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But there are concerns that the lure of money could damage the British military as soldiers

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But there are concerns that the lure of money could damage the British military as soldiers may be tempted to leave for the private sector.Andrew Kain served for 17 years in the Army, first with the Parachute Regiment and then with the SAS. In 1991 he set up AKE, a security firm that specialises in advising and training people for work in hostile regions. If things go wrong - some human rights tragedy - then they always have a denial. If a British solder shoots someone then there will be a trial; if a military company screws up then, sure as hell, it'll be out of the country PDQ."Being an armed guard in a war-torn country is a dangerous but lucrative business.

"In countries where there is no government, where there has been regime change, we need international regulation."The Foreign Office published a Green Paper in 2002 on options for regulating private military companies. The proposals were eventually dropped, much to the anger of many backbench Labour MPs. Now the Foreign Office is taking a second look at the issue and, in the next two weeks, officials are expected to present ministers with a range of proposals, including a new licensing system for companies.Andrew Mackinlay, a Labour member of the Commons Foreign Affairs Committee which scrutinised the Green Paper, says: "I find it totally unacceptable that these companies operate out of the UK without any regulations." The MP for Thurrock believes one reason for the Government's light touch on security firms is that it relies so heavily on their services abroad "I am suspicious of the Government using these companies. "The rules of engagement are that [guards only open fire] in self defence or to protect lives," he explains.But in other parts of the world, things are not so black and white he adds. In Iraq, says Mr Garratt, the rules are clear because the authorities have set up guidelines for private security firms.

Jonathan Garratt is managing director of Erinys International, a British-based security firm which holds contracts with the US Army Corps of Engineers, the Iraqi oil ministry and private companies. There are a lot of private security personnel who think it is 'Showdown at the OK Corral'. Some of the people out there have 'issues' with past conflicts and they are passing on bad advice to their clients."The grey areas in the rules pose significant ethical questions, such as when a private security guard or soldier is entitled to open fire. It costs just a few hundred pounds to set up as a "security consultant" and virtually no proper government checks are made on companies before they are allowed to sell their services to business clients and foreign authorities.One source at a private security firm says: "Take Iraq.

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