§ Mr. Tony LloydTo ask the President of the Board of Trade what was the initial advice he gave to Rolls-Royce following its request of October 1993 for approval of an export licence for naval engine spares to Argentina; and when that advice was given. [1066]
§ Mr. Lang[holding answer 29 October 1996]: The company made no such request in October 1993. In a letter dated 20 October 1993, the company requested advice on the licensability of the Tyne RM1 engine and 441W its components. After carrying out a detailed technical and legal assessment in consultation with MOD experts, my Department advised, in a letter dated 2 June 1995, that, irrespective of the destination, the company would require a licence under the Export of Goods (Control) Order 1994 to export components and assemblies specially designed to fulfil the requirements imposed by the combat environment of a warship. A licence would be required to export these military components or entire Tyne engines in which they were included.
My Department also advised the company that under the terms of the order it would not require a licence to export other Tyne components that were not specially designed or modified for military use, or engine modules and sub-assemblies which did not include the military components, unless they had been modified from components for an aeroengine, in which case a licence would in certain circumstances be required. This assessment did not constitute either a variation or a relaxation of the embargo on sales of military equipment and arms to Argentina announced on 3 April 1982. Before this advice was received, the company submitted two applications, dated 17 December 1993 and 29 August 1994, for a licence to supply the Argentine Navy with engines and components specially designed or modified for military use. These applications were refused in letters from my Department dated 24 June 1994 and 24 January 1995 respectively.
§ Mr. LloydTo ask the President of the Board of Trade what was the first occasion on which he received a request from Rolls-Royce to consider approving export licences for naval engine spares for Argentina; and what response he gave. [1067]
§ Mr. Lang[holding answer 29 October 1996]: Computerised records before January 1991 are not readily available. Since then my Department has received two applications from Rolls-Royce for export licences with respect to proposals to supply the Argentine Navy with engines and components specially designed or modified for military use. The first such application was dated 17 December 1993, and both applications were refused. My right hon. Friend the Member for Watford (Mr. Garel-Jones) announced to the House by written answer on 16 January 1991, Official Report column 521, that the Government had decided to allow a limited supply of essential maintenance spares for vessels deployed as part of the Argentine contribution to the Gulf as an exception to the embargo. On 18 October 1990, Rolls-Royce had applied for a licence to supply an Argentine naval vessel with parts for the Olympus engine and, under the provisions of the export control legislation in force at that time; a licence was issued to the company on 6 March 1991 for the supply of these parts; a limited supply of spares was also provided for the same purpose by the Ministry of Defence.