Western Europe

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00865A001100200001-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 16
• Document Creation Date: December 20, 2016
• Document Release Date: August 19, 2005
• Sequence Number: 1
• Publication Date: June 9, 1975
• Content Type: NOTES

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CONTENTS
Portuguese Leaders Divided on Angola
Question . . . . . . . . . . . . . . .
. . .
1
Lisbon Exerts Control Over Azores . . .
. . .
3
Canada Prepares for NATO Defense
Consultations . . .
5
Portugal Faces 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
Union Representatives , . . . . . .
. . .
12
DOS review(s) completed.
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 its
African territory.
Despite public assurances that Lisbon has
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 the
agreements on Angola were signed, has a vested
interest in the outcome.
A recent Portuguese delegation to Zaire
led by Revolutionary Council member Vitor Alves
signed a joint declaration reiterating 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.
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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 Inter-
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.
Meanwhile, the influx of white refugees
from the Portuguese colony could cause additional
problems for Portugal's leaders. It is estimated
that at least 5,000 Portuguese emigrants have
recently left Angola, with 1,500 returning home.
As many as 50,000 more are said to have booked
passage. The refugees that do return to Portugal
will not only swell the ranks of the unemployed,
but also reintroduce into Portugal's turbulent
political life a large number of conservative
military officers who view present political
developments in Lisbon with alarm.
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 the 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.
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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
economy.
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Canada Prepares for NATO Defense Consultations
Ottawa appears committed to consult its
NATO allies on the impact the current Canadian
defense review might have on the Alliance. The
Canadians propose to hold the talks at NATO
headquarters in Brussels under the aegis of
the permanent representatives to the North Atlantic
Council at a time still to be decided.
According to an official in the External
Affairs Department, West German Chancellor Schmidt's
intercession led Prime Minister Trudeau to agree
to hold the consultations in Brussels. Schmidt's
efforts also led Trudeau to propose separate
trilateral discussions with the US and West
Germans,*also in Brussels. The Canadian government
has not reached a final decision on these separate
talks, but the official believes a proposal
to Washington and Bonn will be made in a couple
of weeks.
The Canadians were impressed by the importance
Schmidt and other NATO leaders attach to consultations.
Trudeau pledged to the NATO members that Canada
would "maintain a force level which is accepted
by our allies as being adequate in size and
effective in character." Among the options
for its European contingent being considered
by Ottawa are the present mix of land-air forces
or an all air or all land force.
The proposal to hold trilateral talks in
Brussels separate from the.general NATO consultations
may cause some difficulties with the other allies.
Trudeau is anxious to be forthcoming with both
the West Germans and other EC members in order
June 9, 1975
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to enhance prospects for a formal Canadian agreement
with the EC. It will be up to him to make arrangements
that are satisfactory to all the allies as well
as the factions within the Canadian government.
Trudeau's desire for an agreement with the EC,
however, gives the Allies an effective lever
by which to exert pressure on him to override
those in Ottawa seeking to cut the Canadian
defense budget at the expense of NATO.
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 appears 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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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.
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 F-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.
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 most parties to hold early elections,
the current issue will provide a severe test of
the Prime Minister's talents.
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, and 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;
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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 ministers 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 "social
summit." Labor representation in the EC has
been weakened until now by British labor's
refusal to take part.
A meeting of EC social ministers on
June 17 is expected to review the recommend-
ations of the tripartite meeting. It may
also take up the concern of EC governments
over the prospective early legalization of
free immigration from Turkey. The treaty
providing associate membership to Turkey
will grant this right to Turkish workers if
no modification is made before the treaty
takes effect next January. A recent West
German labor union convention highlighted
the problem, recommending EC action to re-
strict Turkish immigration in view of the
unemployment problem in the EC.
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