TNAG-0651-FCO40-799-Interests-of-UK-Labour-Party-and-trade-unions-in-labour-affa-1977 — Page 43

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CONFIDENTIAL

The Germans seemed worried over our proposals for the period between April and June but it remained the British Government's view that the Council must tackle major issues without delay. It would be valuable to know the results of the tripartite conference before the Council's June meeting. Mr Murray revealed that the European Trade Union Confederation had been given a 10-minute appointment with Mr Callaghan before the European Council convened on 25 March in Rome. He intended that Herr Vetter should "do the talking" but nevertheless he would see that the opportunity was taken of presenting a memorandum to Mr Callaghan outlining trade union views on the case for a June tripartite conference. The main thrust of the ETUC would continue to be the need to deal with unemployment and Mr Jones commented that the West Germans should be prevailed upon to expand their economy. The TUC hoped that the DGB would add their voice to this argument at the June tripartite conference. Dr Owen added that at the recent meeting with the American President, the latter had indicated that his Administration would press the Germans to expand but he foresaw

difficulties.

Spain

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Mr Jones was worried at the slow rate of progress in achieving democracy in Spain. He was aware that a general election was in the offing but he doubted whether the present Spanish Administration were really progressive. One cause for concern was the Government's legalisation of a small right-wing fragment of the PSOE. This had caused anxiety within the main body of the PSOE itself. Moreover it remained doubtful whether communists would be allowed to participate in the elections. The Spanish Government still seemed to be imposing far too many restrictions on Spanish political parties and trade unions and the British Government should do everything possible to persuade the Administration to relax them. If the restrictions were maintained the ETUC would oppose Spanish entry to the European Community. There was also considerable concern over the Spanish Government's intentions with regard to dismantling the Sindicatos. Mr Murray added that it was important to keep the communists within the mainstream of political developments in Spain: as new institutions came into being the communists should be allowed to participate in them.

5. Dr Owen said that the British Government had always made it clear that if the Spaniards wanted unimpeded progress to Community member- ship they would have to satisfy overall Western European opinion, including the views of the trade unions. The recent meeting of Spanish, French and Italian communist parties had probably been of help in softening the attitude of the Spanish Government and there was a general realisation that if the Spanish communists did not participate in a forthcoming general election the results of that election would be suspect. The assessment of the British Government was that the Spanish communists would be permitted to take part in the elections. Mr Linsey added that recent conversations in London. with representatives of the PSP had indicated that the odds were slightly in favour of the legalisation of the Spanish communist party. Dr Owen said that at every suitable press conference he pressed the Spanish Government to hasten the introduction of democracy.

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