The Shadow World: Inside the Global Arms Trade

662 Pages·2013·26.8 MB·English

by  Feinstein Andrew

The Shadow World
Inside the Global Arms Trade
ANDREW FEINSTEIN
Research: Paul Holden and Barnaby Pace
HAMISH HAMILTON
an imprint of
PENGUIN BOOKS
HAMISH HAMILTON
Published by the Penguin Group
Penguin Books Ltd, 80 Strand, London WC2R ORL, England
Penguin Group (USA) I;'c., 375 Hudson Street, New York, New York 10014, USA
Penguin Group (Canada), 90 Eglinton Avenue East, Suite 700, Toronto, Ontario, Canada M4P 2Y3
(a div:ision of Pearson Penguin Canada Inc.)
Penguin Ireland, 25 St Stephen's Green, Dublin 2,lreland (a div:ision of Penguin Books Ltd)
Penguin Group (Australia), 250 CamberweU Road, CamberweU, Victoria 3124, Australia
(a div:ision of Pearson Australia Group Pty Ltd)
Penguin Books India Pvt Ltd, II Community Centre, Panchsheel Park, New Delhi - 1I0 017, India
Penguin Group (NZ), 67 ApoUo Drive, Rosedale, Auckland 0632, New Zealand
(a div:ision of Pearson New Zealand Ltd)
Penguin Books (South Africa) (Pty) Ltd, 24 Sturdee Avenue, Rosebank, Johannesburg 2196, South Africa
Penguin Books Ltd, Registered Oflices: 80 Strand, London WC2R ORL, England
www.penguin.com
First published 201I
Copyright © Andrew Feinstein, 201I
The moral right of the author has been asserted
Every effort has been made to trace copyright holders and to obtain their perlnission for the use
of copyright material. The publisher apologizes for any errors or omissions and would be grateful
to be notified of any corrections that should be incorporated in future editions of the book
AU rights reserved
Without limiting the rights under copyright
reserved above, no part of this publication may be
reproduced. stored in or introduced into a retrieval system.
or transmitted, in any form Or by any means (electronic, mechanical,
photOCOpying, recording or otherwise), without the prior
written permission of both the copyright owner and
the above publisher of this book
Set in Bembo II .25h4.5pt
Typeset by Jouve (UK), Milton Keynes
Printed in Great Btitain by Clays Ltd, St lves pic
A CIP catalogue record for this book is available from the British Library
HARDBACK ISBN: 978-0-2.41-14441-1
TRADE PAPERBACK. ISBN: 978-0-241-14524-1
www.greenpenguin.co.uk
MIX Penguin Books is committed 1:0 a sustainable
future for our business, our readers and our
Paperffom
reapontlble 1OUn:es planet. This book is made from paper certified
~~ FSC' C018179 by the Forest Stewardship Council.
To the memory of my mother
Erika Feinstein
To the memory of
Erison Durdaj
27 November 2000-4 April 2008
(and all who died at Gerdec)
And in honour of the 'closet patriots', the whistle-blowers,
who dare speak truth to power
'Show me who makes a profit from war, and I'll show you
how to stop the war'
Henry Ford
'Once a gun runner, always a gun runner.'
Efraim Diveroli
Contents
of
List Figures ix
niustration Credits x
Dramatis Personae xi
Prologue xvii
Introduction xxii
SECTION I: THE SECOND-OLDEST PROFESSION
of
I. Sins Commission 3
2. The Nazi Connection 19
SECTION II: NICE WORK IF YOU CAN GET IT
3. The Saudi Connection 35
of
4· In Defence Humanity 56
5. The Ultimate Deal or the Ultimate Crime? 74
6. Diamonds and Arms 98
7. Buckling to Bandar 127
8. AndJ ustice for None? 154
SECTION III: BUSINESS AS USUAL
9. Things Fall Apart - with Help from BAE 175
10. After the Wall: Capitalism BAE-Style 197
I I. The Ultimate Cop-Out 225
viii Contents
SECTION IV: THE ARMS SUPERPOWER
12. Legal Bribery 237
13. In the Name oj Uncle Sam
14. Taking the Mickey, the Toilet Seat and the Hammer . ..
in a Galaxy Far, Far Away 273
15. Illegal Bribery 305
16. Beyond Utopia, Hope? 330
17. America's Shop Window 373
18. Making a Killing: Iraq and Afghanistan 395
SECTION V: THE KILLING FIELDS
19. Cry, the Beloved Continent 435
SECTION VI: END GAME
20. Bringing Peace to the World 501
21. Future Imperfect 523
Acknowledgements 532
Notes and References 537
Index 643
Figures
I. Payment chain for the AI Yamamah deal 37
2. False end-user certificate used by Leonid Minin to
transport weapons through the Ivory Coast to Liberia II3
3· BAE's web of payments in Tanzania I95
4· BAE's Eastern European network 207
5· Randy Cunningham's bribe menu 327
6. Comparative job creation figures for defence and other
us
sectors in the 366
7· US Department of Defense budget and spending
on the wars in Iraq and Afghanistan 4I2
8. Share price movement in BAE, Lockheed Martin
and Northrop Grumman 4I5
Illustration Credits
Dramatis Personae
Basil Zaharoff: from H. C. Engelbrecht and F. C. Hanighen, Merchants of Death
(New York: Dodd, Mead & Company, 1934); Marcel Dassault: copyright © Rich
ard MelloullSygma/Corbis; Prince Bandar: copyright © Alexander Natruskinl
Reuters/Corbis; Richard Evans: copyright © Nicolas AsfourilGetty Images; Prince
Turki: copyright © Kamal Mustafa/epa/Corbis; wafic Said: copyright © Topham!
PA, 2oo2;Joe der Hovsepian: photograph by courtesy ofJ oe der Hovsepian; Leonid
Menin: copyright © AFP/Getty Images; Charles Taylor: copyright © Pascal Guyotl
AFP/Getty Images; Viktor Bout: copyright © Saeed Khan/AFP/Getty Images;
Monzer Al Kassar: copyright © AFP/Getty Images; Helen Garlick: photograph
reproduced with the permission of Helen Garlick; Robert Wardle: photograph by
courtesy of Robert Wardle, from the collection of Robert Wardle; Richard Alder
man: copyright © Jim WatsonlAFP/Getty Images; Jacob Zuma and Thabo Mbeki:
copyright © Guy Tillum!Reuters/Corbis; The Shaiks: copyright © Beeld/Gallo
Images/Getty Images; John Bredenkamp: copyright © Desmond Kwande/AFPI
Getty Images; Andrew Chenge: copyright © Edwin Mjwahuzi; Count Alfons
Mensdorff-Pouilly: copyright © Clemens Fabry; John Murtha: copyright © Larry
Downing/Reuters/Corbis; Charlie Wilson: copyright © Fred ProuseriReutersl
Corbis; Chuck Spinney: photograph by courtesy of Chuck Spinney; Yoshio
Kodama: copyright © Bettmann/Corbis; Adnan Khashoggi: copyright © Pascal Le
Segretain/Getty Images; Randy Cunningham: Mike Blake/Reuters/Corbis; Erison
Durdaj: reproduced with the kind permission of Feruzan Durdaj; Manucher Ghor
banifar: copyright © Alex Majoli/Magnum Photos; Dale Stoffel: from the collection
of David J. Stoffel; Jean-Christophe Mitterrand: copyright © Lionel Bonaventurel
AFP/Getty Images; Arcadi Gaydamak: copyright © Gali Tibbon/AFP/Getty
Images; Pierre Falcone: copyright © Stephane RuetiSygma/Corbis.
Section titles
I: Basil Zaharoff: from H. C. Engelbrecht and F. C. Hanighen, Merchants of Death
(New York: Dodd, Mead & Company, 1934); II: Joe der Hovsepian: photograph
by courtesy of Joe der Hovsepian; III: Jacob Zuma and Thabo Mbeki: copyright
© Guy Tillum/Reuters/Corbis; IV: C-5 crash: photograph by courtesy of Lou
Angeli, copyright © Lou Angeli, 2006; V: Open-air arms market, Somalia: copy
right © Hannah Allam/MCT via Getty Images. VI: Erison's bicycle: reproduced
with the kind permission of Feruzan Durdaj and Ardian Klosi.
Figures
Figures 7 and 8 by Mia Allers of Winter Design.
Dramatis Personae
Basil Zaharoff Marcel Dassault Gerhard Mertins
of of
Godfather BAE French defence industry pioneer Founder Merex
Prince Bandar Richard Evans
Al Yamamah beneficiary Former BAE chairman
Wanc Said Prince Turki Bin Nasser
Al Yamamah intermediary Al Yamamah beneficiary