Return to an Address of the Honourable the House of Commons
dated 18 July 1996 for the Appendices to the Report of the Inquiry into the Export of Defence Equipment and Dual-Use Goods to Iraq and Related Prosecutions laid before The House on 15 February 1996*

Volume Two
Section D Arms and Defence-Related Exports to Iraq
Chapter 7 Other Allegations of Illegal Arms Exports to Iraq

Excerpt:
EMBASSY INVOLVEMENT

D7.28 It transpired that in late October 1988, Mr Blackburn and another person, both described as being “of Global Cathodic Protection Ltd”, had called at the British Embassy in Baghdad. A minute of the meeting dated 15 November 1988 *37 prepared by Mr T G Furness, the Embassy official who saw them, stated that they had called to discuss with the Embassy “general business prospects in Iraq”. During the course of the discussion they had mentioned that they had been invited to bid for a contract to undertake clearance work of the channel from Khor Al Zubair to the Gulf Coast; that a joint venture company, to be known as Project Management and Contracting Services (PMCS) had been formed between Global and another company; and that the bid would consist of “a complete package for a geophysical survey of the canal and associated training of survey personnel”. Mr Furness’ minute in its final paragraph stated that “Mr Blackburn promised that he would call again when he returned to Baghdad in about two week’s time to update [Mr Furness] on the details of their final bid proposals. He has unfortunately not been in touch again.”

D7.29 An internal minute dated 13 December 1988 *38 prepared by Mr R A Kealy, another Embassy official, stated that Mr Blackburn and an associate had visited the Embassy on 12 December 1988 and had informed Mr Kealy about the terms of the proposed contract, which Mr Blackburn said he hoped would be signed later that week. The minute went on to describe the scope of the work to be done, which included:

“Phase 1: survey of existing Iraqi equipment including diving, salvage and survey gear plus modification of 2 survey vessels to carry out work at phase 4 below.

Phase 2: supply, install and commission all new equipment required to bring vessels mentioned at phase 1 up to standard.

Phase 3: onshore training, provision of maintenance equipment, training of survey personnel, geologists and divers for clearance and salvage work.

Phase 4: using the 2 vessels prepared under earlier phases, to carry out a survey of the channels mentioned above...

Phase 5: assist on clearance of channel....”

The minute continued:

“4. Mr Blackburn did not say how much the project would cost; the bottom line [would] depend on the number of obstacles to be cleared. PMCS are concerned with bombs, shells, mines etc rather than sunken wrecks; their contract is to survey to depth of 5m below the sea bed.... Nor did he tell me how PMCS would be paid; it was however clear that they were perfectly content with the arrangements. No mention was made of our protocol and it looks as if the Iraqis may be paying cash, or something near it.”

The “protocol” referred to was, presumably, a reference to the export credit facilities arranged between the UK and Iraq. *39 The minute was sent to Mr R Young, Head of FCO/MED by Mr Kealy on 15 December 1988. *40 It was copied to various desks in MOD and to SEND. In the MED it was circulated to, among others, Mr Martin Warr, a desk officer. Mr Warr followed up the information in the minute. He then briefed Mr Fraser and Mr S Lamport by minuting them on 18 January 1989, drawing on information relating to the proposed contract contained in a DIS note dated 20 October 1988. *41 Mr Warr’s minute was marked up to Mr R Young by Mr S Lamport. Together with Mr Kealy’s minutes of 13 and 15 December 1988 and the DIS note the Warr minute was also circulated to various Embassies, and MOD and DIS desks. It would appear that the information was noted, but no action was taken. *42

D7.30 In a minute dated 25 January 1989 *43 Colonel J Cochrane, Defence Attaché at the British Embassy in Baghdad, recorded that, on 18 January, Mr Blackburn’s associate had called on him and had identified himself as “Director of Global Technical Management Resource (Overseas) Ltd. [GTMR]” Colonel Cochrane said that “GTMR have been awarded the survey/clearance contract” and that the GTMR director had given details of progress with the project including that the contract involved transfer of technology and training of Iraqi Navy personnel.

D7.31 In a Note dated 22 February 1989 *44 Colonel Cochrane consolidated the information he had received. He wrote that on 5 January 1989 GMTR had been awarded the contract for survey and clearance of Khor Al Zubair/Umm Qasr/Khor Abdulla and that the GMTR team consisted, initially, of some 30 UK divers, surveyors and specialist equipment operators; that the “current” phase of the contract involved training of Iraqi Naval personnel in diving, survey and clearance tasks; that some of the Iraqi specialist equipment was of good quality but much of it had neither been used nor maintained; and that the Iraqis appeared critically short of basic materials including rope and wood. The note described further details of the contract and concluded:

“3. GTMR are fully aware of Iraqi sensitivities; the Iraqis have expressly asked them not to talk to the British Embassy, however [GMTR] seem anxious to keep discreetly in touch - perhaps in case things go wrong.” *45

A copy of the note was sent, inter alia, to FCO/MED and to MOD.

D7.32 Telegrams from Colonel Cochrane to the Ministry of Defence in May and June 1989 reported that British Embassy officials had been contacted again and informed of the progress of the contract. The telegrams refer to survey and clearance work and to tanker navigation. Neither telegram refers to the export of equipment from UK to Iraq. *46

D7.33 In a letter from an MOD official to Colonel Cochrane dated 26 July 1989, the official said that on 7 July 1989 he had attended a seminar on oil, gas and petrochemicals in Iraq which had been arranged by the DTI and held in London. He attached to his letter a loose minute dated 10 July 1989 in which he had reported that at the seminar “Mr Douglas Brand, Senior Project Executive, Global and Technical Management” had given a presentation “on his company’s project to carry out survey and clearance work in Iraqi waterways”. The main points of interest were stated to be (inter alia) that “The contract was awarded on 21 Dec 88... to ‘survey approaches’, clear any debris prior to a dredging programme and train Iraqi personnel”; that “The present clearance contract [was] a precursor to a major dredging project”; that “Mr Brand stated that the Iraqi aim on all overseas contracts [was] to achieve a transfer of technology and training for Iraqis to accomplish similar tasks in the future”; and that “Materials [were] in very short supply in Iraq” and “Contractors should plan to import all materials and equipment they require.” *47 No indication was given of the nature of the materials or equipment that might be needed.

D7.34 Neither the FCO nor the MOD brought the information about Global’s clearance contract to the attention of the REU. The extent to which the clearance operations to be carried out under the contract might require the importation into Iraq of equipment which, if exported from the United Kingdom, would require an export licence was never considered. A connection between the contract and the likely importation into Iraq of “explosive and mine clearance equipment” was never made. If the connection were to have been made by anyone it would have been made by DIS, but DIS’ failure to do so is, in my opinion, not surprising and not a matter of reasonable criticism.

Endnotes:

*37 - FCO/62.3.1009

*38 - FCO/62.3.1011

*39 - FCO/1018

*40 - FCO/62.3.1014

*41 - FCO/1023 enclosure to letter of 27 March 1995 from the FCO Scott Inquiry Unit

*42 - FCO/1023; MOD/1207

*43 - FCO/62.3.1015

*44 - FCO/62.3.1018

*45 - FCO/62.3.1018

*46 - FCO/62.3.1020 and FCO/62.3.1021

*47 - FCO/62.3.1022

* The Full report is available from The Stationery Office Ltd., PO Box 276, London, SW8 5DT.