WESTERN EUROPE CANADA INTERNATIONAL ORGANIZATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00865A001300040002-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 12, 2016
• Document Release Date: December 18, 2001
• Sequence Number: 2
• Publication Date: July 1, 1975
• Content Type: NOTES

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Secret
No Foreign Dissem
&wCQ
Western Europe
Canada
International Organizations
Secret
1 ~l-s
No. O19-75
July 1, 1975
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NO DISSEM ABROAD/BACKGROUND USE ONLY/CONTROLLED DISSEM
Warning Notice
Sensitive Intelligence Sources and Methods Involved
NATIONAL SECURITY INFORMATION
Unauthorized Disclosure Subject to Criminal Sanctions
Classified by 005827
Exempt from general declassification schedule
of E. 0. 11652, exemption category:
g 5B (1), (2), and (3)
Automatically declassified
on: Date Impossible to Determine
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WESTERN EUROPE - CANADA - INTERNATIONAL ORGANIZATIONS
This publication is prepared for regional specialists in the Washington com-
munity by the Western Europe Division, Office of Current Intelligence, with
occasional contributions from other offices within the Directorate of
Intelligence. Comments and queries are welcome. They should be directed to
the authors of the individual articles.
Bonn and Moscow Remain at Loggerheads on
Nuclear Power Plant Project . . . . . . . . . 1
Sweden Hopes For Mexican Oil. . . . . . . . . . 3
Egyptians Developing Closer Relations
with Western Labor Organization . . . . . . . 4
July 1, 1975
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Bonn and Moscow Remain at Loggerheads on
Nuclear Power Plant Project
Chancellor Schmidt has recently conveyed
his displeasure to Soviet officials about the
delay in reaching a final agreement on the
Kaliningrad nuclear power plant project.
Schmidt's predecessor, Willy Brandt, will be
visiting Moscow later this week and may probe
the Soviet leaders concerning this problem.
In the past year or so, there has been
significant progress on a number of large-
scale joint industrial projects. The Kaliningrad
project is one of the most ambitious. The
Soviets have agreed in principle to deliver
electricity generated by the plant to the Federal
Republic in payment for construction costs.
Schmidt thought he had a firm commitment
from Brezhnev when he visited Moscow last October,
that the transmission line would run directly
through West Berlin. The Soviets have subse-
quently wavered, claiming that consultations
with the East Germans and Poles about the rout-
ing of the line have not yet been completed.
This dalliance is partly a sign of Moscow's
difficulty in securing Pankow's cooperation,
but in this instance it may also reflect Soviet
unhappiness concerning recent political disagree-
ments over West Berlin.
The Chancellor voiced his displeasure to
Soviet Deputy Premier Novikov on June 12 imme-
diately after the Joint Economic Commission con-
cluded its fifth meeting in Bonn. Novikov's
stress on the financial and technical problems
in completing the Kaliningrad project prompted
Schmidt to intercede. The Chancellor reaffirmed
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his strong interest in seeing the project
completed for political as well as economic
reasons. Novikov agreed to convey this message
to the Kremlin.
Meanwhile, Brandt who arrives in Moscow
tomorrow has instructions from the Chancellor
to discuss, among many topics, bilateral economic
relations. He may take this opportunity to press
the Soviets to reconfirm their earlier commitment
to run the transmission line through West Berlin.
Even if agreement on this issue is reached,
long and hard bargaining remains on credits and
the respective prices charged by West Germany
and the USSR for the plant and electricity.
Brezhnev, for example, is known to be prepared
to press the larger issue of German policy on
subsidized credits with Brandt, citing recent
credit lines granted by the UK, France, and
Canada. (Secret No Foreign Dissem/No Dissem
Abroad/Background Use Only/Controlled Dissem)
July 1, 1975
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Sweden Hopes For Mexican Oil
During his visit to Mexico last week, Prime
Minister Palme laid the ground work for expanding
Swedish commercial ties with Mexico that may involve
swapping Scandinavian technology for Mexican oil.
The communique following Palme's talks with Mexican
President Echeverria emphasized that industrial and
technical cooperation would be developed.
Mexico reportedly is interested in hydro-
electric and nuclear energy technology, two areas
in which Sweden is well advanced. Recent oil
exploration off Mexico's east coast has revealed
reserves greatly in excess of that country's needs.
A similar exchange--oil for know-how--was
discussed between Stockholm and Oslo last year.
The Norwegians were interested in metallurgical
technology in exchange for their oil. Thus far,
however, nothing substantive has emerged from that
proposal. (Confidential No Foreign Dissem)
July 1, 1975
3
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Egyptians Developing Closer Relations
with Western Labor Organization
Contacts between Egypt and the International
Confederation of Free Trade Unions (ICFTU.) have
both increased and become warmer of late, although
there is no evidence that the Egyptian labor feder-
ation is considering affilitation or that the mat-
ter is even under discussion.
ICFTU's support for an Egyptian labor leader
in his successful bid last month for a seat on
he International Labor organization's (ILO) govern-
ing body was the latest example of closer coopera-
tion. The visit to Cairo late this month by ICFTU's
Secretary General will provide another opportunity
to improve the relationship.
2
The talks will take up a full agenda of inter-
national labor questions and will also include the
request by the Israeli labor federation, Histadrut,
for support of Israeli use of the Suez canal. An-
other major topic will probably be the call by
labor organizations in several third world countries
and certain Christian trade unions for an "inter-
national development conference." The Egyptians
reportedly support ICFTU's position that such a
conference should take place only in an ILO frame-
work.
Some observers add up these developments and
come to the conclusion that Egypt is preparing
the way for affiliation with ICFTU. ICFTU offic-
ials are quick to downplay such reports, and the
Assistant Secretary General has noted that-
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Despite
such disclaimers, it seems likely that Cairo
might be testing the waters for Arab reactions
to the Secretary General's visit. In any event
both sides may see the visit as an opportunity
for a private exchange on the prospects for
affiliation, however eventual. (Confidential)
July 1, 1975
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Secret
Secret
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