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F.

10.

Fisheries

Mr Hannay outlined the present situation on

the Common Fisheries Policy, and the likely principles

Dr Marta

on which it would be based. There would be great

pressure for agreement by the end of October.

explained the current Portuguese problems with Spain's

assertion of historic rights. The present

Portuguese/Spanish Fishing Agreement had been made for

political reasons during the Salayar/Franco period and

was an unequal agreement. The current arrangement for

issuing Portuguese licences to Spanish fishing vessels

would expire at the end of October and if they were not

promulgated, then Spanish rights would then disappear.

This would lead to serious problems with Spain, which

were already bad in the context of the application of

Annex P to the EFTA/Spain Trade Agreement. Portug al

would like to renegotiate some of its third country

fisheries agreements on Community basis where it was

appropriate and the agreements were not on a private

joint venture basis (as was the case with Morocco).

Future Co-operation

G.

11.

Mr Hannay invited Dr Marta to visit London.

We would be most willing to share our experience with

the Portuguese on how to present requests to the

Commission for finance from the structural funds, and

CONFIDENTIAL

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