Export Control (Amendment) (No. 2) Order 2011

Baroness Falkner of Margravine Excerpts

Tuesday 29th March 2011 Grand Committee

[Baroness Falkner of Margravine]

My Lords, I start by welcoming the noble Lord, Lord Green of Hurstpierpoint, to these important but less dramatic moments. I understand that his debut was in Questions in the Chamber the other day and I am very sorry to have missed that. I also welcome him in his capacity to that very fine and sensitive line that exists between business, trade and foreign policy with its ethical umbrella that we attempt to live up to in our dealings with all of these matters.

This order has its origins in the United Nations Security Council Resolution 1970 and is subsequently reinforced through Resolution 1973 as well as EU directives to comply with the new sanctions regime in Libya. There was a time in the 1970s and 1980s when economic sanctions were seen as the poor cousins of military sanctions that were deemed to be the only thing that really worked. I am delighted to say that such is the power of capital and capital flows in a globalised world that they are now an essential element of what we see as specific and targeted mechanisms, designed not to impose real hardship on mass populations but rather to prevent specific named individuals, their friends and their businesses from carrying out illegal acts in support of reprehensible objectives.

In pledging our support for these measures, I have a few questions that I hope the Minister will be able to answer. Some might go slightly wider than his brief but I will put them on the record in any event. The first relates to the activities of the Libyan Investment Authority and its assets held by UK banks. Is the Minister confident that we now have clarity on the value of these and of our banks’ co-operation with the sanctions regime? On a related point, have the assets of those running the Libyan Investment Authority, such as Mr Mustafa Zarti, been frozen in the UK? We know that other countries such as Austria have moved to freeze them and we also know that the Sanctions Committee of the United Nations formed under Resolution 1970 is moving to publish a new and updated list. I hope that these named individuals who are extremely close to the Gaddafi family will find that they cannot usurp the assets of their fellow citizens in that manner. Are we also clear that Libya’s stakes in other UK companies are subject to being frozen, including the subsidiaries of those companies if the companies are designated for such purposes? Finally, Libya appears to hold the Middle East’s fourth largest gold reserves. Can the Minister tell us if HM Treasury is in discussion with its partners in other jurisdictions to ensure that Libyan gold cannot be sold on the international gold markets until such time as UNSCR 1970 and 1973 are complied with? Apart from those points, we are delighted to support these smart sanctions and hope that they will have the effect that they are intended to in the longer term.

[Lord Young of Norwood Green]

My Lords, I also welcome the noble Lord, Lord Green. I was not there on the previous occasion. I must admit that I did not expect to be involved in the Libyan situation, but one never knows what happens in these circumstances. The noble Lord answered most of the questions I had. The question of why we did not include coins as well as notes in the first one was satisfactorily answered when he pointed out that there was a first contract for £900 million and then another in relation to the coin contract.

Can the noble Lord say whether he thinks there will be an impact on these businesses? I do not question the need to do this—I agree with the noble Baroness, Lady Falkner, that this is a smart sanction and, indeed, a necessary one, although I concur with the further points that she made. The noble Lord also gave a general indication which answered a question I wanted to pose as to what happens to the seized assets. I saw a figure of up to £2 billion worth of seized assets and he indicated generally that they would be kept until such time as they could be transferred. Will he expand a bit on that? Other than that, I also welcome this legislation.

Arms Trade

Baroness Falkner of Margravine Excerpts

Tuesday 22nd March 2011 Lords Chamber

[Lord Howell of Guildford]

My Lords, the noble Lord is absolutely right that we are making progress, but that there are still some gaps. The next preparatory meeting is in July, when we will address these issues closely. It is of course our broader aim to see smaller weapons more effectively included and embraced in the arms trade treaty, including the categories that the noble Lord mentioned. These are matters to which we are giving close attention.

[Baroness Falkner of Margravine]

My Lords, I pay tribute to those on the opposition Benches for the work they started in 2005 to bring about a comprehensive arms control treaty. We must be grateful to them for the lead that the United Kingdom has taken in this area. Would my noble friend explain to the House why the Government are resisting the very modest measure of the noble Lord, Lord Alton of Liverpool, in his attempts to bring through a re-export arms control treaty? That would surely be in the spirit of what we are trying to do at the UN level.

[Lord Howell of Guildford]

My Lords, my noble friend will remember that we had an exchange on precisely this matter the other day when my noble friend Lord Green, the Trade Minister, answered precisely this Question. He pointed out that we could bring in many laws in this country but, as we would have no control whatever over the actual movements of re-exported equipment, our laws would be in vain. It would not be the right approach. The much stronger approach is to continue to apply the very high standards, the very strict controls and the very rigorous criteria—some of the most rigorous in the world—which we apply to all exports of military equipment and items of concern.

European Union Bill

Baroness Falkner of Margravine Excerpts

Tuesday 22nd March 2011 Lords Chamber

[Baroness Falkner of Margravine]

My Lords, I rise with some clear indication of how interesting the passage of the Bill will be in this House, given that my party’s name has been mentioned so many times already before a word has been spoken from these Benches. It will be an amusing time.

For me, speaking on this EU Bill is somewhat daunting in the knowledge that the noble Lord, Lord Liddle, winds up for those on the Labour Benches and my noble friend Lord Wallace for the Government. By way of background, I took over as the Liberal Democrat’s EU policy officer in the early 1990s in the aftermath of the Maastricht treaty. It was in that capacity that I learnt from both the noble Lord and my noble friend how the EU actually worked in practice. I should say about the noble Lord, Lord Wallace, that I learnt even more by proxy from Dame Helen Wallace—the author, along with my noble friend—of several authoritative texts on the EU. Speaking alongside this cast of characters on the Bill gives one a sense of déjà vu, but I am sure that we will revert to some of the healthy arguments in the hours ahead about the extent to which the public in the UK have an appetite for the European Union.

If we on these Benches are known for anything it is for our internationalism and our support for our neighbours in Europe. On our Benches are several distinguished noble Lords who are not only expert in their knowledge but undiminished in their support, going back to the days of the EU accession referendum and before, and who will see the changes proposed in this Bill as matters of principle affecting our ability to be active members of the European Union. We would expect nothing less. We will also be joined by newer noble Lords on these Benches, who I suspect will bring a freshness and practical experience of selling Europe to the general public in elections. We look forward to working to improve this important piece of legislation from both aspects.

This is an important Bill. The coalition’s programme for government said that it,

“believes that Britain should play a leading role in an enlarged European Union, but that no further areas of power should be transferred to Brussels without a referendum. This approach strikes the right balance between constructive engagement with the EU to deal with the issues that affect us all, and protecting our national sovereignty”.

It is undoubtedly a compromise but, like many compromises, despite what the noble Baroness, Lady Symons of Vernham Dean, said, it is something that the British people, who are rather more pragmatic than driven by ideology, can live with. Perhaps that is why the election resulted in the way it did.

[Lord Anderson of Swansea]

In using the words,

“constructive engagement with the EU”,

the noble Baroness’s memory might go back to the fact that the Conservative Government of that time talked about constructive engagement with apartheid South Africa.

[Baroness Falkner of Margravine]

My memory goes back even further to when the Labour Party was itself completely riven on what approach it might take to the European Union, which was rather before the apartheid saga.

The coalition programme looks forward to forthcoming legislation with a view to increasing parliamentary scrutiny of new powers and competences, and looks outwards to ensure that the demands of democratic engagement are upheld. It goes further than before by enshrining in law that for significant changes sovereignty should be ceded by those who own it, the citizens or people of our country. It is therefore a far cry from the wording in the Conservative manifesto, which stated:

“We will work to bring back key powers over legal rights, criminal justice and social and employment legislation to the UK”.

The Bill takes the treaties, as amended most recently by Lisbon, as the starting point. While the coalition agreement gives a commitment to examine the EU's existing competences, and particularly to work to limit the application of the working time directive, this is not in my view a dramatic change. In fact, in an age of austerity, it might seem sensible to review the need for greater labour flexibility. However, it does raise the question of what other competences there will be and when. I wonder whether my noble friend could explain when winding up the debate the timeframe to which the Government are working in their examination of competences, and what role Parliament will play in scrutinising their conclusions.

Let me now turn to the substantive parts of the Bill. Clauses 2 to 5 will no doubt attract considerable scrutiny, as they deal with the procedure to be followed for treaty amendments and changes. They change the current situation in now requiring an Act of Parliament after the Government have signed up in principle to the change. This will no doubt add a considerable time lag to EU decision-making. We had an example of a draft European Council decision only last night on the European stability mechanism, and I wonder what useful purpose might have been achieved by a country that is not in the eurozone holding up those that are in it doing something that tidies up an existing situation and seeks to put it on a permanent footing. The way in which we dealt with that last night would no longer be possible if these changes go through.

I accept that every change of treaty requires an Act of Parliament, and I am in no way opposed to that level of parliamentary approval for significant and substantive treaty changes. Yet I wonder whether raising the test for an Article 48(6) decision—the simplified revision procedure—as set out in Clause 1(5) is necessarily the way to go. Clause 4 sets out a rather long list of criteria whereby a future treaty change will be judged and changes the situation whereby qualified majority voting ensues. I understand that the list is so comprehensive due to our lack of a written constitution in the United Kingdom and therefore to the relatively open-ended possibilities of judicial review. Can my noble friend explain whether that is the rationale behind this prescription and, if it is not, why we are spelling out our parameters in such detail? Does that not reduce the flexibility of the Government of the day to evaluate each decision on its merits and to go forward on that basis?

I turn to that other area of controversy, the so-called use of the referendum lock. The potential use of referendums will cover large numbers of procedures, including ordinary and simplified revisions and passerelles. The Constitution Committee, in its report on the Bill, lists some 50 treaty provisions that might attract a referendum. I accept the Government’s premise that a significant disconnect has developed between the British people and EU institutions. In fact, I wrote a thesis in the early 1990s on British attitudes to European federalist integration, and that disconnect had been there for some decades before. The challenge for succeeding Governments is to improve education about the EU and its institutions rather than just lamenting the lack of support for them, as put out by noble Lords on the opposition Benches a few minutes ago.

As we moved to a federal settlement in the UK in the 1990s with the establishment of a Parliament in Scotland and an Assembly in Wales, one would have expected that we would have also taken the opportunity to talk of our rightful place in Europe. Yet the Opposition became obsessed instead with impregnable tests on the euro and whether the ill-fated constitutional treaty would get through. In the mean time, another generation has grown up knowing the European countries better than ever before but not feeling the common solidarity that should unite us, other than in the most instrumentalist manner.

That distrust of EU institutions now leads us to the logic of the referendum lock. As noble Lords will know, the Constitution Committee defines a limited set of conditions in which, in its opinion, a referendum would be warranted. The committee goes on to say that this Bill is a radical step-change in the adoption of referendum provisions. As a Lib Dem who was privy to several animated discussions in our own party over whether to commit to a referendum before joining the euro, I know how difficult it is to agree what constitutes a fundamental shift in power. I was proud of moving to that promise and am overall a supporter of referendums for significant changes. Other European countries have their own scrutiny and control mechanisms in place. I come from a view that every generation should be able to have a voice on the direction of its country’s stance on sovereignty. At this stage, I am not inordinately concerned about these clauses. As the Constitution Committee reminds us, Parliament could repeal or amend any or all of the control mechanisms established by the Bill, including the referendum lock provisions.

On the significance condition, therein will lie the practical issues of how frequently referendums will be held. First, let us be clear that this condition in the Bill will enable Ministers to judge whether a simplified revision procedure change that gives an EU body the power to impose sanctions, requirements or obligations on the UK would not require a referendum. If this reading is correct, can the Minister give us examples of the sort of changes he has in mind that would then fall under ministerial judgment under this test? In other words, what would he consider insignificant?

On the subject of referendums, my recall is that if a treaty change would have triggered a referendum, we would have had about five in the past 25 years. Does the Minister expect a similar number in future? The other contentious area—

[Lord Sewel]

I am grateful to the noble Baroness for giving way. She has touched on the difficulty of significance —of what is significant and what is insignificant—and has asked the Minister to give examples. Does that not hint at the real possibility that the difference between significant and insignificant will be before the courts virtually every time this issue comes up?

[Baroness Falkner of Margravine]

The Constitution Committee made clear in its report that this would not necessarily be a matter for the courts but a matter of political judgment. We will probably hear from the Minister in his closing speech, and I will leave it at that.

The other contentious area in the Bill relates to parliamentary sovereignty and the status of EU law. I know that this has exercised the other place considerably and that its European Scrutiny Committee has commented on this at length. Given the number of speakers in this debate, I will comment on Clause 18 as we deliberate on it in Committee.

I conclude by stating the obvious. Ultimately, the Bill is about a political perspective on how to protect the UK’s interests in the EU. It is not a political Bill, as the noble Baroness, Lady Symons of Vernham Dean, suggests, but it goes to the heart of political judgments about what is right by our country.

There are elements of compromise on which in our coalition, as I suspect there are in parties themselves, there are opinions on all sides. What is essential for us in this House is that in scrutinising this legislation we end up with a product that achieves greater confidence among the public in what their Government will and will not do in their name. We look forward to the Bill in that spirit.

Bahrain

Baroness Falkner of Margravine Excerpts

Thursday 17th March 2011 Lords Chamber

Asked By

[Baroness Falkner of Margravine]

To ask Her Majesty’s Government what is their assessment of the political situation in Bahrain.

[The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)]

My Lords, the Government are gravely concerned about the deteriorating security situation in Bahrain and are monitoring the situation closely. The Prime Minister spoke by telephone to King Hamad bin Isa Al Khalifa on 15 March and called on him to end the violent oppression of street protests in Bahrain. The Prime Minister said that it was vital that the Bahraini authorities responded through reform, not repression, and he called for restraint on all sides. My right honourable friend the Foreign Secretary reiterated those points when he spoke to the Bahraini Foreign Minister yesterday. The Government call on the authorities in Bahrain to respect the right to peaceful protest and to respond to the legitimate concerns of the Bahraini people. There must be open access to hospitals and medical care. The Government call on the protesters to refrain from violence and we urge them to respond positively to the offer of national dialogue.

[Baroness Falkner of Margravine]

Does my noble friend accept that Britain has a special moral responsibility in the case of Bahrain, as it promised independence and constitutional government when it handed independence to Bahrain in 1971? Given the invitation from the Bahraini royal family for the Saudis to intervene, does my noble friend agree that this has eerie resonances of the Warsaw pact in 1956 and 1968 and, most recently, of Afghanistan in 1979? Does he intend calling in the Saudi ambassador and asking what the Saudis’ intentions are and when they expect to go back over the causeway to oppress their own people, which they seem to do rather well?

[Lord Howell of Guildford]

With respect to my noble friend, the historical analogies can be overdone. The situation in Bahrain is different, as the king and the ruling authorities have sought dialogue, although it is perfectly true that this pattern does not seem to be working out at present. As to the position of Saudi Arabia, it is correct that Gulf security forces—I emphasise that it is not just Saudi but GCC forces, including a UAE deployment—have been deployed in Bahrain. We are of course concerned at the escalating situation and it is clearly vital the outside forces exercise the highest restraint and avoid violence. I am informed that the incoming forces are not involved in direct policing but are concerned with safeguarding installations. Dialogue and discussions with the Saudi Arabian ambassador are no doubt in hand and the Foreign Office will have close contact with him and other authorities.

Middle East: Rule of Law

Baroness Falkner of Margravine Excerpts

Wednesday 16th March 2011 Lords Chamber

[Lord Howell of Guildford]

On the final point from the noble Lord, who knows a great deal about these things, I think the answer is yes. Of course, we are active in offering legal assistance and legal training help in all those countries in the region that wish to accept it, which is most of them. In addition, we have the Arab Partnership Fund, which highlights priority areas for action, including the rule of law and anti-corruption work, throughout the Middle East and north African region. Obviously at the moment there are some problems in the way of carrying on these programmes, but wherever they are wanted and needed, we are pressing to offer them.

[Baroness Falkner of Margravine]

My Lords, will my noble friend agree that the rule of law must be predicated on an element of justice alongside freedom, and that most of the Middle East countries have used terrorism laws in the aftermath of 9/11 to put on their statute books some of the most repressive and catch-all legislation there is? The noble Lord, Lord Hylton, mentioned Bahrain, which has very repressive anti-terrorism laws. Are we working with these countries to help moderate their attitude towards terrorism and to provide a little more scope for peaceful dissent without dissenters being entrapped by those laws?

[Lord Howell of Guildford]

The short answer is yes. My noble friend is completely realistic in pointing out that there were some undesirable practices and programmes in the past. Our view is best encapsulated by a quotation from the Prime Minister when he said in Kuwait the other day:

“It is not for … governments outside the region to pontificate about how each country meets the aspirations of its people. It is not for us to tell you how to do it, or precisely what shape your future should take”,

in these countries. He continued:

“But we cannot remain silent in our belief that freedom and the rule of law are what best guarantee human progress and economic success”,

in each country. That is the principle on which we proceed. Where we find obstacles, we will seek to overcome them.

Israel

Baroness Falkner of Margravine Excerpts

Monday 28th February 2011 Lords Chamber

[Baroness Falkner of Margravine]

My Lords, I apologise to the House for my delay in attending the debate of my noble friend Lord Dykes. I was detained in my room momentarily.

It is nearly 18 years since the Oslo peace accords showed a ray of hope for a peace settlement; but 18 years later, we find ourselves at an impasse. The history of US involvement in recent times—we can go back to the Camp David accords, the Madrid conference, the Clinton parameters and Annapolis—should have yielded greater results than they have. Of course, it does not fall to the US alone to secure peace in our time in the Middle East, but recent US efforts have been particularly disappointing. We have had fine rhetoric since the inauguration of President Obama and the expression of lofty ideals, but we are no closer to a solution than at any time before Oslo.

If the US continues to be rebuffed in the manner that it is being rebuffed at the moment by the Israelis, the question is to be asked whether the will for peace exists between the Israelis and the Palestinians, because there will be a comprehensive peace only if both sides are prepared to sit down to sue for peace, irrespective of the position of other powers.

There is little to bring Israel to the table when it can create facts on the ground with impunity in its settlements, its separation wall and, above all, its electoral system, which allows for its most extreme elements to sit at the table. The Palestinians, too, have settled for a dual-track strategy: that of securing economic growth by Fatah in the West Bank, while Hamas seems to be torn between being, on the one hand, the Government in Gaza and, on the other, still playing the role of insurgent when it suits it. Fatah, we hear, will try to seek a unilateral declaration of independence, but that, while giving it legitimacy, will not give it back East Jerusalem or freedom for the Occupied Territories and will certainly not give the people who languish in the camps the right of return.

My noble friend Lord Dykes talked of the democratic trends in the Middle East. If there is one silver lining, it is that the Arab nations together, once they move to more democratic and legitimate frameworks, could secure Israel by normalising relations with Israel. That would be a significant step forward. The West should stand by to facilitate that through encouraging democracy and pluralism in those countries but, ultimately, the peace, such as will come, will have to be made between the two countries alone.

France: Bilateral Defence Co-operation

Baroness Falkner of Margravine Excerpts

Wednesday 16th February 2011 Lords Chamber

[Lord Howell of Guildford]

As I suspect the noble Baroness fully realises, the answer falls in two parts. In some areas, competition will and must continue in the interests of the Government getting a good deal and not becoming vulnerable to having one supplier and therefore confronted with one price and one deal; but in other areas, which were specified in the two treaties—including developing capabilities and equipment, common support for the A400M and a joint user group to develop the A400M training systems, construction of nuclear hydrodynamics facilities at Valduc and a whole range of detailed technical operations—there is bound to be co-operation. I applaud the noble Baroness’s concern to keep up competition; that is right, but in some areas co-operation will secure major economies and efficiencies, which we should support.

[Baroness Falkner of Margravine]

My Lords, given that France is hosting the G20 summit, and given that by the end of this year 1 billion people will be chronically undernourished, are the Government discussing the French proposals to stabilise world commodity prices through an international mechanism?

[Lord Howell of Guildford]

Yes, we have discussed with a number of our close allies the problem of food and commodity prices now. We must face the fact that this is a global issue and that markets are very powerful agencies which somehow produce their own solutions despite what Governments attempt to do. However, these are matters of great concern to us and, as my noble friend rightly says, of very great concern to millions, if not hundreds of millions, of people who face severe jumps in commodity prices, food prices, energy prices and other prices—all with major political implications for the future.

Middle East and North Africa

Baroness Falkner of Margravine Excerpts

Monday 14th February 2011 Lords Chamber

[Baroness Falkner of Margravine]

My Lords, does my noble friend agree that we were foreshadowed a Statement on Afghanistan earlier today which I understand is, unfortunately, not taking place because there has not been agreement in the usual channels that it is a priority? Might I say to my noble friend that, from the Liberal Democrat Benches, we are sorry that an important issue such as Afghanistan is not being addressed when it should be, given the number of casualties that we are still encountering there?

On the Statement on the Middle East, I will try to be extremely brief because I know that several other noble Lords will want to get in. However, the Statement says that the transitional Government “should” include all parties in the new governance arrangements in Egypt. I wonder whether the Foreign Secretary had any reassurance that a broad swathe of existing parties—including the smaller liberal, secular ones—would indeed be brought into that transitional Government.

On assets, the Foreign Secretary stated that he would work with the EU and with other partners. While that is extremely welcome to us, the Statement calls for the freezing of the assets of Egyptian officials. That sounds to me rather narrow, as often we know—certainly from the Ben Ali family as well as the Mubarak family—that there are allegations that the extended family members hold significant assets abroad. The Statement seems to talk about just officials, so I would like some reassurance from my noble friend on whether existing money-laundering laws will apply to the assets of wider family members, if they are found to be under suspicion in that regard.

On Bahrain, I suppose that my noble friend will not have seen the report of Amnesty International that came out just about an hour ago. However, human rights abuses continue unabated in Bahrain—as he knows, because I have discussed it with him in the past. I hope that we will look at that report extremely carefully to see how we might indeed be a candid friend to Bahrain, particularly as I understand that we are involved in training the security services there.

Middle East and North Africa

Baroness Falkner of Margravine Excerpts

Friday 11th February 2011 Lords Chamber

[Baroness Falkner of Margravine]

My Lords, I congratulate the Minister on having the foresight to schedule this debate for today. Despite my noble friend Lord Wallace’s exhortations, I commend the Minister for making it non time-limited. There are 22 countries in the region, which are all going through tremendous change. We seldom debate them in this manner without time limits, and it is important to give those countries the due weight they deserve.

Much has been said in the past few days about the historic events that we are witnessing. On these Benches, like in other parts of the House, there is deep frustration that the will of the Egyptian people remains thwarted by the intransigence of a dictator who cannot see that his days are over. While there is still considerable uncertainty about how events will unfold in the wider region, it is true that the region will not be the same again. We must hope that the transition to democracy, which will surely come to Egypt at some point, does so in non-violent and peaceful circumstances. We can also predict that a difficult period lies ahead. Alexis de Tocqueville said:

“Despots themselves do not deny that freedom is excellent; only they desire it for themselves alone, and they maintain that everyone else is altogether unworthy of it”.

That is the flavour of the struggle ahead.

There has been a sense in political circles that these events have come upon us unexpectedly and that somehow the expression of frustration on the Arab street is a new phenomenon. It is not. I arrived in Saudi Arabia in early 1973, before the Egyptian-Israeli war and subsequent oil embargo. I then lived in Lebanon and Egypt, and have travelled to almost all the countries of the region. While oppression and autocracy had been the unifying factor across the different countries of the region, the man on the street always had a healthy disregard for his rulers. However, the “curse of oil”, combined with social and communal binds, and social conformity, have always made meaningful change difficult.

Successive Arab Human Development Reports—I pay tribute to my noble friend’s predecessor, the noble Lord, Lord Malloch-Brown, who during his time at the UNDP instituted those extraordinarily well researched, Arab-driven reports—have shown that despite grave obstacles the region has changed and its people are embracing modernity with zeal. Education has broadened horizons, the internet has liberated the people and sheer demographics have given them sufficient numbers to have found a voice. Arab exceptionalism—the notion that people everywhere, bar the Arabs, can embrace political empowerment—looks as though it has come to an end.

However, there has always been more to Arab compliance with misrule than simple submission. This is a region that has been the plaything of empires for centuries. We in Britain have too often been on the wrong side of history. From the naivety of Arthur Balfour in 1917 to the ill-fated Anglo-Iraqi treaty of the 1920s, and from our attempts to leverage power in Egypt between the King and the Wafd—which sowed the seeds for the 1952 revolution—to our subsequent handling of the Suez crisis, such events have left an unhappy legacy.

However, the major power in the Middle East in contemporary history has of course been the US. It has for far too long been swayed by the supposed belief in the illusion of stability over freedom, democracy and justice. There has been more than a sense of irony in the past few weeks about the knee-jerk reaction by Israel and Saudi-Arabia—both client states of the US: one a democracy and the other an autocracy—stressing that stability and mutual defence of a dictator is more important than democracy. When one sets about supporting “moderate” Arab leaders, as the US, Israel and to a lesser degree Europe have done, we fail to see a contradiction. What sort of world do we live in where cruel rights-abusing dictatorships are deemed to be moderate? I suspect that Khalid Said’s mother, whose son was brutally murdered last year for exposing corruption in Egypt, would not see much moderation in the Egyptian security service’s treatment when she saw the body of her son in the morgue.

Turning to the present day, two major factors that continue to make this region the most unstable in the world are linked. The first, now almost a hundred years since the Balfour declaration, is the lack of resolution to the Israel-Palestine conflict. From this flows such a strong sense of injustice across the entire Muslim world that it undermines the West’s relations with some 1.3 billion people on this planet. While Britain and the EU have only walk-on parts in this sorry tale, our inability to impress on our partner, the US, that it should embark on an even-handed, just and equitable solution marks an ongoing and significant failure of British and EU foreign policy.

I travelled to Israel and Palestine a few days ago with a parliamentary delegation organised by the Council for Arab-British Understanding. We saw the ongoing encroachment of Israeli settlers in West Bank areas B and C, and the families displaced by settlers in Hebron and in East Jerusalem; and we encountered the loss of hope of a generation of young Palestinians. Within a few days of our return, we learnt from the Al-Jazeera leaks of the extent to which Palestinian negotiators had handed over to the Israelis all their prized possessions and rights: the right of return, an entrenchment of illegal settlements and an agreement to maps that were so non-contiguous that the notion of a viable state was no more real than in the Bantu states of apartheid South Africa. Yet none of this was enough, in the eyes of the Israeli negotiators, to sue for peace.

What are the prospects for a peaceful transition to democracy in the Middle East? There will have to be a solution to the Israeli-Palestine conflict. This will inevitably involve talking to Hamas; peace without that will be impossible. If we recoil in horror at the prospect, let us be clear that Hamas is not Islamist in conventional terms. It does not wish to see a theocratic state on a literalist interpretation of medieval Islam. It comprises doctors and engineers as well as mullahs. It is a pluralist party; 25 per cent of its ruling council comprise professionals educated in the West, with western notions of governance and administration. It is not a proxy for al-Qaeda; it fights al-Qaeda on the ground in Gaza. We should also recall that we do not need to make peace with friends; it is our enemies with whom we have to sit down at the table. We have held our noses and done so with former terrorists in Northern Ireland, and we have seen the fruits of bringing dissenters into the fold.

I turn to the concern that if we support democracies in the Middle East we will end up with wild, sabre-rattling theocratic states. First, it is a profound misunderstanding of the region to equate the Muslim Brotherhood with pure Salafism, or Hezbollah with the Iranian theocracy. The brotherhood is not ibn Abd al-Wahhab and Lebanon is not Iran. However, there is little doubt that democracy in the Middle East will result in the winning of votes by religious parties. This may well mean that some countries will be less friendly to the West. That may be a short-term setback, but there will be longer-term dividends from having been true to our values. The long-standing perception of double standards will no longer apply and we will be able to pursue our self-interest in the region on the basis of mutual respect as well as mutual interest.

In conclusion, we cannot know where this quest for freedom will take the people of Egypt. Our hopes and prayers must be that they will obtain their freedom without further bloodshed. President Obama said last night:

“The Egyptian people have made it clear that there is no going back to the way things were: Egypt has changed, and its future is in the hands of the people. Those who have exercised their right to peaceful assembly represent the greatness of the Egyptian people”.

It is our duty to support those who seek a peaceful transition to good constitutional governance across the region. That should be the thrust of our foreign policy.

--- Later in debate ---

[Baroness Falkner of Margravine]

I fear that the noble Lord was not listening carefully to my remarks. I am absolutely no apologist for anyone who seeks the destruction of Israel. It is for Israel’s survival that I urge that it sits down and talks to its opponents. As I made very clear in my comments on Northern Ireland, we have to do so with people who we do not like on the whole.

[Lord Clinton-Davis]

The noble Baroness refuses to acknowledge that neither will recognise Israel in any form or shape, which in my view is an absolute prerequisite to any substantial peace talks.

Sadat sought to achieve long-term peace in contrast to what Hamas and Hezbollah are trying to do. If things go awry, Israel will be surrounded by hostile forces that far outnumber its own defence force. The fact that Israel and Egypt have upheld, through years of enmity and upheaval in the region, a peace agreement is a testament to the fact that Arabs and Jews can co-operate. If the example of Prime Minister Begin and President Sadat were to be emulated, not only peace but prosperity could enhance the fortunes of both peoples and there is no doubt that the poorer Arab sectors of society would benefit most.

Certainly, we must give the movement for Arab democracy a chance. Perhaps that is best achieved by non-interference on the part of the West. This uprising demonstrates that the majority of Egyptians are becoming active and vocal in that cause. But, of course, we cannot underestimate the dangers inherent in the current situation.

One focus for helping to promote stability in the region is the peace process—albeit that it is all too sluggish—between Israel and Palestine at present. To achieve peace, Israel must always demonstrate a strong commitment to justice through its independent judiciary, which is the only one in the Middle East. It has not hesitated to bring its former President to face a situation in the courts and a cover-up cannot be entertained. A peaceful solution is certainly worth the abandonment of the policy of expanding settlements and, to be fair to Israel, it has in the past uprooted some altogether.

At the risk of creating enmity within, let us not forget that in 2005, Israel withdrew 8,000 of its citizens from Gaza and the West Bank. But now, at this perilous time, both sides must strive ever increasingly. While the settlements may have served a defensive purpose at the outset, in many instances they have been hijacked by those with messianic fervour born out of centuries of feeling outcasts.

Iranian influence in a malign way cannot be overstated. The clamour for Islamic jihad from inside that country, the suppression of opponents and the obscene attacks on its foes play a huge part in subverting peace. It encourages the training of suicide bombers who wreak havoc on innocent civilians without conscience or concern. Meanwhile, Iran supports Hamas in maintaining rocket attacks on Israeli citizens designed to kill, even if they do not always succeed.

Of course, Israel, like all democracies, makes mistakes. Some have grave consequences. But Israel cannot make territorial concessions that can be interpreted as a sign of weakness. To achieve enduring peace, stability is essential and, as ever, risks have to be taken for this to happen. Peace is of course elusive, but it has to be pursued even more vigorously than it is at the present time or the alternatives of extremism and terror will prevail. It follows, therefore, that particularly during this vastly troubled time, the voices of hate should not drown out those of desperation, yearning above all for a peaceful settlement.

Having said that, I also join with the noble Lord, Lord Luce, in hoping that trade will replace much of the toxicity which threatens to engulf so many.

Middle East

Baroness Falkner of Margravine Excerpts

Wednesday 2nd February 2011 Lords Chamber

[Lord Howell of Guildford]

I thank the noble Baroness for those queries. The new Prime Minister has only just been appointed and the Government are yet to be formed. However, I can tell your Lordships that my right honourable friend the Prime Minster spoke with King Abdullah on Sunday, three days ago; my honourable friend the Under-Secretary of State Alistair Burt visited Jordan on 20 January, about 10 days ago; and our ambassador there is of course in regular contact with a great many people involved in the situation. We are keeping close contact in what is obviously a very fluid and evolving situation. The noble Baroness is quite right that the threat of contagion is certainly seen there. There seems to be some evidence that, thanks to modern global communications—mobile telephones and so on—news and views are travelling very rapidly through the entire region. We will have to see how things turn out in Jordan and whether there is a similar pattern to what we have seen in Tunisia and Egypt in recent days. It is early days, and each country of course has its completely different and separate qualities and patterns of events, which may affect the outcome in different ways. I would be delighted to provide a briefing and would like to make arrangements with her and other interested parties as soon as possible.

[Baroness Falkner of Margravine]

First, I endorse the request of the noble Baroness, Lady Symons, for a briefing. That would be very helpful given how many noble Lords in this House would wish to be posted about events and to avail themselves of the knowledge in the Foreign and Commonwealth Office. On the broader question of Jordan, and as a candid friend to Jordan, I would point out that this is the second time that a Government have been dismissed in Jordan in about 15 months. Perhaps in the Middle East we need to have a mind-shift whereby we recognise that absolute rule by monarchs is possibly no longer the direction of travel that the people of the Middle East might wish to see. On the wider stability of the region, I suggest to my noble friend that each country has very individual and differing circumstances, and it would be very helpful to discuss each country rather than one set of countries as a whole.

[Lord Howell of Guildford]

My noble friend is right and confirms what I have just said, that the countries are different. I will certainly provide the briefing she requests. She is right, too, to suggest that a kind of wind of change—although one must be careful about historical analogies—seems to be sweeping through the area, and that raises new questions about forms of government. Whether those forms are along the lines of previous patterns or whether we see new forms of government, the general wish of a nation like ours must be to see orderly transition, maximum stability and the development of democratically minded and balanced societies that can bring peace and prosperity to the entire region.