JPRS ID: 10471 WEST EUROPE REPORT

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP82-00850R000500050047-0
Release Decision: 
RIF
Original Classification: 
U
Document Page Count: 
34
Document Creation Date: 
November 1, 2016
Sequence Number: 
47
Case Number: 
Content Type: 
REPORTS
File: 
AttachmentSize
PDF icon CIA-RDP82-00850R000500050047-0.pdf1.99 MB
Body: 
APPR~VED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 FOR OFFICIAL USE ONLY JPRS L/ 10~7~ 21 April 1982 ~ West Euro e Re or~~ p p CFOUO 25/82) FBIS FOREIGN BROADCAST IN~ORMATION ~ERVICE FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504050047-0 NOTE JPRS publications contain inforcnation primarily from foreign newspapers, periodicals and books, but also from news agency transmissions and broadcasts. Materials from foreign-language sources are translated; those from English-language sources are transcribed or reprinted, with the original phrasing and other characteristics retained. Headlines, editorial reports, and material enclosed in brackets are supplied by JPRS. Processing indicators such as [Text] or [Excerpt] in the first line of each item, or following the last line of a brief, indicate how the original inforroation was processed. Whexe no processing indicator is given, the infor- mation was summarized or extracted. Unfamiliar names rendered phonetically or transliterated are enclosed in parentheses. Words or names preceded by a ques- tion mark and enclosed in parentheses were not clea~ in.the original but have been supplied as appropriate in~contex.t. Other unattributed parenthetical notes within the body of ar. item originate with the source. Times within ~tems are as given by source. The contents of this publication in no way represent the poli- cies, views or attitudes of the U.S. Government. COPYRIGHT LAWS AND REGULATIONS GOVERNING OWNERSHIP OF MATERIALS REPRO~UCED HEREIN REQUIRE THAT DISSEMINATION OF THIS PUBLICATION BE RESTRICTEP FOR OFFICIAL USE ONLY. APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504050047-0 FOR OFF[~IAL USE ONLY JPRS L/10471 21 April 1982 WEST EUROPE REPORT c~ouo Zs~82) CONTENTS ECONO~IIC PEDEftAL REP'JBLIC OF GE~MANY - Future Union Leadership Changes Viewed (Barbara Schardt; CAPTTAL, Mar 82) 1 Fi~ANCE S~ress on Don.estic Market Seen To Worry Trading Partners (VALE~JRS ACT'JELLES, 8 Feb 82)..... k Foreign Trade Balance,by Alain Margaron Me~hods To Regain Market,by Jacques Ferry NE'Pi-IEftLy1~T~ Con~identia]~ Government Plan To Cut Spending (VRIJ NED~'RLAND, 13 Ma.r 82) 9 POLITICAL FE~~E~AL REPUBLI~ OF GERMANY Landtag ELections Seen As Crucial For P~P in 198~ (MRrtin Bernstorf; CAPITAL, Mar 82j.� 12 T~ n~1NCE ' Giscard on Pola.nd, Franco-German Ties, Defense, Gas (Valery Giscard d'Estaing Interview; PARIS MATCH, 19 Feb 82).. 15 Rocard on PoF Policies: Frar~co-German Relations (Michel Rocard Interview; CAPITAL, Mar 82) 23 - a - [III - WE - 150 FOUO] FOR OFF((`1AL USF ONT.Y APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 FOR OFFICIAL USE ONLY GE!VEHA.L FRANCE Tha~son-CSF Reorganizes. Space Activitie~, Pla~s New Facilitiea (AIR Er COSMOS, 6 Mar 82) 26 Briefs S~ECE Renamed, Reorganized 3~ Se:~ior SDECE 4Pficers Fired 30 - b - APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R044500050047-0 FOR OFFICIAL USE ONLY ECONOMIC FEDERAL REPUBLIC OF GERMANY FUTURE UNION LEADERSHIP CHAN!GES VIEWED Hamburg CAPITAL in Gern~an Mar 82 pp 93-94 [Article by Barbara Schardt: "Four-Year Plan"] [Text] German trade unions owe their international reputation *_o the continuity of their leadershi~. Now the Gern~an Trade Union Federation faces decisive leader- ship changes through the middle of the 1980's. When the de].egates of the German Trade Union Federation congratulate their newly elected e:cecutive council in Berlin this May, a new epoch will be starting for the powerful labor organization. They will not ouly have a new cliairman, executive board member Alois Pfeiffer of the Horticulture, Agri- culture and Forestry Union, but also f ive new council members in the nine-member body. More than that: after Pfeiffer's four-year tenure he will have to retire and the entire DG~ will no longer be the same. Because by that time it will not only be 3ust the council which will have a new man at its head but th~ real movers and makers, the heads of the individual trade unions, will all have different names. This will be particularly the case within the industrial unions, whose Metal Workers Union ranks as the world's large~t single labor organization, where leadership will change within Pf eiffer's time in office. Appr~~ximately half of all DGB organized members, 3,816,294 members in three un ions, will be electing new heads. The Long-tenured council members will be headed fcr retirement one after anotlier: --this fall Rudolf Sperner, chairman of the Construction, Quarrying and - Construction Material Workers Union (533,054 members, 6.8 percent of the DGB total) will retire after 16 years in office. --Eu~;en Loder~~r, head of the Metalworkers Union (2,b22,267 members, 33.3 percent of the DGB) can look back on 11 years in off ice when he retires in the Eall of 1963. Last No~embF.r the chairman of the ~hemistry, Paper and Ceramics Workers Union ~~~~,973 members, 8.4 percent of the DGB), Karl Hauenschild, began 1 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 FOR OFFICIAL USE ONLY tiis last year in office. His tenure will end in September 1984. When the successors of these three men are appointed, the executive council of the German Trade Union Federation, consisting of nine members of the national executive committee and the chairmen of the 17 individual trade ur~ions, will be made up of two-thirds newcomers who will have been five years or less in office. "Far-reaching change" was the term applied by the Institute for the German Economy in its publication GEWERKSCHAFTSREPORT to the impending change in view of the undeniable stature of the retirees. Whether this will actually be the case is questionable. The trade uzions have traditionally been very careful in the selection of their leadership; chan~es taking place among the rank and file do not reach top echelons that quickly. For that reason there is little fear that radical class warriors will be making any long march through the institutions after the new appointments to the DGB executive ~ council or for the three individual trade unions. On the contrar~, in the case of both the Metal Workers and the Chemical Workers, clear-hea.ded successors are even now in sight. T:~at Franz Steinkuehler's name would be brought up in the leaaership debate within the Metal Workers Union is now part of the drill. The Stuttgart regional leader is little inclined to make any statements about his prospects, t~owever, "He keeps his mouth shut and smiles when he's asked about them," his press secretary remarked laconically. This breezy ~rovincial also denies any coo].ness between him and his chairman Loderer. What is a fact; the Metal Workers Union chief has only recently given the dynamic southerner the brush-off. Loderer does not see his successor in Steinkuehler but in Hans Mayr as an interim solution in the national executive council. Mayr now heads the union's planning, personnel and press sections. The prophets regard tt as a sure thing that the congress in Octob er 1983 will give Mayr its votes. Yet that would put Steinkuehler out of the running only temporarily; Mayr, born in 1921, can only hold the office f or o~ie legislative period or three years. Cliemical Workers Union leader Hauenschild, like Loderer, also seems to be putting his estate in oider. Hardly half a year after Hauenschild's reelection, it is still a sure thing into whose hands he would like to deliver his office-- the favorite is Hermanr. Rappe. At the momE~nt Rappe, who is also a member of the SPD fraction in the Bundestag and chairman of the committee on labor and :;ucial security, func*_ions as deputy chairman, responsible for the departments of e~iication, vocational education, research and youth. His election (in September 1984) would assure a longer-term solution because ffappe, then 55 years old, would be able to hold the reins through at least two terms. Rudolf Sperner of the Construction Workers Union is in no less a hurry to nominate his suc.cessor than are his colleagues. Although the election is scl~eduled for this fall, he has not yet set the candidate carousel spinning. Cuessers give the edge to his deputy Juergen Joens. Faced with this recasting, it will be the job of the Printing and Paper Workers Union, the Mining and Energy Workers Union and the Public Service and 2 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440500050047-0 FOR OFFICIAL USE ONLY Transport Workers Union to maintain continuity in the DGB. Although elections among these unions are scheduled by 1986, no changes are expected. Adolf Schmidt can look forward to another four years from 1984 on to the leadership of the union with the highest success rate in organizing workers in its sector, the Mining and Energy Workers Union. Public Service and Transport Workers chief Heinz Klunker will run again if his health permits. In the small but militant printers union, which will elect a new executive in 1983, Leonhard Mahlein will probably remain for another term. While the printers executive council member, Detlef Hensche, is said to have ambitions for the position of council chairman, it is thought doubtful that this left-wing figure will run again in 1986. The reason is that Hensche is a university graduate and lawyer, and academicians have scant prospects among the class-conscious printers. Such types, they say, lack the sawy that comes with experier.ce of the trade. COPYRIGHT: 1982 Gruner + Jahr AG & Co. 98 78 CSO: 3103/356 . I . i~ I I I 3 FOR UFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500054047-0 FOR OFF[CtAL USE ONLY ECONOMIC FRANCE STRESS ON DOMESTIC MARRET SEEN ~0 WORRY TRADLDIG PAR,~NTEBS Eoreign, Txade Ba:ance Paris VALEURS ACTUEZI.ES in. French 8 Feb 82 D 58 [Article by ALai.n Margaron wnd.er the head,ing "Fiua~ciaL HighLights" and the subheading "Trad.e"t "The Cixcular Fl.ow of the Defic~t: The Overval,uation of ~ the F~anc StiI1, Wei,ghs on Our Forei.gn Trad.e and Our Com~etitivenesa"] ~Text] In apite of the good reporta of several bank bulletins regarding French �oreign trad,e resuLte, Michel Jobert is uneasy; "The external deficit wi11 reach at least 75 billion, francs these ae~ct 2 years. And. if we succeed in. hold,ing to tha.t figure we w3.11 be lucky. We are goin,g to have to be very careful i� we are to atay clear of the 100-billion-franc mark." Overall, the 1981 results aze fairly sati~factory. The en,ornwus trade d.eficit Fran,c.e has h~d �or. 2 qexrs (,60 biLlion) has-~stabiLized in currea,t francs, i.n sDi.te o� the dol.l.,s,r's risey which ixiczeases oux. oil, bill� and in sDite o� the econam~c. atagnation whic.h exac erbates comn~etition, However, the m3niater of foreign trsde notea: "Th3,s im.porvement must not obscure some worrisome signs: the saggi,ng trend. over the course of the yearr and the increase in the defici.t with industriaL nations." He is being politically honest, recognizing that it is the excelleat results registered from 3~bruary to June 1981 which made it porssible to come out satisfactorily at year's end. The new government'a recovery plaa has led to a great increase in imports: up 3 per.cent ia volume in Novesnber and then again in December. For obvio~is reasons of Dr3,ce~ consumers have given qre�erence to Japanese~ German, and Dutch produ.cts. ~r. household durable goods, the import level went in 1 year from, 50 percent to 56 gercent of the domestic market. Sales of German cars have greatly increased~ while our automobile exports to Germany went down by nearLy haI� for the firat 9 mmnths of the past year. All the �igures for foreign trsde in 1981 show that exchange rate develop- ments axe yla~yi~ng a decid,ing role. The �rauc has atrengly depreciated veraus the dollar bu,t i.t has remai.rrced at too hi,gh a rate versus the Deutschemark� r.he guilder ~ and the y,ea. ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 FOR OFF[CIAL USE ONLY French induatry h~,a beea, gaini,ng market ahates ia the d.olla.r area. Our traditional de�i.cit wi.th, the IIn.ited. States ha,s beea sl.i,ghtly reduce.d.~ to 23 billion francs. We have ma,xnaged to si.grs si,zable equi$ment contracts in "Fourth Wor.ld" countries without oi.I (32 bi.Ilioti, ~raacs) aad in OPEC countries (34 billion �rancs)~ but very few ia industri.al cou.ntries (15 billion) . Our overall defici.t wi,th the EEC has quintrupled in 2 yea=s. With Germany it has gone from 11 billion, �rancs in. I979 to 23 billioa f~ancs in 198I, and with the Netherlands �rom 5.2 to 13.4 billion. The small October devaluation within the EMS has not been sufficient to prevent the deterioration of external accounts. In spite of the soaring dollar, which for purely financial reasons weighs more heavily on the Deutschemark than it does on the l~ench franc~ it is still possible for us to permit our curreacy to find its proper rate within the EMS by Iowering our intereat rates. But the size of our overseas borrowing needs-~needs that are proportxonal to the trade and budgetary deficits--rwill soon not allow that anymore. In its latest economic study on France, the OECD seems to take for granted a new slide in our currency. It is in disagreement on this point with Mr Jobert, who attributes the decline in our exports "to a deterioration in nor~monetary factors of competitiveness: the kind of goods sold, the quality of after-sales service, the establishment of trade networks." The minister's program flows from that observation: support exBorts~ a reorganization of certain branches of industry, and control of imports. However, it is difficult to support F`rench exports more than they have been supported the Past few years. Export credits, atill partially unsupported, are less costly than domestic credits along with having adverse effects: neglect of the domestic market~ and too much stress on Third World markete. Banks--the ones established outside our bordera, broadly speaking--give an exaggerated amount of credit to make it possible for their industrial customers to land contracts in those countries. An example is Bro~ect development for construction and public works where we are registering a very great surplus. The banka finance not only the amounts which will be paid to French companies under the heading af feea but ~lso the onsite construction work. A deputy directorate of DREE (Foreign Economic Relations Directorate) will be tasked with combatting dumping, sids and subeidiesy and business ~ diversion. Exports o� textiles and chemical products from the East via the two Germanys are Barticularly targeted. It ia to be feared that this homeopathic medicine may not be on the appropriate scale of the illness to be treated. 5 FOR OFFICIA"Y. USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500054047-0 FOR OFF[CIAL USE ONLY According to the OECD, "the (F~ench) goves~mterit will be stron,gly tempted to take protec.tionist mea,su.tes, bec8uae. its dearsad. ~'eravery progz~am. is probably going to casue it di8appoixtt~ents." The repeated declarations in �avor of a domestic market reconq,uest are starting to frighten many of our trading partners, sometimes ~ustly so. The goverrnnent has already intervened to limit lesther imports because that industry is labor-intensive. COPYRIGHT: 1981 "Valeurs Actuelles" Methods To Regain Market Paris VALEURS ACTUELLES in French 8 Feb 82 p 61 [Article by Jacques Ferry und.er the heading "Einancial Highlights" and the subheading "Commentaries": "Regaining the Domestic Market; An Ambiguous- Formula"J [Text] Regaining the domestic maxket had already figures prominently among the objectives of the previous governments. Lately it is being talked about agai~l ; the Interim Plan and the work of the nationaL symposium on research have expanded on it at great length. But the formula is ambiguous. In actuality, there are two processes �or promoting this same bo~ective. One originates from concerna which are eco n amic right from the start: bringing the trade balance back into eQuilibriimn. The other is inspired by more generally political concerns regarding nation.al independence. Even though these sets o� concerns eventually come together, they imply choices of trade policy and induatrial Bolicy which of ceurse are not identical and depend on whether those choices derive their inspiration from socialist conceptions or liberal conceptions. To tell the truth, the difference is less clear-cut than it seems, apart from the fact that (and this reservation is a considerable one) in order to bring down the trade deficiti the present gover~ent seems more inclined than the previous onts to give in to protectionist temBtations. Its analysis of the situation is less of an overall analysis and is more limited, less conscious of the basic trends which affect the international divi ion of labor. Hence its less selective and mo~e autarkic industrial policy, placing the immediate innperativea of employment before thoae of competition, and glso its trade policy, oriented less toward general trade expansion, which in itself induses growth, than toward a number of sect~?ral objectivea. And it is not certain that all of these latter ob3ectives ' are attainable at an acceptable cost. The previous governments� favored advanced technology induatries. This one claims to be restructuring the whole of French industry by organizing each sector on the basis of complete pathways, integrating all stages of produc- tion and processing, and even diatribution, right up to the final consumer. This is a normative view of the economy which, regardless of the inflex- ibilities o~ and increase in the constraints of state control which it assumes, would in extreme circumstances be suitable to a defined area infinitely vaster than that of our nation. But that defined area does not exist; industrial Europe has yet to be born. 6 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 FOR OFFICIA~ USE ONLY That does n,ot msan that one muet teai,gn onesel.� to eeein.g the domestic market disappear and. therefore resign. on,e8e1.� to seeiug a c.ertain n~ber af the more particularly threatened indu,stries ju~t pl.sin disappear. But before or~e thinks about implementing specific mesns,~ the competitive capability of the induatrial syetem in general must be restored. Fewer burdens, fewer adminiatrative constraints, and less governmuent intervention in the management of firms, but more effective sid to research--these constitute so many prereQuiaitea for that restoration. Selection Criteria Assuming that theae req,uirements are satis�ied� one still has to apecify the sectors where special aid is requiredr Authoritative selection criteria are not provided by the idea of national independence, any more than they are by the idea of bringing the trade balance back into equilibrium. Independence ia not ~udged only by considering levels of foreign penetration in this or that aector un the domeatic market. In the context of time, independence is relative, if only because of rapid and often unforeseeable technological ~hanges; in space it ie relative because of constantly changing geopolitical aituations. In this regard, the example of oil is remarkably illustrative. In the trade area, so is the exatnple of the Airbus 320, which will be equipped with an American engine. Without a doubt thia is not for reasons of that engine's technological superiority over a French or Franco-Bri.tish engine, but simply because that choice is imperative at this time if we want to guarantee the airplane's com~ercial success in the U.S. market. What is the best industrial pathway in this apecif ic case? The most desirable one in theory, which is completely domestic? Or the pathway which provides the maximum net profit for the trade balance? One could give many examples. In today's globalized economy there is no genuinely autonomous industrial policy. The expansion of international trade is a given element of that. The effort to achieve equilibriiun, which must be extended to the dimensions of the balance of paytnents on current account, cannot be made by adding up sectoral balances or by forming large integrated public sector monopolies. Trade policy ie a atrategy made up o� reciprocity~ deterrence, and cooperation. T::;.t i.s the reason so-called domestic market reconqueet actions must be carried out with a great deal of caution. If they are iinked too directly to the solution of employment or regional problems, they run the risk in the final analyais of backfiring on their promoters. Tha is either because they contravene the GATT agreements or European Community undertakings~ thereby causing retaliatory measures of greater scope, or because atep by step they tend to become standard practice in the form of unproductive protectionism, which drags in its wake a gradual establishment of state control over the economy. r FOR OFFICfAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504050047-0 FOR OFFICIAL USE ONLY It is true that not all our partaers honor the �re� txade cade, Zt is true that certain French ind.ustries ti~at are suf�eria~g more seriously than othera from the di.stortions o� cam.petition~ need ehort-Lived assiatance. But it is even n~ore true that it is the whole body of French industry which needs mobility and room. Market economies cannot be cut up into slices. Let us be careful, while allowing for exceBtions, not to reason out an issue in terms of protection which should be analyzed in terms of competitiveness. COPYRIGHT: 1981 "Valeura Actuelles" 4631 CSO; 3100/378 ~ 8 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 FOR OFFIC(AL USE ONLY ECONOMIC NETHERLANDS ~ CONFIDENTIAL GOVERNMENT PLAN TO CUT SPENDING Amsterdam VRIJ hTEDERLAIVD in Dutch 13 Mar 82 p 2 ;[Text] aae of Van Agt's ministers said last week: "Some of my colleagues will h~.ve a hard time if the cabinet should fall. Then everyone who has been calling constantly for more alterat3ons will have to tell where they can be found. And they cannot do that." That conclusion can also be drawn from a--highly confidential--report that a work group composed of ci~~il servants placed before the cabinet's pentagon, the five ministers who were trying tu set up the Spring Note this week (Van Agt, Van Der Stee, Den Uyl, Terlouw and Van Thijn). The name of the report - is prosaic: "Report of the Work Group to Inventory Savings," but the con- tents are no less explosive for that reason. The mission of the WIB [Work- group to Inventory Savings], not to be confused with other frivolous Hague accronyms like NIP [Society for Industrial Pro~ects] and VIP [Progress Com- mittee for Industrial Policy], was to find 2 to 3 billion guilders savings which can still be carried out this year in the areas of social security and support, public health, and i.n the civil servants' salaries. ~f, besides that, 1 to 2 billion can be gathered in the other departments, you come nicely into the neighborhood of the 4.5 billion Van Agt and Van Der Stee want. What makes the 4JIB Report so explosive: those 2 to 3 billion can be found, but only by completely destroying the ~oalition agreement. The civil servants--from the Ministries of General Affairs, Domestic Affairs, Economic Affairs, Social Affairs and Employment, Public Health and particu- larly many from Finance--did not try to.hide that for a momeat: "In carrying out the measures inventoried, to the amount specif ied, it will not be pos- sible to hold the negative effects on the incomes of the groups involved (benefit entitlees, civil servants, trend followers) to the limits set forth in the coalition agreement: 1 to 4. (That means that those receiving the minimwn income would lase 1 percent of their buying power, while those re- ceiving higher incomes would lose up to 4 percent--the editors.) The nega- tive effects can go appreciably beyond that." Such warnings were repeated on page after page. This much saving can be done in one year, but not without uncoupling the benefits from wages, not without reducing the minimum wage relative to higher wages, not without interrupting the trend policy for civil servants [the Dutch equivalent of COLA, where 9 FOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440500050047-0 FOR OFFICIAL USE ONLY civil servants' salaries are adjusted according to a trend established by business salaries), and not without higher unemployment. Even if you are willing to put up with the disadvantages in the interest of a good thing-- the recovery of business prof its--the diff iculties are still great, for, so say the civil servants, "the total of the procedures to be carried out makes the realization of a possible policy package in a time frame such that sig- nif icant effects can be felt in 1982 extremely difficult." the WIB mentions a number of practical impediments: laws are needed, executive regulations, reconanendations from the SER [Social and Economic Council], recommendations from the Health Insurance Fund Council, and many more recommendations. The study group has a solution for that, even though it is a rather unusable one: "In general, not employing the advisory groups is only possible by in- voking very special circumstances. The term, 'the national interest' is used in this respect in Article 42, section 3 of the Business Organization Act." This can be done, naturally, but it is becoming rather a haliit for the supporters of what used to be known as a parliamentary democracy. Undismayed by that, the work group raises radical measure after radical measure. But it is striking in the report that many of the rather obvious savings are not even mentioned, such as attacking the salaries of inedical specialists. On this topic, there is only the cool mention that "negotiations with professional groups have begun." On the other hand, very many words are devoted to "reduction of the number of hospital beds" ("8,000 beds as a re- sult ~f partial or total closing of hospitals"), a payment by the patient of 10 guilders fur each referral to a medical specialist and an actual con- struction halt for hospitals. This is troublesome for Hoop Den Uyl [PvdA leader and minister of social affairs and employment], for, as the work group drily notes: "The big savings which are called for from this sector can only be realized with extensive direct negative results on the employment develop- ment earlier undertaken in this sector." So much for promoting public health. Apart from the civil servants' salaries, the biggest figures are to be found in the category of "social security and support." Savings can be made there by reducing the highest WAO [Law on Labor Disability], WW [Unemployment Law] and WWV [Law on Unemployment Provisions] benef its (savings: 540 million guilders in 1983!), by abolishing the tax and premium deduction for old age and disability (65 million this year alone!) Other small but still profit- able alterations can be made: take away the support payment for independently living 16- and 17-year olds (living with your parents can be nice, too!) and you have 25 million. Naturally, AOW benefit recipients can keep the survivors' benefits after the death of Li~c~r spouses, but shorten the period of mourning a little and you have another SO million next year. And the work group naturally wrote with a great deal of respect concerning former members of the resistance and those who were formerly persecuted ("These measures occupy a special place, based ' on the special duty of solidarity with respect to this target group"), but they are still good for 34 million guilders. t~ 10 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R000500054047-0 'Ct~e WIB report becomes curious when the big milch cow of the PvdA [Labor I'arty] which is also the sacred cow of the CDA [Christian Democratic Appeal], the children's allotment, is mentioned. The PvdA suggestion to make the children's allotment dependent on earned income is called wonderful, but it - is simultaneously rejected for this year: "From a technical point of view, it cannot be realized before 1984," and "is very complicated." Thus the work group has recourse to such measures as lowering the children's allotment by 10 percent across the board as of 1 July 1982 (350 million) or of freezing the children's allotment at its present level through 1 July 1984 (100 million). It is bothersome that--unlike the PvdA's plan to make the children's allot- ment dependent on income--the across the board lowering of the level has a precisely deleveling effect on incomes. Those receiving the lowest incomes lose the most. Or, as the workgroup put it in its own jargon: "Lowering the children's allotment or freezing it as its present level over the whole line has an increasing effect on the buying power as that buying power is less and the number of children is greater. A general lowering of the children's allotment by 10 percent structurally decreases the disposable income of, for instance, a minimum wage earner with two children by 1.4 percent." Gone, then, is the promise in the coalition agreement that those on minimum incomes would not lose more than 1 percent. Tt1us, the official report contains a number of variations. We will just mention one more, because this suggestion has served CDA politicians Lubbers and De Graaph so richly as a source of inspiration: "a general reduction of the application of the indexes for the minimum wage and the social security benefits and to the salaries in the collective sector as of 1 July 1982" (yield: 500 million quilders). According to Lubbers and De Graaf, this would be a harmless one-time measure. The WIB report with which Van Agt and his ministers are now wrestling bluntly states what it comes down to: "It is evident that this possible measure in itself conflicts with the pro- mises in the coalition agreemznt with respect to the trend-following policy regarding the employees in the collective sector and regarding the coupling of the social security benef its." COPYRIGHT:1982 VN/BV Weekbladpers 6940 CSO: 3105/134 11 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R000500054047-0 FOR OFFICIAL USF. ONLY POLITICAL FEDERAL REPUBLIC OF GERMANY LANDTAG ELECTIONS SEEIV AS CRUCIAL FOR FDP IN 1982 Hamburg CAPITAL in German Mar 82 pp 102-103 [Article by Martin Bernstorf: "Fourth Party"] [Text] Guenther Verheugen, secretary-general of the FDP and irrepressible faith healer of the Bonn coalition, waxed metaphoric when he recently reaffirmed the liberals unflagging loyalty to the coalition, "When I look around at all the belles at the ball, I don't feel any urge to dance with a new partner." In talking about the belles at the ball he meant, of course, the CDU/CSU-- Verheugen's party is not left with all that many choices in case his urge should become a matter of necessity. It could come to pass--not in Bonn, but at the Land level--that the liberals will not be able to pick ":heir own partner for a cabinet because the possibilities for an alternative Evould be reduced to one: either with the CDU or not at all. In at least three Landtag elections it can happen that they will have to put the matter to the acid test. As a matter of fact the FDP is already sitting on the opposition benches in a number of Land legislatures--as in Rhineland-Palatinate--altho~igh they could have been admitted to the cabinet. In this case they feel bound to the principle that they would rather allow a party having an absolute ma~ority, as the CDU does at Mainz, to govern by itself rather than see their own ideas effected into law by their offer of cabinet participation. But any satisfac- tion to be found in such virtuous abstinence may soon fade away. Berlin excluded, the liberals are now represented in seven Land Iegislatures. Yet they are only represented in the Land cabineta in two Laender: in Hesse, where the sole surviving "Bonn model" of an SPD/FDP coalition still governs at the Land level and in the Saarland. If the liberals do not manage at the Land elections in Lower Saxony on 21 March and in Hamburg on 6 June to return to these Land parliaments, and if they should fail to attain the 5-percent mark in Hesse or do not constitute a ma~ority with the SPD, then the FDP would be left to participate in the government of only one Land, namely the Saarland _ and there in company with the CDU. How much time is left for the coalition in Bonn? 12 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440500050047-0 FOR OFF'ICIAL USE ONLY ~ Wl~ut for decades had been a skillfully led thi=d forcehas now become little more than a fourth party. A party which woulc? no longer matter--if it wsre not for the circumstance so important for the FDP--that neither of the two major parties wants to form a coalition with its alternative fraction. Thus the Berlin FDP fraction, with the sanction of the party headquarters in Bonn but against the will of the local party organization, was able to at least tolerate a CDU m~nority government. Much the same thing could also happen in Hamburg, though there are serious doubts as to whether the FDP will be able to gain readmittance to the Buergerschaft, the Hanseatic city-state legislature. If they do, then the next question is whether the SPD and the FDP can create a majority capable of taking off ice. Judging from recent opinion polls, it is likely that the CDU and the Greens together will have more seats than the social-liberals. The CDU will have no part of the Greens and vice versa. Then the only possibility of creating a governing majority would be the combination CDU/FDP. The ].iberals rer~trn to Parliament is thought to be more likely in Lower Saxony than in Hamburg. At the same time opinion polls give the CDU goods udds on attaining an absolute majority. If they fail to do so, then the SPD, the Greens and possibly the FDP would have more seats than would the Union, though such a three-way coalition does not seem to be in the cards. Since the SPD and the FDP by themselves would probably have no chance to form a governing maj ority, the FDP is lef t, in the event that they return to the ~ I.,andtag, with the Berlin alternative: alliance with the CDU or toleration of a CDU minority cabinet. It will be in September that the FDP will really feel the heat in Hesse. Accurding to polls, the CDU would still command less than 50 percent of all vutes if the election were to be held in Hesse today. That could mean, after al.l. the votes were counted, more than 50 percent of the seats. The SPD and the EDP together would be able to count on some 45 percent of the votes, the Greens somewhat more than 5 percent. Assuming that the CDU narrowly fails to gain an absolute majority, the FDP will return to the Landtag but cannot constitute a government with the SPD alone: then they will once again and Eor the last time face the question: how do you feel about the CDU? "A fateful year for politics" is what the FRANKFURTER ALLGEMEINE sees coming; the lesson to be drawn will be: the old alliance is f inished. It no longer skiows signs of life even in North R}~ine-Westphalia where it all began and wl~ere the FDP had to leave the Landtag after the last electior.s. 'The consequence does not necessarily have to be the i~ediate collapse of the Bonn coalition. The maiaise can drag on as a result of the Union parties then comprising a two-thirds ma~ority in the Federal upper house. This can lead, if the Christian Democrats want it that way--though the Union heads of the Land governments are certainly not going to press for this to happen automatically--to every piece of legislation being blocked. The reason for all this Free Democratic distress is not so much the lack of common ground with the SPD. Even without this, Schmidt and Genscher would 13 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPR~VED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 FOR OFF[C[AL USE ONLY sti.tl be able to govern and if that didn't work, they would at least be able to continue administering. Common grounds could be rediscovered as they were needed. The "turning," however, that Minister of Economics Lambsdorff and his party chairman Genscher were talking about so ominously last fall, can, in reality, only bring about a change in power relationships. The party heads draw their power from the voters. When the votes are not there, then even a Genacher will have to do some strategic rethinking, where until now he has been able to manage with fairly superficial tactics. And all the established parties are now beginning to lose votes: the Greens have been nibbling away at a11 of them. What Franz Josef Strauss had been trying in vain to do for years on the right is now suddenly a fact on the left: a new party. The chances are that it will fade away after a few years, but for the moment politicians will have to live with the fact that the old three-way functionalism no longer work There is not one CDU leader any more who would call the FDP a"block par.ty." It no longer is such and, in fact, is in danger of becoming a negligible quantity--something to be forgotten about whenever possible. Rudolf Augstein, for a short time an FDP member of the Bundestag, assu~ted his readers in his weekly DER SPIEGEL that the party could survive a resignation by the minister of economics, Count Lambsdorff, who had been implicated in party donation scandals, but not an election fiasco in Hamburg, Lower Saxony and Hesse. Party leadership in Bonn, still dazzled by the results of the last Bundestag elections (10.6 percent) see things differently: the tide could start to turn in the other direction as early as the elections next year in Schleswig-Holstein. COPYRIGHT: 1982 Gruner + Jahr AG & Co. � 9878 CSO: 3103/355 l~+ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500054047-0 FOR OFFICIAL USE ONLY I'OLITICAL FRANCE GISCARD ON POLAND, FRANCO-GERMAN TIES, DEFENSE, GAS Paris PARIS MATCH in French 19 Feb 82 pp 38-41 [Exclusive interview with former President Valery Giscard d'Estaings "The Historic Decline of Europe Must be Stopped"; da,te and place not specified] [Text] PARIS MATCH: Mister President, you have alwa.ys repeated that Europe should unite to prevent others from dictating the fate of our continent. Hasn't Europe, in the context of Poland, proven that it is fax from being able to define its own policy? Valery Giscard d'Esta.ing: Alas, yes. We axe now faced with the question of whether we will be ahle to put a stop to the historic decline of Europe. Over the last 100 years, the weight of Europe in the fate of the world has not ceased to go down. The large sta.ges of this decline were the two world wars, which in reality were civil waxs in Europe. After the second world war~ it was two big powers, the United States and the Soviet Union, which, in a face to face meeting at Ya1ta~ decided the fate of Europe, in spite of the pre'sence of a European, Winston Churchill. I profoundly believe tha,t the historic de- cline of Europe can be stopped. This will require close cooperation and a Franco-German will. They are not enough. I am thinking here of our other partners: Italy, Great Britain, the Benelux countries, and the other members of the EDC. But this Frar~co-German cooperation is a geographic~ economic and political prerequisite. Cooperation proves itself in actions this is why Chancellor Schmidt and myself have strengthened the understanding through the development of the Airbus, the staxting of the European monetary system~ of which we were promoters together and which has hitherto resisted all the chance mishaps predicted by the oracles of disaster at its birth, and the construction of a Franco-German tank and of a direct television satellite. And if I had been reelected~ I planned to examine with Helmut Schmidt the posaibility of developing common ideas on the problems of the security of our two countries and of Europe. As far as the United States is concerned, there is a contradiction in criti- cizing successively a weak America and a strong America. I publicly rejoiced, following President Rea.gan's election, over the fact that the United States intended to become once again a strong nation, assuming its international res- ponsibilities. While it is legitima.te to dema.nd a consultation prior to any decision in order not to submit to constraint~ it is re~etta.ble that the poli- . tical recovery of the United States has coincided with a hesitant and wavering attitude on the part of Europe. 15 , , APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504050047-0 FOR OFFICIAL USE ONLY ~G~~~~~stion] There is henceforth a common Franco-German position on natural gas, ~:veri though in a different sense than the one you ha.d anticipated during your 7 year term. The French governn,ent has just concluded a contract with the iJSSR for the supply of natural gas, even though the state of seige is still in force in Poland, while the German-Soviet agreer~ent had already been concluded prior to the crushing of "Solidasity.~~ Woul d you, as president of the Republic, have signed the natural gas contract with the Soviet Union under the current circumstances? LAnswer] No. I will give you two reasons for this. First of a11, I would like to note that such a question must be examined casefully, in the light of all the interests concerned, and that it was thus le~itimate for the former government to open such a.negotia.tion with the Soviet Union and, for the new government, to pursue it. But there is a difference between negotiating and signing: Was it necessary to conclude the agreement at the quantity levels which were set and under the political circumstances of the moment? I don't think so. Here is why: in the first place~ I believe that it is imprudent to increase F`rance`s energy dependence on any foreign supplier, and thus on the Soviet Union. We should only accept deliver;~ up to the level at which we would be caught short in case of a suspension of supply. sy 1990~ France will import between 32 and ~0 billion cubic meters of gas. At a 15 percent level of these deliveries, we could interrupt the supply without too much damage to our indus- try. This constitutes the threshold of our dependence on foreign countries. You will note that it is located at the level of 5 to 6 billion cubic meters for a single supplier. If we go beyond that~ we will put ourselves at the mercy of foreign pressures. And, on the other hand, the circumstances of the moment leave the signing of the agreement open to criticism, an agreement which, whatever its economic interest, will enskre significant gains in tech- nology and in foreign exchange for the Soviet Union~ and which is seriously felt as a rejection of support for Polish puhlic opinion. [Question] What conclusions will the Soviet Union draw from this? [Answer] I think that overall this passivity will have a negative effect on Ea.st-West rel ations~ because the limit of the mutual actions we accept from each other will become more confused. I repeat: our attitude toward the Soviet Union must be very firm and very clear. This is why it is useful to maintain an exchange of information. Meetings among leaders, even when criti- cized, have a main goal, tha.t is to avoid any misunderstanding by cleaxly de- f'ining the limit of actions which axe considered acceptable by both sides. The worst mistake leaders can make is to a11ow a conflict to develop on the ba.sis of a misunderstanding or of a waxning which was not delivered in time. On top of this there is a significant circumstance. We a11 know that the Fe- deral Republic of Germany is faced with special problems in its East-West re- lations, which it would be unrealistic to ignore: the division of Germany, the importance given to human relations between the two parts of Germany~ and the question of transit. We are awaxe of the vulnerability the special status of Berlin represents for the FRG. This is why I wanted to go there in the fall of 1980. The FRG is never safe from Soviet pressure. If only for that reason, it is unfortunate tnat France and the FRG had different reactions with regard to the events in Poland. These differences could one da.y lead the Soviet Union to put pressures on the FRG alone. On the other hand~ when Bonn 16 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050047-0 FOR OFFICIAL USE ONLY ~~r~~l Paris adopt a close common position, the Soviets know that their pressures would not only affect their relations with the FRG, but also their relations with France. Such axe the facts,of the problem. [Question] At the time~ you were accused of i.~t having shown enough firmness with regard to the Soviet invasion of Afghanistan. You were the first Europ~8.ri hea