§ 2.52 p.m.
§ Lord Molloy asked Her Majesty's Government:
§ In light of a report in the Financial Times on 3rd May of an Iraqi arms procurement network operating in Europe and the United States of America, what steps they propose to take in conjunction with the European Community and the United States Government to deal with the situation.
The Minister of State, Foreign and Commonwealth Office (The Earl of Caithness)My Lords, Britain has had strict controls on arms sales to Iraq since 1980. United Nations Security Council Resolution 661 established a world-wide trade embargo against Iraq, reaffirmed by United Nations Security Council Resolution 687. We are in close touch with the United States and our EC partners on its enforcement. We have no evidence that arms are reaching Iraq.
§ Lord MolloyMy Lords, I am grateful for that reply. However, an article in a responsible journal indicated that the desires of this Government and the American Government have been thwarted. Perhaps the noble Earl can say what knowledge the Government possess through intelligence and DTI services of what is known as the "Iraqi procurement network" detailed in the Financial Times article. At any time before the Gulf war, were the Government aware of the British company, Matrix Churchill Limited, supplying Iraq with what it required and of its participation in what has been described as money-laundering activities? Those are extremely serious issues which, in view of the magnificent efforts made by British and American troops, need to be thoroughly answered and examined by the British Parliament.
The Earl of CaithnessMy Lords, to the best of the Government's knowledge the network in the UK to which the noble Lord alludes has not functioned since the imposition of sanctions. I cannot comment on the Matrix Churchill case because, as he is aware, it is sub judice.
§ Lord Cledwyn of PenrhosMy Lords, is the noble Earl saying that there is no truth in the allegation in the detailed report in the Financial Times that Saddam Hussein is attempting to resurrect the arms network which according to the evidence was operating up until the Gulf war? Mr. Tom King and General de la Billiere are currently visiting Kuwait and Saudi Arabia. Is this a matter that they are investigating?
The Earl of CaithnessMy Lords, I should not be surprised if Saddam Hussein were seeking every 8 means possible to re-equip what is left of his army. However, I assure the House that the British Government are taking seriously their duties under the embargo, which they imposed in 1980 and which was subsequently reinforced through the Security Council resolution, to take action to prevent arms sales.
§ Lord MayhewMy Lords, when the noble Earl says that neither the British Government nor the United States have evidence of any arms entering Iraq, is he sure also that war materials are not entering Iraq through Jordan? Is he sure that it is not planned that war materials should enter that way?
The Earl of CaithnessMy Lords, we have no evidence that the Jordanian Government have supplied arms or military assistance to Iraq since 2nd August last year.
§ Lord TordoffMy Lords, with all due respect, that was not the question.
The Earl of CaithnessMy Lords, the question was whether arms were going through Jordan. We have no evidence to that effect, as I said in my original Answer and confirmed in my supplementary answer.
§ Lord MolloyMy Lords, will the Foreign Office be prepared to seek information from our ally, the United States, about the activities of the Banco Nacional de Lavoro referred to in the article? It would appear that from its Atlanta, Georgia branch lots of money for grain and armaments was being supplied to the Iraqi Government almost up to the day of the invasion of Kuwait. Could that be investigated?
The Earl of CaithnessMy Lords, I assure the noble Lord that we shall discuss most diligently with the United States and our European Community partners any items brought to our attention.
§ Lord KennetMy Lords, the noble Earl told the House that the Matrix Churchill case is sub judice. Could he say who is being charged with what?
§ Lord MayhewMy Lords, in spite of the answers from the noble Earl, which I entirely accept, could I ask whether he will look into the possibility that certain types of steel— I called them "war materials" — are either entering Iraq or are intended to be pushed into Iraq through Jordan? Will he inquire into that possibility?
The Earl of CaithnessMy Lords, if the noble Lord will furnish me with evidence I shall take up the point.
§ Lord Hatch of LusbyMy Lords, can the noble Earl say whether the report in today's press is correct or incorrect that, despite the United Nations embargo during the 1980s, over the past four years Iraq has received over 150,000 dollars' worth of arms from the permanent members of the Security Council?