Building Stability Overseas Strategy

Earl of Sandwich Excerpts

Thursday 16th July 2015 Lords Chamber

[Baroness Anelay of St Johns]

I entirely agree with the noble Baroness and it is a matter that I am looking at in policy terms.

[The Earl of Sandwich (CB)]

My Lords, does the noble Baroness agree that joined-up government in principle is a very good thing and this is a good example of it, but when it comes to four or five departments, does not the argument of the noble Lord, Lord McConnell, become stronger? We perhaps need to review the speed at which decisions are made by several departments.

[Baroness Anelay of St Johns]

My Lords, that is exactly why the National Security Council has taken the measures it has to be able to deliver decisions more effectively and rapidly. Also, sometimes is has to be festina lente. One has to have the underlying principles on which one acts and they are, as I mentioned earlier, early warning, rapid response and upstream prevention. Upstream prevention takes time.

European Union Committee on 2014–15 (EUC Report)

Earl of Sandwich Excerpts

Wednesday 15th July 2015 Grand Committee

[The Earl of Sandwich (CB)]

My Lords, since I have just completed my service both on the EU Select Committee and the EU External Affairs Sub-Committee, I feel that it is the right time to thank the chairmen and colleagues of both committees, some of whom are present, for giving me such a rich experience. It is regrettable that I have had to step down from the sub-committee after only two years because of the terrible new rules on rotation mentioned by the noble Baroness. I agree completely with her that we can only pray for the staff of current and future committees who will have to accommodate an increasing turnover of Peers with varied overseas experience. The only solution I can think of is the creation of a new external affairs committee of the House.

Our committee was far-sighted in tackling a subject which should be of intense interest to EU watchers as we approach the referendum. It is simply known as interparliamentary co-operation. Our chairman has already drawn attention to the fact that it sounds like a boring topic, implying MPs enjoying more Latvian holidays, COSAC lunches and so forth, but I have learnt that it is actually a good deal more than that. The title of our report was, The Role of National Parliaments in the European Union, and the point of it was to help strengthen the role of parliaments in the process of EU decision-making.

This was carefully provided for in the Lisbon treaty, but since the powers of the European Parliament came under the spotlight, national Parliaments have been more or less overlooked. Yet that should be a fundamental part of the Government’s current approach to the EU: greater involvement by a national parliament, whether through greater subsidiarity, green cards or reasoned opinion, is surely exactly what this Government are seeking. We have not yet had the formal response to our report, but I hope that the Minister can confirm today not just that the committee was on target but that specific actions and recommendations will be followed up, some of them by parliaments themselves rather than by Governments.

Speeding up the reasoned opinion procedure would seem to be one urgent task for parliaments because the yellow card route has not been very easy to organise. In the case of the EPPO proposal in 2013—which I had come across when I was on the legal affairs sub-committee a year earlier—the objections of 14 member states to the new public prosecutor’s office were lodged with the Commission in time. This was ground-breaking stuff, and it was regrettable that those objections were not only ignored by the Commission at first but, in the end, rejected by the European Parliament on the grounds that nations by themselves were not catching up with half of their own fraud cases. It may or may not be right about that, but I am glad to say that in the end the UK decided not to opt in.

Meanwhile, as we have heard, a specific proposal has been put forward to introduce a pilot green card procedure—in this case, on the subject of food waste—and I wish it every success. Whatever the outcome of that initiative, it is extremely important that different parliaments learn to co-ordinate their approach to the Commission more effectively in future. I am expecting the Minister to confirm that the Government see the value of this process and will give it their active support where they can. Strengthening our valiant parliamentary office in Brussels would also help.

Incidentally, it has been extremely helpful for the committee to have our Minister for Europe present upstream of European Council meetings, and I strongly support the proposal to continue this practice wherever possible. I know that he is in favour of it. It is also helpful for him to hear the opinions of the committee on upcoming issues. Of course, it helps when the same Minister remains in post for a considerable time.

I want to come on to just one example of the work of sub-committees which I believe to be outstanding, and I played a small part in it. Noble Lords will have noticed that Commons Select Committees have benefited from a lot of propaganda lately, partly because of the newly declared virtues of elected chairmen. However, MPs also need to be more aware of the talents of Lords Select Committees and sub-committees, which are unashamedly nominated and perhaps in most cases carry a good deal more experience. Our Select Committee reports, as our chairman has mentioned, are otherwise universally recognised, not least in Brussels.

The example of a report that I give is: The EU and Russia: Before and Beyond the Crisis in Ukraine. This was the work of the External Affairs Sub-Committee, and we were lucky that through a persuasive chairman—the noble Lord, Lord Tugendhat—we were able to look at Russia and Ukraine at such a critical time. The report appeared in a burst of publicity, here and abroad, in March and it became a clarion call for all those who are still too dimly aware of the troubles on the EU’s eastern frontiers. I was glad to hear the Prime Minister say earlier today that the UK will continue to assist Ukraine in any way it can.

We consulted a wide range of experts. I shall not, of course, refer to any individual recommendations now, but the report opened up the crucial question of diplomatic awareness of eastern Europe within the EU and the UK. I feel strongly—to make a more general point—that these reports must not be the last words uttered by committees, nor must the knowledge fade away with changes in personnel. In the case of the External Affairs Sub-Committee, issues such as Somali pirates, the rule of law in Kosovo or, importantly, the effectiveness of EU aid on sanitation in Africa—all before my time—must not be confined to the reports but must be followed up through further evidence sessions. That is not possible in every case, but it should be done whenever it is.

I hope the noble Lord, Lord Bowness, will refer to this too, but the Select Committee made an epic study of EU enlargement, which will continue to be a vital issue for the future of the Union and the role of the United Kingdom, we hope, within it. The Government’s thorough, if now forgotten, review of competences should be enough to convince the public that we have to stay in Europe—should they ever broadcast it to them, which I doubt they will. A lot of work was put into that, and I would be grateful if the Minister could refer to it.

Finally, I put in a small plea that the expert staff and advisers to the committee should be acknowledged a little more prominently in the reports and the annual report, simply because of the outstanding contribution they make.

Queen’s Speech

Earl of Sandwich Excerpts

Thursday 28th May 2015 Lords Chamber

[The Earl of Sandwich (CB)]

My Lords, I hasten to agree with that very worthy sentiment from the noble Lord. I welcome the noble Earl to the Front Bench and hope that we can recruit him to the very important cause of the new committee on international affairs, which was mentioned by the noble Lord, Lord Triesman, earlier. It is a cause which all noble Lords who are speaking today should subscribe to.

As a committed European, I have generally been opposed to the in/out referendum because, like the Scottish one, it seems to polarise our society, especially if it is to be decided by a simple majority. It always seemed obvious to me that we should stay in the EU and make the best of it, as I think almost all previous Prime Ministers have sought to do. Our present Prime Minister is faced with a rebellion in the ranks and is therefore, as the noble Lord, Lord Wallace, described it, being pushed into a compromise more akin to the Danish solution. But on reflection I now feel that it is time to clear the air and for the people to express their opinion—preferably in favour, perhaps even by a two-thirds majority since it is a constitutional issue. We should do it as soon as possible, early in 2016. It is unnecessary to drag the European question all the way through this Parliament when there are so many major issues to settle at home and abroad.

The Government’s policy already carries a lot of risk. We must expect a range of amendments in the Bill, including opt-outs we have never heard of. Having served on first Sub-Committee E and then Sub-Committee C of the EU Select Committee, I can describe the reaction of most colleagues, some of whom are here, only as “exasperated” when we were going through the scale of 130 JHA opt-outs. The arrest warrant issue alone made one’s hair stand on end: how were the police ever going to catch up with criminals without full co-operation in Europe? In other words, I am expecting the Government to show more responsibility in dealing with the referendum issue than with the original opt-outs. It is called leadership: setting a pattern for the kind of Europe we need rather than anticipating every complaint an MP can put forward.

Let us consider other member states’ views. Some say that other states are longing for us to take the lead in renegotiating opt-outs, and perhaps the treaty itself. I am very doubtful about this, having been in Prague this week and spoken to a number of people. Although I recognise the general lean to the right, it is much more likely that other countries are waiting, like the Commission, for Europe to get on with the business of the economy, the eurozone—the noble Lord, Lord Triesman, referred to the importance of economic stability—migration and other desperately urgent matters.

On migration, I do not think all the proposals on EU migrants’ benefits are workable. How can you retrieve benefits? However, I strongly support the EU’s attempt to curb human trafficking, especially in the Mediterranean. The noble Lord, Lord West, may have sounded a little gung-ho on the radio last week but he is right that we have to make a more vigorous EU attempt, with of course UN backing, to persuade the Libyans—whichever Government are responsible there—to make much more effort to prevent or destroy traffickers. I was impressed by the determination of Signora Mogherini, the new high representative, when she was over here earlier this year. As she said yesterday, the first aim is to,

“quickly save lives and provide protection in the EU for people in need, be they at sea, in the EU or in third countries”.

But she also knows that there is a much bigger long-term task, to deter large numbers of migrants from coming to Europe or taking to the boats in the first place. The solution to this can only be more poverty reduction and development in areas of most need and where conflict permits intervention. This is where I was very encouraged by the noble Earl’s statement of support for international development, earlier in his introduction. Of course, let us not forget that it was a coalition achievement that we have pretty well all signed up to the 0.7% target.

The focus for Europe must be the littoral of north Africa and the Middle East. Has there been any progress in the EU and French consultations with the north African states affected? What has the outcome of these consultations been? How does that compare with our level of co-operation with Turkey and other Middle Eastern countries affected by similar migration? This is the cause of diplomacy that the noble Lord, Lord Ashdown, talked about.

There is another area of policy where Europe is committed to development and human rights. We in the UK have been strong supporters of enlargement of Europe and the continuing Ostpolitik of the EU. Europe has been strengthened by the addition of most of the Balkan states, although there are still grave risks of conflict. I look forward to the speech of the noble Baroness, Lady Helic, who I know will enlighten us now and in future. I would like to see Kosovo and Serbia brought closer to membership. Has this process moved forward in the last few months or come to a halt? We should remember that President Juncker rather jumped the gun when he called for a period of reflection on taking office. Is enlargement high enough on the agenda or does the UK have to push it forward?

We still see examples of Russia’s bullying tactics in not only Ukraine but also countries such as Georgia and Moldova, where the promise of eventual EU membership contrasts sharply with the aims of President Putin’s guided kleptocracy—to give it a kind epithet. We must maintain the dialogue with Russia on Iran at all costs, and on ISIS, but at the same time strengthen our ties with those front-line countries.

These are the kind of issues with which we should be engaged, rather than continually fighting our own doubting Thomases in the Commons. I recognise that this may be a simple view, but I know it is shared by many others in all parties who feel less able to express it. This House is unlikely to block the legislation on Europe—I hope it will not—but it would be well advised to help knock some common sense into some of the MPs who would like to.

EU and Russia (EUC Report)

Earl of Sandwich Excerpts

Tuesday 24th March 2015 Lords Chamber

[The Earl of Sandwich (CB)]

My Lords, we must all deplore the tragic loss of life caused by Russia’s invasion of Crimea and its infiltration into eastern Ukraine and, before that, Transnistria and two areas of Georgia, flouting international law. Nothing that is said today about mistakes by the EU or ourselves can take away from the brutal actions of the present Russian Government. Many, many Russians have opposed the latest invasion—some were parents of fallen soldiers—but they have been silenced by oppression and propaganda. That is why I welcome this debate, having served on the committee, and I warmly thank the noble Lord, Lord Tugendhat, for his patient chairmanship.

This debate could be called Russia’s nimby because the essence of it is the extent to which Europeans should intrude—or, to put it more politely, be invited—into Russia’s back yard. Historically, we Europeans should perhaps have learnt our lessons and realised that the great bear was bound to growl and lash out the moment any smarter, smaller animals approached him. But of course there is also a clash of civilisations. We in the European Union are naturally proud of ours. We think that we have got the human condition about right and that the Copenhagen criteria of justice and the rule of law should eventually suit everyone in the world. What else, we say, are the Universal Declaration of Human Rights or the European convention for if they are not statements of global faith? Universality for many liberal-minded people now is not even debatable.

However, we have to acknowledge that there are degrees of awareness and belief. There are Europeans in Russia and Russians in Europe, all with very different standpoints. Mrs Thatcher’s simple test was to ask whom one could do business with. If we are selling our house to an oligarch, presumably we are not in the least concerned about his attitude to human rights, but if he proposes marriage to one of our family then we begin to be concerned about his motives. I believe that we should make much more effort to understand Russia’s point of view. The Russians say that the EU has been treating Russia as though it was a prospective EU candidate—I quote from the evidence—

“prepared to sacrifice its interests and sovereign rights for the sake of future membership”.

I think the committee accepted that there is some truth in that.

At the end of the Cold War, there were genuine overtures on both sides and discussions of Russia’s future—if not within the EU, at least in harmony with what the EU was doing. The noble Lord, Lord Judd, described that era. Then, after Yeltsin in 2000, the scene changed again and this is where we say that the EU and its member states were “sleep-walking”. I stand by that phrase.

The importance of the new Commission’s review of its neighbourhood policy, coming up in May, is that it inevitably includes countries such as Ukraine which are already within the Russian sphere of influence. As the heroes of the Maidan in Kiev argued a year ago, the EU brings potential economic and social benefits, depending on the reforms that must pave the way. In Ukraine, especially, alongside Russia’s influence there are equally powerful religious beliefs and cultural traditions which come down from Poland and Austria and which are entirely European, as there are, it can be argued, with French and other influences within Russia, so on that score the nimby theory breaks down very quickly.

Time should be a healer, but how rapidly we seem to move on from our universal belief. We are already forgetting about Crimea. The OSCE has just cancelled a photographic exhibition in Vienna marking the anniversary of the Crimean invasion. The Ukrainians cannot believe that the West, having condemned Russia’s military action so recently, should now even disown the photographer.

The situation in Georgia, seven years after the war with Russia, remains very serious. There is considerable uncertainty in Abkhazia and South Ossetia over the borders, visas, the use of language, Russian subsidies and many other critical issues. I visited Georgia last July just after the signing of the new association agreement. I know that the agreement still promises economic and trading advantages, but trade has stagnated, tourism is still suffering and the political scene is fragile following the reshuffle of Ministers.

In our report we said that we should look forward to renewed EU dialogue with Russia, and this is now being bravely led by Chancellor Merkel. We should build upon our mutual interests in foreign policy, such as the nuclear negotiations with Iran and possible ways forward in Syria. We should recognise our strong cultural ties and the value of educational exchanges. The right reverend Prelate mentioned the importance of churches and non-governmental organisations. All these must be rebuilt. We should also take part at some level in the 70th anniversary commemorations in May. I hope that the Minister will clarify what will be happening then.

It is conventional to say that we have been well served by the staff. However, more than that, we have depended on the skills and expertise of our clerks, Roshani Palamakumbura, Sarah Jones and, before her, Julia Labeta, and our adviser Dr Samuel Greene. To all of them we owe a debt alongside the gratitude that we owe to our chairman.

European Union (Definition of Treaties) (Association Agreement) (Georgia) Order 2015

Earl of Sandwich Excerpts

Thursday 26th February 2015 Grand Committee

[Baroness Ludford (LD)]

My Lords, I also thank my noble friend the Minister for her helpful introduction and explanation of the situation. I spent many years making EU law, but perhaps not so much time implementing it, and therefore I am not familiar with this process. Before moving on to other things, perhaps I could ask about the draft Explanatory Memorandum. It explains that one of the effects of the order, declaring that the agreement is to be regarded as an EU treaty under the ECA 1972, is that certain rights and obligations under the agreement automatically become law in the United Kingdom and then subordinate legislation can be made to give effect to the provisions of the agreement. I am not clear which rights and obligations automatically become law. It may be that the noble Baroness can take me aside at some point and explain how all this works, and that will clear my confusion.

My more general point is to strongly welcome these association agreements. I agree with everything the noble Baroness has said about the prospect of not only greater prosperity for the citizens of these three countries, but also greater security for the European Union, and I agree that the prospect of better energy security is a factor in that discussion.

I take the point made by the noble Earl, Lord Dundee, about the role of the Council of Europe. It is important that the roles of the EU and the Council of Europe should be complementary. It is fair to say that the EU has much greater resources than the Council of Europe; we know that the Council is always stretched for money, partly because its member states do not give it enough. They should not trip over each other. At one point there was a tendency for the EU to sort of push aside the Council of Europe, which is not a clever idea. The EU needs to come in as a complementary body, and of course it has another role to play in terms of the economic and trade relationship. However, for the rule of law, fighting corruption and an independent judiciary, obviously we have the whole Strasbourg package—aquis, if you like—and that is essentially what the EU wants to implement. There should not be any institutional jealousy between the two organisations. Sometimes during my time as a Member of the European Parliament, there was evidence of a bit of that. After all, the EU pinched the flag of the Council of Europe. However, it is important that the two should work together so as to add value to each other.

I welcome what the Minister said about the provisions on the rule of law and the fight against corruption which have been in force since last November. I should like to stress the importance of that. If we look at the history of countries acceding to the EU, although I know that this is not about accession, it is arguable that not enough was done in these areas before they were admitted to the European Union and there have been continuing problems in the existing member states. More must be done. We really need to front-load this issue. You cannot have a flourishing economy or property rights without an independent judiciary. It is almost more important even than democracy, in a sense. Certainly, some drew that conclusion from the western Balkans. You cannot have economic reform, as I say, without a strong independent judicial system.

I agree with the Minister that, while we must not overstate it, these association agreements have the potential to have a beneficial effect on the prospect of dealing with the conflicts because the people in the breakaway regions would be able to see the benefits of participating in a deep relationship with the EU and would want a slice of the action. But the association agreements of themselves are not going to solve the conflicts.

I welcome what the Minister had to say in going slightly outside the scope of these orders to update us on the situation as regards Ukraine. In that context, I am extremely shocked to read today that the President of the Republic of Cyprus, Mr Anastasiades, on a visit to Moscow, has formalised an agreement for Russian warships to use Cypriot military bases and has also spoken against EU policy on Ukraine. We know that there is press commentary on the difficulty of keeping together a common EU policy on sanctions and the prospect of tightening sanctions on Russia. There were worries about Greece. There have been worries about Hungary, of course, which I mentioned in the House the other day. Mr Orban hosted President Putin the other day. I personally find this the most extraordinary disloyalty by EU member states towards a common EU policy on Russia. I hope that some very candid words are being shared around the European Council table with some of our member states.

I know we have just a short procedure here so I will not go on. These association agreements are extremely welcome. Perhaps from smaller acorns big things will grow. One day, perhaps, one or more of these countries will be eligible to join the European Union. This is not the time and there is no guarantee of that. Personally, I hope that it might be possible for at least some of them and this at least leaves the door open. But as the Minister said, it is their sovereign choice what relationship they want with the EU. All parties in the UK have always supported the process of enlargement and the European Neighbourhood Policy, because it is not just for benefit of those countries; it is for our security.

[The Earl of Sandwich (CB)]

My Lords, I am grateful for this opportunity to say a few words. I was in Georgia last July, just after the association agreement was signed, and I cannot underestimate the euphoria that there was, but of course I was among Ministers and people negotiating the agreement. The Georgian Orthodox Church is not exactly of the same mind and I think it may lead them all downhill.

I note from the Explanatory Memorandum that the impact is very modest on the UK economy. The figure of £0.6 million is quoted. Perhaps the Minister could reassure me that this really is the bottom end of the range and that Georgia, if the situation remains stable, can expect a gradual improvement. I would also like to be reassured that there has been no further development on the Russian front in Abkhazia and South Ossetia. It is not a stable Government—there has already been a change of Minister since we were there—but I am very pleased to read in press reports of the solidarity there is between Moldova, Ukraine and Georgia. They were, for example, at the celebration of the centenary events of the Maidan in Kiev. The Georgian President was invited, and I know that there has been a lot of exchange. I do not think that these association agreements need disturb the Russians unduly. We have moved on from last year and must all expect greater prosperity to follow from them.

I was on the European Union Committee which produced the report on Ukraine and Russia recently. I very much hope the Government will respond to it swiftly, because it will give more of us an urgent opportunity to discuss the situation.

Kuwait: Bidoon

Earl of Sandwich Excerpts

Tuesday 2nd December 2014 Lords Chamber

[Baroness Anelay of St Johns]

My Lords, the situation in regards to the Comoro Islands is that there have been reports in the media that a senior official in the Kuwaiti Ministry of Interior recently stated that the Kuwaiti Government would start helping the Bidoon to register for what was described as economic citizenship of the Comoro Islands. That is a media report and we do not, as a Government, have further detail of any formal proposals. I am aware that the Comoros Government have previously provided passports to stateless residents from elsewhere in the UAE. However, with regard to those persons in Kuwait who claim to be Bidoon but who are not those who can claim full citizenship and go through that process, it is for that remainder to negotiate with Kuwait how Kuwait determines their link to other countries. This Government do not get involved in that situation.

[The Earl of Sandwich (CB)]

My Lords, is it not the case that the Kuwaiti Government made a positive move in 2011 towards bringing the health and education benefits of Bidoon people on a level with those of Kuwaiti citizens? Could the Government not encourage that move, because the Kuwaiti Government are not following through with it?

[Baroness Anelay of St Johns]

My Lords, in fact there were two steps taken, very appropriately, by the Kuwaiti Government. The first was to set up a mechanism by which adjudication can be made as to which category those claiming citizenship may fall into. That process is going ahead—it was established in 2010 and has a five-year life to run—and we, as others, are clearly getting impatient and making representations. With regard to education, we have had reports from NGOs and individuals that access to education has been made difficult, but the Kuwaiti Government say that that is not the case.

Russia

Earl of Sandwich Excerpts

Thursday 16th October 2014 Lords Chamber

[The Earl of Sandwich (CB)]

My Lords, it is a pleasure to follow someone who is so knowledgeable and reasonable. I welcome the Minister to her complicated portfolio and thank the noble Baroness, Lady Falkner, for bringing this important subject before us. As she explained, Russia has been on our minds for most of this year because of the theft of Crimea and the attempted isolation of eastern Ukraine. There is a clear case against Russia in international law, yet we do not seem to be able to do anything about it. There is the so-called precedent of our intervention in Kosovo, which still bothers some EU members, but it is irrelevant because that intervention was clearly based on the responsibility to protect against a clear case of genocide.

The Budapest agreement and the Council of Europe are all possibilities for dialogue, but I do not see them as reasons for prosecution. It seems unlikely that Russia will be taken to any court, except perhaps courts of arbitration over its many seized assets. Russia had no difficulty in fending off Georgia’s attempt in 2008 to take it to the International Court of Justice over Abkhazia and South Ossetia. Why should Russia worry now?

The West’s only non-military weapon is sanctions. European Union sanctions on assets and individuals are having some measurable but limited effect, and there it is a trial of strength between the two powerful economies, with Russia holding the key energy card—although that card has been somewhat devalued. Will the Government do something to uncover Russian corruption in London, which has been the subject of other debates in this House previously? It somehow still escapes our anti-money-laundering legislation.

This debate is also about democratic principles, and this has been much discussed. We must be under no illusions about Russian democracy, as the noble Lord, Lord Cormack, said. Democracy is an elastic concept. We can use it to express some theoretical Athenian objective, but around the world it is being stretched in many directions and can accompany even the worst tyrannies. The Russian state has always been an autocracy but can be described as a guided democracy. Mr Putin makes quite a good show of democracy. He has a popular mandate. He is genuinely interested in democratic principles as long as they serve the state and are created by it.

Although he is an ex-KGB officer and hardly a man of the people, there have been occasions when the President has directly engaged the people, especially in a crisis where the state has proved itself incompetent. There were, for example, the forest fires of the summer of 2010 in Nizhny Novgorod, when Putin ran the gauntlet of angry villagers—19 were killed, hundreds of homes were destroyed and fire engines ran out of water. There was the revolt at the alumina plant in Pikalyovo a year earlier, when the power station was shut down, and Putin took pleasure in humiliating the responsible oligarch, Deripaska, in front of hundreds of factory workers. These were farcical times in which the President appeared less like a tsar and more like Houdini, a showman or a skilled master of public relations.

The same theatre applies to the rule of law. The Yeltsin reforms of the judiciary, which did away with the KGB and led to so much expectation in the 1990s, were only paper thin. In his battles and power struggles with the oligarchs, the President has made a continual show of using the law while in reality he and his friends, using the old KGB techniques—as the noble Lord, Lord Anderson, said—have brazenly ignored or distorted the law in their favour. There has always been an inner circle around the throne, and today this consists of the oligarchs and shareholders who benefit directly from the vast wealth surrounding state-owned assets.

Under various European treaties, we are signed up to the Copenhagen principles, which summarise good governance, democracy, the rule of law and transparency. But we should not make too many assumptions about European influence on Russia. The attraction of enlargement is, or was, based on the obvious wealth of eastern European states that have recently joined or been associated with the EU. Yet, the vast majority that have not been in Europe do not see it that way. They have suffered steady economic decline, repression, unemployment and inequality. The magic of privatisation did not rub off in Russia, as communists could easily predict. Not surprisingly, they have also been antagonised by the EU’s gradual enlargement towards Russian territory, demonstrated by the confrontation of the two ideologies in eastern Ukraine. Enlargement is clearly coming to an end.

Even in Georgia, where there is great expectation of the new association agreement, there are hesitations about conditionality, and ordinary liberties that are familiar to us are still a long way off. There is no doubt that we should be rethinking our whole attitude to Russia. Does the noble Baroness accept that we have not given it enough attention in the Foreign Office, and is she satisfied that, even now, we have sufficient expertise in the FCO? Sub-Committee C of the European Union Committee, to which I belong, is currently looking at Russia and will soon produce a verdict on the EEAS’s perhaps overenthusiastic policy towards Ukraine. Perhaps this policy could not have been avoided, given the vast economic power and political influence of the EU, but it is certainly time to review it.

Transatlantic Trade and Investment Partnership (EUC Report)

Earl of Sandwich Excerpts

Tuesday 17th June 2014 Lords Chamber

[The Earl of Sandwich (CB)]

My Lords, this has been a fascinating learning exercise for me, and I think for other people involved. The chairman has given us an upbeat introduction; I hope and think that he is not being overoptimistic, but that is his characteristic. It has been a privilege to work with him, not only because of his extensive knowledge of the EU and the United States but because he has been such good company, and it was a pleasure to travel with him and some of the committee to Brussels.

I was brought up in a non-government environment in which fortress Europe was a concept to be resisted because it was always going to be built at the expense of the rest of the world, notably the poorest developing countries. The notorious CAP we all remember, in the time of the butter mountains, was also the enemy because it would ultimately work against protectionist philosophy and destroy markets enjoyed by the old Commonwealth countries.

Time has moved on and the CAP has been slowly adapted to the needs of the environment. I have to admit that I am a very minor beneficiary of the CAP through the countryside stewardship scheme. The Cotonou agreement has made life a little easier for the African, Caribbean and Pacific countries in the transition to freer trade arrangements, which have to come. The new treaty will also bring many benefits in the long run to third countries, as our chairman has said, and as our report tries to demonstrate, although it is a difficult argument to make at this time.

The wild card is, of course, China, whose premier, Li Keqiang, is in London this week. We in the UK have a lot of ground to make up if we are going to attract more trade with China while retaining our proud position on issues such as Tibet, human rights and student visas. It seems very likely, as the noble Lord, Lord Tugendhat, has said, that TTIP will help us in this situation in the long run. My strongest memory in Brussels is of the Chinese envoy to the EU, Mr. Zhang Kening, stoically pretending across the table that TTIP might help the US and the EU, but that it would not be a suitable template for a multilateral treaty. This was not what we wanted to hear, but, as we state on page 23 of the report, the Chinese warned us quite solemnly that there were varying degrees of economic development around the world among WTO members, and each member would have to see whether the idea was “a good one or a bad one”. I felt during our inquiry that this is a critical issue in the negotiations: whether the treaty, whatever its advantages for the two parties, can also become a catalyst to international trade as a whole and provide a new impetus to the moribund Doha round, as the noble Lord, Lord Lamont, mentioned and I think the Government believe.

We all know that the US and some EU member states have their eye firmly fixed on China and the potential prosperity that we will enjoy and how it will react to TTIP, given its immense present and future influence in world markets. Our former Minister, the noble Lord, Lord Green, expressed the hope that China would become increasingly involved and that following the Bali agreement the UK should keep up the momentum in our own global interest. Equally, we must take seriously China’s message to us that it stands with developing countries when it comes to making concessions in the Doha round.

There is a school of thought, mentioned by the noble Lord, Lord Liddle, I think, that TTIP could be an economic version of NATO, softening the Atlantic relationship into one which will gradually lubricate the crevices of political alliances and opposing nation states. The disadvantages of this happy metaphor are obvious: that the EU and the US are still mainly concerned with themselves and their western concepts of freedom and democracy when in fact they ought to be opening out still further to a much wider world of partnerships and trade links.

That, in broad terms, is the position of the unions and the trade justice campaign, which see fair trade disappearing into a sea of mercantilism and the long-fought rights of workers dissolving in the erosion of core labour standards. They are also apprehensive of the investment and procurement provisions of TTIP which they say could, under this treaty, enable US companies to buy into much cherished institutions at home, such as the NHS.

I am sorry that we did not give a little more space in the report to the impact on third countries because the evidence was inconclusive. The TUC and others said that tariff changes in TTIP could have a negative effect on countries, such as Bangladesh, selling footwear and textiles and could devalue existing agreements. On the other hand, the noble Lord, Lord Mandelson, told us that most developing countries were not competing with the EU at the top end of the value chain.

Professor Baldwin indicated that the EU could provide development assistance which would compensate the losers, as it had in the past with free trade agreements. Perhaps the Government will comment on that. Another benefit was seen in the form of harmonised regulation: if TTIP succeeded in its aims, and the principle of mutual recognition was non-discriminatory, the rest of the world would be dealing with one set of regulations instead of two.

We cannot expect everything from this treaty. I agree with our chairman and the noble Baroness, Lady Quin, about the virtues of a living agreement. That is surely going to come and is something that I think the trade commissioner was advocating privately.

The usual channels have been generous in giving us time for this debate. We were concerned that TTIP was still an obscure subject. I have never seen the Chamber empty faster than today when our poor chairman rose to speak. It was certainly not a comment on him but shows the awareness of the subject. This is partly because the negotiations are still not transparent. Our report could help to spread the word, although it will hardly be at a popular level. We asked for a communications strategy and the new Minister, who is here, the noble Lord, Lord Livingston, appeared to agree—I hope he will confirm that—and told us that increasing public awareness of the treaty was a priority for Her Majesty’s Government. Perhaps he will comment on the relationship between that and the negotiations. Surely this is much more important in the public mind than the musical chairs going on in Strasbourg and Brussels.

Finally I thank Julia and Roshani and our specialist adviser, Dr Dennis Novy, among others, for their remarkable grasp of this quite complex subject and for making it intelligible to me and the army of readers who we hope will be scrutinising this report.

South Sudan

Earl of Sandwich Excerpts

Monday 24th March 2014 Lords Chamber

[The Earl of Sandwich (CB)]

My Lords, I begin by apologising to the noble Lord, Lord Chidgey, for arriving late in his introductory speech. I should normally be struck off the list, but business is very hard to predict in the House of Lords. I thank the Whips on the Front Bench for resurrecting me.

All of us who follow South Sudan regularly have been dismayed and disturbed by the events in December, having had high expectations of Africa’s youngest country. What concerns me most is that so much killing will discourage even those who supported and nurtured this country long before its independence. I am sure that noble Lords will have read, as I have, other harrowing accounts about Malakal and Bor and especially the work of the International Committee of the Red Cross and of Médecins sans Frontières, which we must highly commend for their swift action. Through the aid agencies and the churches, we somehow have to rebuild the trust that we know exists among the people of South Sudan. We have to remind ourselves of the many bonds between the different races and that this is primarily a political conflict, in my view, based on and exploiting ethnic divisions. In short, it is a failure of leadership where it was most needed.

One of the most critical problems is the loss of confidence in UNMISS and the possibility that the UN itself will have to rethink its mandate in terms of nation building rather than state building. What is our Government’s analysis of this? Does the Minister agree that there has been perhaps too much emphasis on influencing—at times even controlling—organs of central government? One can imagine the enthusiasm of supporting states at a time of independence. Does she agree that there has therefore been too little emphasis on devolving power and ensuring that capacity building in the regions and people’s participation in local communities are equally important?

The showdown between Salva Kiir and the UN may now have passed, judging by more soothing comments I read recently from the GOSS. It would be very serious if this row halted the basic humanitarian work of the UN and the related agencies, on top of the considerable present challenges of feeding and sheltering tens of thousands in the midst of civil war and the continuing arrivals of refugees from almost every direction. The fighting has continued in Upper Nile, Unity and Jonglei in spite of efforts at diplomacy and peacekeeping.

I have no doubt that the UK has played a useful and important role in the troika during the IGAD talks in Ethiopia, but if the principals are not willing to settle their differences—which have a long history going back before the CPA—what hope is there for diplomats? I trust that we are not going to reduce the staff any further in the Sudan unit, for instance, or in South Sudan itself at a time when, at the onset of the rains, we are going to see a much bigger humanitarian disaster unless aid agencies can pre-position their supplies in time. I understand that, so far, owing to official obstruction as well as road conditions, the World Food Programme has been able to reach only 765,000 people—about three-quarters of a million—out of the 2.5 million affected by the conflict, and that is only in the south, although it has now begun airdrops in the three conflict states. UNHCR and UNOCHA estimate an even higher figure at risk of food insecurity, and there has been concern about the high level of malnutrition seen among young refugees arriving in Ethiopia from the north-east.

As we heard from the noble Lord, Lord Chidgey, the situation in Abyei remains precarious. We heard from the noble Baroness, Lady Cox, that across the border in South Kordofan the Nuba people are still the victims of bombardment by the Sudanese armed forces. There is no doubt that Khartoum has taken advantage of the situation in the south to exploit its own position.

What about Riek Machar, the maverick opposition figure who has a long track record in Sudan? I notice that the IGAD statement loosely condemned tribalism and ideological bankruptcy. I am not sure which one of those applies to whom, and I do not know whether the member states of IGAD have any idea how to deal with Riek Machar. There are suspicions that he may return to his old alliance with the north. He has long had ties with the UK, and the FCO needs to make more effort to bring him back to the negotiating table. Perhaps the Minister will update us also on the position of his colleagues, who are in detention and the subject of diplomacy.

Finally, there has to be national reconciliation. There are currently three different official bodies concerned with justice and reconciliation and, although they put out a joint statement in January, there is concern that they are not yet active. The churches, on the other hand, led by Archbishop Deng, are an essential part of this process. They are already active and I understand that their initial focus will be on the displaced from Bor, Malakal and Nimule, who have suffered most in the recent conflict.

Ukraine

Earl of Sandwich Excerpts

Tuesday 18th March 2014 Lords Chamber

[The Earl of Sandwich (CB)]

My Lords, the noble Baroness opening the debate rightly condemned Russian aggression in Crimea and MPs expressed similar disapproval earlier this afternoon. However, in the light of history, I am not sure that we could have done much about it.

I am a strong advocate of European enlargement, and it is undeniable that the acceptance of new applicants from eastern Europe and the Balkans has contributed to peace and stability there. However, as the EU nudges further east, we have to be especially careful not to upset and antagonise the Russian minority in Ukraine, or to risk that country becoming further divided. The noble Lord, Lord Chidgey, rightly referred to the innumerable instances of minorities all over Europe. The stealing back of Crimea makes eastern Ukraine the next target of Russian resentment and today’s attack on a Ukrainian garrison is ominous and another gross violation of international law.

The phrase “western allies” can be misleading. The EU cannot make a strong historical case for an alliance with Ukraine. As Kievan Rus, the first Slavic state converted to orthodox Christianity, Ukraine has been closely linked to Russia since its heyday in the 10th and 11th centuries. The country was subsequently ruled by both Lithuania and Poland, and its borders were never clearly drawn.

Crimea, too, has had a chequered history. The Crimean Tatars were dominant for more than three centuries until they were cruelly deported in large numbers by Stalin, and later unfairly discredited as Nazi sympathisers. Yet it was to prevent Russia from entering the Mediterranean that we fought alongside the Ottoman Empire in the Crimean War, but that policy obviously did not work.

I visited Yalta in 1964 and it never occurred to me then whether it was Russian or Ukrainian. Everything came under the USSR umbrella. I remember standing on the terrace overlooking the Black Sea where, in February 1945, the leaders of the US, UK and Russia had signed a historic agreement to divide Germany into three. Russia broke its promises then and it has broken them again now. The Cold War was still to come and nearly seven decades later we are wondering whether it has yet gone.

I do not expect war to break out over Ukraine. I prefer to think of the present crisis as a bad dream interrupting the course of history. It cannot and should not develop into hostilities. We have done with war in Europe, and I find the references to Sudetenland exaggerated and quite disturbing. All three Yalta powers should be honouring the 1994 Budapest agreement guaranteeing Ukraine’s territorial integrity. Instead, Putin is repeating his performance in Georgia in 2008 by first threatening and then virtually annexing sovereign territories in the name of defending Russian citizens.

What are President Putin’s motives? This has been the subject of great speculation, but it seems that the strongest motive is simply Mother Russia. This could be seen as imperialism and expansion in Crimea and eastern Ukraine but Crimea is inescapably part of Russian influence and naval domination of the Black Sea. Kiev, already central to the Rus legend, became the third city of the Soviet Union after Moscow and Leningrad. So we should not be too surprised that Ukraine is still on the Russian doorstep or that Russians have a great hankering after former glory.

While we, the US and individual states should complain to Russia through warnings and sanctions—as we would in any country where human rights and international law are aggressively violated—the EU should not make too many assumptions about Ukraine’s position as an ally. Ever since the Berlin Wall came down, Europe has faced east, looking beyond the boundaries of enlargement into new member states. It may be that the EU has been looking too enthusiastically at arrangements with countries directly bordering Russia. Since the Orange Revolution in Ukraine there has been a flurry of diplomatic visits to Kiev under the neighbourhood policy, as though Ukraine were already eligible for membership of the EU and NATO. In 2010, as we know, President Yanukovych excluded Euro-Atlantic security and NATO membership from Ukraine’s national security strategy, but the concepts of European integration and co-operation with NATO have remained and it is likely that Yulia Tymoshenko, if she is re-elected, will want to return to the previous strategy and risk further Russian hostility, reminiscent of former President Saakashvili in Georgia.

Let us not forget the bigger picture in which Russia has to live up to its international responsibilities. The Syrian uprising this week has entered its fourth year unresolved, and the parties still have to come to the table. The Iran negotiations are still delicate. We need the Russians if we are to make progress in these areas. I do not agree with previous speakers that we should detach them from the G8 altogether. The action in Crimea was illegal but there is little we can do about it now. The question asked by the noble Lord, Lord Campbell-Savours, on Kosovo is pertinent. Although the noble Lord is no longer in his place, I hope the Minister will spend a little time on that. It is of course President Putin’s own argument, and we must be careful in making the comparison, because the situation in Kosovo was, at a time of civil war, completely different.

In the mean time, while the interim Government of Ukraine wait for the May elections, every effort must be made—preferably through the OSCE and the new contact group which is being proposed—to support it and contain both Russian and Ukrainian battalions within their own borders. However, the more effective weapons are economic. Chancellor Merkel has taken a surprisingly tough line, accusing the Kremlin of following the law of the jungle and Mr Putin of living “in another world”. She is strongly insisting on new sanctions in the face of, it seems, at least two-thirds of Germans, who have serious doubts about their effectiveness.

While Germany remains the powerhouse of Europe, German companies will continue to trade with Russia and oligarchs will continue to visit their dachas in Baden Baden. France and Italy, not least as arms suppliers, are likely to make the same argument. Therefore, it is going to be a slow process. Sanctions will be pushed mainly by the United States, but Europe will more likely follow the market and select sanctions, which will only puncture its relationship—at least, that is my prediction. After all, Russia’s trade with Europe is more than 10 times that of the US, and the EU is unlikely to throw that away.

London has already lost a lot of Russian business in the scramble to anticipate sanctions. Would this not be an ideal time to review our dubious reputation as a money-laundering capital, as the noble Lord, Lord Chidgey, has already said, and identify the banks and companies that are living off illegal Russian investments and the laundered billions stashed away by Yanukovych and his family? Can the Minister please explain why this money could not be returned to Ukraine to support much-needed structural reforms alongside the new loans, or can the Government produce any other financial package for this purpose? What can the Government do through legislation to strengthen anti-money-laundering controls through the Financial Conduct Authority and other City watchdogs? Have any suspicious transactions in relation to Ukraine been reported to the FCA hitherto, and how can these be further investigated?

However the political and military crisis develops, what the latest power struggle comes down to in the end is, of course, aid and debt, and whether the EU and the IMF can afford to make up loans to Ukraine originally promised by Russia. If Russia turns down the energy tap, Germany and others must consider alternative gas supplies, which may not be immediately available from the US but they will be elsewhere. Ukraine at least has enough reserves of gas to get through to the elections.

Once our frantic diplomatic activity has achieved a stalemate, and perhaps, with luck, OSCE observers are in place, as usual it will be the markets that decide the future.