United States: Foreign Policy

Lord McNally Excerpts

Thursday 18th January 2018 Lords Chamber

[Lord Lamont of Lerwick (Con)]

My Lords, I first refer to my entry in the register of interests as a consultant to a number of companies in the Middle East and also to my role as the Government’s trade envoy to Iran. I thank the noble Lord, Lord Ashdown, for introducing this debate. I agree with him on two particular points. One was the emphasis on diplomacy in tackling problems, and he may be surprised that I agree with him on the second point. In or out of the EU, on many issues we have to co-ordinate our policy with Europe, and the Government should develop a deep partnership.

I was slightly hesitant about speaking in this debate because I was worried that it would develop into an anti-Trump bandwagon. Although I share many criticisms of President Trump we have to accept and respect that he is the President of the United States, and not everything single thing that he has done has been wrong. None the less, I want to concentrate on one issue relating to the United States policy that is wrong, which is its policy towards Iran.

I was in Tehran last week with Jack Straw and Sir Peter Westmacott, our former ambassador to the United States. Naturally, we raised the cases of the dual citizens: Nazanin Zaghari-Ratcliffe and Mr Foroughi. We also expressed concern about the riots and what was happening there and told them the world would be watching. My view, and it has been my view for a long time, is that, with Iran, we need a policy of critical engagement. Engagement—but critical—because, although it is in many ways an authoritarian country, to my mind it is one with a capacity to change and is much more open than many of the other countries with which we are closely allied in the neighbourhood.

On the issue of riots in Tehran, there are of course many interpretations. One thing that struck me particularly while I was there was the reaction of President Rouhani. He not only defended the rights of the demonstrators to demonstrate; he went further. He said this is an opportunity for us to listen and to learn. He went even further than that and said that this is not just about economics, it is about freedom. Lastly, just the day before I left, he said that the young in his country have a completely different view of the future, and they cannot go on imposing their way of life on them. President Rouhani renewed his commitment to honour his election promises about more freedom and more economic benefit.

My view is that the best way to help those who were demonstrating and felt compelled to riot is to make sure that we make the nuclear agreement effective and give the Iranians some benefit from the agreement. President Trump has indicated that he wants to tear it up and that he thinks Iran is not complying with the agreement, despite the fact the International Atomic Energy Agency has issued 10 reports indicating that Iran is 100% compliant. His own State Department does not agree with him. I do not think the CIA agrees with him. No European Government agrees with him. None the less, he has indicated that, although he has signed the waiver on sanctions this time, in another 90 days he will not do it again. If that is to happen, it will make the agreement really ineffective. It will be extremely difficult for Europe to carry on on its own, and I would like the Minister to comment on one point.

I gather there was a meeting between Mr Zarif and EU Foreign Ministers a few days ago in which there was discussion of whether Europe could isolate itself from American sanctions by some legal mechanism, rather similar to what Mrs Thatcher did with sanctions against Libya in the 1980s and sanctions against Russia. We took action then, so could we not take action again? If America retains some sanctions it is very difficult for EU banks to make trade at all possible.

From an Iranian point of view, there is this huge feeling of betrayal. The noble Lord, Lord Ashdown, put the emphasis on diplomacy. Henry Kissinger once said that we want Iran to be less of a revolutionary cause and to become more of a normal state. It will only be able to do that if it actually feels that diplomacy pays and that agreements are honoured. If that agreement is simply torn up it will be the worst possible signal towards Iran. We need Iranian involvement in dealing with the crises in Yemen and in Syria, and we want the Iranians to feel that diplomacy is necessary to reaching a solution in those areas. Even after we have left the EU, I hope that the Britain’s cooperation within the EU3 will continue because such diplomacy, in co-ordination with our European partners, is extremely important. We should not simply follow the United States on this issue because on this, I am sorry to say, it is profoundly wrong.

[Lord McNally (LD)]

My Lords—

[Lord Browne of Ladyton (Lab)]

My Lords—

[Lord McNally]

Oh, I do apologise.

--- Later in debate ---

[Lord McNally]

My Lords, I had better start by saying that I thought that that was an excellent speech and I apologise to the noble Lord, Lord Browne, for trying to deprive the House of it. I congratulate the noble Lord, Lord Ashdown, on bringing this topic before us and I agree with the noble Lord, Lord Lamont, that the tone of the debate has been well set.

Early in March 1974, I was in the back of a limousine, returning from Foggy Bottom to the British Embassy with the new British Foreign Secretary, James Callaghan, who had just had his first meeting with Henry Kissinger. I was a 31-year-old, very enthusiastic political secretary—we did not call ourselves spads in those days. I was enthusing to Mr Callaghan about just how well the meeting had gone and how well he had got on with Dr Kissinger. Mr Callaghan leaned back and said, “Tom, it is part of the job description of a British Foreign Secretary to get on with the American Secretary of State”. That is perfectly true—it is a priority that the British Foreign Secretary should have to this day, and I hope he has.

Over the last 40 years, Britain has had a unique foundation for its foreign policy as the only country with membership of the UN Security Council, NATO, the Commonwealth and the EU. These interlocking relationships have given us a unique combination of hard and soft power. We have also had, as the noble Lord, Lord Robertson, referred to, the BBC World Service, an instrument of soft power underpinned by its expertise and integrity.

The idea that our departure from Europe gives us an opportunity for some new global role is fantasyland. To proffer the Commonwealth as a practical alternative to the European single market is a delusion. The Commonwealth is a tremendous example of our soft power but it is not, and never can be, an alternative trading bloc. Every Commonwealth country has its own regional trading commitments and will rank its relations with those trading commitments, and with the EU, above any bilateral trading arrangements with the UK.

Let us look forward to the Commonwealth Heads of Government Meeting in the spring, but let us do so while playing to the Commonwealth’s soft power strengths. If the Government try to play the Commonwealth as some alternative to EU membership they will run into trouble, not least from Commonwealth countries themselves.

On other fronts, as we have heard, there are various thoughts about where we go next in keeping the links with the EU and possible new links with the USA. On 16 January, Tony Barber wrote an interesting article in the Financial Times, headed “Britain’s Transatlantic Bridge Looks Shaky”. In it he makes two points of great relevance to this debate. First, he draws attention to the 28-page document drawn up as the basis of Germany’s new grand coalition Government. He tells us that the document,

“said much about German co-operation with France to deepen EU and eurozone integration. It stated that US, Chinese and Russian policies obliged Europe to assume more responsibility for its future. But on Brexit, and on the UK generally, the CDU-SPD document is deafeningly silent. For all the wishful thinking in London, Brexit is not a top priority for German politicians”.

Barber’s second point is that, between 2005 and 2015, the UK ran an average annual trade surplus of over £28 billion with the United States. The US Commerce Secretary Wilbur Ross has already made it clear that, if the UK wants a far-reaching deal, Washington expects London to depart from any close regulatory alignment with the EU. In other words, any bilateral trade deal is going to be as tough and hard-nosed as we know our American cousins can be.

This does not mean that we do not continue to build on our US relationship. A very old friend of mine—an American academic, John Reilly—in the Christmas newsletter he sends out to friends, summed it up like this, “Ours is a vast and resilient country, with a people still younger than most, a continent still richer than most, an economy more innovative than most, and an international record prouder than most”.

As has been said by the noble Lord, Lord Campbell, and others, the tectonic plates are moving and we are going to need the kinds of foreign policy initiatives that have already been enunciated, as well as, I say again, a well-skilled and well-resourced Foreign Office. I remember Jim Callaghan saying in 1974, as we were settling in, “This is a Rolls-Royce department”. Perhaps it is time to get the Rolls-Royce off its bricks and put it back into service.