CAATnews DODGY DEALING: CORRUPTION IN THE ARMS TRADE Issue 188 tel: 020 7281 0297 Feb/March 2005 fax: 020 7281 4369 email: [email protected] £1.00 website: www.caat.org.uk Issue 188 CONTENTS Editor Melanie Jarman [email protected] Legal Consultant Glen Reynolds Proofreader Rachel Vaughan Design Richie Andrew Contributors Kathryn Busby, Beccie D’Cunha, Ann Feltham, Nicholas Gilby, Anna Jones, Caroline Lucas, Emma Mayhew, Ian Prichard, Martina Weitsch, Irene Willis, Andrew Wood Thank you also to our dedicated team of CAATnews stuffers Printed by Russell Press on 100% recycled paper using only post consumer de-inked waste. Copy deadline for the next issue is 14 March 2005. We shall be posting it the week beginning 28 March 2005. Protesting against BAE Systems in Basildon. See page 7 SOUTH EAST SUSSEX CAAT Contributors to CAATnews express their own opinions and do not necessarily reflect those of CAAT as CAAT Lecture 3 an organisation. Contributors retain copyright of all work used. Arms trade shorts 4–5 CAAT was set up in 1974 and is a broad coalition of groups and individuals working for the reduction Other news 6 and ultimate abolition of the international arms trade, together Local campaigns news & views 7 with progressive demilitarisation within arms-producing countries. Cover story: Campaign Against Arms Trade 11 Goodwin Street, London N4 3HQ Corruption still rife? 8–9 tel: 020 7281 0297 fax: 020 7281 4369 email: [email protected] Debate: web: www.caat.org.uk The Constitutional Treaty 10–11 If you use Charities Aid Foundation cheques and would like to help TREAT (Trust for Research and Education on Parliamentary 12 Arms Trade), please send CAF cheques, payable to TREAT, to the Book review 13 office. Unlike CAAT, TREAT is a registered charity (No.328694) and will be able to use your donation for Fundraising 14 education and research. CAATnews is part of INK, the Get Active! 15 Independent News Collective. www.ink.uk.com Campaigns diary 16 If you would like to receive this issue of CAATnews in large print, please call the office on 020 7281 0297 See page 13 COVER: DIGITAL VISION 2 FEB-MARCH 2005 CAATnews CAAT LECTURE 2005 CAAT Lecture “The official arms trade is the most “There are two markets for arms: corrupt of all legal international the market for the physical goods trades and one in which dependent on supply and demand, governments are inextricably and a hidden market where bribes entangled,” says Joe Roeber, speaker are traded for influence. It is in the for the 2005 CAAT lecture. second market that procurement Roeber, a political economist decisions may be taken. whose expertise lies in the analysis of “The result is an increase in the international markets, is the latest in flow of arms, much of it to poor an impressive line of people to grace countries, where the arms may not the CAAT lectern. Previous speakers be needed and cannot be afforded.” include Samuel Brittan, author and Roeber puts forward a question Financial Times journalist, who that demands an answer: “The addressed the rationales behind governments of arms-exporting arms export subsidies; and Paul countries must ask whether the Dunne, Professor of Economics at the damage done by corruption to some University of the West of England, of the most vulnerable people in the who spoke of the changing nature of world is justified by the claimed, at the arms industry since the Cold Joe Roeber ELIZABETH GILL best marginal and in any case hotly War.and its implications for the UK disputed, benefits to their own, rich economy. economies.” Roeber has been a lecturer at Come to the London School of London University as well as a Economics on 9 February to hear journalist for the Times and the buy and sell, it is inevitable that more. For those unable to make this Economist. His current membership corruption in the trade is very often date, the text of the lecture should be of Transparency International, the political. Moreover, governments are available from the CAAT office after non-governmental organisation often at the root of the problem.” He the event. devoted to combating corruption, continues: “While it is difficult Joe Roeber’s talk will be chaired puts him in an excellent position to enough to monitor deals in such an by Andrew Feinstein, a former ANC speak on the highly topical issue of opaque market, the government- MP who writes and lectures on issues corruption and the international sanctioned secrecy surrounding of governance in South Africa, arms trade. critical aspects of the business particularly in relation to the arms Roeber points out: “Since actually provides the conditions that deal and the HIV/Aids pandemic. governments make the decision to allow corruption to flourish. EMMA MAYHEW CAAT Lecture 2005 The tsunami and Aceh Parallel Market: corruption and the Despite the devastation in Indonesia caused by the international arms trade tsunami, the UK has refused to write off Indonesia’s arms-related debt. At the end of November last year By Joe Roeber, author and journalist Indonesia still owed the ECGD £551 million for arms sales, having defaulted in 1998. On 12 January the Chaired by Andrew Feinstein, author and Paris Club (which includes the UK Government) agreed former ANC MP only to suspend debt payments from affected countries. Indonesia, where 52 per cent of the population live on Wednesday 9th February 2005 $2 or less per day (according to latest UN figures), 18.30–20.30, The Old Theatre, LSE, desperately needs funds for humanitarian relief and Houghton Street, London WC2 reconstruction in Aceh. Future generations of Indonesians should not be required to pay the UK back Free admission. To reserve a place, please contact for deals for which the clique around the murderous [email protected] or call 020 7281 0297. Note: Any former dictator Suharto, the UK arms industry and views expressed are personal to the speaker and do not governments are responsible. For more information, see necessarily reflect those of CAAT as an organisation. www.tapol.gn.apc.org. NICHOLAS GILBY CAATnews FEB-MARCH 2005 3 ARMS TRADE SHORTS Arms companies try to bypass Put some arms Freedom of Information Act in, take some The Ministry of Defence wrote to a code published earlier in 2004, arms out... arms companies in December, civil servants were urged by the promising them “the opportunity to Department of Constitutional Affairs Despite ammunition still being seek a legal remedy” should they to reject confidentiality agreements. supplied to Afghanistan (see be challenged under the new The code was overturned after CAATnews 187, Czech government Freedom of Information Act. The lobbying from the Ministry of donates ammunition to Afghanistan), MoD wrote: “Your views will be an Defence on behalf of arms the United Nations has launched a important factor in our disclosure companies. new programme to collect decisions and will also play a part Defence Secretary Geoff Hoon ammunition from across the country. in defending our decisions in the has already tried to claim as The Afghanistan New Beginnings event of any appeal.” “commercially confidential” a Programme (ANBP) is an attempt to Arms manufacturers are memo from his permanent deal with the large number of planning to write legally secretary advising that the purchase ammunition stockpiles in the country. enforceable confidentiality of Hawk jets from BAE Systems was Huge amounts of ammunition are agreements into their dealings with a waste of taxpayers’ money. thought to be with local Whitehall, effectively bypassing GUARDIAN, 24/12/2004 commanders, militia forces, at ex- measures in the new legislation. In military bases and in private stores. While people who help find the caches are offered rewards, an ANBP officer denied that it was a ‘cash-for- Plea bargain saves Thatcher’s neck ammunition’ programme, pointing out that cash incentives were not part Mark Thatcher has left South Africa to prosecution sources, Thatcher will of the deal. having paid a fine of nearly face jail if he does not help the Canada is the lead nation for the £300,000 and pleaded guilty to police as an informer over the coup project and so far has contributed funding an attempt by mercenaries plot. some $400,000 to conduct an initial to topple the government “Now he is ours. He survey. IRIN, 4/1/2005 of Equatorial Guinea. has committed to co- Thatcher claimed that he operate. There is no India objects to had no knowledge of question of him making a coup plans, and was statement and simply US-Pakistan providing a helicopter to walking away,” said one be used as an air source, quoted in the arms deal ambulance. Times – words that On a November visit to Washington, In January the Times Thatcher’s former India’s Foreign Secretary Saran reported that, according colleague, Simon Mann, raised concerns over the Bush and others involved in the administration’s plans to provide a No belly laughs yet coup, probably aren’t so $300m arms package to Pakistan (in from ‘Scratcher’ happy to hear. addition to the proposed supply of F- MIKE HUTCHINGS/REUTERS TIMES 16/1/2005; GUARDIAN, 14/1/2005 16 fighter aircraft). The Indian government suggested that the package had nothing to do with anti- Japan lifts ban on arms exports terrorist operations, and would only strengthen the Pakistan Army, both In December, Japan made a that they can sell the technology to militarily and politically. Indian significant move away from its post- other parties. Indeed, leaders of analysts described the arms deal as war non-aggression stance by Japan’s three major business “not helpful” to democracy in adopting new military guidelines.