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SBAC has written to Ministers recommending actions that industry would like to see Her Majesty's Government (HMG) initiate in respect of the proposed removal of the China Arms Embargo.

Central Messages:

• Everything should be done to avoid damaging the strong relationship between the UK and the US on defence industrial collaboration.
• The government should make clear to both the US Administration and Congress that maintaining the strong relationship between the UK-US is paramount.
• Arguments must be presented to key decision-makers in the US that demonstrate that the UK is not making any change to policy with regard to technology transfer to China
• The UK has, and uses, effective national controls to restrict the export of sensitive technologies.
  

Specific Points:

The UK has a very effective set of national export controls, comparable with those of the USA. These were specifically tightened in 2004 to tackle technology transfer, and have operated effectively alongside US controls for many years. We are concerned that US Government and Congress are not fully aware of the extent of these national controls. HMG should do more to explain the UK system in the US.

1. Industry understands that removing the embargo will not alter the UK?s stance on technology transfer to China that could affect the security or that of our main ally. If so, HMG should make this clear to the US. HMG should also make it clear that it intends to implement the EU Code of Conduct provision, for denial of export licences, for equipment which may affect ?the national security??of allies.? HMG should make it clear that this applies to the USA.
2. Industry proposes that there should be a consultative mechanism that would enable the US to confer with HMG on exactly what the sensitive technologies are that need to be controlled. It is clear that neither the US nor the UK, or other European nations intends to constrain civil trade with China that does not have security implications. Regular consultation between the US and UK will facilitate the regular exchange of ideas and indicate how they will operate their policies.
3. HMG has stated that The EU Code of Conduct has in recent years been the reason for license rejections to China rather than the embargo, which is a political agreement with no legal force.
4. The embargo has outlived its usefulness. The UK?s own strong export controls restrict what can be exported from the UK. The UK should show a willingness to consider ideas to strengthen bilateral co-operation on the control of sensitive technologies as regards China.
5. Other countries export to China, such as Australia who long ago removed their embargo on arms sales to China, and Israel.