WESTERN EUROPE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T00608R000500040026-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 13
• Document Creation Date: December 19, 2016
• Document Release Date: June 15, 2005
• Sequence Number: 26
• Publication Date: July 28, 1975
• Content Type: REPORT

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Portuguese Ruling Triumvirate Unlikely
to Resolve Differences . .
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Ncrwegians Criticize US Oil FIrm . . . . . . . 7
EC-Arab Dialogue: One Step Forward . . . . . 9
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Italian Socialists Push Larger Role for
Communists. . . . . . .. . . . . . . . . . 15
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25X1
Portuguese Ruling Triumvirate ...Unlikely to
Resolve Differences
The formation of the executive triumvirate
in Portugal is probably intended to bridge the
three opposing currents in the ruling military,
but it is more likely to increase the differences
among them. The triumvirate is unlikely to repair
the deep divisions in the country as a whole or to
solve Portugal's critical domestic problems.
Differences between security chief Otelo de
Carvalho and Prime Minister Goncalves--who appeared
to emerge from the Armed Forces General Assembly
deliberations on Friday in the strongest position--
appear to be unbridgeable. This is probably also
the case for Otelo and the third member of the
triumvirate, President Costa Gomes, who appealed
in the assembly meeting for a slowdown in the
revolution because it was out of touch with the
people.
25X1
Reaction to the triumvirate from the Communists
has been lukewarm at best, suggesting that they may
be apprehensive about the elevation of Otelc--whom
they have good reason to tear--to such a position
of authority.
It must also be evident to the Communists not
only that their future is linked with that of Goncalves,
but also that the moderates--both in the military
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and in the democratic parties--are not ready to
capitulate.
It is unclear what the next move by moderate
military officers will be. Seeing that their effort
to unseat Goncalves would fail in the radical-
dominated assembly meeting, key moderate officers
refused to attend, in spite of entreaties by Costa
comes and others. Instead, they held their own
meeting at the foreign ministry.
25X1
Although a move by the moderates could come
this week, their strategy may not be spelled out
until Foreign Minister Antunes, who will accompany
Costa Gomes to the European security conference
in Helsinki, returns to Portugal.
Both the Socialists and the moderate leftist
Popular Democratic Party have expressed opposition
to the new triumvirate. The Socialists have sought
to identify closely with the moderate, pro-Western
remarks made by Costa Gomes during the assembly.
Both the Socialists and the Popular Democrats have
denounced the new governing body as illegal.
Socialist Party leader Soares yesterday called
on President Costa Gomes to break away from the
triumvirate and form a government. Soares said that
only Costa Gomes could unify and save the nation
from a radical leftist dictatorship. Soares spoke
at a party rally in a northern port city.
The rally yesterday was peaceful, but a Socialist
protest rally on Saturday night in Evora was attacked
by the Communists, resulting in dozens of injuries.
July 28, 1975
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Portuguese troops were required to intervene as some
6,000 Socialists and Communists battled with clubs
and rocks.
Catholics in the far northern town of Braganca
defied the military yesterday by holding a rally
protesting the seizure of the church radio.
The Popular Democrats were said to be planning
a rally on the island of Madeira, which, according
to one unconfirmed press account, is rumored to be
considering a declaration of independence. Radio
Lisbon reported yesterday that "reactionary forces"
remain active on the island and that clashes between
them and troops reportedly occurred Friday night.
The chances of the triumvirate winning some
breathing space may become clearer when--and if--a
new cabinet is announced, either today or tomorrow.
Any respite seems likely to be brief, given the
continuing turmoil in the country, the economic
problems that are expected to come to a head in
the next few weeks, and problems in the Azores and
Angola.
July 28, 1975
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25X1
Norwegians Criticize US Oil Firm
The Norwegian government and labor
organizations have launched a campaign for
better working conditions and higher wages
for employees of the US-owned Phillips petro-
leum corporation that is drilling in the
Norwegian sector of the North Sea oil fields.
The campaign was triggered by sensational
press coverage of a recently published government
report critical of working conditions, employment
security and safety on the Phillips oil
rigs. The stories chided local unions for
not defending adequately the plight of
the "exploited" foreign workers. The unions
subsequently joined the fray, and an interde-
partmental committee was formed to study
the situation and make recommendations.
Phillips' spokesmen defended the company's
practices by pointing out that conditions
were better for most foreign workers on
the rigs than what they would encounter
at home for similar work. Some workers,
they said, even welcome the non-union scale
which permits them to make more :Honey in
the long run by working longer hours. The
oil company officials, opposing obligatory
union membership for their workers, said
the study was exaggerated. A Phillips spokesman
admitted that safety could be improved,
however, and offered to work with government
experts on the problem.
As many as 750 British, Spanish, and
Iranian workers could be affected by the
dispute and by environmental legislation
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this fall. Talks between Phillips and
the unions will probably lead to settlement
of the dispute, but this is almost certain
to increase the costs of exoloiti_na No_rwav'c
to be considered by the Norwegian parliament
off-shore oil deposits.
July 28, 1975
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EC-Arab Dialogue: One Step Forward
EC and Arab League economic representatives,
during a three-day meeting in Rome last week,
made progress in establishing procedures for a detailed
examination of areas for economic cooperation.
The next meeting is scheduled for November in an
as yet undetermined Arab city.
The formal opening of the so-called dialogue
has taken more than a year and a half to get started.
The EC's stand on Middle East issues caused the
Arabs to delay agreement on procedural steps a
number of times. The first joint meeting was finally
held in Cairo last month and the two sides agreed
to set up six joint steering committees of experts.
The more radical Arab members subsequently
demanded that the Rome session be cancelled because
of a resolution by the European Parliament condemning
violence in Jerusalem by the Palestine Liberation
Organization. The Maghreb countries, irritated
by the slow pace of their trade negotiations with
the EC, also harshly criticized the FC Nine and
tried to postpone the meeting. In the end, only
Libya decided not to attend.
The six working groups have been directed
to study prospects for cooperation in such areas
as industrialization, financial cooperation, and
agriculture. About 130 experts participated in
drawing up documents outlining future work programs;
both sides have described the progress as satisfactory.
Despite the business-like start--and the relative
success of the participants in sidestepping political
issues during the meetings--the dialogue will continue
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to be a fragile undertaking. EC opposition to
such developments as the Arab moves to suspend
Israel from the UN, for example, could easily cause
the Arabs to postpone the next meeting or even
discontinue the dialogue.
There is little doubt that the Arabs will
continue to push for a political dimension t:o the
talks as opportunities present themselves. Moreover,
once agreement has been reached on specific economic
accords, the Arabs will probably try to extract
political concessions from the EC. At the moment,
however, almost all participants clearly see advantages
in having the dialogue continue. Even the PLO,
which is represented in the "de-nationalized" experts'
groups, seems anxious for the talks to succeed
because it would lose these contacts with the non-
Arab world if the dialogue were to collapse and
the discussions reverted to unilateral channels.
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July 28, 1975
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25X1A9A
Italian Socialists Push Larger Role for
Communists
The central committee of the Italian
Socialist Party over the weekend unanimously
supported party chief De Martino's stand
opposing any future national government
that does not have "at least indirect"
Communist support.
De Martino suggested that Communist
abstention in a confidence vote on a new
government might be an acceptable form
for such support. If the Christian Democrats
eventually agree to such a formula, it
would be seen in Italy as a first step
toward eventual Communist membership in
the government. Socialist entry into the
government was preceded by a similar arrange-
ment in 1962.
De Martino also won his party's backing
for continuing efforts to maintain working
relations with the Christian Democrats.
With the exception of a small left-wing
faction, the Socialists endorsed De Martino's
rejection of any return at the national
level to the "frontist" alliance with
the Communists of the early postwar period.
Some Socialists have been talking
about a revival of the "frontist" alternative,
following last month's regional and local
elections in which the Socialists and
Communists came close to winning an absolute
majority. Although the two parties govern
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together in many localities, De Martino--
and the Communists--are still reluctant
to try it at the national level.
The Christian Democrats emerged in
disarray. from their national council
meeting last week and are not yet in a
position to respond authoritatively to
the Socialists' demands. The lengthy and
inconclusive internal battle waged by
the Christian Democrats over a replacement
for Fanfani--national council president
Zaccagnini was tapped to serve temporarily--
precluded any serious consideration of
policy changes. In the coming weeks,
moreover, the party will be preoccupied
with maneuvering aimed at lining up a majority
of the factions behind a new leader in
time for the Christian Democratic congress
in the fall.
The indecision at the top of the
Christian Democratic Party has contributed'
to uncertainty among the party's local
leaders and seems to be encouraging some
to abandon their opposition to granting
the Communists a more important role in
government. That appears to be the case
in the key northern region of Lombardy
where the new center-left government,
led by the Christian Democrats, has solicited
the "active cooperation" of the local Communists.
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July 28, 1975
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