Human rights fears over £5bn contract to sell fighter jets

Arms sales, including those of the Typhoon, will be on the agenda when Gerald Howarth, the Defence Minister, attends a summit meeting this month.

Mr Howarth is attending the Jakarta defence forum to strengthen British ties to countries in the Pacific region but trade is also on the agenda. “I fully expect that to be the case,” he said. “Typhoon is on their agenda. Their interest shows the extent of interest by countries around the world in what is one of the most sophisticated aircraft anywhere.”

Any Typhoon or Hawk sale to Indonesia would be highly controversial given the country’s human rights record. Amnesty International has accused Indonesian police of torture and unlawful killings and believes that there are “severe” restrictions to freedom in the country. Labour blocked the export of fighter jets to Indonesia in 1999 after allegations that the country had used its British-built Hawks to attack separatists in East Timor.

The minister’s trip to Indonesia comes as the Government steps up efforts to promote British interests abroad. The coalition believes that exports are vital to the economic recovery and defence is an area in which Britain is particularly strong.

The Indonesians are considering whether to scrap their old Hawks, which will be retired starting this year, and buy replacement aircraft from Korea, Italy or the United States. BAE has offered to upgrade the Hawks, which were originally sold in 1978.

Indonesia is also looking at the possibility of buying an advanced fighter jet and is considering the Typhoon, an upgraded F16 from the US and Sweden’s Gripen.

Defence sources said that the approach to Britain was very tentative and it was far from certain to lead to a deal.

Kaye Stearman, a spokeswoman for Campaign Against Arms Trade, said however: “From 1994 to 1999 Indonesia bought half of its military equipment from the UK, backed by UK export credits. The people of Indonesia have accumulated huge debts which they are still paying off.

“The Hawk jets and other British-made weaponry were used by Indonesia in East Timor, West Papua and Aceh. With such a dreadful record, BAE and the British Government should not be trying to sell more weapons to Indonesia.”

Indonesia is said to have stepped up its attempts to buy Western fighters after the first test flight of China’s Chengdu J20 stealth bomber earlier this year. The aircraft demonstrates China’s growing military ambition and has spooked neighbours in the region.

The last attempt to sell fighters to Indonesia ended in humiliation for Labour when it hastily banned defence exports in 1999. Robin Cook, the Foreign Secretary, had promised an ethical foreign policy when Labour came to office but his department twice cleared the sale of 16 BAE Hawks to Indonesia. This was despite repeated allegations that Indonesia’s existing Hawks had been used to attack civilians. At that time East Timor was pressing for independence and Indonesia was forcefully resisting.

Indonesia is now a democracy and East Timor an independent nation. There remain concerns, however, about human rights in that region of Asia.

Mr Howarth said: “The UK has probably the toughest defence export regime. We are very responsible about these things and very careful who we sell to.”

The Government has stepped up its efforts to win big export orders for British companies and is hoping to secure multibillion-pound contracts for the Eurofighter Typhoon from Malaysia, India, Oman and Indonesia.

A formal request for proposals has been received from Malaysia to supply 18 Typhoons in a deal that could be worth £2 billion. It is one of a number of campaigns the Government is hoping it can win for Typhoon to secure thousands of jobs. Defence is one of Britain’s few globally significant manufacturing sectors and employs more than 300,000 people, generating export earnings of more than £7 billion a year.

Vince Cable, the Business Secretary, is understood to take a dim view of arms exports. Lord Green of Hurstpierpoint, the Trade Minister who is an ordained Anglican priest, is rumoured to have reservations about promoting defence exports because of his religious beliefs, although the Department for Business has denied this.

The Foreign Office has directed its embassies and ambassadors to promote British commercial interests as a priority and this policy is said to be paying off. “This Government is much more engaged in the trade agenda,” said the chief executive of a major manufacturing company. “It is making a difference, but we have a lot of ground to make up.”

The Prime Minister has led trade delegations to India, China and the Middle East since taking office and numerous other ministers have been encouraged to get out and sell Britain.

“You guys are outgunning the Americans,” one arms broker said. “The only thing holding you back is that you’ve cut the number of people in your embassies.”

As well as meeting Indonesian ministers, Mr Howarth is expected to meet his opposite number from Malaysia. The Malaysians are considering buying an advanced fighter jet and are looking at the Gripen, Boeing’s F18 Super Hornet and the Typhoon.

Both Malaysia and Indonesia are understood to be willing to discuss buying second-hand Typhoons from the Royal Air Force, which could significantly ease the MoD’s budget pressures.

Howard Wheeldon, senior strategist at BGC Partners and a defence analyst, said: “The UN Charter says that every nation has the right to defend itself. Why should we not support mature nations that cannot provide their own defence equipment because they do not have the manufacturing capability?”

Eurofighter Typhoon

Max weight 23.5 tonnes

Max speed Mach20-35,000ft 2.5min 0-takeoff 8sec

Weapons Underwing missiles 8, Underfuselage missiles 5, Cannon 1

Cost £70m+