WESTERN EUROPE CANADA INTERNATIONAL ORGANIZATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00865A001300260001-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 12
• Document Creation Date: December 12, 2016
• Document Release Date: December 21, 2001
• Sequence Number: 1
• Publication Date: July 10, 1975
• Content Type: NOTES

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Confidential
No Forel n Di.nem
UL\LFU HOUR)o
Western Europe
Canada
International Organizations
Confidential
123
No. 0224-75
July 10, 1975
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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.
EC Discusses US Countervailing Duties . . . . . 1
Fishing Issue Causes Stir in Iceland. . . . . . 2
Portuguese Parties Threatened by
"Popular Councils" Proposal . . . . . . . . . 6
Delays in Ratification of IEA Treaty. . . . . . 9
July 10, 1975
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EC Discusses US Countervailing Duties
EC officials charged with trade matters are
extremely concerned by the recent US determination
that countervailing duties may be imposed on certain
EC exports because of community subsidies.
This week's meeting of the EC committee charged
with trade affairs was almost entirely preoccupied
with a discussion of US-EC trade matters. The
Italian chairman said that the US finding that sub-
sidies are being paid on one of these products--
high-quality sheet float ala.ss--aroused "deep re-
sentment" within EC member governments. Committee
members admit that float glass per se is not an
important trade item. They feel, however, that the
US action puts into question the Community's in-
dustrial policy and system of regional development
aid. Linder these policies the EC has established
such industries as those producing float glass
in less developed areas of the community.
Moreover, it was argued, since the Community
has agreed to negotiate the issues of subsidies and
countervailing duties at the ongoing Multilateral
Trade Negotiations meeting in Geneva, US pressure
is unnecessary and could prove counterproductive.
(Confidential No Foreign Dissem)
July 10, 1975
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CONFIDENTIAL
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Fishing Issue Causes Stir in Iceland
Iceland's plan to extend its fisheries zone
to 200 miles this fall is precipitating more and
more diplomatic activity.
The UK, whose fisheries agreement with Iceland
expires on November 13, 1975, has offered to reduce
its annual catch from 130,000 tons to between 80,000
and 90,000 tons. London reportedly also will offer
to reduce the number of zones in which it is currently
allowed to fish.
The West Germans, who have been involved in
several recent fishing skirmishes with the Icelanders,
plan to reduce their catch and keep factory and freezer
trawlers out of the current 50-mile zone in return for
a fisheries agreement. A West German official reportedly
will visit Iceland in August and plans to meet with
the Prime Minister, Foreign Minister, Minister for
Fisheries, and the head of the Icelandic Trawler Owners
Association, presumably to speed up an agreement.
The Soviet Ambassador in Reykjavik reportedly
called on Foreign Minister Agustsson recently to announce
Soviet opposition to Iceland's planned extension of its
fishing limits. An East German official has said that
the GDR will support the Icelandic extension if the
countries that currently fish within the zone are allowed
to continue.
The fisheries issue is creating problems for the
Independence-Progressive coalition as well. Prime
Minister Hallgrimsson and Foreign Minister Agustsson
both favor agreements with the UK and West Germany
which would permit some fishing within the 50-mile
July 10, 1975
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zone. The fisheries minister, as well as the entire
Communist-dominated Peoples Alliance, on the other
hand, are opposed to any foreign fishing within that
zone. The Communists also believe that when Iceland
extends its fishing limits, foreign fishing should
be banned from the 200-mile zone.
Hallgrimsson and Agustsson will have a difficult
time justifying their more lenient positions in view
of Iceland's deteriorating economic situation and
the prominence of fishing as the island's economic
staple. The economic situation has gotten so far out
of hand that Hallgrimsson has called two emergency
meetings of Independence Party members of parliament
to discuss the economic crisis. (Confidential No
Foreign Dissem)
July 10, 1975
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Portuguese Parties Threatened by "Popular
Councils" Proposal
Proposals announced yesterday by the Armed
Forces General Assembly called for the creation
of "popular councils," and are drawing a sharp
reaction from moderate political leaders who
see a threat to their parties' continued exist-
ence.
The Socialist Party reportedly convened an
emergency meeting of its national executive
council. A spokesman for the center-right Social
Democratic Center Party expressed "consternation,
concern, and regret." He said the parties
should have been consulted before such far-
reaching proposals were announced. The Assembly's
proposals call for the development of popular
councils, first at the local level, leading to
district and regional assemblies, and eventually
to a national assembly. The military proposes
to play an active role in each of these bodies.
The aims of these popular councils, as set
out by the Assembly, would be:
--to fester mass participation in the
revolution;
--to protect the revolution through
self-defense organizations;
--to enlist the workers' assistance
in increasing production.
The councils would gradually take over local
administration, along with the job of political
indoctrination of the people and control of the
July 10, 1975
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means of production. The Assembly noted
that the formation of these popular bodies would
not preclude cooperation by those political
parties favoring socialism, but did not say what
form this cooperation might take. It implied there
would be no significant role for the parties once
the popular councils are functioning.
The councils represent a compromise between
the committee structure favored by the Communists
and that supported by the even more extreme left.
The Communists, however, were quick to announce
their support for the Assembly's action. They
also said they would carry out an intensive
organizing effort at the local level. The new
councils are attractive to the military because
they would allow the Movement to control the form
of the "direct links" it wants between itself and
the people and to by-pass the parties if it chooses
to do so. The formation of a national assembly
is some time off, but the promise of one to come
could be used by the Movement to sidestep its
earlier commitment to the election of a legislative
assembly.
The Assembly also promised further nationaliza-
tion measures, progressive land reform, and a
revamping of the civil service, including further
purges of officials. On foreign affairs, the
Assembly had only this to say: "Any type of
ideological, political, or economic hegemony"
over the Portuguese revolution will be avoided.
The statement is an effort to answer the critics
on the right who are wary of Communist domination
and critics on the left who fear the Armed Forces
Movement will sell out for financial assistance
from Western Europe.
There have been no reports of a power play
from either the left or the right at the Assembly,
and a Movement spokesman has described such rumors
as "completely unfounded." Rumored attempts to
unseat Prime Minister Goncalves failed to materialize.
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Meanwhile, the Communists have scheduled
a mass demonstration in Lisbon tonight to show
support for the Prime Minister and the military
government. The Socialists have countered with
plans for their own rally. (Confidential)
July 10, 1975
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Delays in Ratification of IEA Treaty
Etienne Davignon, the Belgian chairman of the
governing board of the International Energy Agency,
is looking into the possibility of delaying for the
second time the September 1 target date for ratifi-
cation of the agreement.
Of the 17 full IEA members, only Luxembourg
and Denmark have ratified the treaty. The Austrians
seem close to ratification, but the Belgians have
put off ratification until the fall.
One of Davignon's aides has asked US officials
for a report on the status of ratification of the
treaty by the US Congress. Davignon's request was
prompted by the necessity of deciding--before the
IEA governing board meeting on July 28--whether or
not to postpone the target date.
Continued postponement of ratification, along
with dodging difficult issues such as happened in
connection with the long--term cooperation agreement
at the last board meeting, could hamper development
of the agency':= prospective role as the representa-
tive of oil consumer's interests. According to an
official in Davignon's office, this factor is re-
flected in the opposition to the agreement which has
recently developed in Switzerland. The burgeoning
Swiss opposition to ratifying the agreement is based
on disenchantment with the LEA's role in arranging a
meeting of oil producers and consumers. The Swiss--
whom the official feels joined the IEA in the hope
their membership would contribute to such a dialogue--
are questioning whether membership is in their best
interest. (Confidential No Foreign Dissem)
July 10, 1975
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Confidential
Confidential
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