-Caveat Lector-

http://www.guardian.co.uk/armstrade/story/0,10674,904684,00.html
UK taxpayers forced to pay millions for Iraq arms David Leigh and Rob Evans
Friday February 28, 2003
The Guardian
The British taxpayer has unknowingly picked up huge bills for helping to
arm Iraq before the last Gulf war, the Guardian can disclose. The
government has secretly written cheques totalling more than £33m for arms
companies who supplied Saddam Hussein in the 1980s. The files on these
disastrous insurance deals have been locked up for 12 years since they were
secretly authorised by Margaret Thatcher. The total loss to the taxpayer on
military and civil credit sales her administration carried out with Iraq
now exceeds £1bn. In a detailed investigation, we have identified for the
first time from Whitehall documents all the arms contracts concerned and
the firms and banks who benefited. Racal, Thorn-EMI and Marconi secretly
supplied President Saddam's army with artillery control, anti-mortar radar
and secure radio systems, much of which it is believed still to possess.
The firms are all now subsidiaries of defence giants BAE and Thales.
Military deals also included generators to start up military jets and
helicopters from Houchin Ltd and Braby Auto Diesels; air force
reconnaissance cameras from Vinten; and an electron microscope from
Cambridge Instruments. The giant construction firm John Laing, and a
smaller firm, Tripod Engineering, were given government insurance for a
£23m contract to build a training complex for Iraqi fighter pilots.
Whitehall paid out £2.9m on the collapse of the project when the Gulf war
broke out. Other purely civilian deals included a 1990 guarantee for a
Rolls-Royce subsidiary to build a power station near Baghdad. The
government wrote a compensation cheque for £65m. Whitehall files show that
the government guarantees were given regardless of President Saddam's
brutal record and regardless of his being a normally unacceptable credit
risk. The details of these guarantees have hitherto been kept secret by
claims of "commercial confidentiality". But in an unprecedented display of
commitment to open government, the export credit guarantee department last
week agreed to release thefiles.


Guardian Unlimited © Guardian Newspapers Limited 2003 -- Euphorian


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