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Slovakia

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									    6
                     Slovakia
                                                                POLAND


                              CZECH REPU BLIC



                                                                                   UKRAI NE


                                         Bratislava

                         A U STRIA

                                                      HUNGARY                     RO MANI A




                     Slovakia data profile

                     Population 1                                    5.4 million (2000)
                     Territory 2                                     48,845 km2
                     GDP 3                                           $19.1 billion (2000)
                     Inflation rate   4                               14% (1999 est.)
                     Current value of external debt 5                $9,430 million (2000)
                     Unemployment rate 6                             20% (1999 est.)
                     Defence budget (percentage of GDP) 7            1.80% (1999)




          6.1        DURING THE 1980S the former Czechoslovakia was the second largest arms producer

Introduction         in CEE. The majority of the country’s production, in particular large weapons plat-
                     forms such as tanks, combat vehicles and anti-tank missiles, took place in Slovakia.8
                     The Czechoslovak defence industry employed directly 73,000 people,9 of whom more
                     than 40,000 worked in Slovakia.10 From the beginning of the 1950s until 1989, Slovak
                     armaments factories produced 20,607 main battle tanks, 21,446 armoured fighting
                     vehicles and personal carriers as well as 1,737 artillery systems.11
                     After the overthrow of communism in 1989, Czechoslovakia moved rapidly towards
                     conversion to a market economy. The impact of this shift, however, was more difficult
                     for Slovakia than for the Czech Republic. The move away from unprofitable heavy


                 1 The World Bank Group, www.worldbank.org/data.
                 2 www.emulateme.com/content/.
                 3 The World Bank Group, www.worldbank.org/data.
                 4 Consumer prices. www.emulateme.com/content/.
                 5 The World Bank Group, www.worldbank.org/data.
                 6 www.emulateme.com/content/.
                 7 Jane’s Sentinel, www.janes.com.
                 8 In 1988, there were 36 large arms factories situated on Slovakian territory.
                 9 ‘Armaments conversion – expectations and facts’, Waclaw Stankiewicz, in The Conversion in Czech Republic and Slovakia
                   (Bellona, Warsaw 1999), pp 115–122.
                10 Ibid p 121.
                11 Konstrukta Trencin in the History of the Czechoslovak and Slovak Armament Industry, Zdenek Vopat (Magnet Press,
                   Bratislava, 2000), pp 140–144.
2      ARMS PRODUCTION , EXPORTS AND DECISION - MAKING IN CENTRAL AND EASTERN EUROPE



       industry, especially arms production, immediately had negative consequences for the
       Slovak economy and the growing economic imbalance between the Czech and Slovak
       regions12 contributed to the push for Slovak independence.
       Since its peaceful separation from the Czech Republic in January 1993, Slovakia has
       undergone a two-fold transformation. The first aspect of this is the change from a
       centrally planned to a free market system; the second is the shift from a subordinate to
       an independent economy. But the transition to a modern market economy has not
       been easy, with Slovakia experiencing more difficulties than the Czech Republic.
       After the separation, Slovakia had to build up and introduce a central administration,
       central banking, monetary and tax systems. Problems became particularly acute for
       the defence sector. With the most experienced weapon dealers remaining in Prague,
       the newly formed Slovak arms trade companies were not particularly successful. In
       addition to difficulties in selling its products in the post-Cold-War world arms market,
       Slovakia also lacked a trade infrastructure and the expertise and the resources to
       modernise its military production.13
       These problems were compounded by political insecurity and a general economic
       decline, with unemployment rates of up to 30 percent in the worst affected areas.
       This decline made it more difficult for Slovak defence companies to secure resources
       to modernise their military production. The value of arms exports decreased from
       $1.833 billion in 1988 to $213 million in 1992. As a consequence, after the break-up of
       Czechoslovakia the arms trade policy of the nationalist-populist government of
       Vladimir Meciar gradually became more bold and desperate. Prime Minister Meciar
       advocated a revival of the defence sector and the confirmation of its priority in the
       country’s economic policy. Until the change of government in September 1998, the
       administration concentrated its efforts on finding potential buyers in developing
       countries, especially those with an inventory of former Warsaw Treaty Organisation
       weaponry.
       Since 1998, the defence industry has undergone a process of modernisation and
       consolidation. This has been in response to political changes, both internally and
       internationally, not least Slovakia’s ambition to join the NATO alliance, and has been
       helped by Slovakia’s economic recovery. The modernisation of the army’s equipment
       to ensure compatibility with NATO structures has increased the orders placed by the
       Slovak Government. Among 92 arms innovation projects which have been approved
       as steps towards the fulfilment of 64 NATO partnership goals, 29 have already been
       carried out.14 In the government’s view, full NATO membership would provide the
       driving force for further development of the industry: in the words of the Economy
       Minister Lubomír Harach: “If we want to help the Slovak military industry, the best
       thing we can do is create suitable conditions for membership in the [NATO]
       alliance”.15 Not only would the accession to NATO offer better opportunities to enter
       NATO markets, but it would also facilitate access to foreign investment for Slovak
       manufacturers.
       On 3 March 2000, the 40 major defence companies established the Association of
       Defence Industries of the Slovak Republic (ADISR), whose primary function is to
       facilitate research, production and the modernisation of the defence industry. A year
       later, the Ministry of Defence and the ADISR signed an agreement providing for
       effective links between the Ministry of Defence’s defence planning and the
       programmes of different industrial plants, and for the enhancement of common


    12 In Czechoslovakia 58,000 employees of the defence industry lost their jobs at the beginning of the 1990s: approximately
       20,000 in the Czech republic and 38,000 in Slovakia.
    13 The Defence Industry in East-Central Europe – Restructuring and Conversion, Yudit Kiss (SIPRI, OUP, 1997) p 62.
    14 These include: the self-propelled anti-aircraft system BRAMS; rocket-launcher MORAK; modernised armoured vehicles OT-90
       and tank T-72M, light armoured carrier Aligator, self-propelled howitzer Zuzana; and medium off-road car Aktis. Slovak news
       agency TASR [FBIS transcribed excerpt from report in English], 2 May 2001, 1231 GMT.
    15 ‘Overly strong ties to tradition; Economy Minister Harach on the Slovak defence industry’ [in Slovakian], Pravda, 19 April
       2001, p 18, source: David Isenberg’s Weapons Trade Observer; ‘Interview with Pavol Kanis – Minister of Defence of the
       Slovak Republic’, Jane’s Defence Weekly, 16 August 2000.
                              SAFERWORLD ARMS & SECURITY PROGRAMME                                                                                        3


                              projects with NATO members and within the Western European Armaments Group.16
                              Economic constraints mean that it is likely that the Slovak military will concentrate
                              more on upgrades than procurement of new equipment in bringing its armed forces
                              up to date and ensuring NATO compatibility.17
                              The ‘Force 2010’ modernisation plan for the Slovak military is designed with NATO
                              compatibility in mind. Similarly, recent co-operation initiatives on military and
                              defence industry issues with neighbouring countries will aid Slovakia’s chances of
                              NATO membership.18 This has been a consistent policy within the Slovak Ministry
                              of Defence in recent years, and one which has won praise from leading NATO states.19
                              In August 2000 the then Defence Minister Pavol Kanis commented that “Today,
                              everything is directed towards our joining the alliance”,20 and in April 2001 the current
                              Minister of Defence, Josef Stank, admitted freely that the key element of the Slovak
                              Republic’s new Security Strategy is to be in the next round of NATO membership.21
                              The new strategy was adopted by the Slovak National Council on 27 March 2001.
                              The document states that the Slovak Republic “will contribute to the preparation and
                              realisation of agreements on armament control, disarmament and non-proliferation.
                              The Slovak Republic will be participating in asserting a broader, more complex and
                              better-verified process for international controls. National arms export control is a
                              component of this effort and the Slovak Republic will strictly harmonise it with its
                              own integration interests”.22




 6.2 Normative                Legally and politically binding commitments
                              undertaken by Slovakia                                               Year
and regulatory
                              Nuclear Non-proliferation Treaty                                     1993 23
    framework                 Nuclear Suppliers Group                                              1993
                              Zangger Committee                                                    1993
6.2.1 Commitments to
                              Australia Group                                                      1994
 international control
                              Chemical Weapons Convention                                          1995 24
             regimes
                              Biological Weapons Convention                                        1993 25
                              Wassenaar Arrangement                                                1996
                              Conventional Forces in Europe Treaty                                 1993 26
                              Ottawa Landmine Convention                                           1999 27
                              EU Code of Conduct                                                   1998
                              EU Joint Action on Small Arms and Light Weapons                      1998
                              OSCE Criteria on Conventional Arms Transfers                         1993
                              OSCE Document on Small Arms and Light Weapons                        2000




                         16 Op cit Jane’s Defence Weekly, 25 April 2001.
                         17 In 1999 the Slovak government was forced to halt all funding for army materiel that year in order to pay soldiers’ living costs.
                              ‘Slovaks urged not to issues subsonic tender’, Jane’s Defence Weekly, 21 February 2001; ‘Diehl to modernise Slovakian RM-
                              70’, Jane’s Defence Weekly, 31 January 2001; ‘Slovak army facing funding crisis’, Jane’s Defence Weekly, 4 August 1999.
                         18   ‘Slovakia plans airforce 2010’, Jane’s Defence Weekly, 19 September 2001; ‘Slovakia approves tri-national brigade’, Jane’s
                              Defence Weekly, 10 October 2001; ‘Czech Republic and Slovakia plan mechanised battalion for KFOR’, Jane’s Defence
                              Weekly, 25 July 2001.
                         19   In January 2000, the Chairman of the US Joint Chiefs of Staff Gen Henry Shelton praised the “substantial progress” Slovakia
                              has made in its preparations to join NATO. ‘Slovakia’s NATO preparations praised’, Jane’s Defence Weekly, 19 January 2000.
                         20   Op cit Jane’s Defence Weekly, 16 August 2000.
                         21   Op cit Jane’s Defence Weekly, 25 April 2001.
                         22   Security strategy of the Slovak Republic, Annex to the decision of the Slovak National Council No 1312, Article 44, 27 March
                              2001.
                         23   Date deposited accession.
                         24   Date ratified.
                         25   Date deposited accession.
                         26   Date the treaty formalised the adherence of the two successor states of Czechoslovakia.
                         27   Date ratified. Slovakia completed the destruction of its stockpile of antipersonnel mines in September 2000. Landmine
                              Monitor Report 2001 (Landmine Monitor), www.icbl.org/lm/2001/exec/, Executive Summary.
4                              ARMS PRODUCTION , EXPORTS AND DECISION - MAKING IN CENTRAL AND EASTERN EUROPE



       6.2.2 Legislation       The legislative basis for the export of arms and related technologies is established by
       governing arms          Act No 179 of 15 May 1998. The law stipulates conditions of trading in military equip-
        production and         ment and the operation of state authorities in this field. A broad definition of military
                exports        equipment is provided together with a list of 14 military categories which are covered
                               by the law. The legislation establishes a system whereby all arms exports must be con-
                               sistent with the foreign policy, security and economic interests of the Slovak Republic.
                               In October 2001, the Slovak Cabinet amended legislation on the export and import of
                               dual-use goods. The changes are designed to restrict the issuance of licences for
                               trading and transporting goods such as industrial chemicals, toxins and technologies
                               used in nuclear power generation and chemicals used in agriculture that can be used
                               to make explosives.28



     6.2.3 The decision-       The Ministry of Economy is the ultimate licensing authority. The Slovak licensing
    making process and         system has two stages. The first involves applying for a permit to trade in military
         administrative        equipment. The Ministry of Economy issues such a permit after consultation with the
    structure for policy       Ministry of Foreign Affairs and the Ministry of the Interior. The second stage involves
       implementation          individual export licences for the import or export of military equipment. The
                               Ministry of Economy decides whether to grant a licence prior to approval by a Licens-
                               ing Commission (which comprises representatives of the Ministries of Economy,
                               Foreign Affairs, Interior and Defence; the Ministry of Foreign Affairs retaining a
                               veto).29 No licence is required for negotiations or pre-shipment activities. However, in
                               cases where ‘important military equipment’30 is being traded, the applicant can apply
                               for a ‘negotiation licence’, which allows the company to market and discuss possible
                               contracts with the foreign buyer before submitting an export licence application.
                               The application for an arms export licence must be accompanied by an end-user
                               certificate which has been validated by the ‘central authority’ of the importing country.
                               The information provided by foreign buyers is verified by Slovak diplomatic personnel
                               abroad. No additional controls are carried out after the Ministry of Economy has
                               issued a licence to export.31
                               The law provides for three important licensing exemptions. No licence is required for:
                           I   exports in connection with operations of the Slovak armed forces or Police Corps
                               pursuant to international treaties and agreements
                           I   equipment destined for the Slovak Ministries of Defence or Interior that is re-exported
                           I   transit of military equipment through the Slovak Republic if equipment is on the
                               territory of the Slovak Republic for a period no longer than seven days
                               Act No 179 provides for the revocation of licences in cases where the applicant
                               company provided wrong or false information or when the authorised entity violated
                               Slovak law or international treaties and agreements by which the Slovak Republic is
                               bound. Violations of the law are punishable by fines that vary depending on the nature
                               and severity of the offence.




                           28 Slovakia made headlines when Wadih el-Hage, the al-Qaida member convicted for the bombings of the US embassies in
                              Kenya and Tanzania in 1998, said during his trial in New York that he had purchased spare tractor parts, as well as bitumen,
                              urea and nitrogenous fertiliser in Slovakia. ‘Terrorist hunters turn to Czech and Slovak arms traders’, Rick Jervis, The Wall
                              Street Journal, 12 November 2001; ‘Angola-bound weapons impounded in Bratislava’, Ed Holt, The Slovak Spectator,
                              October 8–14 2001, vol 7, No 38.
                           29 Until 1998, the chairman of the Licensing Commission was the head of the Defence and Security Department of the Office
                              of the government (Office of the Presidium) with the rank of general. Currently, the names of the commission’s members are
                              secret. In 2000, the Licensing Commission issued almost 1,000 licences. Op cit Pravda p 18.
                           30 This is defined as equipment which is important from the point of view of its combat use or its quantity.
                           31 On the reverse of the Licence Document there is table that the Customs Authorities fill in for any partial deliveries of the
                              goods which are allowed by the contract. Every three months, the licensee has to make a statement on how the licence has
                              been utilised.
                              SAFERWORLD ARMS & SECURITY PROGRAMME                                                                                           5


    6.2.4 Government          The Slovak Government has pledged on numerous occasions its willingness to
guidelines and official        contribute to discussions and agreements to tackle the proliferation and misuse of
 policy on small arms         SALW. The Slovak Government’s position has been set out at various international
   and light weapons          fora, including the UN Security Council.32
                              In July 2001, Mr Jan Figel gave a statement on behalf of Slovakia at the UN conference
                              on the illicit trade in SALW, in which he expressed full support for the OSCE docu-
                              ment on SALW and the EU Code of Conduct on Arms Exports. Mr Figel emphasised
                              his government’s belief that a comprehensive approach to the problem is required, and
                              that the conference must address “both the supply and demand sides, also in ‘all their
                              aspects’. Here we put emphasis on such fundamental issues as export control and
                              criteria, marking, brokering, surplus destruction as well as management of stockpiles.”
                              Slovakia’s statement went on to note that mechanisms at all levels must be strength-
                              ened and complementarity ensured. The government stressed its “positive view of the
                              creation and development of regional initiatives”, which clearly reflect the needs of the
                              region for which they were designed, and which serve as building blocks for action on
                              a global level. It appeared that from Slovakia’s point of view, a strengthening and
                              co-ordination of regional efforts would be far preferable to the creation of additional
                              international bodies.
                              Mr Figel also expressed his belief in the need to “enlist the broadest possible involve-
                              ment of civil society, which we consider to be an important partner in our efforts
                              aimed at dealing with the problem and raising public awareness in this area”.33




            6.3               Official information relating to the production, holdings and exports of arms is very
  Transparency                limited. The only official data available on arms exports are those provided to the
                              UN for inclusion in the UN Register of Conventional Arms. The Slovak Ministry of
           and                Economy issues press releases about national arms exports annually. However, these
parliamentary/                press statements are very limited, only touching on the global value of arms exports
        public                and the number of the general licences granted.34 There are no mechanisms in place
 accountability               for parliamentary scrutiny and government accountability in the arms trade.
 arrangements                 In January 2001, a new Freedom of Information Act came into force. The act is the first
                              legislative instrument in Slovakia which allows the access to government information
                              of public interest. Although the law represents an improvement in government
                              accountability and transparency and removes a number of bureaucratic obstacles to
                              the access of public information, there are restrictions to the release of information
                              related to “national security”. On 30 May 2001, the Slovak Parliament adopted a new
                              law, Act No 241/2001, on ‘Protection of Secret Matters’ whose second paragraph states
                              that “data on import and export of military equipment or other strategic materials,
                              technologies and installations” is secret. When interviewed by the Slovak newspaper
                              SME in November 2001, the Director of the National Security Office, Mr Ján Mojzís    ˇˇ
                              stated: “Law 241/2001 has an appendix which contains the definition of basic facts
                              covered by four degrees of secrecy. It is quite obvious that it was drawn up by in-
                              competent people. In my view, the appendix does not respect the philosophy of NATO
                              member states. In Spain, five types of information are classified as strictly secret, while
                              we have 21 thematic areas which could result in tens of thousands of strictly secret
                              documents. Three or four would be fully adequate”.35




                         32   See appendix 2, section 6.7.2.
                         33   See appendix 2, section 6.7.2.
                         34   See appendix 3, section 6.7.3.
                         35                                                                              ˇís
                              ‘It’s forbidden to lie in good society’ [in Slovak], interview with Ján Mojz ˇ, National Security Office Director, SME, 2 November
                              2001, p 5.
6                     ARMS PRODUCTION , EXPORTS AND DECISION - MAKING IN CENTRAL AND EASTERN EUROPE



                      A number of Slovak NGOs have advocated greater transparency in the Slovak arms
                      trade. The Slovak Foreign Policy Association (SFPA) organised a roundtable meeting
                      on small arms and arms export controls in Bratislava in February 2001 involving
                      government officials and civil society representatives. As a result of this meeting, SFPA
                      are working in association with the Slovak Ministry of Foreign Affairs on developing
                      an annual reporting system for the Slovak Republic.




      6.4 Arms        In recent years new export deals, economic recovery and state-led reforms have helped
    production        consolidate the position of the Slovak defence industry. Although downsized, the
                      defence industry has retained a significant capability in research and development,
                      production and modernisation of weapons systems. According to official figures pro-
                      vided by the Ministry of Economy, the Slovak defence industry produced armaments
                      worth Sk1.447 billion ($29 million) during 2000. The output consisted of: 35 percent
                      ammunition and spare parts; 30 percent engineering technology; 25 percent heavy
                      weapons; and 10 percent electronics. Over 53 percent of the overall production in 2000
                      was exported.36
                      The Slovak arms industry is organised in seven major industrial branches: artillery
                      systems and equipment; air defence systems; armoured equipment; ammunition and
                      explosives; logistic equipment; simulators; other equipment including small arms,
                      individual protection goods and medical support items. Aviation production in
                      Slovakia was hard hit by the division of Czechoslovakia and is now very weak, as more
                      than 90 percent of production was situated in the Czech Republic: only the LOT
                      Trencin military repair plant (800 employees) and jet engine producer Povazske
                      Strojarne Letecké Motory (PSLM) (350 aviation employees) can be considered
                      significant producers.
                      The main part of the Slovak defence production is concentrated in the DMD Holding
                      jsc group, which was established in 1995 under Government Resolution No 699 with
                      the aim of co-ordinating technical development, production and trade activities of
                      group members, and preventing defence industry structure decline.37 DMD Holding
                      comprises the following arms producing firms:
                 I    ZTS plus Dubnica nad Vahom jsc, whose most famous products are 155mm self-
                      propelled gun howitzers, supplied to the Slovak and Greek armies, which are now
                      available in three models, the Zuzana 8 x 8 Model 2000, the Zuzana T-72 A40 trucked
                      version,38 and Dana 8 x 8 Model 77/99. ZTS is currently developing a new version of the
                      Zuzana 8 x 8 155mm self-propelled artillery system that will feature a NATO-type
                      155mm/52-cal ordnance.39 ZTS also produces various mortars, including: a NATO-
                      style 81mm, which it hopes to supply to the Slovak army in 2002; a 98mm mortar
                      system, 48 of which have been sold to the Slovak army; and a 120mm mortar, which is
                      in service with the Czech and Slovak armies.40
                 I    ZVS Holding Dubnica nad Vahom jsc, which is mainly concerned with the manufacture
                      of artillery rounds, mortar bombs and rockets.
                 I    PPS Detva Holding, jsc, which manufactures the BMP-1 and BMP-2 armoured
                      personnel carriers, together with armoured ambulances 41, multi-purpose 42 and
                      recovery vehicles.

                 36 Hospodarske Noviny, 22 May 2001 [in Czech].
                 37 “Export of weapons and military equipment amounting to $40 million, that is 20 percent of total DMD Holding turnover”
                      ‘IDEE Exclusive’, Special edition IDET 2001, Magnet Press Pbl., Bratislava, Slovakia 2001, p 33.
                 38 A Zuzana gun mounted on a heavier and larger turret based on a T-72 MBT chassis, with 40 rounds ready to fire (the regular
                      wheeled Zuzana is capable of firing 30 rounds simultaneously, and an additional 10 after reloading the automatic feeding
                      device).
                 39   ‘ZTS to enhance Zuzana SPG’, Jane’s Defence Weekly, 30 May 2001.
                 40   ‘Slovakia’s ZTS develops new mortar systems’, Jane’s Defence Weekly, 25 July 2001.
                 41   Armoured ambulances built on a BMP-1 chassis.
                 42   Tatrapan 6 x 6 multi- purpose armoured terrain vehicle (troops carrier + command post).
    SAFERWORLD ARMS & SECURITY PROGRAMME                                                                                      7


I   DMD Mobiltec Martin, jsc 43 (formerly ZTS TEES Defence Martin, jsc), is the leading
    company in the development and production of main battle tanks (MBTs). It
    manufactures the T-72 under licence from CIS and, with foreign participation, the
    upgraded Moderna T-72 M2.
I   Konstrukta Defence Trencin, jsc, researches, develops and tests a vast range of
    armaments such as 155mm self propelled gun howitzers, 122mm rocket launchers,
    120mm self-propelled mortars, towed mortars, military trucks, anti-aircraft systems,
    mine-clearing vehicles, ammunition and explosives.
    Two joint-stock trading companies dominate the country’s arms trading activities:
    Hermes jsc and Kerametal Company Limited. Hermes jsc was established in 1991 and it
    is authorised in accordance with Slovak law to trade in any category of weapon,
    including ammunition and rockets, heavy weapons, anti-tank and anti-aircraft
    weapons. Hermes co-operates with DMD Holding and with other arms producers in
    the Czech Republic, Bulgaria, Romania and Ukraine. Kerametal Company Limited,
    established in 1972, is the country’s second most important arms trading company and
    the primary distributor for most of the country’s heavy weaponry products, including
    howitzers, MBTs and armoured vehicles. The company is currently working on the
    supply of the Zuzana artillery system to Greece, and has the exclusive right to sell the
    Aligator armoured vehicle. Kerametal also co-operates with DMD Holding. Amongst
    other major arms exporters are UNIMPEX Martin Ltd and TECHNOPOL
    INTERNATIONAL Bratislava, jsc.
    In July 2000, France’s Giat Industries teamed up with DMD Holding to explore the
    feasibility of designing a low-profile turret armed with Giat’s 120mm smoothbore gun
    to provide a cost-effective modernisation package for older main battle tanks, such as
    the Soviet-designed T-72 series MBTs and older Western M60 or Leopard 1 MBTs.44
    Another Slovak defence manufacturer was less lucky with its partnership with a
    foreign firm – the prospects for the jet engine manufacturer Povazské Strojárne
    mentioned above became rather insecure in early 2000, after Rolls Royce of the UK
    decided not to renew its co-operation agreement of October 1999. Rolls Royce had
    entered into the exclusivity agreement to help the heavily indebted company develop
    its DV-2S turbofan engine but the costs involved made the co-operation non-viable.45
    In May 1999 the creation of a joint co-ordination commission for Czech and Slovak
    technical co-operation in the defence industry placed an “official stamp of approval
    on what has been continuing within the industries since the split of the former
    Czechoslovakia in January 1993”.46 Jindrich Tomas, Czech deputy minister of defence
    for acquisitions in 1999 commented: “For many years, the defence industry of the two
    countries was a single entity, and therefore it is almost impossible to sever the relation-
    ship overnight… It is absolutely logical, natural and, above all, essential that the
    defence industries of the two countries co-operate more closely”.47 For example, the
    Slovak company Kerametal, manufacturer of the 155mm self-propelled howitzer, relies
    on Czech truck builder Tatra Koprivnice for the chassis, and on Czech steel manu-
    facturer Vitkovice for the armour plating.48 Indeed, the general director of the manu-
    facturing industry section of Slovakia’s Economy Ministry, Vojtech Panik, expressed
    his wish for the creation of a Czech-Slovak joint commission to work intensively on
    military procurement issues.49
    The Slovak Government also has a military co-operation agreement with the UAE,


43 During the process of reorganisation and transformation of the DMD Holding, there were changes in the official names and
    internal structure of some firms.
44 ‘Giat seeks gun upgrade niche’, Jane’s Defence Weekly, 5 July 2000.
45 ‘Rolls-Royce’s pull-out jeopardises Slovak plant’, Jane’s Defence Weekly, 9 February 2000.
46 The commission comprises representatives from the Czech and Slovak Ministries of Defence, the Czech Ministry of Trade and
    the Slovak Ministry of the Economy. ‘Czechs, Slovaks seal industrial relationship’, Jane’s Defence Weekly, 2 June 1999.
47 Op cit Jane’s Defence Weekly, 2 June 1999.
48 Ibid.
49 ‘Czechs and Slovaks discuss L-159-Zuzana swap’, Jane’s Defence Weekly, 15 November 2000.
8                             ARMS PRODUCTION , EXPORTS AND DECISION - MAKING IN CENTRAL AND EASTERN EUROPE



                              signed in March 1999 and focusing on logistics, medical services, training and military
                              education.50



    6.4.1 Small arms and      Slovakia has limited small arms production capabilities.51 PS Povzbroj jsc manufactures
           light weapons      the PS-97 9mm semi-automatic pistol, as well as 9mm Luger (Parabellum) ammuni-
              production      tion; 52 VOP 015 produces hand grenades.53 In 2001, ZVS jsc extended its production
                              range to include a variety of small-calibre ammunition.54




           6.5 Arms           SIPRI figures indicate that between 1992 and 2001 Slovakia exported the following
            exports           major conventional weapons (see table opposite).
                              The value of exported arms and military equipment was Sk2.248 million ($45 million)
                              in 2000. The Slovak Army surplus stocks provided 62 percent of the total exports while
                              38 percent was new equipment produced by the defence industry.55
                              A July 1999 report by the US State Department’s Bureau of Public Affairs lists Slovakia
                              amongst the major suppliers of arms to African countries. In particular, Angola has
                              purchased significant quantities of Slovak weapons over the past ten years. For years
                              Angola has been gravely affected by armed conflict and the Angolan Government has
                              been described as having a “dismal human rights record”.56 The trade with Angola
                              came under renewed scrutiny in January 2001 when it emerged that a Slovak company,
                              ZTS OSOS, had acted as an intermediary in the supply of $500 million worth of
                              Russian arms and ammunition to Angola in 1993 and 1994.57 Official figures from the
                              Ministry of Economy put Slovakia’s trade with Angola between 1999 and the first half
                              of 2001 at Sk1.2 billion ($24.9 million) in exports, versus Sk25,000 ($520) in imports
                              from Angola over the same period.58
                              In March 1995 arms were transferred from Bratislava to Ecuador, during a period when
                              Ecuador was under ‘notional’ embargo by the Organisation of American States due to
                              conflict along the frontier between Ecuador and Peru. A consignment of multiple
                              launch rocket systems , which had been described on the flight plans as ‘a hospital
                              truck and special equipments’, was discovered during a refuelling stop in Portugal.59
                              After the flight plans were amended, the plane and its cargo were allowed to proceed to
                              their intended destination.
                              On 25 September 2001, before submitting to the Slovak National Defence Council a
                              confidential audit on Slovak arms exports containing information on firms and goods
                              which may have been involved in trade to countries suspected of harbouring or
                              helping terrorists, the Economy Minister Harach reportedly admitted that until 1996


                           50 ‘Co-operation for UAE and Slovakia’, Jane’s Defence Weekly, 24 March 1999.
                           51 The 2001 Small Arms Survey ranks Slovakia amongst the small producers of small arms. ‘Small Arms Survey 2001 – Profiling
                              the Problem’, Small Arms Survey, p 16.
                           52 Defence Production Catalogue 2000, Slovak Republic, p 133.
                           53 Ibid p 84.
                           54 At the beginning of 2000, ZVS Holding Dubnica nad Vahom jsc, bought the production line for small arms ammunition from
                              Technopol International. ‘IDEE Exclusive’, in Special edition IDET 2001, (Magnet Press, Bratislava, Slovakia 2001), p 36.
                           55 Hospodarske noviny [The Economics Daily], 22 May 2001.
                           56 ‘Security concerns raised by arms transfers from candidate countries’, Open Letter to EU Foreign Ministers, Commissioners
                              Prodi, Verheugen and Patten and High Representative Javier Solana, Human Rights Watch, 19 October 2001.
                           57 A political scandal broke out in France over this allegedly corrupt arms deal in which several well-connected French
                              personalities, including Jean-Christophe Mitterand, the son of former French President François Mitterand, came under
                              investigation. ‘Slovakia was the transhipment point’[in Slovak], ‘PT’ and ‘OD’, Pravda, 13 January 2001, p -2. ‘Arms and
                              corruption with Angola: President Chirac and President Dos Santos have a lot of explaining to do’, Global Witness,
                              22 December 2000, www.oneworld.org/globalwitness/press/pr_20001222angola.htm.
                           58 Angola is only one of two African nations to have an embassy in Slovakia. ‘Weapons deals: state has few reasons not to
                              approve’, The Slovak Spectator, October 22–28, 2001, vol 7, No 40, source: David Isenberg’s Weapons Trade Observer.
                           59 ‘Destination unknown – Strengthening end-use monitoring and control over arms exports’, Amnesty International UK and
                              Oxfam GB, November 2000, pp 43–46; ‘How guns get to war zones – techniques of clandestine delivery’, Press Briefing for
                              the Third Preparatory Committee for the UN 2001 Conference on ‘The Illicit Trade in SALW In All Its Aspects’, Amnesty
                              International, BASIC, International Alert, Oxfam, Saferworld, AI-index IOR 41/009/2001, www.amnesty.org, 21 March 2001.
                                                                                                                                                                                                                                                           Slovak Exports of major conventional weapons by recipient country, 1992–2001
                                                                                                                                                                                                                                                           Table created by Pieter Wezeman (SIPRI) for Saferworld, 23 November 2001 60     (   ) Uncertain data or SIPRI estimate

                                                                                                                                                                                                                                                                                                                                         Year of                           No
                                                                                                                                                                                                                                                           Recipient          No         Weapon                  Weapon                  order/        Year(s) of          delivered/
                                                                                                                                                                                                                                                           Country            ordered    designation             description             licence       deliveries          produced     Comments
                                                                                                                                                                                                                                                           Algeria            (54)       BMP-2                    IFV                    (1994)        1995–96             54           Incl. BMP-2K CP version

                                                                                                                                                                                                                                                           Angola             6          L-29 Delfin              Jet trainer aircraft    (1999)        1999                6            Ex-Slovak
                                                                                                                                                                                                                                                                              12         Su-22/Fitter-H/J/K      FGA aircraft            (1999)        1999–2000           12           Ex-Slovak; incl 2 Su-22UM trainer version; modernised before delivery
                                                                                                                                                                                                                                                                              (40)       RM-70 122mm             MRL                     (1993)        1994                40           Ex-Slovak
                                                                                                                                                                                                                                                                              (9)        OT-64A SKOT-1A          APC                     (1993)        1994                9            Ex-Slovak
                                                                                                                                                                                                                                                                              (205)      T-55AM-2                Main battle tank        (1999)        1999–2000           205          Ex-Slovak

                                                                                                                                                                                                                                                           Cambodia           2          Mi-8TV/Hip-F             Helicopter             (1995)        1997                2            Second-hand; for VIP transport

                                                                                                                                                                                                                                                           Chile              1          Unidentified APC/IFV      APC type               (1993)
                                                                                                                                                                                                                                                           Ecuador            6          RM-70 122mm              MRL                    (1994)        1995                6            Ex-Slovak

                                                                                                                                                                                                                                                           Greece             12         Zuzana 155mm             Self-propelled gun     2000                                           Option on 6 more

                                                                                                                                                                                                                                                           India              35         VT-72B                   ARV                    1993          1995                35           Deal worth $31.5 m; probably incl 25 assembled in India
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             SAFERWORLD ARMS & SECURITY PROGRAMME




                                                                                                                                                                                                                                                                              78         VT-72B                   ARV                    (1994)        1996–97             (78)         Ordered after planned licensed production given up due to problems with
                                                                                                                                                                                                                                                                                                                                                                                        producing T-72M chassis
                                                                                                                                                                                                                                                                              42         VT-72B                   ARV                    1999                                           Deal worth $30.4 m

                                                                                                                                                                                                                                                           Indonesia          (9)        BMP-2                    IFV                    (1998)        1998                (9)          Possibly ex-Ukraine delivered via Slovak Republic
                                                                                                                                                                                                                                                                              11         BMP-2                    IFV                    (1999)        2000                11           Probably ex-Slovak Army

                                                                                                                                                                                                                                                           Pakistan           6          OT-64C SKOT-2A           APC                    (1993)        1993                6            Ex-Slovak; designation uncertain

                                                                                                                                                                                                                                                           Rwanda             (5)        RM-70 122mm              MRL                    (1996)        1997                5            Ex-Slovak

                                                                                                                                                                                                                                                           Sierra Leone       10         OT-64C SKOT-2A           APC                    (1993)        1994                10           Ex-Slovak

                                                                                                                                                                                                                                                           Syria              58         T-72M1                   Main battle tank       1992          1993                58           Part of deal for 252 T-72 tanks; first 194 delivered from Czechslovakia before 1993

                                                                                                                                                                                                                                                           Turkey             (72)       AT-5 Spandrel/9M113      Anti-tank missile      (1998)        1998                (72)
                                                                                                                                                                                                                                                           United Nations     67         OT-64C SKOT-2A           APC                    (1993)        1993                67           Ex-Slovak; designation uncertain; for UNPROFOR in Bosnia




acronyms used, are explained in SIPRI Yearbooks. Entries are alphabetical, by supplier, recipient and licensee.
                                                                                                                                                                                                                                                                              7          T-55                     Main battle tank       (1994)        1994–95             7            Ex-Slovak; modified to mine-clearing vehicle; for UNPROFOR in Bosnia

                                                                                                                                                                                                                                                           Uruguay            12         OT-64C SKOT-2A           APC                    (1999)        1999                (12)         Ex-Slovak; delivered via Czech Republic




way or completed during 1992–2001. ‘Year(s) of deliveries’ includes aggregates of all deliveries and licensed production
since the beginning of the contract. Sources and methods for the data collection, and the conventions, abbreviations and
                                                                                                                           60 This register lists major weapons on order or under delivery, or for which the licence was bought and production was under
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             9
10                              ARMS PRODUCTION , EXPORTS AND DECISION - MAKING IN CENTRAL AND EASTERN EUROPE



                                some goods had been traded from Slovakia to countries with potential terrorist links.61
                                During 1996 Slovakia was involved in a massive ammunition supply operation to
                                Afghanistan which involved the despatch of forty-five metric tonnes per day from
                                Bratislava airport. The shipments were undertaken by western aircraft and continued
                                for several months. Although all the consignments were for the then legitimate
                                Afghani Government, aircrew involved in these transfers have admitted to investiga-
                                tive journalists that some consignments were diverted to Taliban forces who were at
                                the time the opposition party.62 According to recent media reports, the Slovak Ministry
                                of Economy authorised the export of arms worth Sk62 million ($1.2 million) to
                                Afghanistan in the 1995–96 period.63 Exports were said to have included large-calibre
                                munitions and antitank missiles, including launchers.64
                                In April 1998, the Slovak newspaper SME reported that the aircraft repairs company
                                LOT Trencin, jsc had been involved in the breaking of the UN arms embargo against
                                Libya. The editorial office of SME claimed to have uncovered evidence that at the
                                beginning of 1998, 13 LOT employees had visited Libya. Their mission, according to
                                SME, was to service and repair L-29, L-39 and L-410 planes.65
                                In December 1998, a 42-tonne shipment of arms, ammunition and explosives was
                                scheduled and licensed for shipment from Slovakia to the government of Chad. The
                                shipment was actually delivered to Khartoum, Sudan, at that time under UN and EU
                                arms embargos. The UK Observer newspaper established that at least five arms flights
                                to Sudan took place: “Each flight was worth approximately $50,000 to Hermes, the
                                former Slovak state-owned arms manufacturer in Bratislava”.66
                                On 2 November 2001, the Director of the Slovak National Security Office stated: “As far
                                as the arms trade is concerned, we [Slovakia] don’t have a good name. Even the USA
                                has admitted that they are paying special attention to us in this field. What has made a
                                very negative mark in the world is that our arms dealers falsify licences and end-user
                                certificates and that they act as go-betweens supplying the world’s terrorist organisa-
                                tions with arms and weapon systems. A radical solution of this problem should be our
                                priority.”67
                                Bratislava airport, Slovakia’s only international airport, has been used as a hub for
                                illicit or ‘grey’ arms trafficking. Often described as one of the calmest airports in the
                                world, Bratislava International sees few regular flights a day and none at night, when
                                only a few personnel remain on duty. Most importantly, Slovak legislation does not
                                require a licence for reloading activities when transported goods do not remain on
                                Slovak territory for more than seven days.68 The situation has been exploited to
                                arrange arms transfers to conflict regions, in particular countries in Africa. However,
                                recent efforts by Slovak police have brought some results. In October 2001, for
                                instance, Slovak police seized a suspected illegal arms shipment at Bratislava airport
                                which had arrived in from Iran and was due to be transported on to Angola.69



    6.5.1 Small arms and        Official data provided to the UN COMTRADE database shows that Slovakia is a minor
 light weapons exports          exporter of small arms, with exports totalling less than $1 million annually.70 However,


                           61 The minister said: “I have information that between 1995 and 1996 there were goods which were exported to countries that
                                could have been used by individuals co-operating with people who commit terrorist actions.” ‘Angola-bound weapons
                                impounded in Bratislava’, Ed Holt, The Slovak Spectator, October 8–14 2001, vol 7, No 38.
                           62   Flight plans, airway bills and cargo manifests in the possession of Brian Johnson-Thomas.
                           63                               ˇ
                                The Czech news agency C TK reportedly obtained an official document by the Slovak Ministry of Economy showing that
                                exports to Afghanistan included large calibre munitions and antitank missile. Radio Slovensko [in Slovak], 1300 GMT,
                                7 October 2001.
                           64   Ibid.
                           65   SME (Slovak daily), 23 April 1998.
                           66   ‘British pilot flies arms to Sudan’, The Observer, 14 March 1999.
                           67   Op cit SME, 2 November 2001, p 5.
                           68   See section 6.2.3.
                           69   ‘Slovak police seize weapons’, Reuters, International Relations and Security Network, 3 October 2001.
                           70   COMTRADE, UN Customs Data; ‘Small Arms Survey 2001’, p 148.
                            SAFERWORLD ARMS & SECURITY PROGRAMME                                                                                     11


                            in the late 1990s, the country was involved in a number of highly controversial deals
                            involving the direct or indirect supply of SALW.
                            On 5 November 2001, a UN report on arms smuggling to Liberia was discussed by the
                            UN Security Council. The document detailed how 1,000 assault rifles produced in
                            Slovakia and exported to Uganda were illegally transferred to Liberia, a country under
                            a UN arms embargo, in November 2000 using forged end-user certificates. The report
                            describes how the weapons were supposed to be sent back from Uganda, the original
                            buyer, to the Slovak manufacturer because they did not correspond to the contract
                            specifications, but they were sold instead to a company in Guinea acting as a front for a
                            Liberian smuggling network.71 A second consignment of 1,250 pieces of small arms was
                            first impounded by Ugandan authorities and later kept in Uganda.72 Evidence was
                            unveiled of the involvement of a Slovak arms broker, Peter Jusko, in the illicit
                            trafficking through the provision of forged end-user certificates. The report also high-
                            lights the key role of Mr Jusko in another illegal arms transaction for the supply,
                            probably to Liberia, of two refurbished combat helicopters.73 The report concludes
                            that: “The occurrence of individuals associated with Joy Slovakia 74 and Pecos 75 in the
                            violation of the arms embargo against Liberia was systematic. Although these broker-
                            ing companies may have been used for arms deals to other embargoed countries or
                            non-state actors, individuals associated with the company played a very important role
                            in arming Liberia and Sierra Leone.” 76
                            In January 1999, the UK newspaper The Sunday Times reported that Sky Air Cargo
                            and Occidental Airlines (UK firms) had flown 400 tons of AK-47s and 60mm portable
                            mortars from Bratislava, Slovakia, to Sierra Leone rebels. Ostensibly destined for
                            Uganda, the weapons were flown to Liberia and Uganda, from where they were
                            shipped on to rebels in Sierra Leone.77
                            In December 1998, research carried out in the UK revealed that a UK airfreight
                            company made a series of arms shipments from Bratislava to Sudan. Although the
                            cargoes had been described as bound for the Republic of Chad, documents obtained
                            by The Observer newspaper, as well as interviews with aircrew members, showed that
                            the ultimate country destination was Sudan, a country under an EU arms embargo.78



6.5.2 Arms fairs and        Slovak defence firms take part regularly in military and defence technology
        exhibitions         exhibitions. The International Defence Equipment Exhibition (IDEE), which is held
                            in the Slovak city of Trencin, and the Brno IDET exhibition in the Czech Republic 79
                            are the most important international events for Slovak arms producers wishing to
                            present new equipment, liaise with foreign manufacturers and explore co-operation


                       71 ‘Letter dated 26 October 2001 from the Chairman of the Security Council Committee established pursuant to resolution
                            1343 (2001) concerning Liberia addressed to the President of the Security Council’, UNSC, S/2001/1015,
                            www.un.org/Docs/sc/committees/Liberia2/1015e.pdf, p 39.
                       72   Ibid.
                       73   In July 2000, the Slovak LOT helicopter plant signed a contract with the Defence Ministry of Kyrgyzstan for the refurbishment
                            of two helicopter gunships. However, Kyrgyzstan authorities were not aware of any repair contracts for helicopters in the
                            Slovak Republic. This was discovered only after the first helicopter had been repaired and transported to an unknown
                            destination, probably Liberia. In February 2001, Slovak customs authorities stopped the shipment of the second helicopter
                            to Kyrgyzstan on suspicion that it might be delivered to a country under a UN arms embargo. Later, Peter Jusko, presented
                            himself as a representative of the arms brokering company Pecos of Guinea and tried unsuccessfully to claim ownership of
                            the helicopter. Ibid pp 50–56.
                       74   The company changed its name into Morse sro in 1999, and has been connected to suspected illegal arms shipments to
                            UNITA rebel forces in Angola. ‘No questions asked: the Eastern European arms pipeline to Liberia’, Human Rights Watch
                            briefing paper, 15 November 2001.
                       75   A Guinea-based front company for illicit arms imports into Africa.
                       76   Ibid p 57. Mr Jusko, who was arrested following the publication of the UN report, was later released from custody when the
                            Banska Bystrica Regional Court expressed the opinion that there was no conclusive evidence justifying criminal proceedings
                            against the accused. ‘Slovak Court Releases Suspected Illegal Arms Dealer Jusko from Custody’ [in Slovak], SME,
                            14 December 2001, source: David Isenberg’s Weapons Trade Observer.
                       77   ‘British firms arming Sierra Leone rebels’, The Sunday Times, 17 January 1999.
                       78   The airway bill for one of the flights details deliveries of arms between the Slovak arms supplier Hermes, the supposed
                            destination of Ndjamena in Chad and the final end-user, the MoD in Chad. However, the Aircrew General Declaration, which
                            was filed by the mostly British aircrew for this flight, reveals the destination to be Khartoum in Sudan. Destination unknown –
                            strengthening end-use monitoring and control over arms exports (Amnesty International UK and Oxfam), December 2000,
                            pp 39–43.
                       79   See section 2.5.2, chapter 2.
12                   ARMS PRODUCTION , EXPORTS AND DECISION - MAKING IN CENTRAL AND EASTERN EUROPE



                     agreements. In particular, IDEE, which is held every two years, has attracted increasing
                     interest from foreign exhibitors together with a growing number of Slovak partici-
                     pants and visitors. There were 105 exhibitors in 1994, 127 exhibitors in 1996 and 1998
                     and 141 in 2000. The Slovak Ministries of Defence, Economy and Foreign Affairs are
                     involved at varying levels in the organisation of IDEE, and the Association of Defence
                     Industry of the Slovak Republic and DMD holding jsc also assist in the exhibition’s
                     preparation.
                     Since the mid-1990s the participation of Slovak arms manufacturers and exporters in
                     international exhibitions has been supported by government agencies.80 This
                     approach did not change after the election of the new government in 1998 and Slovak
                     defence industry representatives take part in the majority of the world’s biggest and
                     most important arms fairs. The first significant and co-ordinated Slovak participation
                     in a foreign arms exhibition was in March 1997 at the Third International Exhibition
                     IDEX in Abu Dhabi. Slovak firms were also represented at the fourth and fifth
                     exhibitions in 1999 and 2001 respectively.
                     The table opposite details the attendance of Slovak arms companies at the main
                     defence industry exhibitions.




6.6 Conclusions      After separating from the Czech Republic in 1993, Slovakia faced the challenges of
                     adopting a national legislation on arms exports and building up the state institutions
                     responsible for implementing arms export controls. The current Slovak administra-
                     tion has taken some important steps towards strengthening policies regulating the
                     arms trade, improving the enforcement of regulations and becoming more active in
                     the field of disarmament and non-proliferation. In addition, the government’s drive to
                     join the EU has opened up a new general level of openness and dialogue with EU
                     countries that had been missing under the isolationist stance of Prime Minister Meciar
                     in the mid-90s. These are important developments but much more needs to be done.
                     Slovak legislation has yet to incorporate international standards to which the country
                     has committed itself, in particular, criteria relating to human rights, conflict preven-
                     tion and the risk of diversion, and regulatory enforcement needs strengthening. In
                     order to achieve its ambition of full membership of the EU and NATO, the Slovak
                     Republic is required to fulfil certain criteria. While not explicitly part of the accession
                     negotiations, one important aspect of these criteria is progress towards establishing
                     arms export controls in line with EU standards. Although Slovakia has agreed to abide
                     by the 1998 EU Code of Conduct on Arms Exports, no practical steps have so far been
                     taken to implement its provisions. For a number of years, one of Slovakia’s main arms
                     recipients has been Angola, a country involved in regional conflict and with a very
                     poor human rights record. Legal loopholes, in particular a provision that allows
                     weapons to transit through the Slovak territory for up to seven days without a govern-
                     ment licence, have been exploited by international brokers to arrange arms transfers to
                     conflict regions, in particular countries in Africa. In addition, serious flaws in Slovak
                     end-user controls, both before and after exports have taken place, were highlighted in
                     an October 2001 UN report.
                     The Bratislava government maintains that it has halted all suspicious arms trans-
                     actions and regularly checks the authenticity of the documents provided. However, the
                     UN report has highlighted the inadequacy of such controls and the urgent need for the
                     Slovak authorities to review current practice and verify that the arms exported are in
                     fact delivered to the authorised destinations. Such concerns have also found an echo in


                  80 In 1997, the Slovak Minister of Defence, J Sitek, stated that “co-ordinated Slovak presentation at international exhibitions
                     signifies support of the government to our manufacturers and traders in military equipment”, Slovenska Republika,
                     30 April 1997.
                                             Arms Fair
                                             Africa              Defence
                                             Aerospace           Services              Euro-                                                                                 MSPO/
                                             & Defence Defendory Asia                  Satory   Expomil   FIDAE   Hemus      Ideas      IDEF     IDET       IDEX   Milipol   IDIE     Shot Show
                                                                                                                                                 Czech
  Company                                    South Africa Greece            Malaysia   France   Romania   Chile   Bulgaria   Pakistan   Turkey   Republic   UAE    France    Poland   USA
  DMD Holding AS                                            1998            2000       2000                                                      2001       2001
  Hermes as                                                                                                                                      2001
  Kerametal Co Ltd                                                                                                                      1997     2001       2001
  Konstrukta Defence –
  Industry as                                                                                                                                    2001       2001
  Metapol as                                                                                                                                                2001
  Povazske Strojarne (PS)                                                                                                                        1999
  Technopol jsc Bratislava                                                                                                                       1999       2001
                                                                                                                                                                                                  SAFERWORLD ARMS & SECURITY PROGRAMME




  Unimpex Ltd                                                                                                                                               2001
  Vustam as                                                                                                                                      2001
  Zavody Tazkeho Strojarstva                                                                                                                     1999
  ZTS – Dubnica nad Vahom
  plus, as                                                                                                                                       2001
  ZTS Tees Martin sp                                                                                                                                        2001
  ZVS Sp (Dubnica) Zavody
  vseobecneho strojarstva as                                                                                                                     1999



Note: This table only provides an illustration of the companies that have
attended a selection of MSP exhibitions (Military, Security, Police)
between 1990 and 2001. It does not provide a totally comprehensive list
of companies or exhibitions. Many companies will have attended other
exhibitions and may have attended the selected exhibitions in different
years.
Table provided by the Omega Foundation.
                                                                                                                                                                                                  13
14      ARMS PRODUCTION , EXPORTS AND DECISION - MAKING IN CENTRAL AND EASTERN EUROPE



        recent statements by the Director of the Slovak National Security Office who high-
        lighted the need for radical changes. Some moves towards strengthening controls have
        been made. Law enforcement and legislative measures to address the problem have
        seen some high profile arrests, and hopefully the upcoming introduction of new
        regulations on arms trade licensing will also prove successful in combating illicit and
        ‘grey’ trafficking.
        There is wide scope to increase transparency on the production, storage and transfer
        of Slovak arms. With the exception of the data provided to the UN Register on
        Conventional Arms and limited statistics made available in the form of press state-
        ments by the Ministry of Economy, additional information on arms exports remain
        secret. There are no reporting mechanisms that provide parliament and the public
        with information on the authorisation of arms exports and their consignments.
        Under current laws, commercial arms trade information is treated as state secret.
        Of particular concern is the adoption in May 2001 of a new law on ‘Protection of Secret
        Matters’,81 which states that “data on import and export of military equipment or other
        strategic materials, technologies and installations” is secret.




     81 Act No. 919/2001.
                          SAFERWORLD ARMS & SECURITY PROGRAMME                                                               15



6.7 Appendices
   6.7.1 Appendix 1       Act NO 179
                          of May 15, 1998
                          unofficial translation82

                          On Trading With Military Equipment and On Supplement to the Act No. 455/1991
                          of the Coll. – On Small Businesses (The Small Businesses Act) as amended later by
                          relevant regulations
                          The National Council of the Slovak Republic has adopted the following act:


                          ARTICLE I

                          Title One: BASIC PROVISIONS
                          Paragraph 1 Subject of the act
                          The act stipulates conditions of trading with military equipment and operation of state
                          administration authorities in this field.
                          Para 2 Ban on Trade with Weapons of Mass Destruction
                          It is banned to trade with weapons of mass destruction, such as nuclear, chemical and biological
                          weapons.
                          Para 3 Basic Terms
                      (1) For the purposes of this act the terms have the following meaning:
                          a) trading with military equipment is the sale of military equipment or purchase of military
                             equipment for purposes of its resale to the user implemented by authorised entities;
                          b) the authorised entity is the legal entity that
                             1. has a registered office on the territory of the Slovak Republic, has a permit to trade with
                                  military equipment and also a valid licence with respect to every single importation or every
                                  single exportation;
                             2. is the producer of military equipment and has a permit to trade with military equipment
                                  (§ 10); and has a licence granted (§ 16) in case of exportation of military equipment from the
                                  territory of the Slovak Republic or importation of military equipment to the territory of the
                                  Slovak Republic for one’s own needs;
                          c) the Licensing Commission is a specialised and advisory body expressing itself on granting of a
                             licence, on dismissal of a licence, on cancelling and withdrawal of a licence. The statute and
                             composition of members of the advisory body are approved by the Government1 of the Slovak
                             Republic based on a proposal of the Minister of Economy of the Slovak Republic.
                      (2) Even the written manifestation of the will of authorised entities leading to execution of contracts2
                          that stipulate the given relations pursuant to paragraph 1,
                      (3) subparagraph a) is for the purposes of this act considered as trading with military equipment.
                          Para 4 Military Equipment
                      (1) The military equipment are in particular
                          a. products, their parts, accessories and spare parts that taking into consideration their character-
                             istic technical and design features are specifically assigned for use in armed forces, in armed
                             security forces and in other armed forces and that are used en masse for securing of tasks of
                             defence and security of the state;
                          b. machinery, equipment and capital investment units produced, modified, equipped or designed
                             specifically for military purposes, in particular for development, production, control and test-
                             ing of other products, their parts and spare parts stated under subparagraph a),
                          c. services provided in connection with the military equipment stated in subparagraphs a) and b),
                             in particular implementation of repairs, modifications, storage and transportation of the
                             equipment, as well as providing of information, sending of experts for the purposes of research,
                             development, design, production, modifications, repair, use and control of military equipment,
                             with the exception of those that are subject to a special regime3.
                      (2) The military equipment stated in paragraph 1 falls into the following categories:
                          a. small calibre and large calibre weapons;
                          b. ammunition;
                          c. bombs, torpedoes, missiles and mines, rockets, as well as their parts and components;
                          d. military explosives and fuel;
                          e. tanks, armed and other technical vehicles assigned for the use in armed forces, in armed
                             security forces and in other armed forces;



                       82 www.projects.sipri.se/expcon/natexpcon/Slovakia/slk179.htm.
16         ARMS PRODUCTION , EXPORTS AND DECISION - MAKING IN CENTRAL AND EASTERN EUROPE



         f. aircraft and helicopters, unmanned aircraft (vehicles), aircraft engines and equipment of
             aircraft and helicopters and ground facilities connected with them;
         g. military ships of all kinds and special navy equipment;
         h. electronic equipment being a part of weapons;
         i. photographic, electro-optical, infrared and thermal image instruments and equipment;
         j. software equipment, specially developed or modified for development, production or use of
             equipment or equipment for the needs of defence and security of the state;
         k. special equipment for military training or simulation of combat situations;
         l. supplementary military equipment;
         m. capital investment units, technological equipment and machinery designed for production of
             military equipment stated under the previous subparagraphs,
         n. services provided in connection with military equipment.
     (3) The list of military equipment pursuant to paragraph 1 and more detailed categorisation pursuant
         to paragraph 2 shall be stipulated in a generally binding legal regulation issued by the Ministry of
         Economy of the Slovak Republic (hereinafter only “Ministry of Economy”), after reaching an
         agreement with the Ministry of Defence of the Slovak Republic (hereinafter only “Ministry of
         Defence”), Ministry of Interior of the Slovak Republic (hereinafter only “Ministry of Interior”),
         and Ministry of Foreign Affairs of the Slovak Republic (hereinafter only “Ministry of Foreign
         Affairs”).

           Title Two: GRANTING OF PERMISSION TO TRADE WITH MILITARY EQUIPMENT
           Para 5 Trading with Military Equipment
     (1) An authorised entity can trade with military equipment on the basis of a permit for trading with
         military equipment (hereinafter only “permit”) under conditions stipulated in § 6.
     (2) The Ministry of Economy shall decide on issuing of a permit to an authorised entity after
         obtaining the opinion of the Ministry of Foreign Affairs from the point of view of the foreign
         policy interests of the Slovak Republic, of the Ministry of Defence and the Ministry of Interior
         from the point of view of security interests of the Slovak Republic.
     (3) Central bodies of state administration stated in paragraph 2 shall express themselves on the
         application in writing in the period of 30 days from the date of delivery of the duplicate of the
         application, and in case the central bodies of state administration stated under paragraph 2 do not
         express themselves on that, it is understood they agree to issue the permit.
           Para 6 Conditions of Issue of a Permit
           The Ministry of Economy can issue a permit for trading with military equipment, in case
      a.   the equity capital of the applicant for the permit consists of more than 51 percent of contributions
           received from domestic entities,
      b.   the statutory body or a member of the statutory body, the proxy and the responsible representative
           of the applicant asking for the permit is at least 25 years old, is a citizen of the Slovak Republic and
           has place of permanent residence on the territory of the Slovak Republic, has capacity of legal acts
           and is a reliable person of integrity,
      c.   conditions stipulated under subparagraph b) must be fulfilled also with respect to the founder, the
           promoter, or, as the case may be, the founding member of the legal entity,
      d.   the applicant is obliged to prove to the Ministry of Economy the fulfilment of conditions stated
           under subparagraphs a) and b) when submitting the application. In case any changes occur with
           regard to the applicant after the application was submitted, the applicant is obliged to inform the
           ministry about those changes within 30 days from their implementation.
           Para 7 Responsible Representative
     (1) For the purposes of this act under the responsible representative is understood to be the natural
         person appointed by the authorised entity, who is responsible for due performance of
         entrepreneurial activities pursuant to this Act and regulations based on it.
     (2) The responsible representative must fulfil conditions stated in § 6, subparagraph b) and must have
         an academic education in the given field of enterprise.
     (3) The responsible representative can carry out the function of the responsible representative only for
         one authorised entity.
     (4) The responsible representative must be in a labour law type of a relationship with the authorised
         entity and cannot be a member of the Supervisory Board of the authorised entity.
     (5) In case the responsible representative ceases to fulfil his/her function, the authorised entity/
         individual to whom the permit was granted, has to appoint within 15 days at the latest a new
         responsible representative, and ask the Ministry of Economy to change the permit accordingly.
         In case this obligation is not fulfilled, the Ministry of Economy shall invalidate the permit.
           Para 8 Reliable Person of Integrity
         The reliable person of integrity is the one who has not been
      a. lawfully sentenced for a deliberate and premeditated criminal offence,
      b. lawfully sentenced for a criminal offence committed by negligence the body of which is connected
         with the activities that are subject of licensing procedure.
    SAFERWORLD ARMS & SECURITY PROGRAMME                                                               17

    Para. 9 Application for Issuing of the permit
(1) The application for issuing of the permit contains
    a. commercial name and registered office of the applicant for the permit,
    b. name, surname, place of permanent residence and birth number of the statutory body or of its
       member stating the manner in which he acts in the name of the applicant for the permit,
    c. identification number and tax identification number of the applicant for the permit,
    d. scope of entrepreneurial activities of the applicant asking for the permit,
    e. specification of the military equipment, pursuant to § 4, par. 2, which is to be subject of trade,
    f. proposed duration of validity of the permit.
(2) The application for the permit must be accompanied with
    a. Deed or Instrument of Foundation or Establishment of the legal entity, with certified signatures
       of founders or promoters, with regard to those entities that are incorporated in the Commercial
       Register by the extract from the Commercial Register that is not older than three months,
    b. document proving fulfilment of conditions stated in § 6, subparagraphs b) and c),
    c. an extract, not older than three months, from the criminal record register of the statutory body,
       the proxy and the responsible representative ,
    d. document on academic (higher) education of the responsible representative, pursuant to § 7,
       par. 2 of this Act,
    e. documents concerning financial arrangement of the trade with military equipment (§ 6), the
       closing of books (annual closing financial statements) not older than two months certified by
       an auditor,
    f. declaration of the applicant that the applicant is neither in bankruptcy4 nor in settlement
       proceedings,
    g. declaration that the applicant shall enable implementation of inspection on locations and in
       facilities in which the military equipment is located, within the extent stipulated by this act and
       international treaties by which the Slovak Republic is bound.5
(3) The application for the permit pursuant to paragraphs 1 and 2 is submitted to the Ministry of
    Economy in four duplicates. The application specimen shall be provided by the Ministry of
    Economy.
    Para 10 Permit
(1) The Ministry of Economy can issue the permit in case the opinions of central bodies (§ 5, par. 2) are
    affirmative and in case the application is in harmony with requirements stated in § 9 within 60 days
    from the application delivery date.
(2) There shall be stated in the decision on the permit :
    a. commercial name, registered office, identification number and tax identification number of the
        applicant for the permit,
    b. subject of enterprise ,
    c. specification of the military equipment, pursuant to § 4, par. 2,
    d. name and address of the responsible representative,
    e. period of validity of the permit not longer than five years,
    f. other terms and conditions necessary for trading with military equipment.
(3) The legal entities to which the permit was issued can trade with military equipment since the date
    of incorporation of the subject of activities into the Commercial Register: in case of enterprise with
    military equipment by a budgetary organisation6 at the earliest on the date when the decision
    becomes valid.
    Para 11 Dismissal of Application for Issuing of the Permit
    The Ministry of Economy shall dismiss application for issuing of the permit in case
 a. the conditions for issuing of the permit stated in § 5, 6 and 9 of this act are not fulfilled,
 b. one year has not expired since issuing of the decision on not granting the permit or since the
    permit for trading with military equipment expired,
 c. three years have not expired from conclusion of bankruptcy4, after confirmation of settlement and
    the compulsory settlement or decision of the court of law, concerning dismissal of the motion to
    declare bankruptcy for insufficient assets.
    Para 12 Permit Expiration and Cancellation
(1) The permit shall expire
    a. by cessation of the legal entity to which the permit was issued,
    b. by notice of the authorised entity announcing the termination of performance of authorised
       activities,
    c. by expiration of the period of permit’s validity.
(2) The Ministry of Economy shall cancel the permit in case
    a. it was issued based on false or incomplete data,
    b. the authorised entity has ceased to fulfil preconditions for granting the permit,
    c. in case foreign policy and security interests of the Slovak Republic require so,
    d. by a decree of bankruptcy, permission to settlement or compulsory settlement or decision of
18       ARMS PRODUCTION , EXPORTS AND DECISION - MAKING IN CENTRAL AND EASTERN EUROPE



            the court of law, concerning dismissal of the motion to declare bankruptcy due to insufficient
            assets.
         Para 13 Returning of the Permit
         In case a legal entity that performs entrepreneurial activities based on a permit ceases to exist, it is
         obliged to return the permit to the Ministry of Economy within 30 days from the date of its
         cessation.

         Title Three: CONDITIONS OF GRANTING A LICENCE AND ITS USE
         Para 14 Licences
     (1) The legal entity to whom the permit was issued pursuant to § 10 can import military equipment
         (§ 4, paragraphs 1 and 2) for the needs of defence and security of the Slovak Republic and for the
         needs of the local producer, in order to secure final production of the military equipment, it can
         export the military equipment set aside from the armed forces records, armed security corps and
         from the domestic producer of the military equipment or trade with it abroad only based on,
         within the extent and under preconditions determined in this act and the licence granted pursuant
         to this act.
     (2) The legal entity stated in paragraph 1 is obliged to apply for a licence for each importation, for each
         exportation and for each other type of disposal with the military equipment abroad, for each
         specific category and the specific amount of the military equipment.
         Para 15 Application for Licence
     (1) The application for granting a licence (hereinafter only “application for licence”) must be
         submitted to the Ministry of Economy by the applicant that was has a permit for trading with
         military equipment (hereinafter only “applicant for the licence”).
     (2) The applicant submits the application for the licence based on contract with foreign partner
         concerning trade with the specific category and amount of the military equipment.
     (3) The applicant for the licence as a participant of the international public tender concerning
         importation, exportation and other trading with military equipment abroad, fulfilling conditions
         of § 6 and 14, can submit the application for the licence after being asked to submit the offer within
         the public tender.
     (4) The application for the licence contains:
         a. commercial name and registered office of the applicant,
         b. identification number of the applicant,
         c. commercial name and registered office or the name and the place of enterprising of the foreign
             contractual partner,
         d. number of the permit for implementation of trade with military equipment,
         e. number, or, as the case may be, item or sub-item of the combined nomenclature of the Customs
             Tariffs,7
         f. the name of the military equipment, pursuant to the list of the military equipment and its
             amount,
         g. proposed period of validity of the licence,
         h. name of the state from which the military equipment is to be imported or from which it is to be
             exported or in which disposal with the military equipment is implemented even without a
             transit through the territory of the Slovak Republic,
         i. purpose of importation or exportation, or, as the case may be, other disposal with the military
             equipment,
         j. price8 for a unit of the amount of imported or exported military equipment and the total agreed
             price in Slovak crowns,
         k. name and registered office of the final user and the name, surname and address of its statutory
             body,
         l. the manner of transportation and delineation of transport routes on which the military
             equipment should be imported or exported,
         m. declaration of the applicant certified by a body of the respective state that the military equip-
             ment will not be used contrary to internationally recognised, as well as by the Slovak Republic
             agreed obligations serving for protection of peace: non-fulfilment of the stated obligation can
             be penalised pursuant to § 25, par. 2, subparagraph b) of this act,
         n. approval of producer or owner of the military equipment.
     (5) The following must be attached to the application licence:
         a. documents stated in paragraphs 2 and 3,
         b. with regard to exportation of the military equipment a document concerning the final user of
             the military equipment confirmed by the respective central authority of the state of the final
             user, the validity of which cannot exceed six months from the date of issue of the document and
             that contains
             1. name of the central authority of the country of the customer,
             2. commercial name of the Slovak exporter which is charged by the central authority of the
                 consumer with supplies of the military equipment,
             3. commercial name of the importer into the country of the customer that supplies the
                 military equipment to the customer
    SAFERWORLD ARMS & SECURITY PROGRAMME                                                                19


       4. exact specification of the military equipment,
       5. anti-re-export clause,
       6. name and surname of the representative of the central authority of the country of the
           customer in legible writing, and imprint of the seal of the central authority of the country
           of the customer.
    c. in case of re-export of the military equipment the application for the import licence together
       with the application for export licence,
    d. other documents enabling the detailed examination of the given case, if the Ministry of
       Economy asks for it,
    e. declaration of the applicant for licence that the applicant shall enable performing of inspections
       in places and facilities in which the military equipment is located, within the extent stipulated
       by this act and international treaties by which the Slovak Republic is bound,
    f. affirmative opinion of the Ministry of Defence or the Ministry of Interior in case of exportation
       of the military equipment that is discarded from their records and the affirmative opinion of
       the Ministry of Defence or the Ministry of Interior in case of imports of the military equipment
       for the needs of defence and security,
    g. valid contract executed by and between the applicant and the local producer, in case the
       applicant as such is not the producer.
(6) The licence application specimen shall be provided by the Ministry of Economy.
    Para 16 Granting of Licence
(1) The Ministry of Economy shall decide on grating of the licence after the prior affirmative opinion
    of the Licensing Commission (§ 3, par. 1, subparagraph c)) within 30 days from the delivery of the
    application for licence.
(2) In special cases, when it is necessary to verify facts stated in the application concerning granting of
    the licence through the representative offices (embassies) of the Slovak Republic abroad, the period
    for the decision about the application can be prolonged accordingly, but at most until 60 days from
    filing the application.
(3) Decision concerning granting of the licence contains
    a. commercial name, registered office, identification number of the applicant,
    b. number of permit for trading with the military equipment,
    c. numerical designation of the item or sub-item of the combined nomenclature of the Customs
        Tariffs,5)
    d. name and specification of the military equipment, its quantity and unit price, together with the
        total agreed price of the military equipment in Slovak crowns,
    e. country of origin, country where trade is implemented, commercial name and registered office
        or the name and place of enterprise of the foreign partner and the final consumer of the
        military equipment,
    f. period of validity of the licence,
    g. other terms and conditions for trading with the military equipment, as requested by the
        Ministry of Economy.
(4) There shall be allocated place for records of the customs authorities9 concerning extent of use of
    the granted single licence in specific units.
    Para 17 Obligations of the Applicant for Granting of Licence
(1) The applicant to whom the licence was granted informs the Ministry of Economy in writing about
    the use of the licence, always until the 25th day following after the end of a calendar quarter year.
(2) The applicant who was granted the licence is obliged to submit the original of the licence to the
    respective customs authority, otherwise the military equipment shall not be released for
    exportation or importation.
(3) The applicant shall return the original of the decision concerning granting of the licence within
    30 days after
    a. fulfilment of the purpose for which it was issued,
    b. termination of its validity.

    Para 18 Statement Concerning Final User
    The Ministry of Economy shall issue the statement concerning the final user of the military
    equipment imported to the territory of the Slovak Republic for needs of foreign entities.

    Para 19 Dismissal of Application Concerning Licence
    The Ministry of Economy shall decide on dismissal of licence application in case
 a. the applicant has not fulfilled conditions pursuant to § 15,
 b. it is justified by foreign policy and security interests of the Slovak Republic,
 c. three years have not expired since the issue of the decision on not granting the licence or since the
    licence for trading with military equipment expired, and circumstances that have led to dismissal
    of the application have not changed,
 d. the Licensing Commission (§ 3, par. 1, subparagraph c) gave a negative statement.
20       ARMS PRODUCTION , EXPORTS AND DECISION - MAKING IN CENTRAL AND EASTERN EUROPE



         Para 20 Licence Cancellation and Withdrawal
     (1) The Ministry of Economy shall decide on cancellation and withdrawal of the granted licence after
         affirmative standpoint of the Licensing Commission, in case the trade with the military equipment
         has not been implemented yet or has not yet been completed and
         a. the licence was granted based on false or incomplete data,
         b. it is justified by foreign policy and security interests of the Slovak Republic,
         c. conditions stated in the granted licence have not been observed,
         d. the permit for trading with the military equipment expired,
         e. the authorised entity violated, when trading with military equipment abroad, or in this connec-
             tion, legal regulations of the Slovak Republic or international treaties and other international
             documents by which the Slovak Republic is bound in this field.
     (2) In cases stated in par. 1, subparagraphs a), c), d) and e) the state is not responsible to the authorised
         entity to which the licence was granted for contingent damage caused to the latter by licence
         cancellation and withdrawal.
         Para 21 Important Military Equipment
     (1) In case of the military equipment important from point of view of its combat use or its quantity
         (hereinafter only “important military equipment”) the applicant can ask for the preliminary
         approval to negotiate with the foreign partner before submitting the application for licence.
     (2) It is necessary to state in the application for preliminary approval the facts stated in § 15, par. 4.
     (3) The preliminary approval does not have the character of a decision pursuant to a special
         regulation10. The preliminary approval determines conditions for negotiations with a foreign
         partner before being granted a licence and it does not substitute for a licence.
     (4) The list of significant military equipment, pursuant to paragraph 1 shall be stipulated by a generally
         binding legal regulation that shall be issued by the Ministry of Economy, after reaching an agree-
         ment with the Ministry of Defence, the Ministry of Interior and the Ministry of Foreign Affairs by
         a generally binding regulation.
         Para 22 Exceptions from Granting of Licences
         Licences are not required for:
      a. exportation of the military equipment and disposal with the military equipment in connection
         with operations of the armed forces of the Slovak Republic and of the Police Corps outside the
         territory of the Slovak Republic, pursuant to international treaties and agreements the Slovak
         Republic is bound with.
      b. importation of the military equipment and disposal with the military equipment in connection
         with operations of the armed forces and armed corps of other countries, the UN and other inter-
         national organisations on the territory of the Slovak Republic, pursuant to international treaties
         and agreements the Slovak Republic is bound with.
      c. transit of the military equipment through the territory of the Slovak Republic transported in the
         regime of transit of the Slovak Republic, in case the transit is implemented in the period of up to
         seven days,
      d. exportation or importation of the military equipment, in case this is the military equipment which
         is proposed for the regime of active improvement traffic11 under conditional system or the passive
         improvement traffic,12
      e. importation and re-exportation of the military equipment, in case this is the military equipment
         proposed into the regime of temporary use and the recipient of this military equipment is the
         Ministry of Defence or the Ministry of Interior.

         Title Four: SUPERVISION
         Para 23 Inspection of Trading with Military Equipment
     (1) Supervision over observation of this act by authorised entities is implemented by the Ministry of
         Economy; the Ministry of Economy is entitled to carry out inspection of both legal entities as well
         as natural persons about which there is justified the presumption that they trade with the military
         equipment (hereinafter only “inspected entity”).
     (2) The Ministry of Economy performs the supervision, pursuant to paragraph 1, through its appoint-
         ed employees, as well as invited natural persons. When implementing the inspection the author-
         ised employees of the Ministry of Economy proceed in accordance with a special regulation.13
     (3) International inspectors that carry out inspection pursuant to paragraph 1, based on international
         treaties by which the Slovak Republic is bound, can implement such an inspection only when being
         accompanied by an appointed employee of the Ministry of Economy.
     (4) The inspected entities are obliged, with regard to appointed employees of the Ministry of
         Economy, the invited natural persons and international inspectors when implementing their
         inspection pursuant to paragraph 1
         a. to submit all documents and written materials related to the subject of the inspection,
         b. to enable inspection of facilities in which the military equipment is either located or it is
             justifiably assumed that it is located there.
     (5) The inspected entity has the right to become acquainted with the content of the protocol,14 to
    SAFERWORLD ARMS & SECURITY PROGRAMME                                                                 21


    receive a duplicate of the protocol describing results of the inspection and to express oneself to its
    content in the given period of time.
(6) Inspections implemented pursuant to special regulations15 are without prejudice to provisions of
    the previous paragraphs.
    Para 24 Co-operation of the Third Parties
(1) To safeguard supervision over observation of this act, the Ministry of Economy is entitled to
    request from other state bodies or from legal entities that maintain records concerning property of
    the authorised entities trading with military equipment or records concerning authorised entities
    requesting the permit to trade with military equipment, the data necessary for execution of the
    supervision.
(2) Central bodies of state administration are obliged, on request, to inform the Ministry of Economy
    on results of inspections carried out by them concerning trading with military equipment.
    Para 25 Infliction of Fines
(1) The Ministry of Economy shall inflict a fine from SK10,000 to SK100,000 to the one that violates
    provisions of the law by refusing to enable execution of inspection control without serious reasons.
(2) The Ministry of Economy shall inflict a fine from SK100,000 to SK5,000,000 to anyone that
    a. conceals circumstances important for the decision with a view to acquiring an unjustified
        permit or licence,
    b. attaches a false document to the application for an issued permit and a granted licence (§ 15),
    c. trades with military equipment without an issued permit (§ 10) and a granted licence (§ 16) or
        contrary to them.
(3) The Ministry of Economy shall lay on a fine from SK1,000,000 to SK10,000,000 to the one that
    a. inflicts upon the Slovak Republic due to acting stated in paragraph 1 material damage of
        considerable extent,
    b. damages an important foreign policy and security interest of the state.
(4) The amount of the fine laid on pursuant to paragraphs 1, 2 and 3 shall be determined by the
    Ministry of Economy taking into consideration
    a. extent, significance and time of endangerment of foreign policy and security interests of the
        state,
    b. the material amount of the damage caused by unlawful acts.
(5) The fine can be laid on within one year from the date when the Ministry of Economy received
    information on violation of the law, but at the latest within three years since the date when the
    violation occurred.
(6) The fine is payable within 30 days from the date when the decision by which it was laid on becomes
    valid, and it represents a income of the state budget.

    Title Five: COMMON AND TEMPORARY PROVISIONS
    Para 26
    The employee of the state authority that immediately participated in execution of this act and is
    obliged to observe secrecy cannot be an employee or a member of the executive and supervisory
    bodies of other legal entities authorised to trade with military equipment during the period of one
    year since terminating the labour law relationship with the state authority.
    Para 27 Temporary Provisions
(1) The legal entity and natural person that, as of the date when this act becomes effective, is the holder
    of the Small Businesses Licence16 and licences for trading with military equipment can continue to
    pursue the trade (execution of trading contracts) during three months since the date when this act
    becomes effective. The authorised person is obliged to submit within a month an application for a
    permit to trade with military equipment in accordance with this act.
(2) The Small Businesses Licences and official permits for trading with military equipment issued
    pursuant to special regulations before the deadline stated in paragraph 1 expire herewith.
(3) The armed forces, the armed security corps and other armed corps shall proceed pursuant to this
    act when trading with military equipment.


    ARTICLE II

    The Act No 455/1991 of the Coll – On Small Businesses (Small Businesses Act) as worded by the Act
    No. 231/1992 of the Coll, the Act No 600/1992 of the Coll, the Act of the National Council of the
    Slovak Republic No 132/1994 of the Coll, the Act of the National Council of the Slovak Republic
    No 200/1995 of the Coll, the Act of the National Council of the Slovak Republic No 216/1995 of the
    Coll, the Act of the National Council of the Slovak Republic No 233/1995 of the Coll, the Act of the
    National Council of the Slovak Republic No 123/1996 of the Coll, the Act of the National Council of
    the Slovak Republic No 164/1996 of the Coll, the Act of the National Council of the Slovak Republic
    No 222/1996 of the Coll, the Act of the National Council of the Slovak Republic No 289/1996 of the
    Coll, the Act of the National Council of the Slovak Republic No 290/1996 of the Coll, the Act
    No 288/1997 of the Coll, the Act No 379/1997 of the Coll, the Act No 70/1998 of the Coll, the Act
22       ARMS PRODUCTION , EXPORTS AND DECISION - MAKING IN CENTRAL AND EASTERN EUROPE



         No 76/1998 of the Coll, the Act No 126/1998 of the Coll, the Act No 129/1998 of the Coll, the Act
         No 143/1998 of the Coll and the Act No 144/1998 of the Coll is supplemented as follows:
     (1) 1. In § 3, paragraph 2 is supplemented with subparagraph y) that is worded as follows: “trading with
         the military equipment”.



         ARTICLE III

         This act becomes effective as of July 1 1998.

         Notes
      1 § 34, subparagraphs a) of the Act of the Slovak National Council No 347/1990 of the Coll – On
        Organisation of Ministries and Other Central Authorities of State Administration of the Slovak
        Republic – as later amended by respective regulations.
      2 § 289 of the Commercial Code.
      3 Act No 547/1990 of the Coll – On Disposal of Some Types of Goods and Technologies and Their Control
        (Inspection).
      4 Act No 328/1991 of the Coll – On Bankruptcy and Settlement – as later amended by respective
        regulations.
      5 For example, Convention on Prohibition of Development, Production, Accumulation and Use of
        Chemical Weapons and on Their Destruction (Notification No 276/1997 of the Coll)
      6 § 36, par. 1 of the Act of the Slovak National Council No 303/1995 of the Coll – On Budgetary Rules – as
        later amended by respective regulations.
      7 The Decree of the Government of the Slovak Republic No 390/1997 of the Coll by which the Customs
        Tariffs are promulgated.
      8 The Act of the National Council of the Slovak Republic No 18/1996 of the Coll – On Prices.
      9 Act of the National Council of the Slovak Republic No 180/1996 of the Coll – Customs Act – as later
        amended by respective regulations.
     10 Act No 71/1967 of the Coll – On Administrative Procedures (Rules of Administrative Procedure)
     11 § 122 of the Act of the National Council of the Slovak Republic No 180/1996 of the Coll – Customs Act –
        as later amended by respective regulations.
     12 § 157 of the Act of the National Council of the Slovak Republic No 180/1996 of the Coll – Customs Act –
        as later amended by respective regulations.
     13 Act of the National Council of the Slovak Republic No 10/1996 of the Coll – On Inspection (Control) in
        State Administration.
     14 § 13 of the Act of the National Council of the Slovak Republic No 10/1996 of the Coll
     15 For example the Act of the National Council of the Slovak Republic No 180/1996 of the Coll, as later
        amended by respective regulations.
     16 Annex 3 of the Act No 455/1991 of the Coll – Act on Small Businesses (Small Businesses Act) – as later
        amended by respective regulations.
                      SAFERWORLD ARMS & SECURITY PROGRAMME                                                                 23


6.7.2 Appendix 2      Statement by Mr Jan Figel83
                      State Secretary of the Ministry of Foreign Affairs of the Slovak Republic
                      and the Head of Delegation of the Slovak Republic
                      at the United Nations Conference on Illicit Trade in Small Arms and Light
                      Weapons in All Its Aspects
                      New York, July 10, 2001

                      Mr President,
                      At the outset, I would like to congratulate you on your election as president of the conference. I am
                      confident that your vast experience and diplomatic skills will guarantee its successful results. I wish
                      you every success in this crucial and demanding undertaking in which, I would like to assure you,
                      my delegation will assist and support you.
                      Also, let me express on behalf of my delegation our appreciation and gratitude to Mr Carlos Dos
                      Santos, Chairman of the Preparatory Committee, for his fruitful efforts during the preparatory
                      process preceding the conference.
                      Slovakia has associated itself with statement of the EU which we fully support. Nevertheless, I
                      would like to make a few comments on the national level.

                      Mr President,
                      The problem of illicit trade in SALW with its multiple aspects represents a substantial challenge for
                      the international community. Its negative effects pose a serious threat to maintaining lasting peace,
                      international security and achieving sustainable economic and social development. This is why it
                      has been in the centre of the international community’s attention for many years now. Without any
                      doubt, this complex challenge requires comprehensive solutions. For these reasons it is essential to
                      develop and strengthen relevant mechanisms at various levels, ensuring their complementarity in
                      the context of global efforts, that should serve as a basis for dealing with this problem of truly
                      worldwide dimensions.
                      In this light we see the significance of this conference which constitutes a specific step towards
                      coordinating efforts at global level. My delegation expects the participating countries to make a
                      true investment into its discussions and results. Not only by the number of national proposals, but
                      also by showing the necessary flexibility and responsibility with a view to the best possible
                      fulfilment of its ambitious mandate. We believe that the existing political momentum offers good
                      prospects for reaching a consensual outcome, that can withstand the test of time. On the other
                      hand, it should be a guarantee for obtaining result of concrete and practical nature which are
                      necessary in view of ensuring a meaningful follow-up to the conference.
                      The title of this conference describes its objective which is to deal with the illicit trade in SALW in
                      “all its aspects”. To reach this objective, the conference must have an adequately broad and
                      comprehensive scope addressing both the supply and the demand sides, also in “all their aspects”.
                      Here we put emphasis on such fundamental issues as export control and criteria, marking, broker-
                      ing, surplus destruction as well as management of stockpiles. Slovakia, as a country which takes an
                      active part in peace-keeping operations, also attaches great importance to reducing the risks that
                      this category of arms poses to peace-keeping efforts.
                      We take a positive view of the creation and development of regional initiatives aimed at dealing
                      with the problem of illicit transfers of small arms. We do not deem it redundant to repeat that these
                      initiatives are seen as adequate building blocks for taking action at global level. As to their forms,
                      they clearly reflect the needs of each home region for which they were designed. Although we
                      subscribe to the opinion that no regional model may claim universal applicability, we believe that
                      they have many elements in common, which can be successfully used as a source in the quest for
                      answers and solutions at this conference. Representing a country of the Central European region
                      we, naturally, bring attention to the OSCE Document on Small Arms and Light Weapons whose
                      useful and mature language could be used in the discussion and incorporated into the final
                      document from the conference.
                      As far as the format of the outcome from the conference is concerned, my delegation adds its voice
                      to those who have expressed their preference for only one major document – a programme of
                      action incorporating clear political commitments by participating states to the conference. The
                      results of the conference should be of practical nature delivering concrete recommendations at
                      national, regional and global levels. Obviously, the recommendations must be in accord with basic
                      principles of the UN Charter.

                      Mr President,
                      In order to prevent the illegal circulation of small arms and their subsequent proliferation it is


                   83 www.un.org/Depts/dda/CAB/smallarms/statements/slovakiaE.html.
24   ARMS PRODUCTION , EXPORTS AND DECISION - MAKING IN CENTRAL AND EASTERN EUROPE



     important, from our point of view, that individual states adopt a responsible export and licensing
     policy. Slovakia implements strict export control with regard to the transfers of weapons and
     military material. Our policy in this area respects existing Security Council resolutions as well as
     relevant OSCE and EU documents. In this line, let me particularly mention the EU Code of
     Conduct on Arms Exports with which we are associated.

     Mr President,
     The follow-up process after the conference deserves adequate attention. We are ready to consider
     and support constructive and realistic proposals. In our opinion, we should try to avoid overloaded
     constructions that would result in the duplication of activities carried out by other governmental
     fora or the creation of a number of new bodies with possible unnecessary budgetary implications.
     The after-conference scenario could foresee the holding of a review conference, and of regular
     meetings in the interim period aimed at measuring the progress in the implementation of the
     conference conclusions.
     We are pleased to note that a decision has been reached on the modalities of the participation of
     non-governmental organisations in the conference and in its preparatory process. It is our firm
     belief that the same should also happen as regards the follow-up process. We believe that we should
     enlist the broadest possible involvement of the civil society, which we consider to be an important
     partner in our efforts aimed at dealing with the problem and at raising public awareness in this
     area.
     In conclusion, I want to express my delegation’s confidence in the continuation of the spirit of
     constructive negotiations that had been present throughout the preparatory process of the confer-
     ence, as well as to highly appreciate the work of the Group of Governmental Experts created under
     General Assembly Resolution 54/54 V. We consider the report prepared by the group to be a
     valuable input for the discussions at the conference and hope that its conclusions and expertise will
     be put to an effective use. I cannot omit mentioning the recent successful conclusion of the Vienna
     negotiations on the Firearms Protocol to the Convention on Transnational Organised Crime. We
     are confident that a positive reference to this important document deserves its firm place in the
     final outcome from the conference.
     Thank you for your attention.
                      SAFERWORLD ARMS & SECURITY PROGRAMME                                                                                       25


6.7.3 Appendix 3      Slovak arms exports in 2000 and 200184

                                                                 First half of 2001         First half of 2000

                      Export                                     Sk2,277.95 M               Sk2,248 M
                                                                 $47.79 M                   $47.16 M
                      Number of exporters                        53                         69
                      Number of countries                        48                         45

                      Import                                     Sk514.89 M                 Sk690 M
                                                                 $10.80 M                   $14.48 M
                      Number of importers                        92                         117
                      Number of countries                        30                         33

                      Domestic production volume                 Sk900.14 M                 Sk1,477 M
                                                                 $18.88 M                   $30.99 M
                      Including: export                          73.7%                      53%

                      Source: Slovak Economy Ministry




                      Saferworld's research project on arms and security in EU Associate Countries
                      This chapter is part of a wider Saferworld report, entitled Arms production, exports and decision making in Central and
                      Eastern Europe concerned with seven EU associate countries, namely: Bulgaria, the Czech Republic, Hungary, Poland,
                      Romania, Slovakia and Slovenia. The report analyses the role of each country in the regional and international arms trade,
                      including destinations, transit routes and end-users of concern; it also examines the progress achieved in strengthening legal
                      controls and their actual implementation.
                      The complete report can be purchased for GBP 20 including postage and packaging. For further information please contact:
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                   84 ‘Slovakia’s arms exports increased’ [in Slovak], SME, 2 October 2001, p 3, source: David Isenberg’s Weapons Trade Observer.

								
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