£700 million Hawk jet deal with India aids arms companies, not the poor

Campaign Against Arms Trade (CAAT) has condemned the sale of Hawk jets to India, a country where poverty is rife and situated in a zone of conflict. The deal was announced to coincide with Prime Minister David Cameron leading a heavy-weight ministerial and trade mission to India from 28 to 30 July.

Mr Cameron’s delegation contains six cabinet members, including Foreign Secretary, William Hague, Chancellor of the Exchequer, George Osborne, and Business Secretary, Vince Cable, and 50 business leaders of FTSE companies. They include arms company bosses, Dick Olver, Chairman of BAE Systems, Graham Cole, Managing Director of Agusta Westland and Miles Cowdry, Director of Global Corporate Development, Rolls-Royce.

The widely trailed arms deal will see the announcement of the signing of a £700 million Hawk jet contract. It is reported that BAE will receive £500 million and Rolls-Royce up to £200 million. The 57 jets would be manufactured under licence in India with BAE’s Indian partner, Hindustan Aeronautics Limited (HAL), with technical and other support from BAE in the UK. Rolls-Royce, which supplies engines to BAE, would supply components to HAL to produce engines for Hawks.

CAAT Spokesperson, Kaye Stearman, says:

Although the Prime Minister has stated that the mission purpose is to build an enhanced relationship with India, the bottom line is making money – not least a £700 million arms deal. This announcement comes just a week after it was revealed that India has more poor people than Sub-Saharan Africa. The Hawk deal will not benefit the people of India who need food security rather than vastly expensive weapons. Nor will it benefit British taxpayers who are already subsidising UK arms exports.

Background

India has increased its arms spending steadily over the past decade, replacing Soviet era equipment with cutting edge weapons. India has been identified as a priority market by UK Trade & Investment Defence & Security Organisation (UKTI DSO), the UK Government’s arms sales unit. Top Indian government and military officials are invited to UK arms fairs, such as DSEI and Farnborough. India is also classified as one of BAE Systems’ seven home markets.

The new Hawk deal is controversial for a number of reasons. India is part of the so-called arc of conflict ranging from Iran through Afghanistan and Pakistan to the borders of India. Since 1947 India itself has been involved in four wars against Pakistan (three over Kashmir) and armed conflict with China. India is also a nuclear power, as is its neighbour, Pakistan. India is also involved in internal conflicts, including in the disputed territoty of Kashmir.

India, the world’s second most populous country, is also one of poorest. Although recent years have seen rapid economic growth and an expanding middle class, large numbers of people still live in abject poverty. In July UN-backed research revealed that eight Indian states had more poor people than the 26 poorest African countries.

Despite its reputation as the world’s largest democracy, India also has a dubious human rights record. The Asian Human Rights Centre (AHRC), together with other organisations, has documented human rights violations by members of the armed forces and paramilitary organisations, including in Kashmir.

Notes

1. Campaign Against Arms Trade (CAAT) works for the reduction and ultimate abolition of the international arms trade together with progressive demilitarisation within arms producing countries. Around 80% of CAAT’s funding comes from individual supporters and CAAT is strictly non-violent in all its work.
2. UK Trade & Investment Defence & Security Organisation (UKTI DSO) provides support for arms companies in their export-related activities. This includes promoting weapons sales worldwide, including to countries in conflict and regimes with a documented record of human rights abuse.
3. BAE Systems is one of the world’s largest arms producers. It makes fighter aircraft, warships, tanks, armored vehicles, artillery systems, missiles and munitions. Although headquartered in the UK, it is a global company, with seven home markets: Australia, India, Saudi Arabia, South Africa, Sweden, UK and USA (its largest market).
4. From 2004 BAE was investigated for corruption in seven countries by the UK’s Serious Fraud Office (SFO); all charges have since been dropped except for one case whereby BAE pleaded guilty to accounting irregularities in relation to the sale of a radar system to Tanzania in 1999, which still has to be signed off by the UK courts. In a settlement with the US Department of Justice in February 2010, in which it was fined $400m (£253m). BAE admitted making false statements in 2000-2 in relation to its arms deals with Saudi Arabia and passing covert payments through the US in regard to its arms deals in Central European countries.
5. Hindustan Aeronautics Limited (HAL) is India’s state owned aircraft manufacturing company, based in Bangalore. It is under the management of the Indian Ministry of Defence and has annual turnover of $2 billion. HAL’s principal business is the manufacturing and assembling of aircraft (including fighter and trainer aircraft and helicopters), navigation and related communication equipment, and operating airports. It is the main supplier to the Indian military, and has sold aircraft and components to many countries, including Ecuador, Israel, Malaysia, Peru, Russia, Switzerland, Turkey and USA. In 1957 HAL started manufacturing jet engines under license from Rolls-Royce and has since collaborated with other global arms companies such as Boeing, Honeywell and BAE Systems.
6. The Hawk jet, manufactured by BAE, is a so-called trainer aircraft which can be converted to an attack aircraft (ie carrying weapons). The first version went into service in 1976 and BAE has since developed many versions. The Hawk has been sold and used widely, including in controversial circumstances in Indonesia and Zimbabwe. India ordered 66 Hawk jets from BAE in 2004. The first 24 of the tranche were built at BAE Bough plant in Humberside with the remainder manufactured at Hindustan Aeronautics Limited (HAL) in Bangalore.

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