STAFF NOTES: WESTERN EUROPE CANADA INTERNATIONAL ORGANIZATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T00608R000500020043-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 18
• Document Creation Date: December 21, 2016
• Document Release Date: February 6, 2008
• Sequence Number: 43
• Publication Date: October 28, 1975
• Content Type: REPORT

Approved For Release ?5X1
2008/02/06: ~A CIA-RDP86TOO608ROO050002C
Approved For Release
2008/02/06: ~
CIA-RDP86TOO608ROO050002C
 Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
Codrfidential
2U1FP K07mgo
Western Europe
Canada
International Organizations
State Dept. review
completed
Confidential
'i-3 0
No. 0295-75
October 28, 1975
Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
 Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
 Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
CONFIDENTIAL
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.
CONTENTS
Spanish opposition to Go Easy During Early
Part of Transition . . . . . . . .
1
Spanish and Moroccan Officials Hopeful on
Spanish Sahara Settlement. . . . . . . . . .
3
Portuguese Government Takes Action to
Establish Its Authority. . . . . . . . . . .
6
Shaky Start Bodes Ill for Canada's
Economic Control Program . . . . , . , , . .
8
A New Try for a Common Energy Policy . . . . .
10
Compromise on Agriculture Falling Apart
at Multilateral Trade Negotiations . . . . .
12
One Small Step for Direct Elections to
Europe's Parliament.
13
October 28, 1975
-i-
CONFIDENTIAL.
Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
 Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
CONFIDENTIAL
Spanish Opposition to Go Easy During Early Part
of Transition
Various Spanish opposition groups indicate that
they will avoid direct challenges to General Franco's
successors at least during the initial phases of the
transition period.
--A leading official of the Communist-dominated
Workers' Commissions told the US labor attache
that the commissions have spread the word to
their members to avoid strikes and other pro-
tests during the transition period.
--Felipe Gonzal,?z, secretary genera]. of the
Spanish Socialist Workers' Party, told Ambassa-
dor Stabler that his party will give Prince Juan
Carlos "a chance" to open up the political
system.
--Gonzalez believes that Spanish Communist
Party leader Carrillo will adopt the same
attitude despite the contradictory statements
made by Communist Party officials.
These comments suggest that most political
groups believe full-scale opposition tactics at this
time would only prejudice their long-term interests
October 28, 10, 5
-1-
CONFIDENTIAL
Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
 01
Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
CONFIDENTIAL
and invite repression. Their future course will,
of course, depend on their assessment of Prince
Juan Carlos' performance.
The first clues as to Juan Carlos' intentions
should appear in the nationwide speech he is expected
to make after the transfer of power ceremonies. He
hopes to form a new government and its composition
will be used by opposition groups to measure how far
and how fast Juan Carlos is prepared to press for
change.
The new .lead of state will not be able to satisfy
all shades of political opinion, but he has a good
chance of winning the support of a commanding majority
if he develops a policy that clearly departs from the
tenets of Franco's rule without appearing to be an
abrupt rupture from that era. Thus, he will have
to make some progress toward establishing a freer
political system, but only gradually, and with clear
indications that the evolution is being tightly
controlled by competent authorities.
Inevitably there will be some trouble regardless
of how skillfully Juan Carlos manages this process.
Fifteen alleged members of the far left terrorist
organization, Anti-Fascist and Patriotic Revolutionary
Front, were arrested over the weekend, but the group
will continue--and may intensify--its terrorist campaign
once Juan Carlos becomes king.
Violence from the extreme right ma', also increase.
On Sunday, a right-wing group called th.a Death Commandos
publicly ordered 17 prominent Catalans associated
with 'Leftist political groups to leave the country
within 24 hours of Franco's death or face execution.
The military, and to a greater extent the police
forces, are maintaining a low-level alert status.
October 28, 1975
-2-
CONFIDENTIAL
Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
 Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
CONFIDENTIAL
Spanish and Moroccan Officials Hopeful on
Spanish Sahara Settlement
Spain and Morocco are optimistic that they can
agree on a settlement of the Spanish Sahara. Moroccan
Foreign Minister Laraki was in Madrid for talks late
last week, and a high Spanish official told the US
embassy that when the Moroccan negotiators returned
to Madrid soon, possibly this week, progress would be
evident.
A dispute in the Spanish government between Prime
Minister Arias' policy to cede the Sahara to Morocco
in return for guarantees regarding Spanish interests
in the territory and Foreign Minister Cortina's insis-
tence on granting self-determination was settled by
discarding Cortina's policy, according to the official.
the government considered the pres-
ent problem to be between Spain and Morocco and not
between Spain and Algeria. Previously, Spain had
insisted on Algerian agreement to avoid a Moroccan-
Algerian clash when Spain withdrew. The Spaniards
are being very tight-lipped about the actual terms of
the proposed settlement. If Algeria has a problem with
Morocco, that is a separate matter.
The Spaniards want to settle the Sahara problem
quickly, before the Moroccan march to the Sahara
proceeds much further. The Spanish official said
under no circumstances could Spain let the marchers
enter Saharan territory. Spain may also want to
have a settlement before the post-Franco era gets
under way. To facilitate a settlement, a bill has
been submitted to the Cortes which would empower
the government to take any action necessary to de-
colonize the Sahara.
Spain apparently wants the UN's blessing. The
information minister also stated that Spain stood
by its policy, communicated to the UN Secretary
General last May, to decolonize under UN auspices.
October 28, 1975
-3-
CONFIDENTIAL
Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
 Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
CONFIDENTIAL
Su,.h decolonization, however, could in the Spanish
view include handing the territory over directly to
the Moroccans.
Moroccan Foreign Minister Laraki at his departure
October 25 commented that he was "very satisfied" with
the conversations in Madrid. He said the two sides
discussed ways of settling the dispute peacefully in
accordance with the UN Security Council resolution of
October 22, and that Spain and Morocco were "on the
road to agreement." After briefing King Hassan in
Marrakech, the foreign minister made a quick trip to
Mauritania on October 26. His Mauritanian counter-
part reportedly arrived in Morocco yesterday for talks
with the King. Both countries claim the Spanish
Sahara and apparently have an agreement to partition
the territory.
Meanwhile, diplomatic contacts are continuing
in an effort to avert a crisis over Morocco's mass
march to the Spanish Sahara. King Hassan, in an
interview broodca:;t yesterday, repeated his intention
to proceed with the march, although Rabat is de-
laying the final leg from the border to El Aaiun,
the Spanish territory's captial. According to
press reports from Marrakech, King Hassan now plans
to lead the march into Spanish Sahara in about two
weeks.
UN Secretary General Waldheim, by a recent
Security Council resolution authorizing him to under-
take immediate consultations with the parties in-
volved, spoke with King Hassan October 26 and went
on to Mauritania the same! day. He was in Algiers
yesterday and arrived in Madrid last night. Tunisian
and French diplomats were also in Morocco over the
weekend to urge Hassan to exercise restraint.
In the Spanish Sahara, evacuation of Spanish
civilian and military dependents is said to be under
way. The Polisario Front, a Saharan political group
October 28, 1975
-4-
CONFIDEN i SAL
Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
 Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
CONFIDENTIAL
supported by Algeria, held a large demonstration in
El Aaiun October 26 in support of independence for
the territory.
Algeria is increasing its press attacks against
Morocco to counter King Hassan's claim to Spanish
Sahara and respond to virulent anti-Algerian attacks
being printed by opposition political parties ~.n
Morocco. The Algerians are giving heavy play to
adverse world press reaction to Morocco's planned
march. They are openly questioning how bilateral
negotiations between Rabat and Madrid can be re-
conciled with the Security Council resolution
last week that called for a dialogue among all
interested parties, a formulation that would allow
Algerian participation in any talks. The Algerian
press also has pointedly emphasized that Morocco's
historically "non-existent" territorial claim to
Spanish Sahara was recently questioned in an advisory
opinion by the International Court of Justice.
At the UN, Algerian Foreign Minister Bouteflika
can be expected to argue that the recent Court opin-
ion clearly supports self-determination for the
Spanish Sahara. He is also likely to call for con-
sultations with the people of Spanish Sahara, as
recommended in a recent UN fact-finding report.
October 28, 1975
-5-
CONFIDENTIAL
Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
 Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
vt.JI 1' 11JL 1N 1 1ffL
Portuguese Government Takes Action to Establish
Its Authority
The Portuguese government appears to have
emerged from the events of the past few days with
its authority somewhat strengthened despite a series
of terrorist bombings and a spate of coup rumors.
On his arrival Saturday in Porto, Prime Minister
Azevedo said authority and discipline would be rein-
stated in Portugal "at any price." Although Azevedo's
words at a pro-government rally later in the day
were not as strong, the Prime Minister's trip to Porto
signaled his strong support for the northern com-
mander's efforts to restore military discipline.
These efforts had been undermined earlier this
month by Army Chief of Staff Fabiao when he acquiesced
to the demands of rebellious soldiers.
The Prime Minister said his visit to Porto
was the first in a series to various parts of the
country. He presumably will use the visits to
mobilize popular support for his government.
The Communists urged their supporters not to
attend a rally for Azevedo, but his appearance in
Porto drew about 7.00,000 people. The anti-government
demonstration last week in Lisbon drew only about
13,000.
The government has also taken other measures
to strengthen its authority. On Friday it announced
new commanders for the Republican National Guard and
the civil police. On Monday Cavalry troops blocked
October 28, 1975
CONFIDENTIAL
Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
 Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
(JUN?1DJ N"1'IAL
Communist-instigated farm workers from taking over
a privately owned farm in central Ribatejo, and in
Faro, on the southern coast, the army helped to
remove leftist demonstrators who had occupied the
civil governor's mansion.
The military alert announced on Friday ended
abruptly on Saturday with the explanation that the
country is now calm. Whatever the reason for the
alert--it'may have been politically motivated--it
appears to have been skillfully used by the government
to at least temporarily seize the initiative and
marshal its forces.
October 28, 1975
CONFIDENTIAL
Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
 Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
CONFIDENTIAL
Shaky Start Bodes Ill for Canada's Economic
Control Program
The Trudeau government's new program of wage
and price controls is off to a very shaky start
even before the formal enabling legislation has
passed parliament. The US embassy notes that this
inauspicious beginning raises doubts about the
program's future success.
The strike by a major postal union over wage
demands far in excess of those allowed under the
program's wag,2 guidelines continues to keep the
postal syster.i closed for the eighth day. Neither
the government nor the union has given ground and
no settlement is in sight. General labor opposition
has also been growing. The Conference of Public
Service Unions, for example, gave Labor Minister
Munroe's plea for support a hostile reception and
followed with?a vote opposing the wage controls.
The left wing New Democratic Party, which relies on
labor support, has come out against the controls.
Mild support has come from the Progressive-
Conservative Party, the press, and business leaders.
All the provincial premiers, with the exception of
Alberta's Peter Lougheed, have expressed some support
for Ottawa. Late last week British Columbia's New
Democratic premier, David Barrett shifted from
opposition to the program to a position of limited
support. The government has been disappointed,
however, by the failure of all of the provinces,
except Quebec, to set up anti-inflation review
boards to share the administrative load and to
remove some of the onus of unpopular rulings from
the federal Anti-Inflation Review Board.
October 28, 1975
-8-
CONFIDENTIAL
Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
 Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
Ii vaIa yy L1I1&IXL
The nationwide sales campaign by the government
ministers has resulted in confusing statements which
have not helped clarify the program and have failed
to project an image of confident management. Even
the Prime Minister has added to the confusion by
appearing to tell workers they could get wage
increases in excess of the guidelines and in the
same speech saying that the government would take
away excessive wage boosts through increased taxation.
The embassy foresees some possible problems for
the US under, the new controls. The attempt to
establish separate price schedules for domestic and
export markets, the failure to bring import prices
under the controls, and the repercussions should a
US controlled firm be among the first penalized under
the price control enforcement procedures, are all
potentially troublesome.
Trudeau's threat to impose even more stringent
controls should his current anti-inflation program
fail can not be discounted. He has shown in the
past that he is not afraid to use firm and highly
visible measures when confronted with a crisis. He
went so far as to place Quebec under martial law
and to suspend civil liberties there when challenged
by terrorist acts in 1972.
October 28, 1975
CONFIDENTIAL
Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
 Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
(JOINP'lDL;IN 11AL
A New Try for a Common Energy Policy
Commission Vice President Simonet
is making a major last-ditch effort to
achieve a common EC energy policy. His
proposals contain something for each of
the Nine--including the independently
minded British--and could provide a new
impetus for bargaining in this long--stalled
area.
Simonet is holding his plan closely
but apparently would ask the member states
to agree:
--to speak with one voice on energy
matters internationally. The UK
would have to give up its demand
for a separate seat at the Conference
of International Economic Cooperation,
formerly the producer-consumer confer-
ence, now broadened to include development
questions in addition to energy.
France would not have to join the
consumers' International Energy
Agency, but would have to stop impeding
its work.
--to act together in a supply crisis.
France has considered such a commitment
provocative to the oil producers
and the UK has feared it would involve
sharing control of North Sea oil.
--to guarantee the profitability of
investment by community producers.
Designed as a major inducement to
October 28, 1975
0.r)MP11lWNTTA1.
Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9
 Approved For Release 2008/02/06: CIA-RDP86T00608R000500020043-9