STAFF NOTES: WESTERN EUROPE CANADA INTERNATIONAL ORGANIZATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T00608R000500010009-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 16
• Document Creation Date: December 21, 2016
• Document Release Date: October 27, 2008
• Sequence Number: 9
• Publication Date: June 9, 1975
• Content Type: REPORT

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Secret
Western Europe
Canada
International Organizations
41 State Dept. review
completed
Secret
No. 0203-75
June 9, 1975
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WESTERN EUROPE - CANADA - INTERNATIONAL ORGANIZATIONS
This publication is prepared for regional specialists in the Washingtoo com-
munity by the Western Europe Division, Office of Current Intelligence, with
occasional contributions from other offices within the Directorate of
Intelligence. Commerts and queries are welcome. They should be directed to
the authors of the individual articles.
Portuguese Leaders Divided cn Angola
Question . . . . . .
. . . . . . . . .
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1
Lisbon Exerts Control Over Azores . . .
. . .
3
Portugal Facer, Controversies over Press
Freedom . . . . . . . . . . . . . . .
. . .
7
Portugal Seeks Economic Assistance from
the EC , . . . . . . . . . . . . . .
Belgians May Face Government Crisis . .
. . .
11
EC Officials Meet with Employer and Trade
i
Un
on Representatives . . . . . . . .
. . .
12
June 9, 1975
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Portuguese Leaders Divided on Angola Question
Renewed fighting in Angola is posing serious
problems for Portugal's ruling Armed Forces Move-
ment, which is divided on how to deal with i4-.s
African territory.
Despite public assurances that Lisbon Y,as
adopted a policy of strict neutrality toward
the warring Angolan parties, influential members
of the Movement leadership, including Admiral
Rosa Coutinho, reportedly continue to favor:
the Soviet-backed Popular Movement for the
Liberation of Angola (MPLA). Rosa Coutinho,
who was high commissioner in Luanda when '.:h,2
agreements on Angola were signed, has a va_ted
interest in the outcome.
An Armed Forces Movement fact-finding mission
which returned from Angola early this month recom-
mended that Portugal withdraw its support for the
MPLA. The mission also reported that Portuguese
troops in P.ngola--now estimated to number 24,000--
cannot control the armed conflict between the
MPLA and the National Front for the L:..'heration
of Angola (FNLA), a group which has received
major support from President Mobutu c1. Zaire.
A recent Portuguese delegation -cc Zaire
led by Revolutionary Council member ~-itor Alves
signed a joint declaration reiterati'ig Portugal's
neutralist position and stating that Portugal
pledged to avoid any action which might worsen
the Angola situation. Although the communique
is consistent with Portugal's public stand, it
also served to mollify President Mobutu, who
had been publicly denounced by Rosa Coutinho
for his support to the FNLA.
June 9, 1975
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Further evidence of the split in the Move-
ment on the Angolan issue came to light this week
in remarks made to Ambassador Carlucci by Irter-
territorial Coordination Minister Almeida Santos.
Santos claimed that over the objection of Rosa
Coutinho he had succeeded in persuading Portuguese
leaders to adopt a position of genuine neutrality.
He argued that the MPLA clearly would be defeated
and that Portugal could not afford to back a
loser. His admission that Portugal has been
secretly backing the MPLA was the first by any
high government official. The issue may not have
been finally resolved as Santos claims, however,
as Rosa Coutinho has a large following and may
yet sway the movement to his point of view. His
arguments will be bolstered by recent MPLA suc-
cesses in the fighting in Angola.
June 9, 1975
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Lisbon Exerts Control Over Azores
The Azores are calm and under the control
of Portuguese military authorities after demon-
strations by farmers and separatists on Friday
forced the resignation of the civil governor
on the main island of Sao Miguel.
Lisbon has reacted with moderation. it
has promised to study Azorean farmer complaints
which have to do mainly with agricultural prices
and commercial arrangements with the mainland,
but also include a demand for increased local
autonomy. It has promised to take action on
these within three months.
At the same time, Lisbon has warned that
it will deal firmly with any further pro-
independence demonstrations. Military
authorities on Sao Miguel have strengthened
security measures, but have assured the public
that no additional military force will be brought
in from the mainland.
The media in Lisbon have not yet referred
to the US in connection with -,-.he demonstrations
on Friday.
The exploitation of the farmer demonstration
on Friday by the Front for the Liberation of
the Azores has forced Lisbon to respond to appeals
that would have gone unheeded otherwise. Over
time--and if Lisbon makes some concessions--this
could bring greater public support to the Front.
For now, however, the failure of separatists
on the other eight islands to act in concert with
those on Sao Miguel in spite of broadcast appeals
to do so exposes the lack of unity in the Libera-
tion Front.
June 9, 1975
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The Portuguese will probably try to calm
Azorean dissidence by making some real concessions
on agricultural prices and perhaps a nod toward
greater local autonomy, Lisbon clearly intends
to retain firm control in the Azores, but has
little time right now to devote to the question
because of many pressing problems demanding
immediate attention--the worsening situation in
Angola, the Socialist threat to quit the govern-
ment coalition, and the country's deteriorating
June 9, 1975
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Portugal Faces Controversies Over Press Freedom
Socialist Party leaders have announced their
intention to remain in Portugal's coalition govern-
ment, but the country continues to be torn by con-
flicts between moderates and radicals.
The Socialists have accepted the Revolutionary
Council's settlement of the Republica dispute,
but the truce may last no longer than the end of
the week when the paper is expected to resume
publication. Leaders of the Communist-controlled
printers' union have announced they will continue
to try to force a change in Republica's pro-
Socialist editorial policy.
The military government has refused a Social-
ist suggestion to head off future troubles by
transferring pro-Communist printers to other
papers. The military insists that the workers
themselves must request the change. The Socialists
reportedly have begun court action against workers
responsible for the attempted takeover of the
paper in hopes of forcing them to resign and find
other jobs.
Another press freedom controversy currently
brewing appeE.rs likely to fuel a clash between
the Armed Forces Movement and the Portuguese
Catholic Church. Church spokesmen have threatened
a showdown with military leaders if the church-
operated radio station--partially occupied by
Communist workers two weeks ago--is not restored
to the control of ecclesiastical authorities.
Catholic bishops are scheduled to meet sometime
this week to discuss the dispute.
June 9, 1975
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Lisbon Cardinal Ribeiro -:old US embassy of-
ficials that a church-state confrontation is
approaching. Not only did the government settle
a prior takeover of the church radio station by
appointing a "mixed commission" to run the station
instead of restoring it to the Church, but military
leaders have also tried to control the curriculum
of church-run primary schools and to halt subsidies
to the Church's welfare institutions.
Ribeiro believes the Armed Forces Movement
has lost the trust and confidence of the people
as a result of its inability to halt the downward
spiral of the economy, the renewal of fighting in
Angola, and the disintegration of civilian and
military authority at home. The church is wary
of Communist attempts to infiltrate key sectors,
but is awaiting the "proper moment" to intervene
openly in domestic politics in order to avoid bein
labeled "reactionary."
June 9, 1975
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Portugal Seeks Economic Assistance from
the EC
Portuguese pleas for substantial economic
assistance from the EC to prop up a steadily
deteriorating economy dominated the visit to
Lisbon last week of EC Council. of Ministers
President Garrett FitzGerald.
The Portuguese asked for an immediate
infusion of EC capital to counter the balance
of payments problem which they expect to be-
come critical in the next few months. Al-
though sympathetic to their problems, Fitz-
Gerald informed the Portuguese that the com-
munity cannot offer loans just to reduce
balance of payments pressures; loans must be
tied to specific project proposals. Al-
though the Portuguese were unable to provide
FitzGerald immediately with a list of con-
crete proposals, Industry Minister Cravinho
did manage to cite several electric power
projects to FitzGerald at the end of his
three-day visit.
FitzGerald agreed to urge prompt assist-
ance for Portugal within the EC Council, but
cautioned that progress in this area will be
tied to the development of democratic pro-
cesses and the reduction of Communist in-
fluence. Specifically, FitzGerald pressed
his Portuguese hosts on the need for honest
elections in the trade unions and the removal
of Communist domination in the Portuguese
media.
June 9, 1975
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During his visit, FitzGerald met with
virtually all the Portuguese leaders. He
was particularly impressed by Portugal's
Foreign Minister, Melo Antunes, who appeared
deeply committed to establishing strong ties
with the EC.
According to Irish Political Director
Dorr, who accompanied FitzGerald on his
visit, the Irish want the EC to provide
Portugal with some highly visible form of
assistance in June or July. The Irish also
support Portugal's desire for a ministerial
meeting with the EC in Brussels in mid-July--
when the EC leaders will be holding their
second "European Council". On June 24 the
EC Council is scheduled to discuss the terms
it will offer Portugal when it negotiates a
renewal of Lisbon's 1972 trade agreement with
the EC.
June 9, 1975
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Belgians May Face: Government Crisis
The Walloon Rally Party, the smallest com-
ponent in Belgium's three-party coalition govern-
ment, has rejected Prime Minister Tindemans'
decision to buy the 'US-made r-16 fighter aircraft.
The Walloon party, which prefers the Mirage, is
likely to withdraw from the coalition, however,
only if a majority of the party's parliamentary
deputies vote against the government in a confi-
dence motion.
Tindemans could be in trouble in the event
debate on the F-16 selection is followed by a
confidence motion. There are 97 opposition
members in parliament which, with the Rally's
13 seats, would deprive the government of a
majority. Even if the government squeaks by
with the aid of some opposition support, the
Rally's intention to withdraw would force Tinde-
mans either to continue with a minority government
or resign.
the Prime Minister's talents.
the current issue will provide a severe test of
Parliament is slated to begin debate on the
issue tomorrow and a no-confidence motion may
follow later this week. Tindemans has succeeded
in keeping his government together so far through
manipulation and compromise. Despite the re-
luctance of mcst parties to hold early elections,
June 9, 1975
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EC Officials Meet with Employer and Trade
Union Representatives
Representatives of the EC Commission,
EC employer groups, and the European Trade
Union Confederation expressed particular
concern over youth unemployment and illegal
immigrants in the EC area at a tripartite
meeting on employment on June 3 in Brussels.
EC Vice President Hillery, who is re-
sponsible for social policy, presented a
detailed report which said youth unemploy-
ment has risen 49 percent over the past 12
months. He called for job-creating action
in both private and public sectors and de-
scribed the possible political as well as
economic repercussions of the problem,
pointing to the probable development of
distorted attitudes toward work and society.
Labor representatives at the meeting
liked Hillery's report, but evidently were
skeptical that his proposals would result
in adequate action. The employers, on the
other hand, were worried that they would
end up paying for most of the Commission's
schemes which include recommendations for
early retirement, a reduced work week,
longer vacations, ane more time off to pro-
mote education and re-training.
Hillery also reported that ten percent
of the EC's immigrant workers--or about
600,000--are working illegally. He recom-
mended action in three areas: warning work-
ers before they leave their home countries
of the risks involved in clandestinity;
June 9, 1975
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taking action against "dealers" in illegal
labor; and making employers respect regula-
tions concerning employment of non-community
workers.
Employer and worker representatives
praised the report and recommendations, but
a French labor ministry official warned it
would be difficult to implement.
At the end of the conference, worker
representatives called for a "social summit"
which would involve a meeting of labor and
management representatives with the ministers
of finance and labor of the Nine. The finance
and even some of the labor mi.nicters oppose
what one Commission official referred to
as "a time and money wasting extravaganza."
Nevertheless, the trade union leaders still
want the meeting and predict it will be held
during the Italian presidency, in the second
half of this year. The pro-EC outcome of
the British referendum last week is likely
to increase the chances for the "
summit-."
A meeting of EC social ministers on
June 17 is expected to review the recommend-
ations of the tripartite meeting. It may
also take Lp the concern of EC governments
over the prospective early legalization of
free immigration from Turkey. The treaty
providing associate membership -co Turkey
will grant this right to Turkish workers if
no modification is made before the treaty
takes effect next January.
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