British government lobbies Libya for arms deal with BAE Systems

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The British government lobbied for an arms deal with Libya on behalf of aerospace company BAE Systems when Tony Blair was prime minister, newly released documents reveal.

Cabinet Office documents reveal a 2004 letter from BAE chairman Sir Richard Evans asking Blair's chief of staff Jonathan Powell to open talks with Libyan leader Muammer Gaddafi.

The discussions cited included the following forms: [memorandum of understanding] Covers both civil and military projects for the future.

According to an exchange of letters made public by the Cabinet Office, the then Prime Minister passed on the BAE request to the Libyan government as part of discussions between the two countries.

The exchange demonstrates the close relationship between Mr Blair and the Libyan leader. Britain played a key role in lobbying for sanctions against Libya to be lifted after Gaddafi confirmed the country had halted its weapons of mass destruction development program.

Evans' letter, dated March 22, 2004, states that BAE has been working with Libya for three years pending the resumption of normal relations and that a $65 million contract for some urgent work, including air traffic and communications, is on the table. .

The communication came ahead of a March 25 visit to Libya by Prime Minister Tony Blair, who visited the country after years of strained relations following the 1988 Lockerbie bombings.

A terrorist attack on a passenger plane over Scotland killed 270 people, and the former Libyan leader admitted responsibility in 2003.

In response to the letter, Powell wrote that the prime minister had increased his focus on Gaddafi and that, after speaking with the Libyan foreign minister, everything was being sorted out on the Libyan side.

Powell added that the visit was successful and will help create conditions for BAE Systems' expanded investments in Libya over time.

The BAE chairman said leaders regularly asked questions about defense products, but BAE dodged such requests until it had authority to supply them.

The EU introduced an arms embargo on Libya in 1986 in retaliation for the country's perceived support for terrorist groups.

Due to strong lobbying from countries including the UK and Italy, the embargo was lifted on October 11, 2004.

The agreement came in part because Libya abandoned its decades-old weapons of mass destruction program, which Gaddafi had bolstered by purchasing material through the black market.

Jack Straw, then foreign secretary, welcomed the move as a very good day for peace and security around the world, but questions still remain about the true scale of Libya's arsenal.

After the embargo was lifted, defense contractor MBDA, in which BAE Systems holds a 37.5% stake, signed a $199 million contract from Libya in 2007 for anti-tank missiles and related communications systems.

Blair's relationship with Gaddafi later came under scrutiny when he had to defend attempts to evacuate the embattled leader from Libya during the country's civil war in 2011.

The former prime minister confirmed he had two or three phone calls with Gaddafi with the aim of removing the leader from Libya so that a peaceful transition can take place.

Gaddafi was eventually ousted and killed by rebel groups seeking to topple his regime as part of the 2011 Arab Spring.

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BAE Systems said: We fully comply with all applicable export control laws and regulations, strictly maintain responsible trading principles and only export where authorized.

All export license applications are thoroughly evaluated by the relevant government and, if approved, are subject to ongoing review.

He added that sales to government customers were not discussed due to commercial confidentiality and national security considerations.

The Cabinet Office and Prime Minister Blair declined to comment.

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