§ Mr. Keith SimpsonTo ask the President of the Board of Trade what military equipment is being sold to Indonesia by British defence companies; and which companies are making such sales. [1975]
§ Mrs. Roche[holding answer 16 June 1997]: Statistics are available in the House of Commons Library which list by destination and by category the number of export licences issued. The latest date for which these are currently available is 30 June 1996. The following table is extracted from these statistics and relates to export licences issued for military goods to Indonesia from 1995 to June 1996. They are listed by the Export of Goods (Control) Order category for the main goods on the export licence:
1995 1st half 1996 ML1–3 ML11–18 ML2–2 ML13–2 ML2–2 ML13–3 ML5–1 ML14–2 ML3–3 ML14–8 ML6–3 ML15–4 ML4–1 ML15–9 ML7–2 ML24–2 ML5–7 ML24–1 ML10–18 PL5006–1 ML6–14 PL5006–7 ML11–6 PL5017–2 ML10–9 PL5027–4 Export licences issued do not necessarily equate to actual sales; the Licensing Authority does not receive information on goods shipped. Any more detailed information on the licences themselves could be provided only at disproportionate cost.
The Licensing Authority does not have information on non-licensable equipment which may be intended for use by military entities.
660WThe Foreign Secretary announced in Parliament on 22 May Official Report, column 135, that the Government will not permit the sale of arms to regimes that might use them for internal repression or international aggression. Whilst we support a strong UK defence industry, such support must go hand in hand with ensuring that exports are properly regulated.
Ministers have therefore initiated an urgent joint FCO/DTI review of the criteria used in considering licence applications for the export of conventional arms to all countries, including of course, Indonesia. The new criteria will be made available to the House of Commons when the review is complete.
§ Ann ClwydTo ask the President of the Board of Trade which British banks were granted export credit guarantee cover to finance British companies supplying military, security and police equipment or services to Indonesia since 1988; and if she will list (i) the amount of export credit guarantees provided in each case (ii) the services and equipment covered and (iii) for which countries the exports were destined. [3382]
§ Mrs. RocheECGD's current exposure on defence contracts with Indonesia (including police requirements) is in excess of £1 billion. A larger number of contracts are being supported involving a number of UK manufacturers and financing banks. As mentioned in ECGD's Annual Report and Trade Accounts, ECGD supported business included sale of Hawk Aircraft and the Scorpion Family of vehicles. Other supported business included Armoured Personnel Carriers, Forensic Laboratory Equipment and Aircraft Simulators.
ECGD is constrained by legal commitments not to give details of contract without consulting the companies concerned. In view of the large number of banks and contracts involved, disproportionate costs would be involved in such a consultative exercise.
On 22 May, Official Report, column 135, my right hon. Friend the Secretary of State for Foreign and Commonwealth Affairs announced that the Government will not permit the sale of arms to regimes that might use them for internal repression or international aggression. Whilst we support a strong UK defence industry, such support must go hand in hand with ensuring that exports are properly regulated.
Ministers have therefore initiated an urgent joint FCO/DTI review of the criteria used in considering licence applications for the export of conventional arms to all countries, including of course, Indonesia. The new criteria will be made available to the House when the review is complete.