STAFF NOTES: WESTERN EUROPE - CANADA - INTERNATIONAL ORGANIZATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00865A001800090001-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 10
• Document Creation Date: December 12, 2016
• Document Release Date: July 18, 2001
• Sequence Number: 1
• Publication Date: September 19, 1975
• Content Type: NOTES

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Uonf idential
No Foreign Dissem
L\LL Mourgo
Western Europe
Canada
nternational Organizations
Confidential
No. 0273-75
September -9, 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:
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.
Danish Progress Party Squabbles . . . . . . . . 1
Bonn Reviews Policy Toward European
Community . . . . . . . . . . . . . . . . . . 4
EC Trying to Expand Ties with Indonesia . . . . 6
September 19, 1975
CO1/0NFIDENTIAL
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Danish Progress Party Squabbles
Factionalism and disagreement over goals
again marred the annual convention last weekend
on the conservative, iconoclastic Progress Party,
Denmark's third largest party.
This latest outbreak of disunity probably
is not fatal for the party's future. Basically
a grass-roots protest movement against taxes and
government bureaucracy, the party has been wracked
by strife since its founding in 1973. Despite
recurring predictions of an early demise, the
party has demonstrated a rather firm hold over
wide segments of the business and agricultural
communities disillusioned with the established
parties.
A power struggle between party secretary
Simonsen, who favors greater local autonomy,
and parliamentary deputy Wamberg, who desires
more centralized control, dominated the two-day
proceedings. The Wamberg group won out, but
its victory does not appear decisive.
The power struggle prevented the congress
from coming to grips with developing a broader,
more nuanced policy profile. Leaders had come
to recognize that this is necessary if the party
is to appeal to women and retired people, two
groups that have remained indifferent in the
past to the party's program.
The congress dealt with only two issues
of significance. The debate on defense policy
revealed that only 20 to 30 of the 1,000 delegates
oppose Denmark's membership in NATO, a smaller
proportion than had been assumed. On another
September 19, 1975
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issue, party chairman Glistrup, reacting to public
criticism of his comment that Denmark ought to
sell Greenland, advocated instead giving the island
more autonomy. Many Danes have come to regard
Greenland as a troublesome and expensive dependency
that modern Denmark cannot afford. (Confidential)
September 19, 1975
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Bonn Reviews Policy Toward European Community
The West German government, at the insistence
of Chancellor Schmidt, has embarked on a general
review of policy toward the European Community.
Schmidt's main objective is to force the EC Com-
mission to adopt a more tight-fisted policy on
financing Community programs. The German cabinet
will discuss various ministry recommendations at
a meeting scheduled for September 29.
During the past year, the Chancellor has
frequently expressed dissatisfaction with the
Commission's implementation of Community programs.
Schmidt's unwillingness to allocate funds for the
two EC scientific research centers in Italy and
the Netherlands, in fact, triggered criticism from
"European-minded" Free Democrats in the cabinet
and provided the impetus for the present policy
review.
Schmidt has also been disturbed by the high
costs of the common agricultural policy. He has
stated that Bonn will not allow European agri-
cultural prices to be pegged at the price levels
of those community members which have much higher
rates of inflation than West Germany.
The Chancellor reaffirmed his hope to make
the Commission more "finance-conscious" in his
opening speech to the Bundestag this week. This
position parallels the new budget austerities
that Schmidt is recommending at home.
The agenda for the cabinet meeting will include
a review of:
--proposals to improve the Community's agri-
cultural price support program.
September 19, 1975
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--the status of the EC research centers.
--preferential trade arrangements with
forty-six underdeveloped countries under
the Lome Convention.
--such institutional questions as strengthen-
ing the European parliament in Strasbourg
by popular elections of its deputies.
(Confidential)
September 19, 1975
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EC Trying to Ex and Ties with Indonesia
EC Commission President Ortoli's visit to
Jakarta early this month provided an opportunity
for both the EC and Indonesia to move toward
broadening their trade patterns on commodities
of particular interest.
Ortoli stressed EC interest in developing
soybean production in Indonesia for the EC market.
Shortly after his visit, the Indonesian govern-
ment announced approval of the soybean project
provided it is integrated with Indonesian land-
use policies.
The EC countries, particularly France, have
been trying to develop alternate sources of soy-
beans since the brief US embargo of soybean exports
in 1973. Expansion of production in Europe has
proved difficult. In France, where a key research
organization predicted that as much as 375,000
acres could be given over to soybeans in 1980,
planting in fact has fallen from 7,400 acres in
1974 to less than half that figure this year.
The Indonesian ambassador to Brussels noted
the importance of the EC to Indonesia as a "third
channel," in addition to Japan and the US, for
trade and investment. He commented favorably on
the tariff cuts extended to Indonesia and other
South East Asian nations this summer on rubber,
palm oil, tea, tin, pepper, and copra but said
Indonesia wants further cuts on these and other
products. According to press reports, the head
of the EC's international division predicted that
the EC will institute further tariff reductions
next year on agricultural imports from South East
Asia and enlarge quotas for manufactured goods
under the EC's generalized system of preferences.
(Confidential No Foreign Dissem)
September 19, 1975
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Confidential
Confidential
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