STAFF NOTES: WESTERN EUROPE - CANADA - INTERNATIONAL ORGANIZATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00865A001800130001-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 16
• Document Creation Date: December 12, 2016
• Document Release Date: July 18, 2001
• Sequence Number: 1
• Publication Date: September 22, 1975
• Content Type: NOTES

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Confidential
No Foreign Dissem
Western Europe
Canada
International Organizations
Confidential
No. 0274-75
September 22, 1975
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Warning Notice
Sensitive Intelligence Sources and Methods Involved
NATIONAL SECURITY INFORMATION
Unauthorized Disclosure Subject to Criminal Sanctions
Classified by 010725
Exempt from general declassification schedule
of E.O. 11652, exemption category:
? 5B(1), (2), and (3)
Automatically declassified on:
Data 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.
EC Expressing Concern over US Trade Policy . . . 1
Irish Foreign Minister to Score US Support
for IRA . . . . . . . . . . . . . . . . . . . . 3
Fights In Malta Reflect Political Tension. . . . 6
Positive Changes Expected in Policies of
New Portuguese Government. . . . . . . . . . . 7
Tories Upset In Ontario Election . . . . . . . . 12
Spanish Government Delays Decision on Death
Penalties for Terrorists . . . . . . . . . . . 14
September 22, 1975
CONFIDENTIAL
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EC Expressing Concern over US Trade Policy
The EC Nine are apparently preparing to
present their complaints about alleged US trade
protectionism to international forums.
In recent weeks EC officials have made
increasingly bitter complaints over investigations
launched by the US to determine whether foreign
motor vehicles are being dumped on the US market--
sold at prices below their fair market value--
and over US allegations that some exports are
being subsidized. The EC Commission yesterday
called publicly for the US to curb "the forces
of protectionism" following the US announcement
of a decision to consider charges--made by a
US steel firm--that EC steel experts are subsidized.
A West German official told the US mission
to the Organization for Economic Cooperation
and Development that Bonn will raise the motor
vehicle dumping issue with the organization's
trade committee when it meets in Paris on September
23-24. The trade committee is charged with monitoring
the OECD trade pledge, signed by the US and most
other members, to refrain from imposing new restrict-
ive measures on trade..
In addition, the EC will reportedly ask
the Council of the General Agreement on Tariffs
and. Trade in Geneva, at its meeting on September
25, to look into the US motor vehicle investigation,
and. may ask that a special session of the GATT
anti-dumping committee be called. The Nine
have maintained that the US investigation of
alleged motor vehicle dumping violates GATT
rules because the original complaint was not
filed by US manufacturers but by a labor union.
September 22, 1975
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CONFIDENTIAL
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Members of the EC Nine reportedly discussed
what they regard as changes in US trade policy,
at a meeting on September 12 of the EC committee
charged with trade matters. According to an Ital-
ian official, all the EC representatives at that
meeting expressed concern that the recent US
actions might be indicative of a shift to a less
liberal, more restrictive trade policy. The repre-
sentatives believe that the final decision on the
automobile case will be an accurate measure of US
attitudes.
Most, however, have become "very suspicious"
of US motives, according to the Italian official,
and no doubt feel that the willingness of the EC
last spring to meet US demands by dropping subsid-
ies for cheese exports has been misconstrued. Some
may believe that the EC action on cheese has been
taken by the US, not as a gesture of cooperation,
but as proof that the US has to be tough in dealing
with the EC.
The EC trade committee met again on September
19 to examine the "whole complex" of recent US
trade policy actions. The US decision to look
into subsidies on steel exports--of which most EC
members were made aware the day before--appears
to have added to EC suspicions and in part led to
today's public demarche. (Confidential No Foreign
Dissem)
September 22, 1975
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Irish Foreign Minister to Score US Support
for IRA
Foreign Minister FitzGerald intends to
lobby against private American and Canadian support
for the Irish Republican Army during his visit
to address the UN General Assembly next month.
FitzGerald told the US Ambassador in Dublin
recently that he plans to visit Washington,
Chicago, and Ottawa to urge local leaders to
help discourage fund-raising activities which
benefit the terrorist IRA.
The Irish Northern Aid Committee which
solicits aid on behalf of the widows and orphans
of men killed in the fighting, is perhaps the
primary source of IRA fund raising in the US.
In reality, much of the money goes to buy guns
and ammunition to keep the struggle going.
While in New York, FitzGerald may contact
Cardinal Cooke to secure his support in persuading
the Church to help clarify the real role of
the Committee. The Foreign Minister also hopes
to meet with labor figures and, while in Washington
on October 7-8, intends to hold discussions with
congressional leaders. (Confidential No Foreign
Dissem)
September 22, 1975
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Fights In Malta Reflect Political Tension
An outbreak of street fighting in Valletta
yesterday between supporters of Malta's ruling
Labor Party and the opposition Nationalists is
symptomatic of the tension that has built up
between the two parties amid rumors that Prime
Minister Mintoff may call a parliamentary election
ahead of schedule.
The election does not have to be held for
another year, but there are signs that Mintoff
may call it sooner if he secures passage of anew election law aimed at improving his party's
position. Political activity has been increasing,
and one by-product has been steady growth in
political violence over the last six months.
Mintoff would have a good chance of holding
on to his slim parliamentary majority if an
election were held soon. His support could
slip, however, if inflation and unemployment
continued to rise at their present rates during
the next year. (Confidential)
September 22, 1975
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Positive Changes Expected in Policies of New
Portuguese Government
The democratic orientation and pragmatic
economic outlook of the new cabinet will bring
positive changes in government policies, accord-
ing to the US embassy in Lisbon.
The anti-Communist majority in the cabinet
will be reinforced in the subcabinet. Negotiations
are not yet complete, but the latest information
indicates that out of a total of 34 positions, the
Socialists will receive 12 and the center-left
Popular Democrats 11.
The new government is expected to concentrate
its efforts in the following areas:
--Establishing a strongly pro-Western foreign
policy.
--Instituting realistic economic measures
to retard further deterioration.
--Planning for local, national assembly,
and presidential elections which--according
to Socialist leader Soares--Prime Minister
Azevedo has promised for February.
--Diminishing Communist control in the media
and labor organizations.
In the area of foreign affairs, Major Antunes,
who was formerly known to favor ties with the
Third World, appears to recognize the need for
strong relations with Western Europe at this
time. Socialist leaders, who strongly support
close relations with European social democrats,
have full confidence in Antunes' Western orientation.
September 22, 1975
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Both Antunes and Foreign Trade Minister
Campinos, a Socialist, have made favorable
impressions on European officials in the past
and can be expected to begin efforts to attract
aid for Portugal from Western Europe and the US.
The new economic team, also dominated by
the Socialists, will concentrate on repairing
the damage done to the economy by the radical
initiatives of the Goncalves regime. The team
is not expected to rescind the nationalization
and agrarian reform measures already in effect,
but it will attempt to consolidate and organize
the companies and land that now belong to the
government.
The Socialists plan to call for long-term
recovery measures after they have received
legitimate authority through elections.
The Socialists' scheme also calls for
eliminating Communist strongholds in local
governments, labor, and the media. The three
cabinet positions that bear on these critical
areas are held not by Socialists but by indi-
viduals who are judged by the US embassy to
be well qualified and strongly anti-Communist:
--Commander Almedia e Costa, the new
interior minister, was largely responsible
for organizing the constituent assembly
election in April; the balloting was run
fairly, despite heavy Communist influence
in the government.
--Labor Minister Tomas Rosa, an army captain,
told US embassy officials that he intends
to remove all Communists from key positions
in his ministry.
--Information Minister Almeida Santos is,
according to embassy contacts, considered
capable of weakening the Communists' domina-
tion of the press, radio, and television.
September 22, 1975
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Reaction to the new government has been light.
The Socialists issued a communique praising the
cabinet and the prime minister. The Communists'
statement was defensive, explaining that they
accepted one portfolio only to prevent a right-
wing government from taking control.
The Communists' grudging acceptance of the
new cabinet is not shared by the various extreme
left-wing organizations. These groups have been
critical of all governments since the military
coup, but there is concern now that distrust of
a Socialist-dominated government may lead to a
wave of terrorist activity. Several armed groups
based in Lisbon were active during the Salazar
and Caetano regimes.
Right-wing exile groups probably pose a more
serious threat to the new government. One of
them, the Portuguese Liberation Army, has claimed
responsibility for the bombing yesterday of a
navy building where Prime Minister Azevedo was
staying. The group is reportedly based in Spain
and connected with former president Spinola's
forces. (Confidential)
September 22, 1975
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Tories Upset In Ontario Election
Last week's Ontario election resulted in a
stinging rebuff for Premier William Davis and~a
rogressive-Conservatives 32-
serious blow to the Progressive-Conservatives'
year domination of provincial politics.
The Tories, while retaining a plurablity,
fell from 74 to 51 seats in the provincial legisla-
ture. The New Democrats doubled their strength,
jumping from 19 to 38 seats. They are now the
official opposition, a first for the New Democrats
in Ontario. The Liberals finished third with 36
seats.
Although the Liberals made the largest per-
centage gain in the popular vote, the New Democrats
made the biggest gain in the number of seats. This
reflects the shrewd New Democratic campaign strategy
of concentrating their resources in districts where
the party had a good chance of winning. The result
was victories in almost all blue-collar districts,
including important gains in Toronto and the mining
areas of northern Ontario.
Davis will form a minority government with
most present ministers retaining their portfolios.
Although both New Democratic and Liberal leaders
have rejected a formal coalition, Davis should be
able to make sufficient concessions to keep a minority
administration alive for at least the next several
months.
Press speculation on the longevity of the new
government has already begun. Despite the Canadian
tradition of avoiding winter elections, a threatened
September 22, 1975
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strike by Ontario civil servants on January 1
could trigger a snap election. Davis has taken
a strong stand in opposition to strikes by public
employees, whereas his opponents have been in favor,
with some qualifications. Should the unions follow
through with their threat, Davis would be in a good
position to call an election on an issue which could
be most favorable one for him and his party.
(Unclassified)
September 22, 1975
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Spanish Government Delays Decision on Death.
Penalties for Terrorists
Strong appeals for clemency from both
at home and abroad appear to have delayed the
Spanish cabinet's decision on the death sentences
meted out to terrorists convicted of police
killings.
The conviction Saturday in Barcelona of
a Basque terrorist has brought to 11 the number
of urban terrorists whose fate is now in the
hands of the cabinet and ultimately, General
Franco.
Pope Paul. and the Spanish bishops have
addressed separate appeals to Franco, who is
also under pressure from growing anti-regime
sentiment in Western Europe. There have been
bombings of Spanish consulates and businesses
in West European countries over the past week.
A straw vote reportedly was taken at the
cabinet meeting last Friday in which most of
the ministers favored approving at least some
of the executions. If the Spanish government
should show leniency, it would face a strong
reaction from police and rightists who are
outraged over the killing of 12 policemen this
year.
Meanwhile, the government is continuing
its roundup under the new anti-terrorist law,
and now has detained some 200 alleged militants
accused of political violence. Last week the
regime arrested several high-ranking Basque
Fatherland and Liberty terrorists, as well
as members of the Marxist-Leninist Revolutionary
Anti-Fascist Patriotic Front. (Confidential)
September 22, 1975
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Confidential
Confidential
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