-CAATnews

ARMS COMPANIES EXPOSED

CAAT honoured with Right Livelihood Award

Issue 226 Unit 4, 5-7 Wells Terrace October–December 2012 London N4 3JU Tel: 020 7281 0297 £1.00 Email: [email protected] Website: www.caat.org.uk CAATnews IN THIS ISSUE...

Editor Melanie Jarman Proofreader John Moseley Welcome to this issue of CAATnews Design Richie Andrew CAAT had some fantastic news the publicity it generates will Contributors Ann Feltham, Nicholas this autumn, as we were help get the argument across Gilby, Tom Greenwood, Henry awarded one of four Right that it is not OK for the McLaughlin, Anne-Marie O’Reilly, Ian Livelihood Awards for 2012. Government to promote Prichard, Beth Smith, Kaye Stearman, This is an incredible weapons sales. We also Sarah Waldron. achievement: termed the hope the publicity will help “Alternative Nobel Prize”, the our partners in other countries to Legal consultant Glen Reynolds award honours organisations and get their message across. Thank you also to our dedicated team individuals “offering practical and What better time then to get of CAATnews stuffers. exemplary answers to the most involved in CAAT: Steering urgent challenges to us today”. Committee elections take place Printed by Russell Press on 100% The award recognises the hard soon and we’d really welcome your recycled paper using only post work of thousands of activists involvement – see page 10 for the consumer waste. around the UK, and CAAT hopes particulars. Content of most website references is also available in print – contact the CAAT office. Campaign Against Arms Trade, Summer developments 3 Unit 4, 5-7 Wells Terrace, London N4 3JU Tel: 020 7281 0297 Arms trade shorts 4-5 Email: [email protected] Web: www.caat.org.uk If you use Charities Aid Foundation Disarm the Gallery 6 cheques you can support CAAT through TREAT (Trust for Research and Education on Arms Trade). Please Cable’s constituents speak out 7 send CAF cheques, payable to TREAT, to the office making clear that you wish for your donation to support Month of action; DSEi 2013 8-9 CAAT’s research programme. Unlike CAAT, TREAT is a registered charity (No.328694). CAAT updates; They said it 10 Material from CAAT is free for non- commerical reproduction. Non-CAAT contributors retain copyright of work BAE-EADS merger 11 used. Please contact and credit CAATnews if reproducing material. The content and views expressed in Parliamentary 12 articles, advertisements and promotional material included within CAATnews by other organisations are Anti-bribery 13 not necessarily endorsed or supported by CAAT. Any related enquiries or concerns should be addressed to the Universities Network 14-15 relevant organisation. To receive this issue of Donate 16 CAATnews in large print please call Campaign Against Arms Trade works to end the international arms trade. 020 7281 0297 The arms business has a devastating impact on human rights and security, and damages economic development. Large scale military procurement and arms exports only reinforce a militaristic approach to international problems.

OCT-DEC 2012 CAATnews JULY ROUND-UP July 2012: a month of significant developments

This particular month saw arms dealers peddling their wares in Farnborough and negotiations get underway in New York for an international Arms Trade Treaty; but the ground-breaking arms trade news came packaged in a far more prosaic form – a Parliamentary report. Ann Feltham gives details.

July’s report from the Commons’ Committees on Arms Export Controls (CAEC) acknowledged an “inherent conflict between strongly promoting arms exports to authoritarian regimes whilst strongly criticising their lack of human rights at the same time.” CAAT has been arguing this for years of course, but for a parliamentary committee, chaired by Despite considerable chaos at home, Libyan military personnel enjoyed former Conservative Defence Minister their “priority market” status at the Farnborough Airshow, being snapped Sir John Stanley, to make this point doing their rounds of the displays. Photo: Betsy Barkas feels like significant progress. CAEC to point out that UKTI DSO treaty might make (see CAATnews Getting it right had a “priority list” of countries for 224). Would it, for example, have CAEC also noted that the its export promotion activities, prevented the initial issuing of those Government reacted to the Arab several of them with very dubious export licences revoked during the Spring by revoking 158 arms export human rights records. Arab Spring? Or the arming of licences and, later, streamlining the For this 2012 report, CAEC Gaddafi? procedures for revoking licences in proactively requested the UKTI DSO Even the UK government now future. However, the report stressed “priority list” and has asked the seems to have limited hopes for the that with no noticable change in the Government to explain why it treaty, with Foreign Office Minister repressive regimes to which the arms includes Libya and Alistair Burt telling CAEC in were being shipped before and after when both countries are also listed September that the treaty is to the start of the Arab Spring, the scale by the Foreign and Commonwealth replace a vacuum, to have something of the revocations indicated that the Office in its latest “Human Rights and in place in countries where there is initial licensing process was flawed. Democracy Annual Report” as being currently nothing. The decisions need to be right in the Countries of Concern. first place. The arms fair The treaty One UK government minister was The UKTI DSO list Also in July, in New York, present, briefly, for the Arms Trade The Government’s role in promoting negotiations at the for Treaty negotiations. Our third July military exports, including through an arms trade treaty failed to reach event, the Farnborough Airshow, was the UK Trade & Investment Defence & a conclusion after governments, attended by fifteen, including the Security Organisation (UKTI DSO) including that of the United States, Prime Minister. While Farnborough has also been considered by CAEC. asked for more time. The next steps also showcases civil aviation, there is In November 2011 may be taken at the General a strong emphasis on military sales. representatives told CAEC that the Assembly towards the end of the UKTI DSO hosted 34 military markets envisaged for new military year or at another specially delegations at Farnborough, from orders were in eastern Europe and convened meeting in 2013 or later. countries that included Algeria, the USA and “shouldn’t really cause CAAT has always been rather , , Iraq, Libya, significant concern”. CAAT wrote to sceptical about the difference a and Saudi Arabia.

CAATnews OCT-DEC 2012 3 ARMS TRADE SHORTS

Surveillance Such legal action could have drawn Drones attention to the wider sale of similar The UK government has made technology by UK companies. Former Director of Public moves towards restricting sales of Privacy International said questions Prosecutions Lord Macdonald of spying software to . This is the remained, calling for further action River Glaven has warned that the first time it has taken action on such to bring other UK companies under Government must come clean over an issue and could be a significant the export licensing regime. alleged help it is giving the US to step towards the regulation of OBSERVER, 9/9/12 carry out drone attacks in Pakistan, surveillance technologies. saying there was compelling The campaign group Privacy Representatives from the UK Trade evidence that GCHQ had assisted International had threatened to seek & Investment Defence & Security the US in “locational intelligence” a judicial review of the Organisation (UKTI DSO) were before drone strikes. Government’s decision not to bar invited by Hidden Technology The family of a US drone strike the export to Egypt of Gamma Systems International Ltd to victim is already taking legal action International’s surveillance software. celebrate the company winning the against the Foreign and Queen’s Award for Enterprise: Commonwealth Office over alleged Defence Images/Flickr International Trade 2012. The complicity. Essex-based company specialises in TIMES, 18/9/12 covert tracking and surveillance systems, with customers including the Saudi Arabian police force. UK training THE BUREAU OF INVESTIGATIVE JOURNALISM, 1/12/11; UKTI DSO, The UK government has spent 7/8/12 millions of pounds on training military, police and security personnel from oppressive regimes that have arms embargoes in place. In the last five years, Sudan, where the president has been indicted by the International Criminal BAE Court for genocide, war crimes and crimes against humanity, and the BAE Systems and EADS have BAE has won a South Korean deal to Democratic Republic of the Congo, confirmed they are in merger talks upgrade KF-16 fighter aircraft over where extensive human rights abuses (see page 11). Arrangements under the next decade. have been documented, received discussion would see BAE own 40 AgustaWestland has also signed £2.4m between them in training and per cent of the new grouping and partnership agreements with South support for military and defence EADS own 60 per cent. Korean companies Firstec and personnel. BAE has hired lobby firms in Dodaam Systems. AgustaWestland GUARDIAN, 25/9/12 Washington to help assuage any said this was the first step in resulting US national security providing dedicated service and concerns. The firms are saying that training centres for military Shell the merger will have no impact on helicopters in South Korea. BAE’s work for the US government. DEFENSE NEWS, 31/7/12; UPI.COM, Leaked financial data passed to the DEFENSE NEWS, 12/9/12; THE HILL, 14/9/12 organisation Platform suggests that 19/9/12 Shell is paying Nigerian security forces tens of millions of dollars a BAE Systems Land Systems South Finmeccanica year to guard installations and staff Africa recently signed an agreement in the Niger delta. In 2009 Shell with -based Quoting emails published by spent $65m on Nigerian government International Golden Group. The two WikiLeaks, an Italian paper has forces and $75m on “other” security have worked together previously and reported that Finmeccanica sold its costs. A Platform spokesperson said: this latest deal is to supply armoured secure Tetra communications “It is staggering that Shell transferred vehicles to UAE and the wider region equipment to Syria as recently as $65m of company funds and (see quotes in ‘They said it’ on page February 2012. Finmeccanica said resources into the hands of soldiers 10). the sale was lawful and contradicted and police known for routine human BAE, 20/9/12 claims that the technology was for rights abuses.” military as well as civil use. GUARDIAN, 19/8/12 REUTERS, 5/7/12

4 OCT-DEC 2012 CAATnews DEVELOPMENTS IN THE GLOBAL ARMS TRADE

Chemring UK arms licences and the Arab Spring US private equity firm Carlyle Group Below are selected UK arms export licence approvals to countries involved in has been granted an extension to the the Arab Spring. They include Saudi Arabia and UAE which sent forces to deadline by which to bid for UK Bahrain on 14 March 2011 to help suppress protests. company Chemring. Chemring shares jumped when Carlyle’s takeover approach was first 2011 announced in August. 1 Mar Saudi Arabia – components for military combat vehicles REUTERS, 14/9/12; FINANCIAL 25 Feb UAE – components for all-wheel drive vehicles with ballistic TIMES, 19/8/12 protection 15 Feb Bahrain (Rv) & UAE (Rv) – weapon night sights, imaging cameras (T) Czech Republic 9 Feb Bahrain (Rv), Saudi Arabia & UAE – open licences for ballistic shields and body armour The American chief executive of 3 Feb Bahrain (Rv) – equipment for the use of sniper rifles (T) Czech-based truck manufacturer Tatra 3 Feb Saudi Arabia – components for military combat vehicles was detained in August in connection 31 Jan Saudi Arabia – gun silencers and sniper rifles with graft allegations (which he 27 Jan Bahrain (Rv) & UAE – open licences for weapon sights denies). The detention was based on 27 Jan Libya (Rv) – open licence for military communications equipment testimony of a former Czech defence 25 Jan UAE – components for machine guns minister who was accused of 12 Jan Saudi Arabia & UAE – open licences for a range of small arms corruption linked to the same contract. 7 Jan Bahrain (Rv) – components for small arms AGENCE -PRESSE, 21/8/12 2010 Whistleblowers 31 Dec UAE – a range of small arms 21 Dec Bahrain (Rv) & UAE (Rv) – weapon day and night sights (T) Whistleblowers at the centre of two 16 Dec Egypt – body armour of the UK’s highest profile corporate 26 Nov Libya (Rv) – weapon sights bribery allegations have created a 23 Nov Egypt – imaging cameras, weapon sights (T) support group for people in the same 19 Nov Bahrain (Rv) – anti-armour ammunition, small arms ammunition situation. Ian Foxley, whose 18 Nov Morocco – military communications equipment allegations have prompted the EADS 2 Nov Saudi Arabia – components for military combat vehicles investigation detailed on page 13, 29 Oct UAE – military vehicle components and Peter Gardiner, who blew the 28 Oct UAE – military communications equipment whistle on BAE a decade ago, have 26 Oct Bahrain, Saudi Arabia & UAE – open licences for wide formed Whistleblowers UK. The range of equipment including for imaging and targeting organisation aims to provide pro 20 Oct Bahrain (Rv), Saudi Arabia & UAE – open licences for bono legal support, influence UK weapon sights equipment policy and lobby for changes to the 14 Oct Egypt – components for optical target acquisition equipment law relating to whistleblowers. 13 Oct Libya – military combat vehicles (T) TELEGRAPH, 26/8/12 5 Oct Bahrain – equipment for the use of sniper rifles

Notes: Statistics (T) – temporary licences, often for demonstration purposes (Rv) – licences later revoked In 2011 the UK came third in an Licences are for specified amounts of equipment except for ‘open’ licences where there is no limit to the equipment that can be exported. analysis of global arms sales with deliveries valued at $3,000m.The US For further information go to www.caat.org.uk/resources/export-licences/ headed the list with $16,160m of deliveries and Russia came second with $8,700m of deliveries. In the same year the UK came 10th in worldwide arms transfer agreements, with agreements valued at $400m. CONGRESSIONAL RESEARCH SERVICE, 24/8/12

CAATnews OCT-DEC 2012 5 NATIONAL GALLERY Call to action: Disarm the Gallery

This Halloween the National Gallery is overdoing the horror: weapons manufacturer Finmeccanica will be using its rooms to hold an evening soiree. Sarah Waldron outlines actions in the campaign to “Disarm the Gallery”.

This October’s booking is just the latest in a long list of events that Finmeccanica has held in the Gallery’s grand surroundings. A company that sells devastating weapons, and whose customers include dictators, will entertain surrounded by paintings that the National Gallery says “inspire and enrich life.” Previous events include last September’s official reception for DSEi, the world’s largest arms fair. Finmeccanica purchases the privilege of using the Gallery for just Bubbles not Bombs: on 21 September, the International Day of Peace, £30,000 a year and gets a great giant bubbles filled Trafalgar Square with the message “Bubbles Not deal. It can use the Gallery’s facilities Bombs” to highlight the National Gallery’s support for the arms trade and prestige to lend a façade of legitimacy to its deadly work. But the Gallery’s reputation can only be which it says is “an opportunity to tarnished by association with a say thank you to customers and company that arms repressive clients for their support throughout regimes and is the subject of the year.” investigations into alleged corruption. CAAT is calling on the National Less horror at Halloween; Gallery to stop supporting the arms more peace at Christmas trade and stop helping the promotion If you can’t make it to the Gallery, of weapons sales to repressive you could send a seasonal card to regimes. Art and arms shouldn’t mix! the Gallery’s Director (Dr Nicholas Penny, National Gallery, Trafalgar Zombies v. the arms trade Square, London WC2N 5DN), Image: Paul McNeill Dress up and join us asking him to reconsider the at 6pm on Gallery’s support for the Wednesday 31 arms trade. trade. If you’d like to contribute October for a zombie please send high resolutions versions protest outside the Art... to [email protected] or by post Gallery. We might not We’ve already received to the CAAT office. be as scary as arms some powerful submissions dealers – but we can for our online gallery of art ... not arms highlight the ghoulish (see www.caat.org.uk/ The Gallery says that public criticism business that the campaigns/disarm-the- will be considered when it decides Gallery is supporting. gallery/take-action- on whether to accept controversial Then, in December, artwork.php) that is sponsorship. Please help show that we’ll be looking out for inspired by the Gallery support for the arms trade is not OK! Finmeccanica’s regular pieces and the Gallery’s Contact CAAT for campaign Christmas reception, support for the arms postcards to distribute locally.

6 OCT-DEC 2012 CAATnews LOCAL NETWORKING Cable’s constituents speak out

Paul Tippell of Twickenham, Richmond and Kingston Network against the Arms Trade (TRAKNAT) spoke to CAAT about the network

Why did local groups come together to form a Network Against the Arms Trade? Our local MP, Vince Cable, is responsible for the licensing of weapons exports and also the government agency that promotes arms exports (UK Trade & Investment Defence & Security, UKTI DSO). As constituents we are in a unique position to influence this key decision- maker.

How did the network start? Kingston Peace Council organised a Constituents held Vince Cable to account with a vigil at his surgery demo outside Cable’s offices during the Arab Spring last year to challenge UK arms sales to dictators. development and exacerbate I urge everyone who can to join us After that, we gave presentations to poverty. at the meeting to give your support local groups, asking people to sign to local campaigners and lend your the petition and to join the network. How have local people voice to those calling on Vince Cable TRAKNAT now includes Amnesty, responded to your and the Government to change Green Party, Greenpeace, Friends of campaigning? direction on UK arms trading. the Earth, Palestine Solidarity We get at least a 60 per cent Campaign, and World Development response from people we ask to sign What would you say to people Movement groups. We’ve also had the petition. People are very who would like to do support from local churches and surprised that Vince Cable is actually something similar in their local councillors. responsible for this. They regard him constituency? as “Mr Nice Guy” and can’t believe The network idea has proved What does the network want? that he is in fact licensing and surprisingly successful. Each group We campaign for Vince Cable to promoting weapons. has nominated one person to shut UKTI DSO and stop underwriting represent them, and they often come loans through UK Export Finance, as What are your plans for the to meetings. Everyone does just a these enable arms sales to take public meeting on 29 little bit so the work gets shared and place. Until the Government stops November? through our groups we can reach a promoting arms sales, it will continue The meeting will be a rare much wider audience. That has to ignore its own rules, which opportunity to hold Vince Cable to worked really well. prohibit arms sales where they may account for the policies that his be used for internal repression, or Department is pursuing, and to call TRAKNAT is co-ordinating a public external aggression. on local Conservative MP Zac meeting on 29 November to quiz Some countries are still paying Goldsmith to exert pressure on the MPs Vince Cable and Zac Goldsmith Vince Cable’s department for debts Government. As constituents we will on the arms trade. For details see that were run up through UK arms present our concerns and ask www.traknat.org.uk. sales to their former dictators. We questions designed to expose the call for these, and other unjust debts, immorality of UK arms export to be cancelled. We also want to see practices and to seek specific policy arms sales substantially restricted changes. where they divert resources from

CAATnews OCT-DEC 2012 7 DSEi The arms trade on our doorsteps Campaigners around the Resist the arms fair country took part in a month of action in September DSEi, one of the world’s biggest arms fairs, is scheduled to return Great Yarmouth: to London’s Docklands in 1Campaigners in Great September 2013. The Stop the Yarmouth visited a site that Arms Fair coalition has pledged to helps make smart weapons, military resist the arms fair and is calling satellites, and military aircraft. One for a massive day of action on 10 participant said: “We have exposed September 2013 if the fair goes the arms trade and let local people ahead. know what is going on. It is surprising what just a few people can 2 Building opposition achieve.” This September’s month of action helped to show the companies that Edinburgh: Edinburgh attend DSEi that wherever they 2CAAT highlighted arms operate, there is opposition. Keep company Selex Galileo, building links, awareness and which makes drones, with a Peace pressure in your local community: Vigil (pictured below). visit www.caat.org.uk/on-our- doorstep to find your local arms company and ideas for challenging it.

Why we’re resisting the arms fair “The arms fair is one of the grossest manifestations of the global arms trade. Huge profits are made by arms companies, but the costs are borne by the UK taxpayer and the millions of London: A picket, a musical people whose lives are blighted 3protest and a cycle tour by the arms trade.” highlighted the arms trade in CAMPAIGN AGAINST ARMS TRADE our midst.

“While the profits of this arms fair Hastings: Campaigners did and ExCeL [the venue for DSEi] 4a cycle tour of General are exported to their owners in Dynamics sites (pictured New York and Abu Dhabi, the opposite). Local campaigner Maya shame of hosting the fair remains Evans said: “While visiting in London, and the slaughtered, Afghanistan on a peace delegation I bereaved and maimed victims are met innocent civilians who had lost all over the world.” loved ones to drone attacks. It’s a EAST LONDON AGAINST ARMS FAIRS particularly nasty, inaccurate and cowardly form of warfare; it’s like “Every bomb that is dropped, shooting someone in the back, I every bullet that is fired, has to be don’t want that kind of thing in my made somewhere. And wherever community.” that is, it can be resisted.” SMASH EDO

8 OCT-DEC 2012 CAATnews MONTH OF ACTION The arms trade on our doorsteps

7 Hastings campaigners on the Merchants of Death Bike Ride

Nottingham: In Newcastle: BAE also 5Nottingham, the Shut Down 7 applied for at least one Heckler & Koch campaign licence to export military leafleted as people arrived at a equipment (from the categories of conference at the church next door to small arms, artillery, mortars, smoke the arms company. and gas projectors, and ammunition) A passing taxi driver said: “There to Bahrain in the months preceding is far too much killing in the world as that country’s uprising. BAE’s it is, and these people are selling Newcastle site manufactured the 5 more guns from here?” He took a Tactica armoured vehicles that Saudi 6 handful of flyers and as he drove Arabia sent into Bahrain in March away he was still shaking his head 2011 to aid the Government’s in disbelief. bloody suppression of pro-democracy 1 protests. Companies Hampshire: Accuracy 8International in Hampshire Lincoln: Primetake in Lincoln manufactures sniper rifles that 6promoted its range of rubber are sold to military and police forces ball shot, teargas cartridges in over 60 countries. CAAT’s and rubber baton rounds at IDEX, a research has revealed it applied to 3 massive arms fair in the Middle East, export military equipment to Bahrain at the height of the Arab uprisings in in 2009-10 – and its products were 2011. promoted to Libya in the months 8 In the two years before, it applied before the February 2011 revolution. 4 to export military equipment to ANNE-MARIE O’REILLY & SARAH Bahrain and was actively promoting WALDRON its weapons to the Gaddafi regime in Libya. How you will resist the arms fair? See www.stopthearmsfair.org.uk for info and ideas.

CAATnews OCT-DEC 2012 9 UPDATES

CAAT Steering Committee They said it “Due to the nature of some of our business we do not publicise our location. Please call or email for Would you like to participate in Please note that the deadline for details.” the running of, and decision- nominations is 14 November, not 1 OVIK SPECIAL VEHICLES WEBSITE making at, CAAT? December as stated in error in the last issue of CAATnews. This means “The idea that you should produce We are looking for enthusiastic CAAT that there isn’t long to go, so don’t weapons of mass destruction in supporters to join our Steering delay – we’d love to hear from you! order to keep 1,500 jobs going in Committee next year. Responsibilities the Barrow shipyard is palpably include attending meetings in London Contact Claire on 020 7281 0297 ludicrous. We could give them all four times a year and sometimes or [email protected] for more a couple of million quid and send assisting in other duties. information. them to the Bahamas for the rest of their lives, and the world would be a much better place, and we would have saved a lot of money.” Make a date with NICK HARVEY, LIB DEM MP AND FORMER DEFENCE MINISTER, ON WHY THE UK SHOULDN'T REPLACE CAAT in 2013 TRIDENT, 26 SEPTEMBER 2012 “His Majesty’s very generous CAAT National Gathering, September 2013, when DSEi, one of donation [£3 million] to the Royal Saturday 9 March the world’s largest arms fairs, is due Military Academy Sandhurst has 10.30am-4.30pm (Registration to take place in London’s Docklands been received and with much from 10am), Conway Hall, (see pages 8-9). gratitude. I would be most grateful 25 Red Lion Square, London, Exactly six months before DSEi, if you would please convey my WC1R 4RL make a date with CAAT’s National humble duty and my sincerest Gathering. For one day, we can be thanks to His Majesty for Cost (includes tea, coffee and together to share ideas and providing these funds.” a delicious veggie lunch): £7 inspiration, hear from experts, MAJOR GENERAL PATRICK MARRIOTT, waged / £3 unwaged engage in debate and plan how to LETTER TO THE KING OF BAHRAIN, Vital public services are being cut, make a direct impact on the arms 24 MAY 2012 yet UK military spending is among trade. the highest in the world. Elsewhere, “The Government’s attitude to repression and death are a direct Book now for an inspiring and Bahrain is completely different to result of the UK government’s zealous eye-opening day: the rest of the Arab Spring, and if promotion of weapons. Help stop this www.caat.org.uk/ anything, over the last six months, outrage manifesting itself in nationalgathering it’s moved [to be] far more sycophantic to the regime than before.” ANDY SLAUGHTER MP, CHAIR OF THE ALL-PARTY PARLIAMENTARY GROUP Greetings cards ON BAHRAIN, 2 SEPTEMBER 2012 Show your support for CAAT by “The Middle East is an important purchasing our beautiful greetings region for us and working with cards. Choose from this year’s card local industry and assisting the (pictured), or take advantage of the UAE defence industry to grow, is special offers on previous years’ cards. our goal.” Cards come in packs of ten with JOHAN STEYN, MANAGING DIRECTOR, envelopes. You can order them using BAE LAND SYSTEMS , the enclosed form or at 20 SEPTEMBER 2012 www.caat.org.uk

10 OCT-DEC 2012 CAATnews BAE-EADS MERGER A new and dangerous liaison

BAE and EADS, two of the world’s largest arms companies, have proposed a merger. Kaye Stearman considers the implications.

News of the proposed merger between BAE Systems and EADS, maker of Airbus and armaments, leaked to the press on 12 September. Together they would be the world’s largest arms and military services company. In the new entity – nicknamed BEADS – EADS would comprise 60 per cent and BAE 40 per cent. The controversial tie-up is complicated by the need for government approvals – the French, German and Spanish governments have political vetos and financial stakes in EADS and the UK Campagne tegan Wapenhandel (Dutch Campaign Against Arms Trade) government has a “golden share” in protest outside EADS AGM in Amsterdam. Photo: ENAAT BAE. In addition, the US government, a major BAE customer, will also need harder to maintain their oft-repeated towards other sectors, such as to give the deal the nod. The initial fiction that they protect UK jobs or renewables, which would increase date for merger agreement is 10 support national security or provide UK and international security; and October but this is likely to be value for the taxpayer. that this would provide a more stable extended. As Tory MP Douglas Carswell base for creating new jobs and tweeted: “If EADS’ takeover of BAE industries and retaining skilled UK What does it mean for goes ahead, then perhaps we can workers. campaigners? In campaigning terms, the merger will make little difference to CAAT and other anti-arms trade “Rather than campaigning against two large, organisations. The political, economic and ethical arguments against arms exports, especially to dangerous and unethical companies, we would abusive, undemocratic and aggressive governments, remain solid campaign against one giant, dangerous and and compelling. Both companies have been subject unethical company.” to criminal investigations. Rather than campaigning against two large, dangerous and unethical companies, stop pretending there is anything Stronger campaign links we would campaign against one patriotic about defence procurement The merger, if it takes place, will give giant, dangerous and unethical scams.” further possibilities for greater company. Military spending in western cooperation between Europe’s anti- countries is in decline, which is why arms trade organisations. Jobs and security BAE is so keen on the merger. This CAAT’s Right Livelihood Award On the positive side, BAE’s self- development reinforces our highlights its achievements in generated image as an ultra-patriotic arguments that public resources (like campaigning against BAE – and if British company would be damaged government subsidies to arms there is a merger we will campaign by the merger. It would be much companies) should be directed just as effectively against BEADS.

CAATnews OCT-DEC 2012 11 PARLIAMENTARY

Towards a Labour policy? ACoBA does not shut the revolving door The Commons’ Public A “Comment is Free” article in the Take action Administration Select Committee Guardian on 17 September gave an It is vital that Labour adopts a policy (PASC) has looked into the indication of Labour thinking on arms on arms exports that will really make Advisory Committee on Business exports. Shadow Foreign Secretary a difference. Appointments (ACoBA), which Douglas Alexander and his Defence considers applications from former counterpart Jim Murphy argued for Please write to Douglas Alexander ministers, civil servants and senior better risk assessment before export MP, Shadow Foreign Secretary, armed forces personnel who wish licences are granted, prior House of Commons, London SW1A to join private companies. A parliamentary scrutiny of them, and 0AA or email him on disproportionate number of these a global arms trade treaty. CAAT has [email protected] are people from the Ministry of asked for clarification regarding the Defence going to arms companies. second of these and has doubts as to You can say you are pleased that PASC says ACoBA lacks adequate the effectiveness of the third. Labour is considering arms exports, powers and resources, does not For an article headed “The UK but if a future Government is to have appropriate membership for needs a truly progressive arms policy effectively control them it must stop its function, and should be in the wake of the Arab spring”, the acting as a sales rep for the arms abolished. real disappointment is the failure to industry. In particular, it must end the say anything about export promotion of arms sales to repressive promotion. regimes. Some good news Labour should adopt policies to: Stop using taxpayers’ money to The Commons’ Foreign Affairs promote the arms trade, especially Committee has announced that it through the UK Trade & Investment is going to examine the UK’s Defence & Security Organisation relations with Saudi Arabia and (UKTI DSO); Bahrain. This news will have Reallocate Government subsidies alarmed the Government and the so that skilled workers currently arms companies as much as it employed in the arms industry can delighted CAAT. instead use their talents to help the ANN FELTHAM UK develop clean technology – Douglas Alexander MP boosting jobs and the economy.

Export licences – more information

If you want to export military or The ECO has now promised more “dual use” goods (the latter are those information, in particular about with military and civil application) “open licences”. These are given for from the UK you need to get a supposedly low-risk exports and licence from the Export Control involve the company keeping records Organisation (ECO), part of the for random inspection, but no Department for Business, Innovation systematic reporting to the ECO. and Skills. Earlier in 2012, the ECO Now the data will be sent to the held a consultation to see if more ECO and made public in some form. information about export licence Moves towards greater openness applications should be made public. are welcome, but CAAT will reserve CAAT participated in the final judgment until more is known consultation, arguing for greater View CAAT’s arms export app at about the implementation of the transparency and for the raw data to www.caat.org.uk/resources/ proposals, scheduled to start in April be made available. export-licences/ 2013.

12 OCT-DEC 2012 CAATnews FEATURE Serious Fraud Office investigates Saudi arms deal (again) Nicholas Gilby reports on a says that the payments are highly current investigation into bribery irregular because the two companies allegations relating to a perform no work under the contract. subsidiary of EADS. MoD approval of “fees” Readers of CAATnews may recall the Back in 1976, when the SANGCOM furore in 2006 when the Serious deal was first negotiated, the then Fraud Office (SFO) had to stop their MoD Permanent Secretary, Frank investigation of BAE Systems’s Cooper, approved the inclusion of lucrative Al Yamamah arms deal in “agency fees” of three per cent for a Saudi Arabia because of threats from Gagging justice – CAAT outside the company called, by remarkable the Kingdom of Saudi Arabia, and SFO offices in 2007 coincidence, Simec International. A huge pressure from the UK draft of the submission put to Cooper government and BAE Systems. former British Army officer, was in described these fees as being in Although the SFO was unable to 2010 appointed by GPT as practice intended for the “exertion of finish its investigation, the Americans Programme Director and has alleged influence to sway decisions in favour did: BAE was found guilty of false that GPT paid bribes in Saudi of the client.” According to Exaro, accounting and making misleading Arabia. He has also alleged that at the MoD was told of the recent statements, and fined almost £300 least some of the MoD SANGCOM payments to Simec in 2008 but the million. As part of the settlement, team knew of, and acquiesced, in payments continued until 2010. BAE Systems accepted it had such practices. More recently Exaro has claimed provided “substantial benefits” to a Exaro News revealed that Mr GPT gave luxury cars worth Saudi Arabian official with Foxley’s predecessor, Eddie Fisher, £200,000 in total to four Saudi “influence” over the Al Yamamah had told the SFO GPT conducted officials, and paid a Saudi general deal. “unethical and inappropriate” rent for a lavish Riyadh villa. business practices. EADS has said the allegations are Another arms company now being “properly addressed” by it, under investigation Payments and the MoD has refused to More recently, on 7 August this year, In May Exaro published a schedule comment. The SFO investigation the Director of the SFO quietly of payments made between 2007 continues. announced he had decided to open and 2010 by GPT to two Cayman a criminal investigation into Islands-registered companies: Simec Write to Rt Hon Margaret Hodge allegations concerning the company International and Duranton MP, Chair of the Public Accounts GPT and aspects of the conduct of International. The schedule, said to Committee, House of Commons, their business in the Kingdom of have been compiled by a “financial London SW1P 3JA, and demand a Saudi Arabia. officer” of GPT, shows that a total of National Audit Office investigation UK-registered GPT is ultimately a £14.5 million was paid. Exaro into the adequacy of the MoD’s subsidiary of the European reports that the “financial officer” anti-bribery procedures. aerospace conglomerate EADS, which may soon merge with BAE Systems. GPT’s project, on which the company is wholly dependent and Campaigners’ to-do list which is said to be worth around £2 billion per year, is known as Haunt the arms dealers at the National Gallery on 31 October! (page 6). SANGCOM. Like Al Yamamah, the If the DSEi arms fair goes ahead, be there on 10 Sept 2013 (page 8). project is supervised by the Ministry Expose the arms company on your doorstep (pages 8-9). of Defence (MoD). Interested in joining CAAT’s Steering Committee? Deadline is 14 Nov (page 10). Allegations Make a date with CAAT in 2013: book now for the National Gathering Since autumn last year, allegations on 9 March (page 10). have been aired in the media (in Call on Shadow Foreign Secretary Douglas Alexander to respond to the particular on the Exaro News challenge to stop promoting weapons sales to repressive regimes (page website) about corruption in the 12). SANGCOM project. Ian Foxley, a

CAATnews OCT-DEC 2012 13 UNIVERSITIES NETWORK Universities challenged

Beth Smith looks forward to a face protests at recruitment events year of student activism. across the UK this autumn. Expect to see Grim Reaper costumes, fake Recruiting new supporters blood, die-ins and all sorts of At the beginning of each year, creative and attention-grabbing universities organise Freshers’ Fairs demonstrations over the coming where student societies advertise months! themselves to the student body. These fairs are a great opportunity for Student Gathering A student calls on his university to student groups to attract new After a successful student gathering “disarm and discuss” members and to tap into the last February we’re excited to excitement felt by incoming students announce that the next Student to everyone from new students to looking for new and interesting Gathering will be on Saturday 24 seasoned campaigners. It will also groups to join. CAAT will be November. We’re holding the be a great opportunity to meet represented on a record number of gathering earlier in the academic people from other universities also Freshers’ Fairs stalls this autumn, year to give students more time to looking to kick arms companies off helping the student network to develop campaigns afterwards. their campuses. expand even further this year. The gathering will be a day of Contact [email protected] workshops and discussions, relevant for more details. Kicking arms company recruiters off campus With the start of the academic year comes a renewed attempt by arms Get involved companies to recruit students. However, there is a grand tradition Find out what’s happening at your university and across the network at of students countering the promotion universities.caat.org.uk of arms companies on their Interested in getting involved? Get in touch at [email protected] campuses with creative and dynamic Left university? Contact Anne-Marie on [email protected] for demonstrations. Arms companies will information on local CAAT groups.

What’s wrong with universities accepting military funding? It supports arms companies partnering with an arms company in the arms trade, and all students live By participating in military-funded any way – whether through a in a more dangerous world because research projects, universities are research project, investments, or of it. carrying out research that arms other links – a university sends the companies want done. They are message that the company is There is an alternative directly helping those companies. respectable. Universities should not Most of the research money that Even research that has civilian support this devastating trade. universities receive from arms applications helps arms companies companies originates with the succeed and thrive. The trade hurts students too government, as the government pays Even if a university is solely arms companies to do research and It presents arms companies as concerned with supporting students development (R&D). legitimate and giving them opportunities, it must The Government needs to shift its In addition to any direct impact of consider the impact that its work has R&D priorities so that this money is the research itself, participation in beyond the campus edge. A number instead invested into socially military-sponsored research confers of university students will have had productive technologies like legitimacy onto arms companies. By their lives directly impacted upon by renewables.

14 OCT-DEC 2012 CAATnews UNIVERSITIES Military funding revealed

How much do universities receive in military funding? Kaye Stearman and Tom Greenwood give some answers but we need to know much more.

In the past three years 16 leading UK universities have received at least £83 million worth of funding from arms companies and the military. Most is directed to engineering and science departments. However, the real total is much higher. Of the 24 Russell Group Universities sent Freedom of Nottingham students stage a die-in in 2009 Information requests on military funding, six refused, or were unable Most military funding came from Cambridge with £9.5 million, to supply, relevant information. Even private companies (public listed Oxford with £8.7 million and so, the information supplied reveals companies). This totalled £59.9 Nottingham with just over £5 million. that many UK universities are million over the three years – 72 per Most private funding appears to be prepared to accept military funding, cent of total UK military funding. By Government funding, in the form of seemingly without ethical qualms. far the largest company was Rolls- research and development (R&D) Royce, which totalled at least £36.8 grants to UK arms companies, which Where the funding goes million, followed by BAE Systems then subcontract to universities. In terms of individual universities with £10.6 million and QinetiQ with receiving funds from military sources, £3.2 million. Other companies The original story, by Dina government and private, the “top” included Babcock and MBDA. Rickman, was published in the universities were Imperial College The largest recipients were Huffington Post on 28 August with £15.2 million, Sheffield with Sheffield with £13.5 million, 2012 £13.8 million, Cambridge with £13.8 million and Oxford with just over £9 million. They were followed by Bristol with £6.5 million, Focus on Nottingham Nottingham with just under £6 million, Kings College with £5.3 The University of Nottingham states change improvements in products million, York with £3.9 million and that its mission is to “improve life and processes.” In turn, the Southampton with £3.8 million. for individuals and societies university describes itself as “a cog Apart from Newcastle with just over worldwide”. Yet it is one of the in [the] continuous process” of £2 million, all other universities largest recipients of military funds, maintaining the status of Rolls-Royce received less than £1 million. taking just under £6 million over as a “world-famous brand, Direct UK government military three years 2009-12. Almost £5 synonymous with quality and funding to the 16 universities totalled million (83 per cent) came from innovation.” £23.6 million over the three years – Rolls-Royce. Some of the Rolls-Royce funding 28 per cent of the total from UK The relationship between the two goes to civil projects (although the military funding sources. The funding is close and symbiotic. The campus university has not specified which). agencies were the Ministry of has two Rolls-Royce University Non-military research demonstrates Defence, Atomic Weapons Technology Centres. The company the capacity of Rolls-Royce to Establishment and Defence Science says it gains “significant business pursue technologies with civilian Technology Laboratory. The largest benefits from such links, as applications. However, by working recipients were Imperial College with advanced academic research with Rolls-Royce, the university £7.8 million and Kings College with techniques are applied to specific condones the manufacture and sale £5.4 million. industrial needs to provide the of lethal weapons technologies. innovative solutions that yield step

CAATnews OCT-DEC 2012 15