In a speech to the IISS on "The Future of British Foreign Policy with a Conservative Government”, 21 July 2009, William Hague, MP, Shadow Foreign Secretary, said:

"(…)Economic success makes a big difference to foreign policy influence and sometimes quite quickly so. The economic renaissance of Britain in the 1980s undoubtedly reinforced the influence of British ministers on world affairs, something which Tony Blair was happy to enjoy while his then Chancellor, Gordon Brown, was busily ruining that very renaissance. One of the damaging effects of Gordon Brown's catastrophic stewardship of Britain's finances, and of additionally reducing Britain from second to twelfth place in the international league of competitiveness according to the World Economic Forum, is the diminishing of our economic power and by extension the effectiveness of our international role.

"Such additional short-term decline is exasperating because it is so unnecessary, but on top of that the huge expansion of economies such as those of China and India means that in our working lifetimes the size of the European economies relative to the rest of the world looks set to shrink dramatically. The European Commission's own projections have shown Europe's share of the world economy declining from 18% now to 10% by 2050. And even the United States is not immune from the effect of economic problems.

"This diminished economic weight will have a major impact on the ability of Western nations to achieve their foreign policy goals. For instance, we are used to the idea of calling for economic sanctions against nations whose human rights records we find unacceptable, South Africa under apartheid being the celebrated cause of the effect that sanctions can have. Now we apply them to recalcitrant regimes in Burma, Zimbabwe and Iran, and indeed we may be coming very close to the time when much tougher sanctions on Iran are needed in the light of her nuclear programme. Yet it is already clear that the power of such economic weapons is declining and it follows from this analysis that it will decline much further in the years to come.

"What is more, much of the economic weight in the world is passing to countries which either do not fully share our concepts of democracy and human rights or for their own reasons are opposed to interventionist approaches to foreign policy. China, which I will discuss later, is an obvious case.(…)

"A further constraint will come in the form of tightly controlled military budgets. The extreme pressures on our own defence budget obviously necessitate a strategic defence review, which an incoming Conservative government will certainly undertake. It is crucial that such a review is informed by the changing pattern of threats I have described rather than financial considerations alone. France is also busily engaged in reshaping its armed forces. But beyond Britain and France there is no sign of other European nations making a serious effort to develop greater military capabilities. Indeed it is our criticism of EU defence arrangements that they too often involve the "rehatting" or duplication of NATO structures – just calling something European does not mean it has actually enhanced Europe's ability to act.(…)

"Foreign policy is above all about the protection and promotion of our national interest, and even narrowly defined, the British national interest requires our continued fully active engagement in world affairs since all the threatening factors I have listed are a threat to the interests of this country. No other nation or group of nations are going to increase the protection they afford us, and the essential alliances we enjoy with the United States and European nations depend directly on us continuing to do a great deal for ourselves.

"In its broadest sense, what we might call our "enlightened national interest" requires British global engagement too. Britain will be safer if our values are strongly upheld and widely respected in the world. Nor would Britain ever be happy as a nation if we partly or largely retired from trying to influence world events. The citizens of Britain have always been restless in trying to improve the wider world and global in our outlook. We have always been at the forefront of international charity, development aid, and the welcoming of refugees.(…)

"That is why David Cameron and I have spoken in recent years of our approach to foreign affairs being based on "Liberal Conservatism" in that we believe in freedom, human rights and democracy and want to see more of these things in other nations. But Conservative, because we believe strongly in the continued relevance of the nation state and are sceptical of grand utopian schemes to re-make the world.(..)

"So if Britain is to continue to be globally engaged in a meaningful and influential sense, albeit with a more realistic sense of the possible on how rapidly nations can be built or democracy entrenched, how on earth are we going to do it? The answer to that will constitute our approach to foreign policy, and it must necessarily involve using our resources more effectively, increasing our knowledge of other countries and often strengthening relations with them and launching and sustaining certain initiatives over many years. In January 2007 in my speech at Chatham House I set out five themes for the foreign policy of the next Conservative government. Two and a half years on they remain valid against the background I have described but it is now time to update them.

"The first of these themes is learning from past mistakes to improve the decision-making of British government itself. I have already mentioned the need for a strategic defence review, and it is consistent with what I have argued that this must be focused not on whether Britain should be able to project military force elsewhere in the world but how it will do so. It is not the purpose of this speech to pre-empt in any way that review. But I wish to make clear now, first that it will be a defence and national security review, covering all aspects of Britain's security and not just the Armed Forces; second that it will be guided by the requirements of foreign policy and not solely by financial constraints; and third that we will not shrink from adapting our future Armed Forces for this changed world. "Good decision-making also requires the Foreign and Commonwealth Office to be in its rightful place at the centre of decision- making.(…)

"A Conservative government will establish a real National Security Council as a Committee of the Cabinet, chaired by the Prime Minister or in his absence by the Foreign Secretary. This will bring together on a regular basis the work of the Foreign Office, the Ministry of Defence, the Home Office, the Department for International Development and Ministers responsible for other relevant matters such as Energy. We intend this not to be a new bureaucracy but a centre of decision-making and we understand that it will only work if it is treated as such, buttressed by cross-departmental teams supporting it and covering the whole range of national security issues, not only defence and foreign policy.

"The second of our crucial themes is our commitment to the transatlantic alliance, which David Cameron and I have long argued should be "solid but not slavish" in its nature. In our view, the high points of Anglo-American co-operation in the last century have been when there was not only a close relationship between British and American leaders but also the readiness to conduct a vigorous debate between them. That indeed is how we have conducted ourselves: while being absolutely clear that whether it be in matters of intelligence, nuclear weapons, diplomacy or commerce, the close alliance with the United States is and will remain indispensable to the United Kingdom.(…)

"The third vital theme of Conservative Foreign Policy is the freshening and deepening of alliances outside Europe and North America, an approach which is vital to the maintenance of British influence in the world given the trends in world affairs I outlined earlier. On his visit to India in 2006 David Cameron said he believed it was time for Britain and India to forge a new special relationship, focusing particularly on fighting terrorism, protecting the environment and globalisation.(…)

"India is also a leading member of the Commonwealth, an organisation which in our view has been neglected and undervalued under the Labour government in Britain. In last year's strategy document from the Foreign and Commonwealth Office, the only mention of the Commonwealth was in the title, "Foreign and Commonwealth Office". While we must be realistic about what such a diverse organisation can achieve, its extraordinary diversity nevertheless offers some strengths: it is a unique network of fifty-three countries spanning five continents and with thirty percent of the world's population. We believe the Commonwealth is a tool to be picked up and used more often, in particular, to tackle inter-faith dialogue and conflict prevention.(…)

"I have long-argued that Britain should embark on the elevation of its links with many of the countries of the Middle East and Gulf, not only diplomatically but in matters of culture, education, commerce and security, and that this should be done as a cross-party, cross-government initiative pursued consistently over many years. It is strategically vital to strengthen Britain's links with many friendly Muslim nations and not only in the Gulf, and not only for political reasons, since it is vital to make the most of opportunities to expand our trade and investment. It is this kind of all-round strengthening of our links with allies, as well as dealing with potential threats, that our co-ordinated national security is designed approach is designed to help us achieve.

"Similarly, it is in our strategic national interest to have an effective and strong relationship with China. Relations with China are often characterised by tensions over human rights. Our approach has always been to be consistent in raising such issues and not to shrink from debating them with Chinese leaders. At the same time, however, if we believe that the spread of nuclear weapons and the urgency of dealing with climate change are the greatest threats to the future of humanity, we must acknowledge that we cannot hope to solve these problems without working closely with China's leaders. A Conservative government will therefore promote sustained dialogue and close understanding with China and a relationship in which, even where there is sharp disagreement, neither side will walk away.

"It is similarly not in Britain's national interest to be in permanent confrontation with Russia, but a sustained improvement in those relations will require a major effort on both sides. (…) It is in Russia's national interest too for such issues to be dealt with, and to work more effectively with the US, Britain and other Western nations. With a Conservative government the door will be open to improved relations with Russia. We shall see if a door opens in return.

"The fourth theme of Conservative foreign policy is one in which the cross-party consensus in Britain is very strong: the effective reform of global institutions to allow international co-operation in the face of the threats I have outlined to be enhanced.

"This is clearly true in the economic area, where the focus of economic decision-making clearly needs to shift more to bodies such as the G20, and it is true of the United Nations, on which the Conservative Party share the view of the current government that the Security Council should be reformed to include permanent membership for Germany, Japan, Brazil, India and African representation. We have no illusions, however, about how difficult it will be to bring this about.

"The European Union is also one of the institutions which must adapt to the changing distribution of world economic and political weight. This is not a speech about European policy: our belief that the European Union needs to focus on the issues of global competitiveness, global poverty and climate change is well known, as is our opposition to the greater centralisation of power in the EU, as embodied in the Lisbon Treaty. We see that Treaty as leading to institutional conflict within the EU, for instance, between the President and the High Representative on Foreign Policy, and a loss of democratic decision-making in nation states, a profound problem that the German Constitutional Court raised in its recent decision on the Lisbon Treaty. Institutional centralisation will not supply, and is even displacement activity for, what Europe really needs to develop in world affairs, which is the political will to use its collective weight effectively and a focus on practical results.

"This is true of its relations with Russia, but also starkly true of the situation in the Balkans, where the EU is often failing to exert itself effectively even in relation to countries which many of us hope will one day be its members. There have been many positive developments, but some of the countries of the Western Balkans, most notably Bosnia-Herzegovina, are still tilting unsteadily between their past and their future. A lack of persistent international focus on the region until these countries are fully and irreversibly on the path to joining the EU and NATO could turn the successes of the last decade into the failure of this decade.

"A Conservative government will work particularly to sharpen the European focus on the Balkans which we will see as a major test of what the EU can accomplish in foreign affairs.(…)

"It is vital too that the EU does not give up on enlargement. A European Union without the Western Balkans would forever have a disillusioned and disenchanted hole near its centre. And a Europe that turned its back on Turkey would have made an immense strategic error.

"The effective reform of international institutions also includes the updating of international treaties, of which by far the most important is the nuclear non-proliferation treaty, due for a major review conference in April and May next year, quite possibly at the same time as our general election.(…)

"Again we have long-argued for a new American opening to Iran that has indeed now been made, but also that it will need to be followed if unsuccessful by far tougher European economic measures to show Iran that there is a serious price to its defiance of the international community. Twenty years from now European sanctions may count for much less, but today they still matter and securing such a policy is one of the highest possible priorities for whoever is the British Foreign Secretary at the end of this year and early next.

"The fifth and final theme of a Conservative approach to foreign affairs is that, faced with so many threats to our society and our security, it is essential for us in Britain to uphold our own highest values. I have accepted in this speech that our power to dictate to other countries how they should uphold democracy or human rights may actually diminish over time. In many ways this makes it all the more important for Britain to be among those countries that sets an example that can be inspiring to people across the world who are denied liberty or power over their own lives, just as it may encourage in the right direction those who have that power.(…)

"In the future we will have to recognise that if our exertions may not always have the desired effect, our example must never be absent. This means that a British government must always be an advocate for political freedom, human rights in their broadest not just legalistic sense, free trade, and democratic decision-making.(…)

"However aid should not be the only driver of our policy towards Africa. We must focus on good governance and fostering the democratic institutions – the courts, civil society and police forces – that are the bedrock of more prosperous societies and the resolving of differences without resort to the gun. In this context development, along with effective diplomacy, is one of the tools of conflict prevention and needs to be used more effectively.(…)

"These then are the foreign policy priorities that a new Conservative government would bring with it: a major change to our decision-making; the nourishing of the transatlantic alliance; the freshening and deepening of new relationships beyond America and Europe; a determination to assist the reform of international institutions and treaties; and the upholding of values and principles we hold dear here at home.(…)" Read the full speech here.