WESTERN EUROPE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T00608R000500040009-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: December 15, 2016
• Document Release Date: July 23, 2004
• Sequence Number: 9
• Publication Date: May 7, 1975
• Content Type: REPORT

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West and East Seek to Aid Portugal 1
Giacard Undecided About CSCE SLtmmit. 4
PossiblE Dutch Cabinet Crisis. 6
EC To Si~,~n Trade Pact with Israel.. 7
May 7, 1975
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West acid East Seek to P.id Portugal
Lisbon's NATO allies and the Soviets
are stepping up their efforts to provide
aid to Portugal.
The West .Germans Social Democrats
are in the forefront of West European
parties urging i:icre~ased aid to Portugal.
They believe Po~:tugal needs Axport markets
and that the EC should move more quickly
to help, perhaps by granting Portugal
preferential treatment as a developing
nation .
Paris is also seeking better ties
wit` Portugal and President Casa Gomes
is coming to Paris on an official visit
next month.
Ths E!; foreign ministers c:~ May 5 devoted
most of ~t:~.~ir :.estr~cted session to consideration
of Portugal. They agreed to ask the C~*nmission
to look into specific ways of. helpincT the
Portuguese through, financial aid for industrial
development, technical. and professional
help for small c,nd medium-sized industries,
an improvement in the position for Portuguese
workers in the EC, anc~ improved arrangements
fir trade.
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May 7~ 1975
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The strong showing of the moderate
parties in the recent Portuguese elections
has encouraged the West to provide economic
aid, .but concern about political developments
in Portugal continue.
Western concern is likely to be heigY~tened
by Lisbon's recent announcement that Prime
Minister Goncalves who is regarded as
sympathetic to the Communists will atten~:
the NATO summit at the end of this month.
Despite Lisbon's substitution of Goncalves
for thF more moderate Costa Gom~~s, the
Western nations wi 11 probably proceed
with their aid plans.
Meanwhile, the Soviets, are becoming
steadily more active in trade and aid
for Portugal. According to a recent Soviet
economic publication, Mos.;ow plans to
assist Lisbon in develo}~ing its aluminum
and cement industries, reconstruction
of a coal mine and possibL~ assistance
in the construc?cion of a nuclear power
station, wnich would be Portugal's first.
The Soviets also plan to assist the Portuguese
fishing industry, including training Portuguese
specialists in the USSR and conduci:ing
joint research at sea. Nineteen Soviet
May 7-; 19 75
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foreign trade organizatic,ns will participate
in the Lisbon International Fair this
year the first time the Soviets will
have been represented.
Negotiatierss have been completed
or are underw~?y for Soviet purchases of
traditional Portuguese eacpo:-ts such as
shoes, hides and amine. Moscow's moti.v ation
in making these deals is primarily pozitical;
it wants to be in a position ~o influence
evens in Portugal. and provide an alternative
to reliance on the West.
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May ? , l9 75
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Giscard Undecided Ab^ut CECE SumMit
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French President Giscard reportedly
has not yEt decided whether to agree to an
past-West summit conclusion to the European
Security Conference.
Giscard's indecision ma~~ be a reflection
of his sharp disappointment over the failure
of the cooperative spirit he thought he had
established with Brezhnev last December. At
that time, France sEemed to entertain :iopPs
of negotiating a compromise between East and
West--an accc~_mplishment that would have boosted
French diplomatic prestige and paid domestic
dividends, especially on the left of the poll+:ical
spectrum.
.The communique issued after the Franco-
Soviet summit last December declared in favor
of a summit conclusion to the European Security
Conference--provided suitable progress were
made. In a vublic letter to Brezhnev on March
18, Giscard expressed the hope that the summit
could be held as soon as possible after the
first half of i 975---with a s:;.milar, proviso
about progress on important unresolved issues.
May 7, 1975
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Despite French optimism and French attempts
to meet the Soviets at least half way, little
progress was made on humanitarian issues in
Geneva, and Prime Minister Chirac's visit
to Moscow in late I~iarch may have finally convinced
Giscard that the Soviets would not make the
Recently senior French officials have
acknowledged privately that the European Security
Conference will ,yield meager renefits for
the West. They m~~intain that if the summit
is held, it should be de-emphasized and portrayed
as just another elen-ent of the detente .process.
Giscard's return to Pompido].ian skepticism
about a security conference summi~ could have
significant influence on other West European
countries. The West Germans, in particular,
would welcome Paris' tougher line toward the
Soviets, and several oth~ar countries might
follow Paris' lead.
May 7, 1975
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Possible Dutch Cabinet Crisis
A Labor Party proposal ?to set aside a portior_
of und9.stributed company profits for eventual distri-
bution to workers has precipitated a government
crisis. Economics Minister Lubbers, representing the
Catholic People's party, opposed the measure and has
threatened to resign unless wage ?~ncreases are'~ied
to productivity.
Lubbers' stand has split the confessional
parties' ministers in the government, some of whom
"might also resign. Although nearly all parties agree
that elections now are undesirable,. the government
,could collapse if a compromise cannot be reached.
Chances i'or resolving the problem are good based
on the government's past record for compromise. Most
parties arm not ready for elections and only the
young left-wingers in parliament would welcome them.
Thus, there maybe further attempts at com romise in
an e~fort to keep the government intact.
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May 7,1975
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EC To Sign Trade Pact with Israel
The EC and Israel expect to sign
a free trade agreement this weekend
that will enter into force on ,Tuly 1.
Italian objections to easing EC
tariffs on competitive agricultural
products threatened to block signature
of the agreement. As a result, agricultural
provisions of the new accord will not
come into effect until Rome's problems
can be resolved, in part probably through
higher community farm subsidies for
Italy. This also means that the farm
section of the agreement with Israel
will not be activi tated until the negotiations '
with the PZaghreb states, stalled over
the same issue, are concluded.
The EC-Israeli accord is the first
to be signed as part of the EC's so-called
Pediterranean policy. The arrangement
provides for the gradual establishment
of an industrial free trade area, a
reduction in agricultural tariffs, and
increased technical, scientific, and
industrial cooperation. The agreement
also allows Israel to apply for financial
assistance once similar arrangements
are negotiated between the EC and Egypt,
Syria, Lebanon and Jordal. These will
constitute the secord round of the EC's
Mediterranean negotiations and are 'ust
ctettinq under wav.
May 7, 19'75
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