A MULTI-MILLION pound sale of jet warplanes built at British Aerospace's Lancashire Military Aircraft Division is to escape a ban on arms sales to dictatorships.

Foreign Secretary Robin Cook was today authorising the sale of the 16 Hawk jets to Indonesia despite a tough new policy on future deals.

The planes, worth £160million, will be built at BAe's Warton factory. But Mr Cook will warn Indonesian President Suharto that future deals with his government will be subject to intense scrutiny.

Despite Cabinet misgivings, ministers were advised that as the deal had already been signed and had been approved by the previous Tory government, cancelling it could cost a huge amount in compensation. It would also damage the credibility of the British arms industry, especially as there was no evidence that the 40 Hawks already sold to Indonesia had been used, as campaigners against the deal claimed, to bomb innocent villagers in the country's war against independence rebels in Easts Timor.

The go-ahead is likely to provoke angry protests by left-wing Labour MPs and campaigners against the arms trade but will safeguard jobs at BAe and its suppliers in Lancashire.

In a written Commons answer, Mr Cook was outlining tough new controls on arms sales aimed at preventing repressive regimes using them against civilian populations.

He also banned a number of weapons sales such as water cannon and armoured personnel vehicles for fear that they could be used against civilians.

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