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:
DIVERSIONARY ROUTES

D7.69 Mr Gerald James was chairman of Astra from June 1981 to 2 March 1990. Mr James told the Inquiry in his written evidence that:

"Following the acquisition [by Astra] of companies in the US, Great Britain and on the Continent, there were a number of contracts where conduit countries were used to supply Iran and Iraq. This involved the use of end user certificates misdescribing the end use country. It involved military equipment ostensibly going to countries that had no use for them such as Singapore, China and Cyprus.” *94

Mr James also stated that Astra “was a major supplier to Iraq and Iran [of defence equipment] as well as other countries, sometimes for covert operations” and that “Our U.K. facility at Grantham [BMARC]exported defence equipment to Jordan which was diverted to Iraq.” *95

D7.70 Mr James explained in his supplementary evidence to the Inquiry that the reference to “conduit countries” in his first written statement related to “a series of networks centred in the U.S, U.K. and in Europe”. *96 He listed two such “networks” in Europe, one of which referred to Oerlikon. *97 Mr James did not, however, see the false end user certificates and told the Inquiry that “It would not be an expected part of [his] duties as Group Chairman to deal with documentation such as this.” *98 Mr James believed that the documentation had been “seized by the MOD”. *99 Mr James referred to a list “provided by Glibert” *100 detailing “military equipment ostensibly going to countries that had no use for them”. *101 The list included two entries detailing the supply by BMARC of (i) 35mm ammunition to Cyprus, (ii) ammunition, guns and tooling to Singapore. *102 Mr James believes that “these countries then exported to Iraq”. The basis of Mr James’ belief was described by him as follows:

“In some cases the fact that Iran and Iraq were the actual recipients was discussed at Board meetings. There was no secret whatsoever made of this. No one felt that what was being done was in anyway illicit.” *103

Endnotes:

*94 - Mr James’ written statement of 8 June 1993, paragraph 1, p. 4

*95 - Ibid. p. 7 - 8

*96 - This Report has not incorporated Mr James’ latest evidence to TISC in its inquiry into export licensing and BMARC

*97 - Mr James’ supplementary written statement dated 29 September 1993, p. 4. Oerlikon had sold BMARC to Astra in May 1988

*98 - Ibid.

*99 - The Inquiry was not provided with copies of MOD Police papers until 27 March 1995 - see paragraph B3.4 supra

*100 - Philippe Glibert was deputy general manager of PRB

*101 - Mr James’ written statement of 8 June 1993, paragraph 1, p. 4

*102 - see his supplementary written statement, p. 5

*103 - see his supplementary written statement, p. 5

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