Defence Export Services Organization

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The Defence Export Service Organization (DESO) is a UK government department of 500 civil servants that is dedicated to helping private companies sell arms. The organization is headed by a seconded arms industry executive, presently Alan Garwood, who has a formal role of advising government ministers on arms exports.

Contents 1 History 2 Staff 3 Strategic Market Analysis 4 Involvement in Arms fairs 5 Relations between arms industry and government 6 Opposition to DESO

[edit] History

The organization was founded in 1966 by Denis Healey, the Defence Secretary at the time. In January 1966 Denis Healey told Parliament that ”while the Government attach[es] the highest importance to making progress in the field of arms control and disarmament, we must also take what practical steps we can to ensure that this country does not fail to secure its rightful share of this valuable commercial market.” The organization founded later in the same year was called the Defence Sales Organization and its aim was to assist the defence industry to export arms to overseas countries. In 1985 the organization was re-named Defence Export Services Organization.

[edit] Staff

Initially it was recommended that the organization should have 15 - 20 staff members. However the size of the section grew swiftly. DESO now has a staff of nearly 400 in London with another 100 located in offices in 17 countries worldwide These tend to have one or two members of staff, though the India, Kuwait and Malaysia offices have around five, and there are 65 members of staff in DESO's Saudi Arabian office. The cost of 64 of these staff are met by the Saudi Arabian government. In addition to its offices in 'priority market' countries, DESO is able to draw on the substantial support of the military attachés who are located in around 82 UK embassies.

Recent Heads of DESO:
Alan Garwood, 2002 to present Seconded from MBDA (part-owned by BAE Systems, the UK's dominant arms producer)
Tony Edwards, 1998 to 2002 Seconded from TI Group
Charles Masefield, 1994 to 1998 Seconded from Avro and Airbus (part-owned by British Aerospace) . Returned to GEC and BAE Systems
Alan Thomas, 1989 to 1994 Seconded from Raytheon
Colin Chandler, 1985 to 1989 Seconded from British Aerospace. Returned to Siemens Plessey, the TI Group, Racal and Vickers

[edit] Strategic Market Analysis

DESO carries out a 'Strategic Market Analysis' each year which provides world and regional market overviews as well as more detailed analysis of key country markets. The 2004 version, identifies 18 'priority markets' and 10 'other key markets'. The US and Saudi Arabia make up the 'premier league' of these markets, followed by Middle Eastern and East Asian countries and others such as India, Turkey and Kazakhstan. DESO's importance is not limited to sales to specific key markets. Its website states that "Successive Customer Satisfaction Surveys of the UK defence industry revealed that over 75% of [arms export orders] would not have been achieved without the assistance of DESO".It is vital in selling UK arms around the world. In the first quarter of 2005 alone, UK arms were licensed for export to more than 100 countries. The existence of conflict, human rights abuses or development seem to be of minor concern to DESO's arms sales strategy.

[edit] Involvement in Arms fairs

Trade fairs play a particularly important role in the arms industry, acting as a showcase for military industry's products and facilitating sales and procurement. As a sales organization for UK arms, DESO is a regular at arms fairs across the globe. Since 1998, DESO has "represent[ed] the Ministry of Defence in support of the UK Defence Industry" at an average of 12 overseas arms fairs a year. In 2004, it spent over £1 million on this alone, attending events such as Africa Aerospace and Defence, Def Expo in India and FIDAE in Chile. DESO also co-ordinates the presence of UK government ministers at arms fairs. The Defence Procurement Minister is a regular arms fair attendee, having visited events such as Defendory, SOFEX and Aero India in recent years. In addition to these services, DESO helps companies secure the assistance of military Export Support Teams in displaying their weaponry in action. At the 2005 DESO Symposium, Lord Bach, the former Defence Procurement Minister, stated that these teams had undertaken 57 overseas detachments, provided assistance to 193 UK exporters, and attended 25 exhibitions" in 2004. In addition to the international marketing campaign DESO plays a major role in the UK's two main arms fairs, Defence Systems and Equipment International (DSEi), and Farnborough International, which take place in alternate years. DESO invites the international military delegations to both of these events. Its invitations to DSEi 2005, an event which it formally co-organises with the international company Reed Elsevier, included Saudi Arabia, Colombia and 'arms-embargoed' China.

[edit] Relations between arms industry and government

The 500 civil servants, employed by DESO, are placed at the service of arms companies. They are headed by a seconded arms industry executive, presently Alan Garwood, who has a formal role of advising government ministers on arms exports. This access goes to the top: Charles Masefield's (Head of DESO from 1994-98) biography at BAE Systems stated that he enjoyed "direct access to Major and Blair." The Heads of Defence Export Services receive a civil service salary. This salary is 'topped-up' by the arms industry. When Tony Edwards (Head of DESO 1998-2002) was asked about any potential for conflict of interest resulting from this, he stated "I can say openly I am beholden to the industry and grateful to them for this top up but then I am working for them openly and overtly anyway". DESO merges the major arms companies and UK government in a formal and institutionalised relationship. It provides insider influence for arms companies at the heart of government.

[edit] Opposition to DESO

Aside from moral questions campaigners from the Campaign Against Arms Trade (CAAT) and other organizaqtions, have brought forward three major arguments why DESO has outlived its' original purpose and should be closed down: The UK arms industry is now privately-owned. In 1966 the majority of the UK arms industry was in public hands and the government of the day could argue that there were benefits for both companies and government. Forty years on, the benefits flow only one way. Arms companies and their shareholders pocket the profits while the tax-payer provides an extensive marketing and sales service free of charge. This level of support is only available to the arms industry. The arms business is now international, not national. It may have been possible in the past to make an economic case for supporting the export of equipment that had been produced by UK companies, in the UK, primarily for the benefit of the UK armed forces. Now, however, the UK's arms production has internationalised. There can be no justification for UK tax-payer support for international arms businesses. The major arms companies exist to maximise profits for their international shareholders and have little or no commitment to the UK or UK 'defence'. Deals revolve around new arms, not surplus UK military equipment. Forty years ago, second-hand UK armed forces equipment formed the bulk of UK arms exports. Today the situation is different, with surplus UK arms now little more than another tool to help arms companies sell their new equipment.

On 16 October 2006 more than 250 Campaigners encircled the DESO headquarters in central London, declared it a “Global Danger Zone.” and called for the closure of DESO. People from all over the UK have signed a petition to close down DESO and have voiced there concerns about the existence of DESO with their MPs.