We brongs us back to the US excuse for bailing out AIG, too big to fail
BAE has got away with so much as its very important for the UK economy - your point about Sandhurst is telling - why not UMIST or Loughborough, good engineering schools which essentially looks at the skill set which BAE has turned entirely toward arms production
The enigineering history of the UK equals Germany at least, however they are perceived as being better at most commercial applications of such tech, people look to us for weapons - a much surer route to the murky deal scenario - though I do suspect that Mecedes Benz were not best pleased to be the African Dictators ride of choice, it did result in massive sales of their cars by everyone else who dreamed of being the next Colonel/President!!!!
Its really dangerous for any economy to put all its eggs in one basket, or in the case of the UK, two, fin servs and arms
They then become vital to us and asorts of excesses are excused - bribery being only one obvious danger - but selling leg irons to SA during "apart-hate" and extending loans to dictators - being typical side effects
In the long run its very, very dangerous