MEDIA RELEASE
23 December 2005
£8bn Typhoon aircraft deal with Saudis bad
for Britain
The Saudi-British Memorandum of Understanding (MoU) announced
yesterday to facilitate the supply of £8 billion worth of
Eurofighter Typhoons to the Saudi Air Force is good news for BAE
Systems but bad news for Britain. The deal will ensure Britain
remains a target for Al Qaeda, is almost certainly bad for British
jobs and the economy, lacks transparency and accountability, rides
rough-shod over the EU Code of Conduct on arms exports and
undermines potential UK leadership of an international arms trade
treaty.
Dr. Ian Davis, Executive Director of BASIC and co-author of a
report on the deal released today said: "The cost of this
Christmas present from the British people to BAE Systems will be
paid for over the next decade: in taxpayer subsidies, terrorism,
and jobs. It will also weaken the government's ability to negotiate
tougher international controls over military equipment
transfers."
The full report, What Happens When
A White Elephant Meets a Paper Tiger? The Prospective Sale of
Eurofighter Typhoon Aircraft to Saudi Arabia and the EU Code of
Conduct on Arms Exports, is now available.
Target for terror
The West is generally Al Qaeda's secondary target; their primary
objective is to remove what they perceive as a corrupt and
un-Islamic Saudi Royal Family. The UK's close defence relationship
not only compromises our own democratic systems and the promotion
of human rights, but also attracts the attention of terror networks
focused on Saudi Arabia.
British jobs and the economy
Large defence export contracts have helped to ensure BAE
Systems continuing viability. But this has come at a significant
cost for Britain. Studies by the MoD's own Chief Economist have
suggested that a halving of military exports from Britain would
lead to an increase in the numbers employed as investments shift to
less capital intensive activities elsewhere in the economy. Because
of the level of subsidy offered by the government to defence
exporters (we estimate up to almost £1bn a year, for an
industry that accounts for less than 2 per cent of exports) the
exchequer and the wider economy would benefit from a shift in
resources.
Transparency and accountability
In signing the MoU with Saudi Arabia so close to Christmas the MoD
may think it can avoid criticism from Parliament, NGOs and security
analysts. The longer-term consequences cannot, however, be ignored.
We call upon the Parliamentary Quadripartite Committee (for
Strategic Export Controls) to investigate this MoU, and in
particular the commitments made by the British Government to Saudi
Arabia.
International control
Government-to-government contracts are exempt from the EU Code of
Conduct, but the the consequences of such transfers can be just as
damaging. The Foreign Office is at the forefront of international
efforts to agree a global arms trade treaty. Cynicism over the
British government's motives will be strengthened by this arms
deal.
For further details or an interview
contact:
Dr Ian Davis: idavis at basicint.org; Tel: 07887
782 389
Paul Ingram: pingram at basicint.org; Tel: 07908 708175
ENDS
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