WESTERN EUROPE CANADA INTERNATIONAL ORGANIZATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00865A002100310002-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 12, 2016
• Document Release Date: July 12, 2001
• Sequence Number: 2
• Publication Date: November 14, 1975
• Content Type: NOTES

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Secret
NOFORN
RD C
Western Europe
Canada
International Organizations
Secret
No. 0306-75
November 14, 1975
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ORCON/NO CONTRACT
Warning Notice
Sensitive Intelligence Sources and Methods Involved
(WNINTEL)
NATIONAL SECURITY INFORMATION
Unauthorized Disclosure Subject to Criminal Sanctions
DISSEMINATION CONTROL ABBREVIATIONS
NOFORN- Not Releasable to Foreign Nationals
NOCONTRACT- Not Releasable to Contractors or
Contractor/Consultants
PROPIN- Caution-Proprietary Information Involved
USIBONLY- USIB Departments Only
ORCON- Dissemination and Extraction of Information
Controlled by Originator
REL... - This Information has been Authorized for
Release to ...
Classified by 010725
Exempt from general declassification schedule
of E.O. 11652, exemption category:
05a(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.
Good Cop, Bad Cop . . . . . . . . . . . . . . . 1
Government Candidate Wins in Irish By-Election. 3
Portuguese Workers End Demonstration . . . . . 4
November 14, 1975
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Good Cop, Bad Con
On the eve of consultations in Washington, the
EC Commission is citing its own record of defending
the Community against alleged US protectionism. It
also is praising adherence to free trade principles
in order to prove its good faith to Washington and
dampen sentiment in Europe for retaliation.
At a meeting of the European Parliament on
November 12, Commissioner Gundelach, who leads the
EC delegation to the US for next week's biannual
discussions gave a balanced response to a question
on protectionist measures taken or planned by the
US. Gundelach stressed the distinction between
protectionist measures and protectionist pressures
and pointed out that so far both the US and the
community have on the whole been able to avoid
protectionist measures. The Commissioner maintain-
ed that over $4.5 billion worth of community ex-
ports had been the subject of complaint in the US
under its trade act and that even after the Wash-
ington administration's rejection of the complaint
on steel, over $3 billion in EC trade is still in
question. He told the Parliament that, neverthe-
less, with a single exception affecting cheese
exports to the US, Washington had not given way
to protectionist pressures.
Gundelach set the tone for comment by members
of the European parliament. Several speakers, in-
cluding British and Dutch members of parliament as
well as an Italian Communist deputy, commented on
the successful efforts of the US administration
to resist pressures.
November 14, 1975
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The attitudes in Strasbourg contrast with other
recent indications of EC attitudes. The possibility
of EC retaliatory action has surfaced in discussions
of EC officials. Late last month, Paris sent Wash-
ington a sharp aide memoire deploring that Washing-
ton had made no effort to moderate the impact of
increasing protectionist claims, protesting Wash-
ington's restrictive interpretations of counter-
vailing duty and antidumping legislation and de-
scribing US restrictions on EC cheese exports as
"unjustified" and "unnecessarily detrimental."
The US is, of course, not seen as the only
potential villain in a new outbreak of protection-
ism. The EC is currently at odds with Sweden over
Stockholm's measures to restrict shoe imports. The
Commission is also trying to defuse pressures from
French steel makers to restrict EC imports.
In addition, British Chancellor of the Exchequer
Healey came closer this week than ever before to
advocating import restrictions for the UK. He told
a Labour party meeting that the British government
is prepared to use "short-term selective import
controls where we are satisfied it is necessary to
preserve firms or sectors of industry which will be
viable when recovery is under way but which could
otherwise be wiped out by external competition dur-
ing the recession." (SECRET NOFORN/ORCON/NO CONTRACT)
25X1A
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Government Candidate Wins in Irish By-Election
The government retained its three-seat majority
in parliament by winning handsomely in the West
Mayo by-election on November 13. The defeat of the
opposition Fianna Fail Party's candidate will be
hailed in London and Dublin as popular repudiation
of opposition leader Jack Lynch's recent call for the
British to pull their troops out of Northern Ireland.
The government's successful handling of the
Herrema kidnapping in the weeks just before the
election probably provided some of the margin of
victory. The attractiveness of the governments' Fine
Gael candidate--a political legacy--and the general
feeling that the government is doing a good job
despite economic problems also helped.
The outcome may aid Lynch, who is considered a
moderate. He reportedly opposed the party's state-
ment calling for British withdrawal from Ulster but
was overruled by.the party's strong right-wing. With
a comfortable majority--by Irish standards--Prime
Minister Cosgrave is assured the option of calling
elections anytime he chooses before his current term
expires. (CONFIDENTIAL NOFORN)
November 14, 1975
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7
Portuguese Workers End Demonstration
A major test between the Portuguese government
and Communist-led workers apparently ended early this
morning with agreement on a new collective labor con-
tract.
While there has been no official announcement of
the details of the settlement, initial press reports
say Prime Minister Azevedo bowed to the workers' wage
demands. He apparently refused to fire Labor Minister
Tomas Rosa, but the press says he agreed to an investi-
gation of the labor ministry, which has been a target
of the Communists in recent weeks.
The workers evidently were placated enough to
end their seige of Sao Bento palace, where Azevedo
had been a hostage the past two days. As many as
20,000 had participated in the demonstration that
began Wednesday.
There was a danger yesterday that the workers'
protest would develop into a major confrontation when
the workers demanded not only a 44-percent wage hike,
but also the return to power of pro-Communist former
prime minister Vasco Goncalves.
Last night, several hours before the demonstration
ended, President Costa Gomes appealed to a nationwide
radio audience for calm and for support for the sixth
provisional government.
Constituent assembly delegates, who spent Wednes-
day night trapped in the palace, left yesterday after-
noon with the assistance of local troops. The troops
refused to guarantee the safety of three assembly
November 14, 1975
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members--two leading Socialists and the conservative
former air force chief, Galvao de Melo. These three
remained with Azevedo after an attempt by a military
th was frustrated by the
helicopter to evacuate
crowd.
The government will have serious problems if it
has agreed to the construction workers' demand for
a 44-percent wage increase, especially after details
of a new austerity program were published in the Lisbon
press this week. The document outlines the nee
increased prices, reduced real wages, rationing of
essential foodstuffs, and adjustments in the escudo
exchange rate to put Portugal on the road to economic
recovery.
Before implementing this program, the government
h ver carefully its ability to with-
will have to weig y
stand the tension the program is bound to create against
t done
the chaos that might result if something is no
to improve the economy.
The Communists have already attacked the program
for demanding sacrifices of the working class. (CON-
FIDENTIAL)
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Secret
Secret
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