WESTERN EUROPE CANADA INTERNATIONAL ORGANIZATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00865A000100240002-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 12
• Document Creation Date: December 15, 2016
• Document Release Date: December 10, 2002
• Sequence Number: 2
• Publication Date: January 10, 1975
• Content Type: NOTES

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WESTERN EUROPE - CANADA - INTERNATIONAL ORGANIZATIONS
EC Aeronautical Policy . . . . . . . . . . . . 1-2
Portuguese Cabinet Debates Labor Law . . . . . 3
Election Results Cloud Danish Politics .
West European Reaction to Kissinger's
Business Week Interview . . . . . . . . . . . 6-9
,January 10, 1975
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EC Aeronautical Policy
The EC Council, reflecting strong concern
over the downturn of the European aircraft in-
dustry, recently approved a long-awaited draft
resolution on aviation policy. The resolution
falls far short of the commission's earlier
recommendations for a more binding common policy--
which included provisions highly objectionable to
the US.
The resolution, which is the product of
almost three years' debate, is Only the first
step toward a common EC policy in this indus-
trial sector. The members agree to promote
consultation and an exchange of information,
especially regarding new civil aircraft programs
and propulsion systems, in order to coordinate
national aircraft policies and facilitate joint
programs and multi-national mergers. Wherever
possible, national aid measures which favor
projects involving international cooperation will
be harmonized. The Nine also intend to accelerate
adoption of community measures to provide a legal
framework for multi-national European cooperative
ventures.
The Council action should be seen in the
context of the continuing decline in the European
aircraft industry's already small share of the
European market as a result of the increased
reliance On US-built planes. European aircraft
producers have been lobbying heavily for policies
which would improve their competitive position vis-
a-vis the US. The US Mission to the EC comments,
however, that the EC action will not threaten US
commercial interests in the immediate future.
The commission has been asked to draw up a
full report on the state of the aircraft industry
which is to be used for a further Council review
January 10, 1975
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later this year.
In a related development, six European air-
craft manufacturers and three European airlines
-~ agreed last September to carry out a joint study
looking toward the day lopment of a new aircraft.
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Portuguese Cabinet Debates Labor Law
The moderate Popular Democratic Party
has reportedly threatened to withdraw from
the provisional government's three-party
coalition if a Communist-supported draft
labor law, providing for a single labor
confederation, is passed.
The Popular Democrats, together with
the Socialists, want a law that provides
for the formation of independent labor
organizations. The current draft was pre-
pared by the former minister of labor, a
member of the Portuguese Communist Party,
and represents an attempt by the Communists
to institutionalize the Intersindical, an
umbrella labor organization, established
by the previous regime and now controlled
by the Communists. Such a development
would ensure Communist control over existing
labor organizations as well as any that
might be formed in the future.
The bill was presented to the cabinet
early this week, following approval by the
Superior Council of the Armed Forces. Although
the Socialists argued strongly against the
bill, they did not commit themselves to quit
the government along with the Popular Democrats.
The debate will resume on January 17
when a new version of the bill will be sub-
mitted to the cabinet.
P latest version further strengthens
e position of the central labor organization
inherited from the previous regime.
The Communists, meanwhile, are scheduling
labor demonstrations on January 14 to enlist
popular support for their position. The last
time labor was mobilized to bring pressure on a
political issue it led to President Spinola's
resignation.
January 10, 1975
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Election Results Cloud Danish Politics
With parliament scheduled to re-convene
in less than two weeks, Danish Prime Minister
Hartling is looking for possible coalition
partners following the inconclusive outcome
of Thursday's national election.
Social Democratic leader Jergensen
called for Hartlinq's resignation as soon
as the election results were announced.
Jergensen maintains thatHartling will not
be able to push his economic "crisis plan"
through parliament. without a majority govern-
ment.
The Social Democrats, who command the
largest voting block in parliament,-picked
up 7 new seats in the election for a total
of 53 in the 179-seat parliament. Hartling's
Moderate Liberals nearly doubled their repre-
sentation, capturing 42 seats.
Hartling has indicated that he will not
step aside for Jergensen, and will probably
try to win backing for his economic plan
from the non-socialist parties, his traditional
base of support. Backing from the Social
Democrats is unlikely. The Progressives, the
third largest party behind the Social Democrats
and Hartlinq's Moderate Liberals, have opposed
Hartling in the past.
An additional complicating factor is the
genuine mutual dislike that exists between Hartling
and Jergensen. With both parties viewing the
election as a mandate for their conflicting pro-
grams, moreover, neither is disposed to compromise.
If Hartling cannot strike a coalition bargain
with the other non-socialist parties he is likely
to continue in office as a minority Prime Minister.
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West European Reaction to Kissinger's BUSiness
Week Interview
The governments of the major West European
states, wishing to offend neither the United States
nor the Arab oil producers, have been cautious in
commenting on Secretary Kissinger's remarks in his
Business Week interview about the possible use of
force shoul the Arabs attempt to "strangle" the in-
dustrialized world. In West Germany and France,
government figures have tried to disassociate
themselves from the Secretary's statements. No
official British or Italian views have been heard.
Leaders of two of the smaller states--Austria and
Switzerland--have been somewhat bolder in speaking
out against. Kissinger's remarks.
Some West European newspapers that have commented
on the Kissinger interview have tended to be critical--
others have not. The consensus of the press is
that the Secretary's remarks were intended to warn
the oil producers that there are limits beyond which
they cannot go and to point out to the West Europeans
the need for greater unity on the part of the oil
consumers. Several editorial writers have noted that
Kissinger's comments about West European "insecurity"
and "impotence," while unpleasant, are nonetheless
valid.
The West Germans are particularly sensitive to
any suggestion of the possible use of force in the
Middle East because US bases on German soil might
play a part in such an operation. During the last
Middle East war, Bonn felt that its "balanced"
policy toward the Arabs and Israelis had been placed
in jeopardy by the "public" way in which US equipment
was shipped to Israel from Germany.
In an interview that appeared in Der Spiegel,
Chancellor Schmidt refused to speculate about West
German policy should Washington again request that
Bonn make airports and naval ports available for
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shipping supplies to the Middle East. After noting that
Bonn is not currently under such pressure from the US
and "would not agree to that anyway," he went on to
say that since he was not the chancellor of a world
power, he could not "philosophize" on such a question
because to do so would be "mortally dangerous."
Earler in the interview, Schmidt had said that it
was a new experience for Bonn to face the possibility
of becoming involved in conflicts against its will.
Until recently, he added, West Germany had been the
creator of conflicts.
Schmidt left a more direct response to Kissinger's
remarks to a government spokesman, who said that Bonn
seeks cooperation, not confrontation, with the oil
producing states. The spokesman continued: "We
do not have the use of force in mind, and do not
share such thoughts." In addition, Hans Juergen
Wischnewski, a state minister in the Foreign Office,
said that he did not consider the occupation of oil-
producing countries by Western powers to be a
realistic possibility. General Secretary Bangemann
of the FDP agreed, adding that to return to the
"gunboat policy" of the nineteenth century would be
a "fatal relapse." In his opinion, the Arabs are
more likely to cooperate with the West if they under-
stand clearly that Western countries are not contempla-
ting the use of force as a method to resolve conflicts.
Die Welt wrote that Kissinger is engaging in
"shock therapy" designed more to "shake up" the
Europeans than to threaten the oil powers. The paper
felt the Secretary's criticism of the West Europeans
to be well founded but objected to the "lecturing
tone." The Frankfurter Allgemeine was harsher in its
criticism, saying that the ME a o using military
force "should have been discarded as nonsense."
A "petrol crusade" would be "the last stupidity of
the West."
Schmidt's statements about West Germany's
position on US resupply efforts in the event of another
Middle East war has touched off a. spate of articles
in the German press. In general, they hold that the
Chancellor was right in refusing to speculate about
the FRG position. Several writers seem to assume,
January 10, 1975
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however, that Bonn would not. prevent the US from
using its West German stockpiles to resupply the
Israelis should Washington decide to do so.
In Italy, Carlo Francanzani, secretary of the
foreign affairs committee in the Chamber of Deputies
and a left-wing member of the dominant Christian
Democratic Party, is trying to force the Moro
government to take .s position on Secretary Kissinger's
comments. Francanzani called for a "drastic condemna-
tion" of the remarks, adding that "Europe and Italy
must explicitly disassociate their own positions from
that of the US." He has requested that Foreign
Minister Rumor meet with the foreign affairs com-
mittee to discuss the issue.
Italy's two most influential newspapers, Corriere
della Sera and La Sta a, have presented balanceced
appraisals of the Kissinger remarks which stop short
of explicit criticism. Corriere della Sera, for
example, wrote that all Kssinger as done is to say
out loud what many in the US and Western Europe have
been whispering for months. The Christian Democratic
organ I1 Po ulo, however, thought that the Kissinger
interview sowed that the Secretary has a "grudge
against Europe." The paper nevertheless endorsed
what it saw as his main point: that oil consumers
should stand together in negotiations with producers.
The leftist Il Messagge.ro wondered whether this was
W ox Crusade 11 The naper
the eve of a new Trojan ax
quoted President Kennedy to the effect that the
Middle East is a "monument to Western inability
to understand problems." On the other end of the
spectrum, the conservative Il Resto del Carlino
of Bologna supported Ki.ssin.ger's statements on the
possible use of force, stressing the US role in pre-
serving world freedom and peace and praising US
determination to prevent the West from being strangled
by oil blackmail.
In France, Foreign Minister Sauvagnargues told
the National Assembly Foreign Affairs Committee that
French?policy runs counter to Kissinger's remarks.
Communist Party Secretary General Marchais attacked
Kissinger's statements and pointed to the danger of
French involvement in "military ventures." He was
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sharply critical of a military exercise involving the
US Sixth Fleet scheduled to take place in southern
France next week. The French television news also
carried a report on the exercise, tying it to
Kissinger's statements.
The Communist newspaper L'Humahite thought that
Kissinger's language smacked of "co in alism and gun-
boat diplomacy." The paper also saw the Secretary's
statements as a "brutal call to order" to the West
Europeans. Le Monde thought the interview heralded
the return ofthe "hard Kissinger," who clearly had
France in mind in his display of "marked resentment"
toward the West Europeans. The paper felt that while
his remarks were well-founded, they were "hasty" and
missed the point. When Western security was threatened
primarily by the military might of the Warsaw Pact,
there was indeed a convergence of interests between
the US and the countries of Western Europe. Now that
the threat is an economic one deriving from the Arab
oil producers, the US, a major oil producer itself,
is in far less peril than the West Europeans.
In Britain, the Kissinger interview has provoked
no response from government spokesmen. The press has
given little play to the story. Some straight news
reports have appeared, but very little editorial
comment has been seen so far. The Dail Mail ran
a picture of US Marines training in a desert with a
caption referring to Kissinger's remarks.
Government leaders in two of the smaller West
European states have been more outspoken in criticising
Kissinger's remarks. Swiss President and Foreign
Minister Graber said that he thought it "inappropriate"
to even consider the use of force since a dialogue
between producers and consumers "on the basis of
confidence and patience" was the only way to deal with
the problem. Austrian Chancellor Kreisky reportedly
said that he had a "low opinion" of the idea of military
intervention against the Arab states and wondered if
Kissinger had actually made the statements attributed
to him. Kreisky thought oil consumers should pursue
a joint strategy with the producers rather than any
sort of strategy a.inst them.
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Confidential
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