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Conference turris::scandia

Title:All about Scandinavia
Moderator:TLE::SAVAGE
Created:Wed Dec 11 1985
Last Modified:Tue Jun 03 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:603
Total number of notes:4325

191.0. "Swedish weapons export" by TLE::SAVAGE (Neil, @Spit Brook) Mon Mar 09 1987 09:30

Associated Press Fri  6-MAR-1987 17:46                            Sweden-Arms
  
          Arms Company President Resigns over Alleged Sales to Iran
    
                                By ARTHUR MAX
                           Associated Press Writer
    
    STOCKHOLM, Sweden (AP) - The president of Bofors AB, Sweden's largest
    arms manufacturer, resigned Friday over charges that his company
    illegally sold anti-aircraft missiles to Iran, the company announced.
    The Iranian Embassy's charge d'affaires in Stockholm denied his
    government had bought missiles from Bofors. 
    
    A Bofors statement said Martin Ardbo, company president since 1985, was
    resigning after two years of investigations by police and customs
    officials into the alleged weapons sales to Iran, but it acknowledged
    no wrongdoing. It said Ardbo "decided that for the good of the company
    it was unsuitable for him to represent it to the Swedish authorities." 
    
    A parliamentary committee decided this week it also will investigate
    the government's handling of the affair, which has embarrassed the
    socialist government of Prime Minister Ingvar Carlsson. 
    
    Ardbo was the second top executive to quit Bofors, which produces the
    laser-guided ground-to-air Robot-70 missile that the Iranian army
    reportedly has used in its seven-year war against Iraq. Managing
    Director Claes-Ulrik Winberg quit in 1984. 
    
    Iranian charge d'affaires Jafar Shamsian told a news conference that
    "we get the weapons we need from various countries and some we
    manufacture ourselves. But we have not acquired Robot 70," Sweden's
    Tidningarnas Telegrambyra news agency said. However, the International
    Institute of Strategic Studies in London last December reported that
    Iran has Robot 70-missiles. 
    
    Shamsian was asked repeatedly about reports that Swedish weapons have
    been smuggled to Iran. He did not respond directly but said: "Maybe
    none of you understand how we feel. A country at war needs to defend
    its interests and people and of course we then need materiel to defend
    ourselves." 
    
    The Swedish Peace and Arbitrations Society has accused the Swedish
    government of knowing about illegal shipments to Iran. Swedish news
    reports have said the shipments may have continued as late as last year
    despite the police probe. Carlsson has denied that his government or
    previous governments knew of the sales. Swedish law forbids weapons
    sales to any country involved in civil or international war or in a
    volatile area. 
    
    Bofors' announcement said Per-Ove Morberg, the administrative director,
    was appointed acting president. Ardbo submitted the resignation at a
    board meeting of Bofors' parent company, Nobel Industries, which peace
    prize benefactor Alfred Nobel founded a century ago. 
    
    A key figure in the case, a war materiels inspector, was run over and
    killed by a subway train in January, one week before he was due to be
    called for investigation. Police dismissed initial reports that he was
    pushed but have said nothing about the possibility of suicide. 
    
    The scandal broke in May 1984 when a Swedish engineer delivered
    documents to the peace movement about the illegal arms sales. The
    Swedish press said the Robot missiles were sold to Singapore and
    rerouted to Iran. Police are probing allegations that gunpowder
    produced by Nobel Kemi, another subsidiary of Nobel Industries, also
    ended up in Iran. Investigations also were under way in Belgium and the
    Netherlands on whether companies there were involved in shipping
    gunpowder to Iran. 
                    
    Sweden exported weapons worth about $300 million dollars in 1985, the
    latest year for which figures were available. Officials said the
    weapons were legally sold to 39 countries, mainly in Europe, Southeast
    Asia and Africa. 
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191.1Seamens's Union documentationTLE::SAVAGENeil, @Spit BrookTue Mar 10 1987 09:1465
Associated Press Mon  9-MAR-1987 18:16                      Denmark-Iran Arms

       Union Claims 60-70 Danish Ships Took Swedish Arms to Middle East
    
                             By GUNILLA FARINGER
                           Associated Press Writer
    
    COPENHAGEN, Denmark (AP) - The Seamen's Union said Monday that Danish
    ships have taken 60-70 loads of Swedish-made weapons to Iran and other
    nations in the Middle East. Its leaders reported, however, that the
    board of directors decided against publishing documents and lists the
    union claims to possess to avoid retaliation against Danish ships. 
    
    Union Vice President Henrik Berlau told a news conference the shipments
    went to the Middle East via "a few other ports on the way, like
    Singapore. I think we have that reasonably documented." In November,
    when revelations were being made in the United States about the
    Iran-Contra arms deal, the union said Danish ships carried several
    consignments of U.S.-made weapons from the Israeli port of Eilat to
    Bandar Abbas, Iran. 
    
    Berlau's estimate of the number of cargoes in the total arms traffic
    nearly doubled that given earlier by Preben Moeller Hansen, the union
    president, who said 35-40 shipments were involved. "I think the number
    is higher, about 60 to 70," Berlau said, adding that the materiel
    included ammunition and weapons and could be traced back at least as
    far as the beginning of the Iran-Iraq war in September 1980. 
    
    He did not say give a date for the most recent shipment, but repeated
    an earlier statement that Prime Minister Olof Palme of Sweden
    personally intervened to stop one delivery of missiles to Iran in 1985.
    Palme was shot to death on a Stockholm street Feb. 28, 1986, and his
    killer has not been found. 
    
    Reports of the arms traffic have caused a furor in Sweden because the
    shipments appear to violate its neutrality laws. Authorities are said
    to be preparing indictments of senior executives at Bofors, the main
    arms producer, and Parliament decided last week to investigate the
    government's role. 
    
    Berlau said there was a list of the cargoes' final destinations, but
    would not say who compiled it or give information about it. He said the
    union also had reports from seamen working on the vessels. Hansen
    accused Swedish authorities of showing "unwillingness or incompetence
    in finding out what's going on." 
    
    The Swedish Peace and Arbitration Society claims the Stockholm
    government knew about the shipments but did not act. Prime Minister
    Ingvar Carlsson has denied involvement by his or previous governments.
    Berlau said: "We think the Swedish government cannot possibly have been
    ignorant of what was going on." 
    
    A newspaper in Norway quoted the Norwegian defense minister, Johan
    Joergen Holst, on Monday as saying he sent a top official to Sweden "to
    check out whether Norway could be indirectly involved in the Swedish
    arms scandal." 
    
    At least some Robots-70 anti-aircraft missiles produced by Bofors,
    which are reported being used by Iran, contain components built in
    Norway that are barred from re-export to third countries. Defense
    Ministry spokesman Erik Senstad said the Norwegian components were used
    only in missiles built for the Norwegian army. 
    
    Expressen, a Swedish paper, said the State Department was investigating
    whether U.S.-made components were used in Bofors missiles sent to Iran. 
191.2Arms inspector killed by subway trainTLE::SAVAGENeil, @Spit BrookThu Mar 12 1987 09:4748
Associated Press Wed 11-MAR-1987 23:40                            Sweden-Arms

                   Police Say Arms Inspector Killed Himself
    
    STOCKHOLM, Sweden (AP) - Police have ruled out murder in the death of a
    government arms inspector due to be questioned about an arms smuggling
    scandal involving Iran, a prosecutor said Wednesday. Torsten Wulff said
    witnesses told police that Rear Admiral Carl-Fredrik Algernon "jumped
    in front of the subway train" on his way home from work Jan. 15, a week
    before he was scheduled to be questioned by customs officials
    investigating possible illegal arms deliveries to Iran. 
    
    Police discounted initial reports that Algernon, who was responsible
    for granting export licenses to arms manufacturers, may have been
    pushed under the subway at Stockholm's central station. "We have one
    witness who said he simply was standing too close to the edge and was
    hit by the train, but that is opposed by the many other witnesses,"
    Wulff said. 
    
    Authorities are investigating the alleged smuggling of anti-aircraft
    missiles to Iran in the early 1980s by Bofors AB, Sweden's largest arms
    company. Swedish law bans deliveries to countries at war. 
    
    Wulff said there was no reason to investigate Algernon's possible
    motives for suicide. He declined comment on whether Algernon's death
    could be linked in any way to the Bofors affair. 
    
    The daily Aftonbladet newspaper quoted Algernon's aides as saying he
    appeared "very agitated" as he left work Jan. 15 after meeting Anders
    Carlberg, president of Bofors' mother company, Nobel Industries.
    Carlberg told the paper he did not talk to the inspector about the
    investigation. 
    
    Meanwhile, newspapers reported another state prosecutor was
    investigating whether Finance Minister Kjell-Olof Feldt secretly
    approved arms shipments to Iran in exchange for oil in the 1970s when
    he was trade minister. The national radio and several newspapers quoted
    an unidentified businessman as saying Feldt sanctioned the overland
    transport of missiles, mines and cannons to Iran as early as 1973. 
    
    Feldt, the highly respected architect of Sweden's economic policy,
    rejected the allegations. "If this concerns deals incompatible with
    Swedish laws, then I have not given my approval. This is so obvious. I
    have nothing more to say," Feldt told the Dagens Nyheter daily. 
    
    The national news agency TT reported Wednesday that Swedish arms
    exports jumped 43 percent last year to about $350 million after small
    increases in previous years. 
191.3Arms diverted to Persian Gulf statesTLE::SAVAGENeil, @Spit BrookTue Mar 31 1987 10:2086
Here's the Agence France Press report:

              Swedish arms were diverted to Gulf states: Borfors

    STOCKHOLM, March 31 (AFP) - The Swedish arms manufacturer Borfors
    officially recognized Monday that short-range RBS-70 surface-to-air
    missiles it sold to Singapore between 1978 and 1980 "were reexported to
    Dubai and Bahrain." 

    The company denied, in a communique issued Monday, that any Swedish
    "70" missiles were shipped to Iran, "at least to the Swedish company's
    knowledge." 

    Mr. Anders Carlberg, directory-general of the Nobel Society of which
    Borfors is an affiliate, told Swedish radio Monday that Swedish arms
    were delivered to Oman in 1985 in a violation of Swedish arms sales
    regulations. 

    Swedish Prime Minister Ingvar Carlsson said Monday Bofors "had
    everything to gain by clarifying eventual irregularities" in Swedish
    arms exports. 

    The Swedish press has reported intensively on illegal arms sales to
    Iran, and six invetigative commissions have been set up to examine the
    problem. Results are expected in April. 

And here's the Associated Press version:
    
    Mon 30-MAR-1987 19:08                      Sweden-Arms Deals

                  Nobel Industries Admits Illegal Arms Sales
    
                               By KARIN STRAND
                           Associated Press Writer
    
    STOCKHOLM, Sweden (AP) - The head of Nobel Industries, whose founder
    established the Nobel Prizes, admitted Monday that subsidiaries sold
    weapons and ammunition in violation of neutral Sweden's tough export
    laws. 
    
    Anders Carlberg said some executives of the company started by Alfred
    Nobel knew that arms sold to Singapore, Austria and Yugoslavia as long
    ago as 1979 would be sent to nations in Eastern Europe and the Persian
    Gulf that were on the government blacklist. 
    
    In the clearest admission of guilt so far in the 4-year-old arms
    scandal, Carlberg said company executives "committed serious mistakes,
    both morally and legally." He did not identify executives by name, but
    referred to the subsidiary companies Bofors AB and Nobel Kemi. 
    
    At a news conference, Carlberg named nearly a dozen examples of illegal
    sales and said: "I cannot guarantee there are no more cases."
    Investigators tracked arms and munitions to the Persian Gulf emirates
    of Dubai, Bahrain and Oman, and to communist East Germany, he said. 
    
    Carlberg said he had no evidence for allegations that Sweden sold
    surface-to-air Robot 70 missiles to Iran, although the Iranian army has
    been reported using them. Iran and Iraq have been at war since
    September 1980. 
    
    Police and customs officials are investigating the illegal transactions
    and indictments of at least eight executives are said to be in
    preparation. 
    
    Sweden produces 70 percent of its own weapons and forbids sales to
    countries that are at war or in volatile areas where a war might start. 
    
    The scandal has embarrassed the government, which Swedish peace groups
    accuse of either not supervising exports properly or colluding in
    criminal acts. Prime Minister Ingvar Carlsson denies wrongdoing by his
    year-old government or previous administrations. 
    
    A parliamentary committee established this year is investigating
    whether anyone in the Cabinet knew of illegal exports. According to
    Carlberg, there is nothing to suggest that current or former ministers
    were aware of the illegal trade. 
    
    Asked why top businessmen would engage in smuggling, Carlberg said he
    felt they were victims of "misdirected ambitions." "Maybe they wanted
    to do big business. Maybe they were concerned about the future of the
    company. Maybe they wanted to show they were competent," he said. 
    
    Carlberg acknowledged that people from Bahrain came to Sweden for
    training on the laser-guided Robot 70 missiles and Swedes went to
    Bahrain. Asked why the training did not arouse questions about possible
    illegal activities, Carlberg said: "That's a good question." 
191.4Trying to find a 'balance'TLE::SAVAGENeil, @Spit BrookFri Apr 24 1987 10:2086
Associated Press Fri 24-APR-1987 00:29                            Sweden-Arms

       Swedish Dilemma: How to Balance Arms Sales with Neutral Posture
    
                                By ARTHUR MAX
                           Associated Press Writer
    
    STOCKHOLM, Sweden (AP) - Allegations of bribery and arms smuggling are
    casting unwelcome light on the weapons industry in Sweden, a nation
    struggling to reconcile its need to sell weapons with its role as an
    international peacemaker. 
    
    Sweden, a country of 8.4 million that gave the world dynamite and the
    Nobel Peace Prize, has not fought in a war since 1814, when it defeated
    Denmark in the Napoleonic Wars. 
    
    Arms production is a cornerstone of its neutrality. Sweden makes about
    70 percent of its own military hardware, a situation that helps keep it
    free of alliances that could entangle it in war. But production for the
    Swedish military has increasingly depended on foreign exports to
    underwrite costs. In 1985 this country sold nearly one-third of its
    weapons abroad. 
    
    As technology and production became more expensive, competition got
    tougher among arms manufacturers for the shrinking Third World market
    of weapons buyers. Swedish weapons salesmen, like those in other
    countries, are now accused of going too far. 
    
    "We have been accused of playing a double role. While Olof Palme was
    working for peace, we were strengthening our army," said Carl Johan
    Aberg, the Foreign Ministry's undersecretary of state for trade. "But
    as long as there is no disarmament we must have a highly developed
    ordnance industry," he said in a recent interview. 
    
    Palme, the Social Democrat who led the country from 1969 until his
    assassination on Feb. 28, 1986, with the exception of four years, was
    known as a peace campaigner and often tapped as a U.N. mediator in
    conflicts. His murder, in a Stockholm street, has not been solved. 
    
    In the latest corruption case, Sweden's publicly financed radio
    reported that the Bofors arms manufacturers paid $5 million in bribes
    to companies or individuals in India to secure a $1.7 billion sale of
    field cannon concluded last year. The company and the Indian government
    denied the allegation, but the Swedish government demanded an
    investigation, and the report triggered a furor in the parliaments of
    both nations. Bofors was already under police investigation for
    illegally shipping gunpowder and weaponry to the Persian Gulf, possibly
    including anti-aircraft missiles to Iran. 
    
    Bofors, the country's biggest arms producer, is a descendant of the
    arms empire built by Alfred Nobel, the Swedish philanthropist who
    invented dynamite and later established the Peace Prize. 
    
    The gradually unfolding tales of secret deals and kickbacks have been a
    continuing embarrassment for the Social Democractic government. Prime
    Minister Ingvar Carlsson, under constant pressure from the media,
    became so angry that he vowed to stop casual question-and-answer
    sessions with reporters. 
    
    Last month SIPRI, the Stockholm International Peace Research Institute,
    placed Sweden on a list of 27 countries producing arms that reached
    both sides in the Iran-Iraq war. It did not say which weapons were used
    by Iraq, and they may have been manufactured in a third country under
    license from a Swedish company - a practice that also has aroused
    opposition here. 
    
    Swedish law forbids arms sales to any country at war, either foreign or
    civil, or likely to become involved in a conflict. "Its obvious that
    the law is not the same as reality," said Lars Jederlund, a researcher
    for the 104-year-old Swedish Peace and Arbitration Society. "If the
    government followed its own rules, that alone would stop 60 to 70
    percent of its arms exports," said Jederlund, who uncovered some of
    Bofors' illegal sales from public sources and published material. 
    
    A government report published this month put total Swedish arms
    production in 1985 at today's equivalent of $1 billion. Of that, Sweden
    exported $340 million worth of armaments, ranging from laser-guided
    missiles to dynamite sticks. 
    
    The report said arms accounted for about 1 percent of Swedish exports,
    prompting journalist and author Fredrik Lunberg to exclaim in the
    conservative Svenska Dagbladet: "Talk about selling yourself cheap."
    The report by a committee appointed in the wake of the Bofors scandal
    recommended tighter supervision of Swedish exports and clearer
    understandings with those governments which produce weapons jointly
    with Sweden. 
191.5More on the Indian affairMLTVAX::SAVAGENeil @ Spit BrookFri Sep 01 1989 17:0962
    Group soc.culture.nordic

    From: [email protected] (Anders Andersson)
    Subject: Re: Scandinavian Weapons Export
    Organization: Uppsala University, Sweden

In article <[email protected]> [email protected] (S
Kumar) writes:
>Does anybody know if the Swedish govt. instituted an investigation about
>allegations that Bofors, a Swedish arms manufacturer and exporter, paid
>hefty bribes to officials of the Indian govt. (including cabinet ministers)
>to facilitate Indian purchase of Bofors' weapons?  This promises to be a
>major issue in the upcoming Indian general elections due December/January.
>The Indian govt. did investigate, but there have been allegations that the
>investigation's findings were swept under the rug by the Indian govt.

    As far as I know, the Swedish government has not taken the initiative
    to any such investigation. Actually, it seems to me that nobody here
    really doubts that Bofors has been using bribes abroad; it's sort of
    taken for granted I believe. The thing is, there's nothing in Swedish
    law forbidding a company to pay bribes when making deals abroad, so
    there is little reason for anybody here to do any investigation, other
    than perhaps assisting Indian authorities or some other concerned body
    - but if it boils down to say investigative competence, then I don't
    see why a Swedish investigation would be more trustworthy than an
    Indian one. 
    
    An objective, third-party observer you might say? I wouldn't trust the
    government to tell me when the sun will rise tomorrow; it may be an
    easy enough task, but it's none of their business and there are
    professionals more suited to do it.

    Any relevant archives are open to Indian representatives just as they
    are to the Swedish government (I vaguely remember Sten Andersson,
    minister for foreign affairs, having a short quarrel with Bofors board
    members, asking them to provide any information they might have - but
    he has no legal means which you can't exercise) and at least one
    parliamentary (multi-party I assume) delegation from India has been
    here. If Rajiv Gandhi managed to cover the findings of that delegation,
    wouldn't it be reasonable to dig up the backup copy?

    According to Swedish law, it's a crime for an official representative
    to accept bribes (and maybe also for anybody to bribe him), since that
    would mean he isn't properly serving the needs of the citizens. While
    it might be logical letting the affected party (the Indian people or
    state, whichever you prefer to see) set the rules in an international
    case like this, there has been some talk of establishing legal limits
    in our end as well, simply in order to restrain a handful of companies
    from demolishing the foreign market reputation which we all must share.

    Of course, I do feel sorry for the Indian people, involuntarily wasting
    money on hungry middlemen and still ending up with merchandise which
    isn't necessarily the best possible, all with the help of a Swedish
    company, but I prefer seeing Indian law deliver the proper punishment
    to that particular "trading partner" Bofors (as well as the middlemen)
    instead of Swedish law deciding what kind of payments are allowed in
    other countries.
    
    --
    Anders Andersson, Dept. of Computer Systems, Uppsala University
    Paper Mail: Box 520, S-751 20 UPPSALA, Sweden
    Phone: +46 18 183170   EMail: [email protected]                         
191.6Court case begunWHYVAX::SAVAGENeil @ Spit BrookTue Sep 05 1989 14:2458
    Group soc.culture.nordic

    Bofors' deals in court
    (Stockholm - Riitta Jarvinen)

    After five years investigations the case of Bofors was finally started
    last Monday in court of Stockolm. Bofors is a Swedish company that
    produces weapons and war material. Three Borfors' former managers are
    being accused. They are expected to get a sentence to prison from 6
    months to 6 years.

    Bofors' former managing director Martin Ardbo, former marketing
    director Hans Ekblom and gun-production director (now retired) Lenart
    Palsson are accused of weapon smuggling. The prosecutor said that the
    men have smuggled more than 300 anti-aircraft missiles to Dubai and
    Bahrai during the years 1979-81. Weapons are worth more than 100
    million SEK. Swedish law says that exporting weapons or war material to
    any country requires government approval.

    Prosecutor says that these former managers of Bofors have also exported
    spare-parts worth of 2.8 million SEK to these countries. They have also
    exported other weapons to Oman worth more than 8 million SEK. It was
    stated in official export permissions that these guns and weapons were
    supposed to go to Singapore.

    Three former foreign trade minister have been called as witness among
    others. The counsel of the defense tries to prove that both the
    government and officials that control weapon export knew the real
    destination of the shipments and they had also unoffically approved it
    even until 1984, when the case was exposed.

    Instead of that the former ministers say that Bofors has intentionally
    misguided both the war-material-export-inspection-department and the
    government by giving wrong information about the real destination of
    the weapons.

    Deaths make the case harder

    The death of Bofors' former president C-U. Winberg in car accident last
    summer has made the investigations much harder. Only one of three
    managers of the war-material-export-inspection-department during the
    years 1977-87 is still alive.

    Bofors' unlegal weapon deals were discovered 1984, when Swedish peace
    movement "Svenska Freds- och Skiljedomsforening" made a report to
    police about the shipments to Dubai and Bahrai. The case expanded the
    following year when one of Bofors' engineers Ingvar Bratt gave more
    evidence. Swedish custom has also investigated Bofors' weapon export to
    Iran and Syria.

    The case started last monday is going to last until the 24th of
    October. Bofors has already been once in Karlskoga's court were all the
    managers were found not guilty.

    [Submitted by:]
--
Petri Vuorimaa     Tampere University of Technology / Signal Processing Lab
[email protected]          PO. BOX. 527, 33101 Tampere, Finland                    
191.7hi-level grease vs dynamit-rustHYDRA::MCALLENFri Sep 08 1989 22:0016
    There is some discussion of the Bofors bribery scandal
    in the VAXWRK::INDIA conference. Press KP7 to enter the
    INDIA conference into your notes library.
    
    In the INDIA conference, see topics 3.29, 3.62+, 66.2+ and 96.*  .
        
    Isn't there a certain similarity between the current Bofors
    bribery scandal and the Northrup/Tom_Jones (and Lockheed)
    weapons bribery scandals in the USA, back in the early 1970's ?
    
    Oh well, no one's perfect. Topnotch fighter aircraft
    are seldom sold without the proper high altitude grease.
    And of course, we're all much more honest nowadays.   :^)
    I hope the deceased export inspector's family is well
    cared for by the Dynamit-Nobel Trust.
191.8leaking of Ardbo/Bofors diary?HYDRA::MCALLENWed Nov 08 1989 18:3018
    Does anyone have information about the Ardbo diary's being
    published?
    
    In the INDIA notesfile 66.19 and 66.20, it is stated
    that the diary of retired (?) Bofors chief (Mr. Ardbo)
    has been obtained and is being published by numerous
    Indian periodicals.
    
    It is said that the alleged Ardbo diary contains incriminating
    entries regarding high government officials in India,
    in connection with the Bofors<--->India armaments scandal,
    and that their publication at this time is linked to
    the upcoming election in India.
    
    Is there any mention of the "leaking" (?) of the Ardbo
    diary to be found in Scandinavian press?
    
    -John
191.9The Economist has an article.DATOR::NELSONDavid W., MK02-1/J12 DTN: 264-4523Thu Nov 09 1989 18:156
    
    	Yes.  I recently read an article in the Economist concerning the 
        elections in India and they made reference to the diary in the 
        article.  I don't the Economist issue with me so I can't tell you
    	what date it is.  From what I remember about the article it seems
    	to support what you have said.