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The Ploughshares Monitor
June 1996, volume 17, no. 2
The push for Canadian military sales to Asia:
Feeding the tigers
By Ken Epps
This past spring newly built Canadian patrol frigates
visited the Asia-Pacific region for the third consecutive year to
promote Canadian naval equipment to potential military customers.
The tours by the frigates, which contain some of the most advanced
fighting ship systems in the world, symbolize the escalating promotion
of Canadian military goods abroad, especially to Asian states. More
than ever, the Canadian military industry is open for Asian business,
and Canadian patrol frigates are almost literally the industry's
flagships.
With the end of the Cold War, Asian states are adjusting
to a regional security environment without the previously dominant
superpower rivalry. In the absence of well-developed regional agreements,
many Asian countries have responded by boosting domestic military
programs, citing a need to adjust to the new security dynamics and,
in some cases, regional rivalries. For the "Asian Tigers,"
the economically dynamic nations of east and southeast Asia, this
increase in military spending has been facilitated by the explosive
growth in their GNPs in recent years.[1] More military spending
has increased regional arms acquisitions, especially imports, and,
as a result, Asia is in the midst of an arms race.
Meanwhile, with declining arms exports to Canada's
traditional customers in the US and Europe and shrinking enthusiasm
for big ticket purchases by the Canadian military, Ottawa is looking
for new markets to sustain a domestic capacity for military production.
Like its counterparts facing similar circumstances, the federal
government has identified Asia, and especially the Asia-Pacific
region, as one of two strong "emerging" markets for Canadian
military exports. Supply and Services Canada's 1996-97 report on
Canada's "aerospace and defence" sector notes that "the
major area of growth in demand over the next few years is expected
to be the Pacific Rim. British Aerospace, for example, predicts
that defence spending in the Asia-Pacific region will overtake that
of Western Europe and equal approximately two thirds of U.S. spending
by 2010."[2]
A recently published government export strategy for
"defence products" promises active government support
for increasing military exports to Asia-Pacific nations. According
to the strategy, government efforts will "provide Canadian
suppliers with unique export assistance... to assist them in exploiting
emerging markets in the Asia-Pacific and Middle East regions."[3]
In this promise, the government has been as good as
its word. Recent efforts to boost military sales to Asia-Pacific
have included: support from the crown corporations the Canadian
Commercial Corporation (CCC) and the Export Development Corporation
(for example, the CCC brokered a $146-million transport helicopter
deal with the Thailand Army in 1994); active participation of the
Department of National Defence, especially through equipment demonstrations
and training (Canadian soldiers have trained Thai personnel on the
ADATS missile system[4]); hosting of foreign military missions to
Canada (in July 1995 a Korean naval equipment mission visited Vancouver,
Toronto, Montreal, and Halifax); and government-sponsored promotional
booths at international aerospace and military shows, in the region
(the Department of Foreign Affairs hosted a booth at Singapore's
Security Asia 95 exhibition) and at the biennial Airshow Canada
exhibition at Abbotsford, BC (which bills itself as the "Doorway
to the Pacific Rim"). (See the article on Airshow
Canada beginning on page 13.) More prominently, government Cabinet
ministers, including the Prime Minister, have led trade missions
to the region that have included military industry representatives.
Although the Asian tours by Canada's patrol frigates
are billed as politically prudent - an opportunity to "show
the flag" in a region of growing importance to Canada - naval
officials are candid about efforts to push Canadian-built military
equipment.[5] At each port-of-call, local military delegations and
business people are brought aboard for private marketing tours.
Canadian naval officers and business people promote the ships and
the Canadian-produced subsystems that can be used on a range of
vessels. Sales efforts of these floating military showrooms have
grown from regional tours by individual Canadian warships in 1995
and 1994, when ports-of-call included stops in Hong Kong, Indonesia,
Malaysia, Singapore, and Thailand, to the recent two-month Pacific
tour by two patrol frigates and two other vessels with stopovers
in Japan, Hong Kong, Vietnam, South Korea, the Philippines, and
Russia. According to press reports, future marketing trips will
be annual and similar in size to this year's four-ship tour.
As with allied organizations in other (mostly NATO)
nations, military product marketing is a growing role for the Department
of National Defence, and the Navy is not shy about showing its newly
acquired wares to virtually any Asian government. The Department
also is interested in disposing of surplus equipment (especially
the expensively upgraded CF-5 fighter/trainer aircraft) in the region,
and in finding Asian nations to share in the cost of military training.
That said, a large part of the cost of promoting Canadian weapon
systems to Asia is still borne by Canadian industry, albeit with
the enthusiastic backing of the Canadian government.
Table 1 lists the Canadian military equipment for
which there are reports of industry and government sales efforts
to Asian countries since 1994. Some sales may have occurred but,
because the government does not disclose the details of Canadian
military exports, these cannot be verified. In many cases, the sales
efforts involve years of marketing that may not see results until
well into the future.
Table 1:
Canadian military equipment recently promoted to Asian countries
Military Equipment/Service Canadian Supplier Proposed Customers
A: Major systems
Bell 412 & 430 multimission Bell Helicopter India, Indonesia,
helicopters Textron Canada Malaysia, Philippines,
South Korea, Taiwan,
Thailand
Bell 206B (TH-67) training Bell Helicopter Taiwan
helicopters Textron Canada
Challenger aircraft (with spy Bombardier Canadair China
equipment)
CL-415 amphibious aircraft Bombardier Canadair Asia Pacific region,
Bombardier Canadair especially Malaysia
CF-5 fighter/trainer aircraft DND Philippines, South
Korea, Thailand
Light-armoured vehicles General Motors Cda China, Indonesia,
Malaysia, Thailand
Air defence anti-tank system Oerlikon Aerospace Pacific Rim, esp.
(ADATS) Thailand
Patrol frigates and subsystems Saint John Hong Kong, India,
Shipbuilding Ltd, Indonesia, Japan,
with major subsystems Malaysia, Phillippines,
from CAE Electronics Russia, Singapore,
Ltd, Computing Devices South Korea, Taiwan
Canada, Loral Canada Thailand, Vietnam
and related systems
from 22 other companies
Patrol vessels Western Canada Marine Malaysia, Philippines,
Group Vietnam
B: Other full systems
CRV-7 rockets Bristol Aerospace Ltd Singapore, Thailand
Sonar coastal intrusion C-Tech Ltd South Korea
detection system
"Meshnet" communication system Computing Devices Cda Pacific Rim
Synthetic aperture radar MacDonald Dettwiler & South Korea
systems Associates
Integrated Maritime Raytheon Canada Ltd India
Surveillance system
Tactical Air Navigation Spar Aerospace Ltd SE Asia, esp.
(TACAN) system Thailand
Night Vision Thermal Imaging Spar Aerospace Ltd South Korea
System
C: Subsystems or parts
Anti-submarine warfare/mine C-Tech Ltd China
detection equipment
Fire control computer for K-1 Computing Devices Cda South Korea
main battle tank upgrade
Fire control computer for XM8 Computing Devices Cda Taiwan
Armored Gun System
CLASS computerized laser sight Computing Devices Cda SE Asia
for direct fire weapons
Tank and military vehicle DY-4 Systems Inc Asia
computer components
Liquid crystal cockpit display Litton Systems Cda Asia, esp. Indonesia
systems for military aircraft Ltd & Thailand
Naval electronic warfare Lockheed Martin Cda Malaysia
equipment Inc
Air traffic control & supply MacDonald Dettwiler & SE Asia
management subsystems Associates
Components of Active Phased Com Dev Ltd, Lockheed South Korea
Array Radar (APAR) for Martin Canada Inc,
warships Northern Telecom Ltd,
Thomson-CSF Systems
Canada, Stork Canada
PT6A turboprop engines for Pratt & Whitney Cda Malaysia
Pilatus PCXII Eagle special
mission aircraft
Processing subsystem for Spar Aerospace Ltd SE Asia
SIRIUS infrared search & track
set for warships
Naval communications system Spar Aerospace Ltd Japan
D: Upgrades and services
F-5 fighter aircraft upgrades Bristol Aerospace Ltd Indonesia, Malaysia,
Philippines,
Singapore, South
Korea, Taiwan,
Thailand
Aerospace training DND Malaysia, Singapore
(& Commonwealth)
C-130 transport aircraft CAE Aviation Asia, esp.
repair & upgrades Malaysia
E: Unspecified equipment Bristol Aerospace Ltd China
Reports of efforts to land Canadian military export
orders are irregular, so Table 1 is incomplete. Nevertheless, the
table does provide some indication of the variety of Canadian equipment
currently on offer, as well as of the number of nations to which
manufacturers are hoping to sell. The equipment covers the spectrum
of Canadian military industrial capability - from costly large weapon
systems such as the patrol frigates to relatively inexpensive system
components. Major systems include equipment for armies (light-armoured
vehicles), air forces (helicopters and fighter aircraft), and navies
(patrol frigates and vessels). Subsystems include parts for weapons
(such as the fire control computer for a Korean tank), as well as
parts used in other military equipment such as naval mine detection
systems. In keeping with an expanding upgrade market (in which equipment
is modernized rather than replaced), Canadian industry is also offering
Asian customers aircraft upgrade services.
If only a few of these sales efforts are successful,
and especially if Canadian suppliers of major systems win orders,
Canadian arms exports to Asia may continue at, or exceed, their
current elevated sales levels. [See the sidebar on recent
Canadian exports to Asia.] As shown by Figure
1, Canadian arms exports to Asia reached a post-Cold War peak
in 1994, jumping past the recent (1991) peak of $30.8-million to
$54.9-million, almost five times the $11.3-million in Asian sales
for 1993. (All figures are in constant 1995 dollars to adjust for
inflation.) At $45.4-million, 1995 sales were down from the previous
year but still were almost 50 per cent higher than the 1991 total.
The sizeable increase revealed by the government export
data does not tell the full story of the growth in Canadian military
equipment sales to the region, however. If we add the estimated
value of Canadian equipment sold to military forces but not included
in official figures (this equipment includes "civilian"
transport helicopters sold to the Thailand Army and military aircraft
engines supplied via Italy to the Philippines), then the total value
of Canadian military equipment shipped to Asia in each of 1994 and
1995 probably exceeded $100-million.
It is apparent from recent military sales and arms
marketing to Asian nations that Canadian government practice diverges
markedly from its post-Cold War rhetoric calling for restraint in
conventional weapons proliferation. If Canada truly wishes to reach
the conventional arms control high ground sought by the Foreign
Affairs Minister, among others, it could begin by reining in its
participation in the militarization of Asia.
Endnotes
1 One report of recent East Asian military spending
lists four states with military spending increases of more than
20 per cent between 1985 and 1992, two states with increases of
over 30 per cent and one, South Korea, with an increase of 63.5
per cent. During the same period average European NATO spending
decreased 0.7 per cent and US spending declined 5.7 per cent (B.
Buzan and G. Segal, "Rethinking East Asian Security,"
Survival, Summer 1994, International Institute for
Strategic Studies, p. 9).
2 Minister of Supply and Services Canada, "Canada's
International Business Strategy 1996-1997: Aerospace and Defence,"
1996, p. 5.
3 Minister of Supply and Services Canada, "Canada's
Export Strategy: The Industrial Trade Business Plan, 1995/96 - #11,
Defence Products," 1995, p.5.
4 Defense News, February 27 - March 5,
1995, p. 30.
5 See, for example, "High-tech navy makes sales
pitch in Far East," Toronto Star, June 12, 1995.
The record of recent Canadian military exports to
Asian countries reveals discrepancies between government policy
and military export decisions. As illustrated by Table
2, during 1995 Canada exported military goods to 13 countries
in Asia.[1] Of these, four countries - India, Pakistan, the Philippines,
and Sri Lanka - each suffered one or more major conflicts within
their borders.[2] These shipments were approved in spite of the
government's claims that it maintains "close control"
of arms exports "to countries involved in, or under imminent
threat of, hostilities."
Table 2:
Canadian military exports to Asian states
(in current dollars)
State 1994 1995
Bangladesh# $ 1,389,665
Brunei $ 11,200
China# $ 8,247 $ 7,316
Hong Kong $ 109,278 $ 75,155
India*# $ 64,460 $ 701,579
Indonesia*# $ 1,227,116
Japan $ 2,628,638 $ 2,649,694
Malaysia $11,869,506 $17,790,511
Pakistan*# $ 235,000 $ 3,498,789
Philippines*# $ 348,999
Singapore $ 3,346,596 $ 1,040,895
South Korea $12,848,470 $12,231,106
Sri Lanka*# $ 169,860
Taiwan $ 961,206 $ 3,593,026
Thailand $20,621,270 $ 1,874,569
Total $53,931,987 $45,371,164
* States involved in one or more major conflicts in 1995.
# States where there were 1995 reports of major human rights
violations by government.
Although Canadian arms sales to Asian states in conflict
total just over one-tenth of all shipments to Asia during 1995,
they clearly demonstrate the government's endorsement of military
exports to countries engaged in internal conflicts, today the predominant
(and in 1995 the sole) form of war. Indeed, it is likely that the
volume of sales to Asian states at war was determined more by competitive
market conditions than by government export controls.[3]
Canada also exported military equipment to Asian governments
involved in human rights violations in 1995. According to the Amnesty
International Report 1995, six Asian governments that purchased
Canadian military goods during 1995 - those of the four states at
war above plus Bangladesh and China - also perpetrated major violations
of the rights of their citizens in that year. Abuses included torture
of political detainees, ill-treatment and death under custody, and
extra-judicial executions.
According to Canadian export control guidelines, Canada
controls military exports to countries with a persistent record
of serious human rights violations, unless "it can be demonstrated
that there is no reasonable risk that the goods might be used against
the civilian population." How the Canadian government assesses
the risk level of arms shipments is not made public. It is apparent,
however, that there is a risk in dealing with any government capable
of attacking its own citizens. The only means to avoid a risk is
to deny all sales of military equipment to human rights violators,
which also would serve to remove the political endorsement implied
by the approval of military sales.
The 1995 record of Canadian military exports to Asia
demonstrates the existing divergence between export practice and
proclaimed government policy. If the current marketing efforts by
the Canadian military industry achieve the success hoped for by
both industry and government, then military sales to Asian countries
at war or perpetrating human rights abuses can only increase.
Sidebar Endnotes
1 The 24 Asian countries under consideration here
do not include Australia, New Zealand, the Micronesian states or
the Central Asian countries that were formerly part of the USSR.
Elsewhere, these 24 countries are viewed to be within East Asia
or South Asia (by the US State Department, for example).
2 See "The 1996 Armed Conflicts Report,"
Ploughshares Monitor, March 1996, p.13.
3 It is also worth noting that this value covers only
those states that were involved in hostilities in 1995. The value
of Canadian military goods shipped to countries both involved in,
and threatened by, hostilities would be far higher, especially if
these included threats from border disputes and rival territorial
claims, such as those between India and Pakistan or the multi-state
claims on the Spratly Islands in the South China Sea.
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