WESTERN EUROPE, JAPAN, AND CANADA: REACTIONS TO US SANCTIONS AGAINST LIBYA
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Document Number (FOIA) /ESDN (CREST):
CIA-RDP86T01017R000303310001-0
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RIPPUB
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S
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16
Document Creation Date:
December 22, 2016
Document Release Date:
February 23, 2011
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1
Case Number:
Publication Date:
January 16, 1986
Content Type:
MEMO
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Central Intelligence Agency
16 January 1986
WESTERN EUROPE, JAPAN, AND CANADA:
Reactions to US Sanctions Against Libya
Summary
Most West European countries and Japan have
offered little support for US measures against Libya
and all -- along with Canada -- continue to balk at
adopting broad economic sanctions. Surprisingly, Prime
Minister Thatcher has been one of the most publicly
outspoken opponents of economic sanctions. Thus far,
only Canada and Italy have given strong rhetorical
support to US actions, and both have announced limited
efforts to curb economic relations with Libya. The
European Community countries have agreed to hold a
special foreign ministers meeting on 27 January to
discuss the US request for sanctions and ways to
strengthen cooperation in combatting terrorism.
This memorandum was prepared by the West'European Division
of the Office of European Analysis. Questions and comments
should be delivered to the Chief, West European Division,
EURM 86-20007
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Japan
Japan is gauging West European and Arab reactions, while
remaining cautious and noncommittal in its own approach to US
sanctions against Libya.
-- Both Prime Minister Nakasone and Foreign Minister Abe
have expressed sympathy for the US position but publicly
have stated only that the issue is under study.
-- Trade Minister Watanabe has instructed Japanese
companies not to take advantage of US sanctions by
increasing sales to Libya, but this guidance is not
binding.
-- Japanese firms appear ready to go through with several
large-scale projects in Libya, such as a steel mill
that have been under negotiation for some time.
West Germany
Bonn has given no indication that it will drop its
opposition to broad economic sanctions, and last week Chancellor
Kohl publicly reaffirmed this position by noting that the US
"would just have to accept" Bonn's rationale. Bonn, however, has
asked businessmen not to take over US contracts in Libya, has
responded positively to suggestions for increased cooperation on
counterterrorism, and is calling for diplmatic measures to
isolate Libya.
-- Government officials have publicly announced that West
German firms should not step in to replace US firms 'in
Libya. During a conversation with the US Ambassador on
9 January, Foreign Minister Genscher agreed to ask for
an EC statement to this effect.
-- Government officials continue to use the EC to field US
requests for further action in their area, and US
officials in Bonn report that the West Germans are
likely to let those EC countries with larger interests
in Libya -- such as Italy -- take the lead. Bonn
probably would acquiesce in an EC consensus on measures
aimed at Libya.
-- The government, however, is not unanimous in its
opposition to economic sanctions against Libya. On
Sunday, Christian Social Union (CSU) Chairman and
Bavarian Minister-President Franz Josef Strauss called
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on the West German government to join the US "without
ifs or buts" and said that West Germany "should shut off
the flow of money to those who finance terrorist
bloodbaths all over the world by refusing their
products." In response, however, a government spokesman
stated that there would be no change in Bonn's
opposition to sanctions. He noted that the four CSU
Ministers in the Cabinet had concurred when the decision
was taken last week.
In numerous public statements, as well as in Genscher's
talks with the ambassador, the Kohl government has
expressed its interest in expanding cooperation to fight
terrorism. Suggestions range from inter-ministerial
meetings to enhanced aviation security. Influential
West Germans have also called on the government to
increase protection of US and Israeli interests in the
FRG. The opposition SPD's Mideast expert, Hans-Juergen
Wischnewski, advocated this in a TV interview, for
example. Meanwhile, Interior Minister Zimmermann
announced increased security measures at West German
airports and border crossings.
During his visit to Washington this week, Economics
Minister Bangemann expressed his government's
willingness to support measures that isolate Qadhafi's
regime diplomatically. A government spokesman in Bonn
was quick to point out, however, that West Germany had
no plans to break its diplomatic ties to Libya and it is
unclear what steps, if any, might be under
consideration.
Press reaction on US sanctions has been varied. Some
papers applaud the US approach for its moderation, and
some criticize the West German and other European
governments for failing to join. Others continue to
point to the need to resolve the Palestinian question to
remove the underlying cause of Mideast terrorism. All
portray Qadhafi in extremely negative terms. In terms
of general public opinion, however, the US Embassy in
Bonn reports that public opinion is well ahead of the
FRG government on this issue.
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France
France has reacted coolly to the US call for sanctions
against Libya. In conversations with US diplomats, French
officials have not ruled out economic measures against Tripoli,
but they have been careful to promise nothing. Paris has said
little publicly on the issue.
French deliberations on relations with Libya are
focusing on s ort-term French interests, especially in Chad. The
French probably also continue to worry that isolating Qadhafi
could unite the Arab world behind him while driving him into the
hands of the Soviets.
-- While French officials have been guarded in their few
public statements, they have been careful not to close
the door on participation in sanctions. Last weekend,
Foreign Minister Dumas told reporters -- "I do not say
that we will not follow the American sanctions." He
went on to remind them that "France has been the victim
of terrorism and it has reacted" -- apparently referring
to French retaliations in Lebanon.
-- President Mitterrand has said nothing on the issue. On
13 January, however, a senior Foreign Ministry official
told US diplomats that Mitterrand intends to "reply
soon" to President Reagan's letter. The official asked
for US forbearance, saying that while Paris shares US
concerns and eagerness to fight terrorism, it is "not an
easy subject" for France.
-- In discussions with US officials, the French have
stressed that they need specific proof of Libyan
involvement in the Rome and Vienna airport attacks.
French officials agree privately that Libya supports
international terrorism, but maintain that they see no
specific threat to French interests and cannot act
before a "smoking gun" is found.
-- French officials point out that they have been winding
down their economic ties with Tripoli, especially since
the Libyan invasion of Chad in 1983. They also note
that they accept the principle of economic sanctions, as
in the case of their measures against South Africa, but
repeatedly question the utility of sanctions in this
instance. When asked on television last week whether he
favors the sanctions against Libya, Prime Minister
Fabius responded -- "I am mainly in favor of efficient
measures. If it is a matter of having inefficient
sanctions, then this is of no interest." Late last year
France did explicitly reject a total ban on oil imports
from Libya.
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-- France has indicated that any actions taken are likely
to be channeled through the EC. French officials told
US diplomats last week that Paris may support an EC
statement condemning terrorism, but will not single out
Libya.
-- Thus far, French companies do not ear to be
ranitalizina on the US sanctions.
United Kingdom
The British government has expressed little support for US
sanctions and continues to oppose implementing its own broad
economic measures against Libya. London-maintains that sanctions
are ineffective, and British officials worry that sanctions would
set an undesirable precedent for South Africa. The government-
and media also remain preoccupied with the Westland helicopter
takeover and Heseltine's resignation. Most papers continue to
express doubts that the European allies will support US
sanctions. The Economist and The Times, meanwhile, have strongly
urged the Allies to take at least the limited steps against Libya
that the Thatcher government adopted after the Libyan embassy
shooting in 1984.
-- In a press conference last Friday, Prime Minister
Thatcher said that the UK "unequivocally" ruled out
adoption of sanctions against Libya and that direct
military retaliation against non-terrorist targets for
the Rome and Vienna incidents could not be considered a
"viable diplomatic weapon."
-- Nonetheless, according to the London Sunday Times,
British Foreign Secretary Howe will press the EC to
adopt some of the measures taken by the United Kingdom
in 1984 in response to Libyan terrorism -- these
measures included a ban on arms sales, strict
limitations on Libyan travel in the United Kingdom, and
denial of export credits.
-- The issue of US sanctions against Libya has emerged in
the Westland takeover battle. Opponents of the US
bailout have said that Fiat's relatively small role as
an ally of Sikorsky could make Westland subject to US
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restrictions on technology transfer on helicoptor sales
because 14 percent of Fiat stock is owned by Libya.
-- Deputy Foreign Secretary Lady Young reiterated London's
opposition to sanctions in discussions with US officials
on Monday. She expressed concern at the implications
for British banks if US financial sanctions went beyond
foreign branches of US banks, but said the Thatcher
government would do everything it could to avoid
undercutting Washington's efforts. She said that the
British continue to fear Western actions could force the
Arabs to rally behind Qadhafi.
-- Lady Young also repeated London's pledge to take the
lead at the EC meeting in arguing for stronger counter-
terrorism cooperation.
Italy
Of the West European countries, Italy has provided the
strongest rhetorical support for US actions and, on 9 January,
announced a number of economic and other measures intended to
reduce ties with Libya. Craxi has taken a surprisingly strong-
pro-US position despite some opposition within his Cabinet,
especially from Foreign Minister Andreotti, who now appears
increasingly isolated in his efforts to accommodate the Arab
countries in general, and Libya and Syria in particular.
Comments by Qadhafi concerning terrorism have apparently deeply
angered Craxi and probably have contributed to the tough Italian
position. Craxi publicly connected Libya to the airport attacks
on 14 January saying that Qadhafi's words and actions appear to
have "confirmed his support" for the Abu Nidal group. On the
other hand, the Cabinet has announced "confirmation" that NATO
bases in Italy can only be used for NATO purposes. In response
to the heightened tension in the Mediterranean, Italy has decided
to intensify its long-range air defense and electronic
surveillance apparatus in Sicily and the minor islands in the
area.
-- The Italians have announced an across-the-board ban on
arms sales to strengthen a 1981 embargo that 'blocked new
sales of "dangerous" military equipment but permitted
the completion of existing contracts and new contracts
for non-lethal weapons. Prime Minister Craxi reiterated
on 10 January that the new ban will set stricter
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- Craxi also said that Italy would order state-owned firms
not to undercut the US by providing replacement services
to Libya and would apply pressure on private companies
to comply as well. Most of the Italian companies in a
position to fill in behind departing Americans are
state-owned.
-- In addition, Craxi indicated that his government will
advise Italian firms and personnel to withdraw gradually
from Libya F
Craxi believes that Italy can turn
other Middle Eastern countries to make up the lost
market and, therefore, is concerned that action against
Qadhafi not antagonize more moderate Arab leaders or
unite the Arab world behind Libya.
Italy has encouraged its West European partners to cut
back their relations with Libya. In addition, over the
last week Interior Minister Scalfaro has travelled to
Vienna, London, Paris, and Bonn to discuss international
cooperation against terrorism with his counterparts.
According to press reporting, Craxi, in his 90 minute
meeting with Egyptian President Mubarak on 14 January,
discussed ways to get at the "roots of terrorism" by
reinvigorating the Middle East peace process.
The government also will enforce its immigration laws
and criteria for issuing visas more strictly, and act
promptly to repatriate illegal Arab immigrants. To this
end, Rome has notified Algeria, Tunisia, and Morocco
that their citizens now "temporarily" need visas to .
enter the country. Italy also expelled 15 to 20
Palestinians who no longer qualified for their student
visas.
Spain
The Spanish media continue to give substantial attention to
the imposition of US sanctions, but Madrid has offered little
direct support for US policy. The Spanish are reportedly
concerned that Qadhafi would retaliate against Spain. Moreover,
Prime Minister Gonzalez is already worried that his plans to
establish diplomatic relations with Israel will offend the Arab
world, particularly Libya.
-- A key Foreign Ministry official hinted on 10 January to
a US official that Spain would go along with the general
line the EC adopts on the sanctions.
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Foreign Minister Fernandez-Ordonez declared publicly
during an official trip to Nicaragua on 11 January that
Spain does not believe in economic sanctions "in
principle and as a general rule," but he declined to say
whether Spain would stick to that policy in the case of
Libya.
A respected Spanish newspaper -- in an article the US
Embassy believes was initiated at the government's
request -- reported on 14 January that Prime Minister
Gonzalez "fears a US attack on Libya that would
implicate Spain." The Prime Minister is reportedly
worried that "the United States could not successfully
carry out an offensive action" against Libya without
using its base facilities in Spain and that there are no
assurances that Washington would request authorization
from Madrid as is required under the bilateral
agreement.
The Netherlands
The Hague has not been supportive of US economic efforts
against Libya. In fact, Prime Minister Lubbers stated publicly
that his government will not participate in broad economic
sanctions against Libya. According to recent US Embassy
reporting, Lubbers believes that the US sanctions will prove
counterproductive by rallying moderate Arab nations to Tripoli's
defense. Moreover, The Hague is anxious to switch public
attention from US-West European differences over the Libyan
sanctions to multilateral efforts to combat terrorism. Prime
Minister Lubbers and other Dutch officials are indicating that
they will use The Netherlands' current EC presidency to promote
an EC consensus at least rhetorically supportive of US anti-
terrorist efforts.
-- In particular, Dutch officials may ask their EC partners
to terminate arms exports to countries supporting
terrorism, impose tougher visa regulations and tighten
security checks on arriving aircraft. Due to scheduling
problems, The Hague postponed the extraordinary meeting
of EC foreign ministers to discuss this issue from 21
January to 27 January.
-- As part of the widely publicized terrorist alert in The
Netherlands, the Dutch have significantly strengthened
security measures for US diplomatic personnel in The
Hague.
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-- So far, the only measure taken against Tripoli by the
government was its cancelling of a high-level official
visit to Libya scheduled for February intended to
conclude a bilateral economic cooperation accord.
Switzerland
The Swiss government has indicated to US Embassy officials
that it could take part in an economic boycott only if called for
by an international organization, such as the UN. Nonetheless,
Bern says that it might take some unspecified unilateral measures
if Libyan complicity in recent terrorist incidents could be
proven.
Belgium
Brussels has publicly rejected the usefulness of economic
sanctions in solving international conflicts and is unlikely to
support the United States outside an EC consensus. Privately,
however, Prime Minister Martens' government is considering
several unilateral measures to limit its economic and diplomatic
relationship with Libya.
- The US Embassy in Brussels reported that a Belgian
Cabinet minister has offered assurances that the
government will prevent a scheduled private-sector
Belgium-Luxembourg trade delegation from visiting Libya
later this month.
- The US Embassy also reported that there is growing
sympathy within the Belgian Foreign Ministry for
drastically reducing the Libyan diplomatic presence in
Brussels because it far exceeds Belgian representation
in Tripoli. Brussels also is considering imposing
greater travel restrictions on Libyan diplomats.
Austria
The Sinowatz government has so far rejected the call for
economic sanctions, and spokesmen, including the Chancellor,
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claim that Austria can only participate in such a move if the
measures are endorsed by the UN Security Council. Politicians in
Vienna are divided, however, over Austria's response to terrorism
and the Libyan connection.
Interior Minister Blecha appears to be ambivalent
regarding a forceful response to Mideastern terrorists
and has stated that the terrorists involved in the
Vienna airport attack did not come from Libya but were
trained in Lebanon and Syria. Chancellor Sinowatz
echoed this point in his conversation with our
Ambassador last weekend, claiming that his government
has confronted Damascus on the issue.
-- Former Chancellor Kreisky, who fostered close ties to
the PLO and Qadhafi during his tenure, publicly claimed
that Libya was not responsible for the airport
attacks. US officials in Vienna report, however, that
few Austrians give credence to Kreisky's utterances.
-- Austrian officials have also emphasized their intention
to hold the two surviving terrorists in Austrian custody
and to try them in accordance with Austrian law. This
diminishes the possibilities of an early release or
pardon; Abu Nidal representatives had been pressuring
the Austrians for just that in the cases of other Arab
terrorists in Austrian prisons.
Turkey
Ankara has publicly indicated that it does not want to get
involved in any actions directed against Libya,
it is limiting dealings with Libya.
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-- President Kenan Evren on 11 January publicly criticized
US economic sanctions against Libya as a "hurried and
useless decision" made without prior consultation with
the allies or proof of Libyan involvement in the recent
airport attacks.
-- A Turkish official told US Embassy representatives in
Ankara on 14 January that Turkey has "quietly limited"
dealings with Libya by avoiding transfers of arms,
ammunition, high technology, and petroleum technology.
Greece
Athens has publicly reiterated its decision not to join the
US in economic sanctions against Libya. Government officials
have argued that for Greece to join in such sanctions would
involve unacceptable economic and security risks, and would, in
any case, be ineffective. Athens has, however, refrained from
criticizing the US for imposing sanctions -- except to register
concern about rising tensions in the Mediterranean and to repeat
its position that the US bases in Greece must not be used for
military actions against Qadhafi. At the same time, Athens is.
stepping up efforts to monitor and prevent terrorist activity in
Greece.
- In response to a press query late last week, the Greek
government spokesman stated that Athens is making full
use of the three-year Greek-Libyan economic agreement
signed in 1984 and "was exploiting the possibilities for
its arms industry as well."
___]the Greeks are likely to continue efforts to se a
least small arms and ammunition. Under pressure from
the United States, however, the Greeks may stop short of
selling major systems, such as the Artemis anti-aircraft
gun.
Athens this week asked the US to postpone the visit of
the USS Coral Sea and other US naval combatants
scheduled for 20-24 January. This move in part reflects
Athens' reluctance to become indirectly involved in
possible US operations against Libya. In addition,
Athens fears the Greek Communist party would use the
visit to embarrass the government politically.
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-- On the positive side, the Greeks have strongly condemned
terrorism in general and have significantly reinforced
security measures at Athens airport and around selected
US facilities and officials.
-- At the request of the US, the government has spoken to
the Syrians about Abu Nidal operations in Damascus.
They have not been willing, however, to confront Libya
publicly or privately by accusing Tripoli of sponsoring
terrorism.
-- The Greeks have said they would support a high-level US-
West European meeting to discuss ways of combatting
terrorism. They have been reluctant, however, to press
their EC partners on the issue preferring instead to
follow the West European lead.
Portugal
Portugal has publicly indicated that it opposes economic
sanctions against Libya. At the same time, Lisbon is trying to
play down differences with Washington and has not completely
foreclosed the use of bases in Portugal in the event of US
military action against Libya.
-- The Foreign Ministry in a statement of 8 January
condemned terrorism, but indirectly opposed military
action. It also supported a "just and internationally
acceptable" solution to the Palestinian question, and
voiced serious reservations about the efficacy of
economic sanctions.
-- Foreign Minister Pires de Miranda reiterated Portugal's
position in a meeting with US Ambassador Shakespeare on
9 January. He agreed that something needs to be done
but said that Portugal is too small and vulnerable to
act independently, and that Portugal would go along with
the EC consensus.
-- The Portuguese have not ruled out US use of Portuguese
facilities in operations against Libya, but insist they
want to be consulted in advance of any action involving
the bases.
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Scandinavia
Denmark, Sweden, Norway, and Finland have publicly expressed
unwillingness to participate in new economic sanctions or other
direct action against Libya except as part of a multilateral
effort. Moreover, they oppose the use of force against
Tripoli. Their economic ties to Libya are among the least
extensive in Western Europe, but the Scandinavians are
particularly concerned that sanctions could be more damaging to
Western Europe than to Libya if Qadhafi were to retaliate. All
four countries have taken measures to increase security at entry
points and have expressed support for close and effective
international cooperation to combat terrorism.
-- Earlier this week Oslo appeared to be supporting the US
call for sanctions more strongly than any West European
government. The Norwegians, however, have since toned
down their response, and on 15 January a senior Foreign
Ministry official informed our Embassy that Norway would
not take any economic measures against Libya except to
continue a ban on military sales and discourage
Norwegian firms from replacing US companies. The
official added, however, that Oslo would also propose,
through its consultative arrangement with the EC, that
the Community convene a high-level meeting on anti-
terrorism.
Copenhagen, the only Nordic member of the EC, is
skeptical about the effectiveness of economic sanctions,
but will probably support any joint action decided by
the Community.
Malta
Maltese Prime Minister Bonnici has publicly condemned the US
sanctions and accused the United States of increasing tensions in
the Mediterranean. Maltese conciliation toward Libya is dictated
in part by strong trade and investment ties that Valletta is
eager to expand. Another reason is that Bonnici fears Libya will
retaliate if Malta does not live up to its side of the bilateral
friendship and cooperation treaty of 1984, which likely includes
some mutual defense provisions. Prime Minister Bonnici may also
hope tha.t placating Qadhafi will avert terrorist strikes by Abu
Nidal who could attempt to force Malta to release the surviving
Egyptian hijacker.
-- On 16 January, Bonnici flew to Tripoli to consult with
Qadhafi on tensions in the Mediterranean.
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- The Maltese Foreign Minister has called in the French
and Italian Ambassadors to ask their countries' support
for Maltese efforts to convoke an international
conference on Mediterranean security.
Canada
Ottawa has implemented modest sanctions of its own and is
considering additional measures. Moreover, it has offered strong
rhetorical support for US efforts. Prime Minister Mulroney
probably overruled his foreign policy bureaucrats -- and some
Cabinet ministers as,well -- to break with postwar Canadian
precedent and support sanctions without first learning whether
Ottawa's European allies were going to follow suit. Although
Mulroney has consistently condemned terrorism, he almost
certainly is also trying to build some credit with Washington in
the hope of finding it more accommodating on bilateral issues such as acid rain and Arctic sovereignty -- when he meets with
President Reagan in March.
-- Mulroney's government cancelled the export insurance
offered to Canadian firms trading with Libya, and banned
the export of some oil and gas equipment -- reputed to
have had a value of $10 million in 1985 -- to Libya.
-- Ottawa also advised its citizens resident in Libya to
consider the wisdom of remaining under present
circumstances.
-- Deputy Secretary Whitehead, after meeting with Prime
Minister Mulroney, reports that Ottawa is considering
further sanctions.
-- Alberta's Premier Getty -- Alberta is the base of
Canada's oil industry -- urged Albertan companies doing
business in Libya to voluntarily support Ottawa's
sanctions, and asked that the approximately 800 Albertan
workers in Libya return to Canada. A Reuters report
indicates, however, that a Calgary employment agency is
being "inundated with requests" from Canadians and
Americans resident in Canada to take jobs in Libya.
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-- The Canadian press is about evenly split between
supporting the US and alleging that Washington is
alienating its European allies and driving Tripoli and
the other Arab states closer together
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SUBJECT: Western Europe, Japan, and Canada: Reactions to US
Sanctions Against Libya
Distribution:
Original - Mr. Douglas Mulholland
Special Assistant to the Secretary
Dept. of the Treasury
(handcarried 17 Jan 86 for Secretary Baker)
1 - Special Assistant to the DCI
1 - DDI
1 - NIO/CT
1 - NIO/EC
1 - NIO/WE
1 - C/PES
1 - D/ALA
1 - D/CPAS
1 - D/OCR
1 - D/OEA
1 - C/OEA/
1 - D/OGI
1 - D/OIA
1 - D/NESA
1 - C/NESA
1 - D/SOVA
1 - D/OSWR
1 - D/EURA
2 - EURA Production to
5 - IMC/CB (7G07)
1 - C/EURA/WE
1 - WE/BBC
1 - WE/CM
1 - WE/GN
1 - WE/IA
EURA/WE
(16 January 1986)
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