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

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

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

Relatives of victims wait to hear the sentences of 30 leaders of the last dictatorship. Photograph: Getty Images.
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The SNP thinks it knows how to kill hard Brexit

The Supreme Court ruled MPs must have a say in triggering Article 50. But the opposition must unite to succeed. 

For a few minutes on Tuesday morning, the crowd in the Supreme Court listened as the verdict was read out. Parliament must have the right to authorise the triggering of Article 50. The devolved nations would not get a veto. 

There was a moment of silence. And then the opponents of hard Brexit hit the phones. 

For the Scottish government, the pro-Remain members of the Welsh Assembly and Sinn Féin in Northern Ireland, the victory was bittersweet. 

The ruling prompted Scotland’s First Minister, Nicola Sturgeon, to ask: “Is it better that we take our future into our own hands?”

Ever the pragmatist, though, Sturgeon has simultaneously released her Westminster attack dogs. 

Within minutes of the ruling, the SNP had vowed to put forward 50 amendments (see what they did there) to UK government legislation before Article 50 is enacted. 

This includes the demand for a Brexit white paper – shared by MPs from all parties – to a clause designed to prevent the UK reverting to World Trade Organisation rules if a deal is not agreed. 

But with Labour planning to approve the triggering of Article 50, can the SNP cause havoc with the government’s plans, or will it simply be a chorus of disapproval in the rest of Parliament’s ear?

The SNP can expect some support. Individual SNP MPs have already successfully worked with Labour MPs on issues such as benefit cuts. Pro-Remain Labour backbenchers opposed to Article 50 will not rule out “holding hands with the devil to cross the bridge”, as one insider put it. The sole Green MP, Caroline Lucas, will consider backing SNP amendments she agrees with as well as tabling her own. 

But meanwhile, other opposition parties are seeking their own amendments. Jeremy Corbyn said Labour will seek amendments to stop the Conservatives turning the UK “into a bargain basement tax haven” and is demanding tariff-free access to the EU. 

Separately, the Liberal Democrats are seeking three main amendments – single market membership, rights for EU nationals and a referendum on the deal, which is a “red line”.

Meanwhile, pro-Remain Tory backbenchers are watching their leadership closely to decide how far to stray from the party line. 

But if the Article 50 ruling has woken Parliament up, the initial reaction has been chaotic rather than collaborative. Despite the Lib Dems’ position as the most UK-wide anti-Brexit voice, neither the SNP nor Labour managed to co-ordinate with them. 

Indeed, the Lib Dems look set to vote against Labour’s tariff-free amendment on the grounds it is not good enough, while expecting Labour to vote against their demand of membership of the single market. 

The question for all opposition parties is whether they can find enough amendments to agree on to force the government onto the defensive. Otherwise, this defeat for the government is hardly a defeat at all. 

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.