Full pdf briefing
 http://www.caat.org.uk/information/publications/other/dsei-2003.pdf

Summary as below at:
 http://www.caat.org.uk/information/publications/other/dsei-2003-intro.php

Briefing Summary

Every two years, arms dealers gather in the UK for the Defence Systems and Equipment International (DSEi) exhibition. The assumption behind the exhibition is that selling arms is just a normal commercial activity. The fencing, police presence and secrecy surrounding the event suggests that it is not. Consideration of the weapons, the conflicts they are used in and the relationships between arms companies and politicians confirm that it is an extraordinary, and an extraordinarily damaging, business. This report sets out to highlight some of the many issues of concern.

ISSUES

Arms export subsidies

Even though arms account for only around 2% of UK exports, they form the most heavily subsidised sector apart from agriculture. The UK government provides a range of services for arms exporters including face-to-face marketing by Tony Blair and his ministers, assistance with financing and, most obviously, the 600-person MoD Defence Export Services Organisation (DESO) which is entirely dedicated to the arms trade including support for arms exhibitions.

Cluster bombs

Cluster bombs dispense a number of submunitions that are supposed to explode on impact. But many do not. They lie waiting to be disturbed, possibly years after a conflict has ended. It has been estimated that more than a thousand children have been injured in Iraq by unexploded munitions, including cluster submunitions, since the end of the 2003 conflict. The UK alone delivered over 100,000 cluster submunitions during the invasion and at least 2,000 of these remain unexploded and potentially lethal. DSEi will feature companies that helped leave this legacy.

Company influence

UK government support for arms companies seems irrationally strong. It supports DSEi, promotes arms sales to countries against its own guidelines, subsidises these exports, and allows companies like BAE Systems to demand domestic contracts and increase prices. There is no convincing economic or political reason for this; the motive appears to lie somewhere between the influence of the arms companies and the desire of ministers to strut the world stage.

Conflict

Every hour, about 35 people are killed as a direct result of armed conflict. Arms sales increase the likelihood that tensions will lead to fighting and prolong conflicts once they begin. Since the Labour government was elected in 1997, the UK has licensed arms and military equipment to 20 countries engaged in serious conflict. 14 of these countries were invited to DSEi 2001 and many have received invitations to DSEi 2003.

Corruption

The secrecy together with the huge amount of money involved in arms deals, provides ideal conditions for corruption, generating demand where none might otherwise exist. Transparency International has estimated that 'the official arms trade accounts for 50% of all corrupt international transactions'. Arms exhibitions are a crucial element of this 'official' arms trade.

Depleted Uranium

Depleted Uranium (DU) is a toxic heavy metal used in armour-piercing weapons. It has been estimated that over 100 metric tonnes were used during the invasion of Iraq, often in densely populated areas. Few studies have been carried out on people exposed to DU, though experiments on animals have indicated that internal exposure may lead to kidney damage, cancer and central nervous system problems. At least two producers of DU shells will be exhibiting at DSEi.

Development

Money spent on arms cannot be spent on education, water, health or housing. It is essentially unproductive. UK arms export controls are supposed to take 'the technical and economic capacity of the recipient country' into account, but it is difficult to find an example where this has happened. Two cases where it clearly didn't were a multibillion dollar deal with South Africa, where there is massive social need and no relevant military need, and Tanzania, where a military air traffic control system was exported despite opposition from the World Bank and cabinet ministers. Both South African and Tanzania have been invited to DSEi 2003.

Globalization of the arms industry

The arms industry has metamorphosed since the end of the Cold War, changing from mainly nationally-owned enterprises into privately-owned internationally-structured companies. International production is able not only to provide a cheaper source of labour for the dominant western arms companies but also has the effect of undermining national export controls. Arms exhibitions have changed in parallel with the industry. DSEi's forerunners were showcases for UK companies. Now companies come from all over the world and sales are arranged that are not subject to UK export controls.

Human Rights

Israel, Turkey, Saudi Arabia, the US, Colombia, China and Russia all received UK arms in 2002, and have all received invitations to DSEi 2003. The willingness to invite human rights abusing governments to arms fairs and to licence arms exports to them provides implicit approval of their actions.

Landmines

In 2001 there were new mine/unexploded ordnance victims reported in 69 countries, and around 230 million anti-personnel mines remained in the world's arsenals. However, there is some cause for optimism - 128 states, including the UK, have ratified the Ottawa Teaty which obliges countries to destroy stocks. The UK Landmines Act makes it illegal for any person to be involved in the production, sale, promotion or transfer of anti-personnel landmines. The restrictions cover all activities in the UK, but two alleged breaches during and post-DSEi 1999 did not lead to any charges.

Small Arms

Small arms are the weapons that produce actual mass destruction, killing more than 500,000 people every year. There are already over 600 million of the weapons worldwide but several major small arms producers will be hoping to use DSEi to add to that number.

Son of Star Wars

It would be hard to dream up a corporate welfare package that competes with the US's Ballistic Missile Defense programme - the new face of Star Wars. But the waste of resources is only one of the problems. BMD is an aggressive system. It is designed to give the US the freedom to intervene wherever and whenever it chooses. It will lead to missile proliferation, probably among enemies but certainly among present 'allies'. Most of the major US BMD companies will be at DSEi, alongside UK companies pushing for US dollars and a UK-government sign-up.

COUNTRIES

Democratic Republic of Congo

Congo's rich mineral deposits should be its fortune but instead these resources have been plundered by militias and foreign armies in conflicts that began in 1998 and have left an estimated four million dead. Angola, Namibia and Zimbabwe all sent troops to fight for the post-Mobutu regime against rebels backed by Rwanda and Uganda. The governments of Angola, Namibia, Zimbabwe and Uganda all received invitations to DSEi during the war.

Indonesia

In May 2003, Indonesian troops launched an all-out offence against Aceh separatists. Despite Indonesian assurances that UK-supplied equipment would not be used offensively or in violation of human rights anywhere in Indonesia, Alvis Scorpion tanks and BAE Systems Hawk jets are in use in Aceh. The Indonesian military seems to have little knowledge of these assurances and little interest in the UK government's embarrassment-induced concerns. As Indonesia was invited to DSEi 1999 despite orchestrated violence around the East Timorese referendum, it perhaps has good reason to take any protestations with a pinch of salt.

India and Pakistan

Despite, or perhaps because of, teetering on the brink of war a year ago, India and Pakistan continue to be prime sales targets for weaponry. BAE Systems has been trying to sell its Hawk jets for years and even at the height of the tension over Kashmir it had the enthusiastic support of UK government ministers including Tony Blair. Earlier this year Lord Bach spearheaded the Hawk pitch at the AERO India 2003 arms exhibition. Both India and Pakistan have received official invitations to DSEi 2003.

Iraq

Following the invasion of Iraq, the UK and US governments and arms companies seem very keen that the wrong lessons are learnt. Rather than accepting the absurdity of arming repressive regimes, they are pushing for more military spending at home and, at the same time, continuing their relentless pursuit of exports. In Iraq itself, US 'private military companies' are training a new army and, incredibly, the US-led authority has ordered 34,000 AK-47 assault rifles for their use.

Israel

Israel uses an array of imported weaponry in its illegal occupation of the West Bank and Gaza and its oppression of the Palestinian people. It has used its many relationships with western, primarily US, companies to build up a military industrial base that, in turn, is willing to export to almost anyone. Israel has been invited to DSEi 2003 and its military industry will be represented by five companies.

Saudi Arabia

In the 1980s, Saudi Arabia signed the huge Al Yamamah arms deals with the UK, deals that amounted to 'the biggest [UK] sale of anything to anyone'. An investigation of corruption allegations relating to the deals was carried out but its findings were, and continue to be, suppressed. Post-September 11th, UK and US government views of Saudi Arabia appear to be rapidly changing, but the country remains one of the UK's most important arms markets and will be, as always, present at this year's DSEi.

South Africa

Despite urgent social needs and the lack of a military threat, European companies have managed to sell the country $4.8 billion worth of advanced military equipment. After much internal debate in South Africa, the package was finally secured by incredible offers of industrial 'compensation'. Allegations of corruption have surrounded the deal and one prominent politician has been sentenced to four years in prison for fraud. Both the vendor companies and South Africa will be well represented at DSEi. In fact, no fewer than 36 South African exhibitors are listed.

Turkey

Turkey has an appalling record of human rights violations against Kurds and has used imported weapons in carrying out these abuses. Its military spending has increased steadily since 1990 despite the country's relative poverty and serious financial problems. Much of this spending has been used to purchase arms from abroad to build up an indigenous high-tech arms industry. US and European companies are heavily involved in this process and many of these are exhibiting at DSEi, as is MKEK, a major Turkish small arms manufacturer.

USA

The US government appears to have a preferred means of solving problems - military means. It seeks the ability to control any situation on its own and unashamedly terms this 'Full Spectrum Dominance'. This is perhaps not surprising given the enormous influence of both the arms industry and right-wing think tanks in the US administration. The US arms companies dominate the international arms market and, as such, will be a key part of DSEi, with over 100 companies exhibiting.


Introducing DSEi

This report provides an overview of DSEi, including short profiles of some of the main companies attending and information on many of the damaging aspects of the arms trade. The companies are presented in alphabetical order throughout the report and the main issues and countries are considered in information boxes near relevant companies (see Contents for an alphabetical list).
DSEi

From 9th-12th September 2003, East London will be taken over by arms dealers. Defence Systems and Equipment International (DSEi) is a weapons fair and conference of enormous proportions and is likely to be one of the world's largest ever arms exhibitions.

The ExCel centre, a modern complex in London's docklands, will host over 1,000 arms companies, selling small arms, missiles, planes, tanks, military electronics and warships, as well as surveillance and riot control equipment to buyers from all over the world. One in three of the world's governments will be at the arms fair, shopping for military equipment. Adversaries will shop side-by-side for weapons to use against each other. All this will take place in secret, behind heavily protected security fences and police lines.
DESO - the government's arms dealer

DSEi is run in association with the MoD's Defence Export Services Organisation (DESO), whose mission is 'to maximise legitimate UK defence exports in co-ordination with industry'. DESO is central to the UK government's support of the arms trade. It is responsible for the promotion of UK arms exports and co-ordinates arms trade support within Whitehall and the MoD.

The Defence Sales Organisation (DSO), as the DESO was then known, was set up by the Labour government in 1966. Denis Healey, Minister of Defence at the time, said: 'While the government attach the highest importance to making progress in the field of arms control and disarmament, we must also take what practical steps we can to ensure that this country does not fail to secure its rightful share of this valuable commercial market.'1 The DSO changed its name to the Defence Export Services Organisation in 1985 to 'more accurately reflect its role' 2, namely to 'assist British defence industries to promote and sell their goods abroad'.

Today, DESO has over 600 staff in London and in its overseas offices.3 Its net cost was £11,077 million in 2001/2.4 It is headed, as it always has been, by a secondee from an arms company, giving the industry a powerful voice inside the government. The current incumbent is Alan Garwood, whose career has been with BAE Systems.
DSEi's forerunners

Prior to 1999, DESO organised the government's military export exhibitions. From 1976 until 1991 the British Army Equipment Exhibition (BAEE) and the Royal Navy Equipment Exhibition (RNEE) were held in alternate years in Aldershot and Portsmouth respectively. In September 1993 the first combined Royal Navy & British Army Equipment Exhibition was held in Aldershot and others followed in 1995 and 1997. Overseas delegations attended by invitation only. Some of the visiting delegations came from governments with poor human rights records such as Indonesia and Chile, or from countries in conflict. In 1986 Iraq was represented at the BAEE by a five-strong delegation led by its Director of Armaments and Supplies, despite having already been at war with Iran for almost six years.

On display at these exhibitions was everything that might be of use to the armed forces, from tanks and frigates to footwear and musical instruments, as well as support services like banking.

DSEi - public or private?

With the arrival of 'New' Labour and its obsession with privatisation, the Royal Navy & British Army Equipment Exhibition was pushed out to the commercial sector. An exhibitions firm called Spearhead Exhibitions Ltd launched DSEi 1999 at Chertsey in Surrey, with boats on display at London docklands. Though run by a private firm, the government arranged invitations and contributed £250,000 and hundreds of military personnel to help run the show. DSEi 2001, which took place at the Excel centre, London docklands, received even more government support, with Defence Secretary Geoff Hoon, and Foreign Secretary Jack Straw in attendance.

This year's DSEi shows no let up in government assistance. The MoD estimates that DSEi will set it back £400,000 in 'direct costs', and 'in addition, representatives of Her Majesty's Government may carry out activities associated with the exhibition, as part of their normal duties, which could be identified only at disproportionate cost.'5 DESO activities at DSEi include 'conducting Army equipment and waterborne demonstrations'.6

DSEi is still very much the UK government's arms fair, and the government's responsibility.

The invitation lists

The official invitation list is entirely a product of the UK government. As DESO states in its introduction to this year's official list, 'the Defence Export Services Organisation prepares the list of countries to receive official invitations. In doing so they take account of current marketing campaigns and longer-term prospects for business with the countries concerned. Political issues, arms embargoes and current international relations imperatives are considered in the process.'7

There is also a second invitation list, provided by Spearhead. The extent to which the MoD is involved in discussions and decisions about the content of this list is unclear. What is clear is that the MoD does not object to the presence of any of the governments invited. The Spearhead lists have contained around 20 more countries than the official lists, some of which are highly controversial. (DSEi invitation lists are collated in Table 1 overleaf.)

On August 28th 2003, Spearhead stated that it would not be hosting international delegations this year, and that it had produced '1/2 million flyers to be inserted in defence journals to generate the 20,000 visitors expected to attend DSEi'.8 However, the following day a list of countries became available from Spearhead, introduced with the sentence 'Invitations to attend DSEi 03 were sent to the following London based Embassies by the organizers of DSEi 03'. The countries included Afghanistan and Israel, neither of which were on the official list.

Human rights abuse, conflict, terrorism... in association with DSEi

Eighty countries have received invitations to DSEi 2003. These have been sent to governments of some of the world's worst human rights abusing states, including Colombia, Israel and Saudi Arabia. Inviting delegates to arms exhibitions like DSEi provides countries with not only the opportunity to buy the weapons and tools with which they can perpetrate human rights abuses, but also gives moral and political support to their actions.

DSEi is also directly engaged in fueling conflict around the world, allowing arms companies to sell weapons to countries on the brink of, and actually in, conflict. Without the international arms trade, countries could not go to war on the scale they do, civilian and military casualties would be far less, and the world would simply be a safer and better place. India and Pakistan have both been officially invited to this year's DSEi. Angola, Namibia, Uganda and Zimbabwe have received invitations to previous DSEi exhibitions regardless of their involvement in the horrors of the Democratic Republic of Congo conflict.

As if this acceptance of conflict and human rights abuse was not shocking enough, DSEi appears to be ambivalent about terrorism. Though the US and the UK may have accused countries like Syria and Pakistan of sponsoring or supporting terrorism, both of these countries were invited to previous DSEi exhibitions and have both received official invitations for DSEi 2003.

On 11th September 2001, just as terrorists were flying airplanes into the World Trade Centre and the Pentagon in the United States, 11 different Middle Eastern nations were shopping for weapons at DSEi 2001, side by side with the US, Israel, Australia and the UK. While thousands of other events across the world were cancelled out of respect for the dead, arms dealers carried on selling weaponry at DSEi for three more days.

1 Hansard, 25.1.66
2 Hansard, 9.6.86
3 Hansard, 1.7.02
4 Hansard, 24.3.03
5 Hansard, 20.5.03, Col. 677/8W
6 www.deso.mod.uk/events.htm, accessed 27.8.03
7 www.deso.mod.uk/latest.htm, accessed 27.8.03
8 Letter from Alex Nicholl, Project Director DSEi, 28.8.03