STAFF NOTES: WESTERN EUROPE CANADA INTERNATIONAL ORGANIZATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T00608R000400130019-5
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 11
• Document Creation Date: December 21, 2016
• Document Release Date: February 7, 2008
• Sequence Number: 19
• Publication Date: April 14, 1975
• Content Type: REPORT

Approved For Release
2008/02/07:
CIA-RD P86T00608 R000400130
Approved For Release
2008/02/07
CIA-RD 6TOO608ROO0400130
 Approved For Release 2008/02/07: CIA-RDP86T00608R000400130019-5
25X1
Confidential
Western Europe
Canada
International Organizations
State Dept. review
completed
Confidential
118
No. 0174-75
April 14, 1975
Approved For Release 2008/02/07: CIA-RDP86T00608R000400130019-5
 Approved For Release 2008/02/07: CIA-RDP86T00608R000400130019-5
Approved For Release 2008/02/07: CIA-RDP86T00608R000400130019-5
 Approved For Release 2008/02/07: CIA-RDP86T00608R000400130019-5
CONFIDENTIAL
WESTERN EUROPE - CANADA - INTERNATIONAL ORGANIZATIONS
This publication is prepared for regional specialists in the Washington corn.
rntinity by the Western Europe Division, Office of Current Intelligr nr:e, w!th
occasional contributions from other offices within the Directorate of
Intelligence. Comments and queries are welcome. They should be directed to
the avlhors of the individual articles.
Canada, EC Make Progress Toward Link .
Dutch Labor Party Divided Over Fighter
Aircraft Replacement Issue . . . . . . . . . . 3
British Plans for the Commonwealth
Conference . . . . . . . . . . . . . . . . . . 5
Spain and EC in Tiff Over Spanish
Opposition Group . . . . . . . . . . . . . . . 7
April'14, 1975
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CONFIDENTIAL
Canada, EC Make Progress Toward Link
Canada's desire for some sort of "contrac-
tual relationship" with the EC moved closer
to reality last week.
In exploratory talks in Brussels on April
7-8, the second round of discussions since
October, Canadian and EC Commission officials
tentatively settled on a "framework agreement"
that would suggest in general terms areas
in which economic cooperation could develop.
Such an agreement would probably not have
an immediate, major impact on Canadian-EC
relations.
Canadian and EC officials hope that the
proposed watered-down agreement, by avoiding
detailed recommendations and commitments,
will obviate US reservations over the trade
agreement type approach proposed last fall.
The Canadians have reasserted their inten-
tion to fill Washington in on the results
of the latest round of talks, but there may
be some delay while Canadian officiG;ls study
in depth the implications of this new vehicle
for cooperation.
Officials deny that the pact would be
an industrial cooperation agreement but admit
that such cooperation would be covered as
part of economic cooperation. Commissioner
Soames commented that Canada wants access
to EC technology while the Europeans desire
Canadian raw materials.
April 14, 1975
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CONFIDENTIAL
A third round of talks will be held later
this spring. If all goes well, Commission
officials hope to report to the EC Council
before the summer recess with recommendations
and probably a request for a formal negotiating
mandate.
April 14, 1975
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L&J,N r 11J.IIN I IJtL
Dutch Labor Part Divided Over Fighter
Aircraft Replacement Issue
Leftists at the Labor Party Congress last week
were rebuffed for suggesting Dutch withdrawal from
NATO, but they succeeded in getting the rank and
file to take a strong stand in favor of defense re-
ductions. The Congress unanimously passed a resolu-
tion endorsing replacement of the F-104 Starfighter
with a plane that is cheaper and less versatile than
those being considered by the government.
Debate on thi! controversial issue nearly got
out of hand. The leftists bitterly criticized
Defense Minister Vredeling, a party member, who had
threatened to resign if the party did not support
his recommendation. Cooler heads prevented the
leftists from forcing a no-confidence vote on
Vredeling's conduct as minister.'
Most Dutch government officials continue to
hope that the four nations in the consortium can
reach a common decision on a replacement for their
F-104 aircraft. They argue that only the two planes
still being seriously considered by the consortium--
the French 11irage F-lE and the US F-16--will be ac-
ceptable to NATO.
The cabinet, headed by Prime Minister den Uyl,
hopes to make its final decision by April 30. The
Labor Party's resolution is not binding on the five-
party coalition government and the cabinet will
probably opt for the F-16.
This decision could be politically costly for
den Uyl, Vredeling, and Foreign Minister van der
Stoel, who will have a difficult time persuading
their Labor Party colleagues in parliament to sup-
port such a recommendation.
April 14, 1975
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CONFIDENTIAL
British Plans for the Commonwealth Conference
The British hope to start a dialogue be-
tween producers and consumers of raw materials
at the commonwealth conference scheduled to
convene in Jamaica on April 29. The British
believe the conference would be an ideal forum
because it includes an economic cross-section
of the world. In addition, its moderate membership
would make it more receptive to proposals
by a developed country than would be a larger
meeting of the developing countries, such
as the Group of 77.
In preparation for the conference, London
has just completed an inter-agency study,
which has cabinet approval, that concludes,
among other things that:
--traditional commodity agreements are
not capable of answering current
problems, although they should not
be discontinued;
--indexation, which would tie commodity
prices to the rise in world prices,
is generally unacceptable because
it is inflexible, inflationary, and
difficult to apply to a market economy;
--earnings stabilization appears to
be the best way to .,mprove the
developing countries' economic
situation because this device would
avoid rewarding some developing
producers while penalizing other
developing consumers and it could
more readily be directed toward
needy countries.
April 14, 1975
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vvi `11' LLILLN 1 It1Lr
Foreign Secretary Callaghan told Ambassador
Richardson that the British want to use the
commonwealth meeting to prepare for further
internatio;zal discussions prior to the UN
special session on raw materials scheduled
for September. The general problem of north-
south 'relations has been receiving increased
attention among European countries in recent
months. It was expected to be a major topic
at the informal meeting of EC foreign ministers
in Dublin this past weekend.
Callaghan said the British plan to consult
with the other EC members and the US as well
as New Zealand, Australia, and Jamaica prior
to the commonwealth conference. British Prime
Minister Wilson already has conferred with
Canadian Prime Minister Trudeau. Callaahan
said that the British would not be dissuaded
by the reaction of the EC countries and would
be responsive to US views.
April 14, 1975
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Spain and EC in Tiff Over Spanish-OppOsition
Group
A dispute between the Spanish government and
the EC commissioners threatens to damage Madrid's
efforts to project a liberal image abroad.
The problem first arose in mid-March when the
Communist-inspired Democratic Junta was permitted
to use EC facilities in Strasbourg. for a meeting.
Madrid was even more upset that members of the
illegal opposition group also had talks on the
future of Spain with seven EC commissioners.
On their return to Spain, five of the opposition-
ists were required to turn in their passports.
The Spanish government's annoyance was further
increased when it received a telegram from five
of the EC commissioners who in their private
capacity protested withdrawal of the passports.
Madrid then instructed its ambassador to the
EC to make a formal complaint.
When the Spanish protest was raised before
the commissioners on April 7, ten of the 13
commissioners reportedly voted to approve the
action taken by the original five in protesting
privately about the passport action. At the
same time, the incident was reportedly played
down in the Brussels publication Europe, which
noted that EC Commission President Ortoli and
EC Vice President for External Affairs Soames
had said that the commissioners had acted on
their own.
The Spanish government's handling of
this incident has given the fledgling Democratic
Junta publicity that will highlight its activities.
By privately approving the Junta's use of EC
facilities in Strasbourg, a group of EC commissioners,
perhaps inadvertently, has helped the Communist-
dominated group ain a degree ectability
and importance.
April 14, 1975
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