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Argentina’s "Falklands debt" goes to the heart of our unethical foreign policy

The government should remember our shameful role in arming the junta.

New Statesman
Relatives of victims wait to hear the sentences of 30 leaders of the last dictatorship. Photograph: Getty Images.

The anniversary of war should be a time for learning the lessons of history - particularly when the injustice of a war continues to this day. Some documents exposed by Jubilee Debt Campaign this week expose a cynical approach to British foreign policy which should shock both British and Argentine citizens.

Argentina’s outstanding debt to the UK is £45 million. This week we have uncovered how much of this debt was run-up. In the years leading up to the Falklands War the British government was flogging one of the most unpleasant dictatorships in the world British weapons. 

A military coup in 1976 brought a wave of terror to Argentina. The ‘dirty war’ which the coup ushered in was a period of state terrorism in which as many as 30,000 people were killed or ‘disappeared’. Political parties and trade unions were banned, whilst religious groups had to apply for approval from the state.

The British government at the time was well aware of the nature of the regime in Argentina. In a document from Foreign Secretary David Owen to the Ministry of Defence in 1979, Owen describes the junta as a “regime whose human rights record is worse than Chile, and which could come close to a confrontation with us over the Falklands.” Pinochet’s Chile faced sanctions at the time, as a result of a policy made by the then government at the previous election. But Argentina faced no such restrictions. 

Owen understood the problems with selling weapons to Argentina, but concluded that “it is not possible to achieve complete consistency in our approach to this problem and that to attempt to do so would impose unreasonable constraints upon us.” As a result Argentina was sold two Type 42 Destroyers, two Lynx helicopters and twenty-two Sea Dart missiles.

These weapons sales - and likely a variety of other military equipment sold - were backed by an effective loan from a British government department called the Export Credits Guarantee Department. Indeed, such a good client was the Argentine junta, that in October 1979 the British raised the amount of loans it could back to Argentina from £100 million to £500 million to “provide room ... for the potential arms contracts.”

Both the destroyers and Lynx helicopters were used in the invasion of the Falklands - one of the Lynx’s was the first Argentine aircraft to land on the Falklands after the invasion. Indeed when the Falklands War was underway, Argentina should still have been paying the British Government for weapons being used against British soldiers.

These issues were aired - including in parliament at the time. What’s worrying is that the replies received are exactly the same replies received by arms campaigners today: when Lord Averbury asked whether it was “unwise to sell military weapons of any kind while the Falklands’ problem remains unresolved?” he was told “the government takes into account the use to which the equipment might be put”.

After defeat in the Falklands Argentina’s military junta was kicked out of power in the 1983 elections. Through the 1980s the economy suffered from the huge foreign debt the government inherited, which led to stagnation and increases in unemployment and poverty. Many argued it was a classic case of ‘odious debt’ and the new government should simply refuse to pay the sorts of debts owed to the UK. Indeed a famous court case in 2000 found that loans to Argentina under the dictatorship were part of "a damaging economic policy that forced [Argentina] on its knees through various methods ... and which tended to benefit and support private companies - national and foreign - to the detriment of society".

In order to keep paying this odious debt, Argentina's governments accumulated ever more debt. New loans repay old debts. By the 1990s, courtesy of advice and bail-out packages from the International Monetary Fund the economy entered a crisis and - after five governments in two weeks over Christmas 2001 - defaulted. The improvement both in the economy and Argentina’s democratic model improved significantly - no thanks to the so-called international community.

What should worry us today is that David Owen was not alone at the time - or indeed since - in placing the interests of the arms industry ahead of being a good global citizen. Owen, like many others after him, expressed ‘reservations’ about some of the arms sales, but in the end narrowly perceived economic and strategic interests won out.

The UK has spent years arming dictators and the debts ‘owed’ to this country can be linked back with some of the worst regimes of the last 40 years - General Suharto of Indonesia, Hosni Mubarak in Egypt, Saddam Hussein in Iraq, not to mention the royal family of Saudi Arabia. At the centre of these deals was the Export Credits Guarantee Department, now rebranded as UK Export Finance and under the stewardship of Vince Cable’s Department of Business.

In opposition, Cable regularly railed against the sorts of deals done with the Argentine junta, and his party promised in power to audit such debts and cancel those deemed reckless. It’s surely difficult to imagine a more reckless loan that one which supported arms sales to Argentina in the late 1970s. The government should use the Falklands anniversary not to wave flags, but to remember our own shameful role in arming an atrocious regimes around the world and make some efforts at recompense - for the lives of British and Argentine soldiers lost. 

Nick Dearden is the director of Jubilee Debt Campaign

45 comments

Neilson@carbidemedia.com's picture

Selling weapons to almost all of the juntas in the world is really a thing to be ashamed off . Supporting junta is really equals to appreciating the killings of thousands of innocent people in that countries.

Neilson@carbidemedia.com's picture

Selling weapons to almost all of the juntas in the world is really a thing to be ashamed off . Supporting junta is really equals to appreciating the killings of thousands of innocent people in that countries.

Artur's picture

Unfortunately, the government is just too willing to get over wrongs like the Falklands and move on..

Dave Crouch's picture

Well Nick Dearden, what a lot of old tripe you write. I am not only referring to the content; no my main concern is your atrocious style of English. Why do you use the term 'the so-called international community'? I am sure that at some time during your school days your teachers will have told you that you should only preface a noun with 'so-called' in order to highlight the fact that the writer disagrees with a commonly held description of an item or an organisation or that there are groups that may refer to it in a completely different way. A good example of this would be in an earlier paragraph where you refer to the dirty war. Here you choose to put the term in inverted commas for some curious reason whereas it would be more appropriate to write, 'the so-called dirty war', because presumably, the Argentinian Junta didn't refer to it as the dirty war.
I have looked through the whole of your article and although there are no glaring grammatical errors, the style of writing is what we used to describe as 'Lower Fifth Form'.

Peter Deville's picture

Oh dear. People in glass houses and all that.

hugh markey's picture

Ex-General Alexander "I'm in Charge' Haig had a liking for the idea of military men in government. Ronnie was a civilian - a conscientious objector to getting a Purple Star.

George Washington ( Commander in Chief }

Ruby158's picture

It seems many left leaning publications take a much more pro-everyone but Britain and British people, regardless of the facts. More radical notions are frequently posted including the colonial past of the Spanish in Argentina and it's unpleasant usage of the weapons it buys and threatened us with.

Fordy1968's picture

I think that's because, much as rightism is sadistic and other-destructive, leftism is masochistic and self-destructive, eroding the political ego from within. Take note of how someone like Galloway takes sides with everyone who is opposed to the society he belongs to.

Critique's picture

Unfortunately, the government is just too willing to get over wrongs like the Falklands and move on

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Indu Pendent's picture

What??
The UK arms industry is a jewel in our economy. We make and sell the best weapons in the world - its what the UK is good at.

"placing the interests of the arms industry ahead of being a good global citizen" - bring it on. Having the capability to supply arms provides us disproportionate with influence on the world stage. Britain as an arms supplier has more influence in the world that the "good global citizens". Wouldnt you rather have Britain supplying the weapons rather than other countries?

Sorry Nick I've read articles by teenagers with a better grasp of the issues.

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KBT's picture

What does your comment have to do with selling Arms to the Falklands! Me think your still on drugs!

KBT's picture

What does your commetn have to do with selling Arms to the Falklands! Me think your still on drugs!

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Lion's picture

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thewestisthebest's picture

We could always go back to Labour's ethical foreign policy?

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Richard Evans's picture

When you say the "British govt" you neglect to add the word "Labour", why is that?

"Through the 1980s the economy suffered from the huge foreign debt the government inherited"

Inherited from whom? From the previous military govts!

Nick Ferriman's picture

Dear Plug,

HMS Endurance was not a warship. it was a survey vessel.

Regards

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Turnip Ghost's picture

Daniel J, may your family's women be among the first put into burquas and harassed by the Islamic Morality and Dress Code Squads roaming the streets in that event; masochism has clearly reached its limits with you.
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Sam2012's picture

Does harrassment of the Falkland Islands go to the heart of Argentina's unethical foreign policy?

skiptonman's picture

great informative piece of writing that highlights the shamefull dealings our leaders have been complicit in .. the rule of law seems meaningless to those in power, who should be brought to justice over these criminal actions, you sell guns to mass murders , i would of thought that makes you guilty of complicity. as with UN security resolutions , some are ignored by certain countries and nothing happens ? others are justification for international outrage and war. bizzare but welcome to the earths ruling elite.

rain's picture

It’s the political-left in Argentina which is indebted to the political-right in Britain.

Fergus Pickering's picture

So the Socialists flogged guns to the junta and then voted to run away, while the Tories stood firm and defeated it in battle, is that right? Much what I would have expected.

Plug's picture

Were you around at the time Fergus? I was.
As the article suggests, David Owen was pointing the way to an ethical foreign policy regarding arms sales but was put under manners by the treasury.
Subsequently, the Tories decided to withdraw the last British warship on permanent station in the South Atlantic, a move regarded as mere cost-cutting in Whitehall but seen as dereliction by an opportunistic regime in Buenos Aires, especially given the diplomatic drift towards some sort of compromise on sovereignty current at the time. Don't be misled into thinking it was a hot-button issue before the invasion: few knew where the Falkland Islands actually were.
That such a bloody conflict occured at all was an epic fail on the part of the government of the day.
That you should seek to make a cheap and unfounded political point-score on the back of it is to your shame.

Nick Ferriman's picture

Dear Plug,

HMS Endurance was not a warship. It was a survey vessel.

Regards

Nick Ferriman
Bangkok

Plug's picture

Nick
You're quite right in strict terms, but she was operated by the Royal Navy and deployed in action. But my journalese was lazy.

Regards

P

Richard Evans's picture

Not lazy, simply untrue.

And the reason the Argentines thought we'd let them take the Falklands without a murmur was the behaviour of the Labour govt of Callaghan and the Foreign Office.

And if you want to know what Labour would have done listen to the speech by Thatcher announcing a task force will be sent to free the Falklands, you can clearly hear the baying of the Labour party in the background. Notably Tony Benn thought no Task Force should be sent.

Herbert's picture

'Michael Foot was no lover of dictatorships, of either the Left or Right. If there were any doubt about this it was dispelled by his brilliant speech in support of the Falklands task force in 1982 – sent to expel a fascist dictator’s invasion force.'

Perhaps you've forgotten. Or probably just ignorant.

http://www.telegraph.co.uk/comment/columnists/alancochrane/7365694/Micha...

dotexe's picture

@DanielJ

So your preferred solution to the hypocritical and duplicitous dealings of the British government is mass murder at the hands of a murderous theocracy? (You definitely did not say "vanish from the pages of time")

Why must people like you make the world I have to live in that little more unbearable?

Kanaloa's picture

While no one likes some of the West's dealings with regards to the selling of weapons and equipment abroad, I think this piece uses it to argue for the Argentina's right to the Falklands in a slightly underhand way - heaven forbid an actual confrontation on the issue where the British argument would clearly be stronger.

It seems many left leaning publications take a much more pro-everyone but Britain and British people, regardless of the facts. More radical notions are frequently posted including the colonial past of the Spanish in Argentina and it's unpleasant usage of the weapons it buys and threatened us with. Sean Penn and those of similar inclinations never use reason and logic but hide behind emotive language and fashionable diatribes against Britain's past.

I would offer that the editorial and ideological tendencies of publications such as the New Statesman should shift on this issue. I fear like the Argentine Junta the British left too looks abroad to resolve it's issues - much at the expense of the suffering of people living in Britain today.

Nick Ferriman's picture

Dear Kanola,

The problem for the left is that many of them like me have discovered that the British history they were taught is a one-sided horror story that has been dressed up as romanticised democratic romp across the globe. It was no such thing. The British have a war crimes record as long as your arm, and they are still at it.

This monster, like Grendel, needs to be put down. If the British themsleves are not going to do it, then we must call upon the global civil community to do so.
Regards

Nick Ferriman
Bangkok

Richard Evans's picture

The problem for the left is that while you've "learned" (been told) about the "evils of empire" you've never "learned" of the evils done by others it seems. The left are trying to judge the actions of those who lived 100 years or more before them by modern day standards. The fact is that before the British Empire the world was a far more savage, brutal and lawless place, and indeed after the British Empire many ex-colonies returned to such a state (which you no doub blame the British for).

Herbert's picture

'A military coup in 1976 brought a wave of terror to Argentina. The ‘dirty war’ which the coup ushered in was a period of state terrorism in which as many as 30,000 people were killed or ‘disappeared’. Political parties and trade unions were banned, whilst religious groups had to apply for approval from the state.'

So, according to many people, it was wrong to sell arms to that kind of regime but it was fine and dandy to hand the people living in the Falklands over to it?

Daniel J's picture

This just goes to show how vile the people are who run this hypocritical shithole of a country really are. And to think that British people were angry at the French for selling Exocet missiles to Argentina! The British ruling class must think that we are a spineless and pathetic bunch of easily led idiots with illusions of grandeur. Roll on the day when Iran wipes the UK off the map - not that anyone will notice nor care.

thewestisthebest's picture

You could always migrate. Unless you're gay, Jewish, atheist, progressive, libertarian, or you simply don't wish to live your life the way a bunch of fuzzy faced religious fascists wish you to live it?

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