Fox wants ‘healthy’ Middle East arms sales

David Cameron has faced criticism for including defence industry representatives in the trade delegation on his tour of the region, amid concerns that British-made equipment could be used to suppress the current wave of popular unrest.

The Foreign Office has already revoked a series of export licences for Libya and Bahrain in the wake of the government crackdowns on protesters in those countries.

Speaking at the Civitas think tank in London yesterday, Dr Fox said that such issues should be dealt with on a “case-by-case” basis, depending on how events developed in the countries concerned.

“We have to recognise that countries have a right of self-defence and not all of them have a defence industry so they will always buy externally,” he said. “I want to make sure the United Kingdom – within the limits that we set ourselves ethically on defence exports – is getting a healthy slice of that.

“There are a great deal of unknowns still out there and we will have to look at things on a case-by-case basis.”

Dr Fox also emphasised the importance of the assistance of countries in the Gulf region in getting supplies through to British forces fighting in Afghanistan.

“We need to remember that we – with a very long supply line – need partners to ensure success in Afghanistan,” he said. “We have depended a great deal on our partners in the Gulf and elsewhere in ensuring that we are able to supply and re-supply our armed forces. We need to take that into account in the wider relationships.”

The Defence Secretary also played down the prospects of Nato military intervention in Libya, in the wake of Colonel Muammar Gaddafi’s brutal attempts to put down the protests. While he said that there was a “range of contingencies” that was being looked at, it was important to recognise the “limitations of our power”.

“We have to have a bit of a re-set here with reality and how much influence we can actually have. we can make our views known and we can send signals,” he said.

Dr Fox also warned that the armed forces faced further cuts as the Government worked through the plans set out in the strategic defence and security review over the coming years.

He said: “There is no painless way to cut public spending.”