CONFIDENTIAL

6. The Prime Minister agreed that the Palace might be approached

about a State Visit in autumn 1978 (President Ceausescu is coming

in June). He told Dr Soares in April that he hoped the

President would come in 1977 (ie as the guest of the British Government)

but when President Eanes came for the NATO meeting in May the

Prime Minister said he would try to facilitate a State Visit in

1978.

President Eanes said that he fully understood the difficulties

about a State Visit in 1977. and provided there were no unforeseen

circumstances, he would like to take up the offer of a State Visit

in 1978. The Royal Visits Committee is meeting on 27 June to discuss

this and other visits.

Dispossessed British Farmers

7. Of the British farmers in Portugal dispossessed of their property

during the

at the height of revolutionary activity, only one (Mr Phillimore)

has had his property returned.

i

Compensation has not been paid to the

others although some progress has been made in discussing their claims

and setting up the machinery for agreeing terms in individual

cases. Some British farmers are unhappy about the Portuguese

proposal that the arbitration committees in each case should be

comprised only of Portuguese nationals. The Embassy have raised

this matter with the Portuguese Government. The farmers will expect

The Subjaur

racke

Mr Judd at least to refor to their eases during his talks with the

Portuguese.

did so

Mr Tomlinson raised the subject briefly with Dr Ferreira

in London in February; when the latter promised an early and rapid

solution. Mr Judd is advised to mention the matter to Dr Ferreira.

Bilateral Social Security Agreement

8.

The Portuguese wish to conclude a comprehensive agreement

Those

similar to the ones 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 and it is payment

CONFIDENTIAL

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