, accessed 23.8.03 190 www.qinetiq.com/casestudies/2002/flying_high.html, accessed 27.8.03 129 www.lockheedmartin.com/about/index.html, accessed 5.7.03 191 www.corporatewatch.org/newsletter/issue11/isue11_part1.htm, accessed 130 www.lockheedmartin.co.uk/about_us/aboutus.htm, accessed 5.7.03 27.8.03 131 www.lockheedmartin.co.uk/location/location.htm, accessed 23.8.03 192 www.thecarlylegroup.com/eng/company/index.html, accessed 27.8.03 132 Lockheed Martin Fact Sheet, summer 2003. 193 www.hereinreality.com/carlyle.html accessed 15.8.03 133 Flight International, 20-26.2.01 194 The Observer, ‘MoD allows Carlyle Deal with Strings’, 15.9.02 134 Defense News, ‘Chilean F-16 Deal Finalised’, 2.6.03 195 Jane’s International Defence Review, February 2002 135 Jane’s Defence Weekly, ‘Poland signs F-16 contracts’, 30.4.03 196 www.rafael.co.il/web/rafnew/presentations/corporate-milestones.htm, 136 www.worldpolicy.org/projects/arms/updates/051603.html#I, accessed accessed 23.08.03 8.7.03 197 www.rafael.co.il/web/rafnew/presentations/corporate-map.htm, accessed 137 www.worldpolicy.org/projects/arms/updates/051603.html#I, accessed 23.08.03 8.7.03 198 Flight International, 22-28.01.02 138 www.missilesandfirecontrol.com/our_products/antiarmor/HELLFIRE/ 199 www.globalsecurity.org/wmd/world/israel/rafael.htm, accessed 23.08.03 product-HELLFIREII.html, accessed 23.08.03 200 www.rafael.co.il/web/rafnew/presentations/corporate-partnership.htm, 139 Telegraph, ‘Intelligent missile used against bib Laden caves’, 16.12.01 accessed 23.08.03 140 Defense News, ‘Defense News Top 100 (2002)’, 21.7.03 201 www.defense-update.com/news/6702scutter.htm, 09.07.02, accessed 141 WILPF and World Policy Institute, ‘The Dirty Dozen: Corporate Partners in 23.08.03 Mass Destruction’, 2002 (www.reachingcrticalwill.org/dd/ddindex.html) 202 Defense News, 25 Feb-3 March 2002 142 WILPF and World Policy Institute, ‘The Dirty Dozen: Corporate Partners in 203 Jane’s Defence Weekly, ‘Poland receives Spike final proposal’, 16.07.03 Mass Destruction’, 2002 204 www.eschel.co.il/directory/spike.htm, accessed 23.08.03 143 Boston Globe,’ In Kuwait, US Cites Early Patriot Missile Success’, 205 Shai Feldman & Yiftah Shapir, ‘The Middle East Military Balance 2000-01’, 21.03.03 MIT Press, 2001; Dror Marom, ‘Expose: Israel’s Global Military Links’, Tel 144 WILPF and World Policy Institute, ‘The Dirty Dozen: Corporate Partners in Aviv Globes, 12.6.01. Both cited in Mandy Turner, ‘Arming the Occuption’, Mass Destruction’, 2002 CAAT, October 2002 145 Figure refers to 2000. SIPRI Yearbook 2002 206 Feldman & Shapir, 2001. Cited in Turner 2002 146 Figure refers to 2000. SIPRI Yearbook 2002 207 Jennifer Washburn, Power Bloc: Turkey and Israel Lock Arms, The 147 Figure refers to 2000. SIPRI Yearbook 2002 Progressive Magazine, Dec 1998. Cited in Turner 2002 148 Omer Karasapan, ‘Turkey’s Armaments Industry’, Middle East Report, 208 www.raytheon.com/about, accessed 13.8.03 Jan-Feb 1987 209 www.raytheon.co.uk/about_raytheon/business_units/index.htm? 149 SIPRI Yearbook 2002 menu=business_units, accessed 13.08.03. Calculations made based on 150 www.mkek.gov.tr/english/company_introduction2.htm number of employees at each business unit 151 Karasapan, 1987 210 www.raytheon.co.uk/what_we_do/weapons/index.htm?menu=weapons, 152 www.mkek.gov.tr/english/products.htm accessed 23.8.03 153 Pete Abel, ‘Manufacturing Trends – Globalising the Source’, in Lora 211 www.raytheon.co.uk/about_raytheon/business_units/index.htm? Lumpe (Ed.), ‘Running Guns’, Zed Books, 2000 menu=business_units, accessed 13.08.03 154 Pete Abel, 2000 212 Flight International, ‘UK selects Paveway IV for precision bomb’, 17- 155 Pete Abel, 2000 23.6.03 156 Selami Sezgin, ‘Defence Spending in Turkey’, Defence and Peace 213 www.raytheon.com/businesses/rms/index.html, accessed 29.7.03 Economics, Vol. 8, No.4, 1997 214 www.fas.org/man/dod-101/sys/smart/agm-65.htm, accessed 29.7.03 157 Karasapan, 1987 215 www.raytheon.com/products/maverick/, accessed 29.7.03 158 Karasapan, 1987 216 www.fas.org/man/dod-101/sys/smart/bgm-109.htm; 159 Sezgin, 1997 www.fas.org/man/dod-101/sys/smart/agm-154.htm; accessed 23.8.03 160 Karasapan, 1987 217 www.worldpolicy.org/projects/arms/updates/032403.html#I, accessed 161 Hilde Herssens, ‘A Turkish Ammunition Plant under Belgian Licence’, 23.8.03 Flemish Network on Small Arms, 14.2.01 218 www.raytheon.com/products/terminator/, accessed 23.8.03 162 Karasapan, 1987 219 raytheonmissiledefense.com, accessed 23.8.03 163 Pete Abel, 2000 220 www.globalsecurity.org/org/news/2003/030503-patriot-orders01.htm, 165 Turkish Ministry of National Defence, ‘White Book’, 2000, p128. accessed 23.8.03 166 Northrop Grumman 2002 Annual Report 221 www.worldpolicy.org/projects/arms/updates/032403.html#I, accessed 167 Northrop Grumman 2002 Annual Report 29.7.03 168 Defense News, ‘Purchases Pay Off for Northrop’, 17.03.03. 222 www.worldpolicy.org/projects/arms/updates/032403.html#I, accessed 169 The Virginian-Pilot, ‘Northrop Grumman takes over Newport News 29.7.03 Shipbuilding’, 01.12.01 224 ir.rolls-royce.com/rollsroyce/profile/, accessed 30.3.03)

40 225 www.rolls-royce.co.uk/defence/outlook/defence_market.htm, accessed 241 www.thalesgroup.co.uk/ga/keyfigures/home.htm, accessed 13.08.03 10.8.03 242 www.thalesgroup.com/ga/profile/more.htm, accessed 13.08.03 226 www.rolls-royce.co.uk/defence/, accessed 14.4.03 243 www.thalesgroup-optronics.com/news/fistprogramme.shtml, accessed 229 www.saab.se/node966.asp, accessed 05.08.03 24.8.03 230 Flight International, ‘SAAB Contract’, 25-31.03.03 244 www.the-dma.org.uk/Secure/Default.asp?Page, members, Thales plc 231 www.baesystems.com/ocs/intpartners/gripen.htm, accessed 24.08.03 accessed 24.8.03 232 www.baesystems.com/ocs/intpartners/gripen.htm, accessed 24.08.03 245 www.thalesgroup.com/ga/business_zone/defence/home.htm, accessed 233 Jerusalem Post, ‘Israel Arms Unveiled at Paris Air Show’, 18.06.03 24.8.03 234 Smiths Annual Review 2002. Estimated using UK-US breakdown of 246 www.thalesgroup.com/ga/business_zone/its/home.htm, accessed 24.8.03 turnover by origin 247 www.thalesgroup.com/ga/profile/figures.htm, accessed 24.08.03 235 Smiths Group Annual Review 2002 248 www.thalesgroup.com/ga/business_zone/defence/naval.htm, accessed 236 Smiths Group Annual Review 2002 24.08.03 237 www.smiths-aerospace.com, product lists 249 www.thalesgroup.com/ga/business_zone/defence/airborne.htm, accessed 238 Smiths Group Annual Review 2002 24.08.03 239 Guardian, 29.5.02 250 www.thalesgroup.co.uk/ga/business_zone/defence/AirDefence.htm, 240 www.thalesgroup.com/ga/profile/profile.htm, accessed 13.08.03 accessed 13.08.03

41

£3.00 ISBN 0 9543329 3 8

Campaign Against Arms Trade (CAAT) The Campaign Against Arms Trade is working 11 Goodwin Street, London N4 3HQ, UK for the reduction and ultimate abolition of the tel 020 7281 0297 fax 020 7281 4369 international arms trade, together with email [email protected] progressive demilitarisation within arms- website www.caat.org.uk producing countries