UK firms to profit from missile deal

Defence Secretary Geoff Hoon signed a "memorandum of understanding" with the US Government yesterday.

The pact will ensure UK industry is given "fair opportunities" to take part in the national missile defence (NMD) programme.

News of the deal provoked anger among campaigners opposed to the use of the RAF Fylingdales radar base on the North York Moors for NMD.

Anni Rainbow, of the Campaign for Accountability of American Bases, said: "Apart from being horrified they are going to do this, I am not really that surprised.

"Of course the Government would want British industry to profit from this.

"I am not at all surprised, unfortunately that is the way of the world.

"But it is a system that is not going to profit anyone apart from the arms dealers, it's not going to help the rest of humanity at all."

North Yorkshire does not have any aerospace firms in line to benefit from the project.

Mr Hoon said the Government had begun negotiating the memorandum after agreeing to allow the upgrade of Fylingdales for missile defence earlier this year.

It also guarantees an exchange of information between Britain and the US, along with a management structure to oversee the project.

Mr Hoon insisted the deal did not commit Britain to the "acquisition or deployment" of missile defence.

At this stage, permission has only been given to upgrade computer software at Fylingdales. No building work will be carried out.

But he said the memorandum "is an important step forward that will enable us to improve our understanding of the capabilities of the US system, in order to inform any future decisions on missile defence for the UK or Europe as a whole".

Earlier this year, the influential Westminster defence committee criticised Mr Hoon's "deplorable" handling of the US request to use Fylingdales.

In a damning 32-page report, MPs said Mr Hoon had shown "no respect" for the views of those concerned by the proposal.

Updated: 10:16 Friday, June 13, 2003