CONFIDENTIAL
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Dispossessed British Farmers
9. Of the British farmers in Portugal dispossessed of their
property during the revolution, only one (Mr Phillimore) has
had his property returned. Compensation has not been paid
to the others although some progress has been made in
discussing claims and setting up machinery for agreeing
terms in individual cases. Some British farmers are unhappy
about the Portuguese proposal that the arbitration committees
should be only of Portuguese nationals. The Embassy have
raised this matter with the Portuguese Government. The farmers
will expect Mr Judd at least to raise the subject during his
talks with the Portuguese.
Mr Tomlinson did so briefly
with Dr Ferreira in London in February; the latter promised
an early and rapid solution.
Bilateral Social Security Agreement
10. The Portuguese wish to conclude a comprehensive agreement
similar to those they have with other Western European countries
and to that between the UK and Spain. There are some 30,000
Portuguese in the UK and 5,000 British passport holders in
Portugal. About 500 people in Portugal receive British
pensions; it is payment of these at "unfrozen" rates which
has been the main difficulty for the UK in agreeing to
negotiations on a comprehensive agreement. Talks, without
commitment, were held between the DHSS and Portuguese officials
in London on 9 10 May. DHSS officials intend to seek their
Ministers' approval to proceed with formal negotiations with
/Portugal
CONFIDENTIAL