TNAG-1172-FCO40-1453-Future-of-Hong-Kong-1982 — Page 9

2. THE PORTUGUESE CLEARLY APPRECIATED THE FACT THAT THE

DILATERAL VISIT HAD BEEN MAINTAINED DESPITE THE POSTPONEMENT OF THE SINTRA TALKS AND THAT THE SECRETARY OF STATE HAD TAKEN THE OPORTUNITY TO EXPRESS BRITISH THANKS FOR PORTUGALS SUPPORT OVER THE FALKLAND ISLANDS. EQUALLY CLEARLY, THEY APPRECIATED THE OPPORTUNITY THIS GAVE THE TO PUT TO THE SECRETARY OF STATE POINTS ON WHICH THEY WOULD WELCOME OUR HELP (THE NEGOTIATIONS

FOR ENTRY INTO THE EC, NATO IN THE LIGHT OF SPANISH ACCESSION AND ARTS AID) ON WHICH THE PORTUGUESE MINISTERS MADE A CAREFULLY

HARMONISED PRESENTATION.

3. RECORDS WILL FOLLOW DY PAG. FOLLOWING IS SUMMARY OF MAIN

POINTS WHICH AROSE WITH MINISTER. PLEASE SEE MIFT FOR MAIN POINTS

OF CALL ON PRESIDENT EAMES:

1) FALKLANDS: THE SECRETARY OF STATE EXPRESSED HIS THANKS

FOR THE HELP WE HAD RECEIVED FROM PORTUGAL AMD MADE CLEAR THE

IMPORTANCE HE ATTACHED TO THE DEVELOPMENT OF OUR RELATIONS

WITH THE COUNTRIES OF LATIN AMERICA. BOTH POINTS WERE WELCOMED

BY HIS INTERLOCUTORS. SOARES, WHO HAD RECENTLY VISITED COSTA

RICA FOR A MEETING OF SOCIALIST PARTIES, SAID THAT HE THOUGHT

THAT THE NEGATIVE LATIM AMERICA REACTION TO US SUPPORT FOR

BRITAIN OVER THE FALKLANDS WOULD NOT PROVE LONG LASTING. MANY OF THE COUNTRIES CONCERNED HAD THEIR DOUBTS ABOUT ARGENTINA.

HE ADDED THAT OUR ACTION WOULD HAVE GIVEN THE RUSSIANS SOME FOOD

FOR THOUGHT.

11) EUROPEAN COMMUNITY

BALSEMAO TOOK THE LEAD AND EMPHASISED THE DOMESTIC POLITICAL REASONS FOR STICKING TO THE TIMETABLE PRESENTLY ENVISAGED.

THE PORTUGUESE AND SPANISH APPLICATIONS WERE SEPARATE AND SHOUD BE TREATED ON THEIR MERITS. IF, AS SEEMED LIKELY, THE SPANISH

APPLICATION PROVED THE MORE DIFFICULAT, FORTUGAL SHOULD NOT BE PENALISED, THE RESULTS OF THE MINISTERIAL MEETING IN

LUXEMBOURG HAD BEEN DISAPPOINTING AND IT WAS IMPORTANT THAT MINISTERS SHOULD TAKE THE MATTER UP AGAIN IN JULY AND REACH PROVISIONAL AGREEMENT ON ALL THE POINTS CURRENTLY ON THE TABLE. DR SALGUEIRO, WHILE ARGUING THAT THE PORTUGUESE NEGOTIATIONS COULD BE COMPLETED BEFORE THE SPANISH, SHOVED A GREATER RECOGNITION OF THE PRACTICAL ADVANTAGES OF SIMULTANEOUS ACCESSION, AND SUGGESTED THAT THE LENGTH OF THE PARLIAMENTARY PROCESS IN THE TWO COUNTRIES MIGHT BE ADJUSTED TO MAKE THIS POSSIBLE. THE SECRETARY OF STATE ACCEPTED THAT THE PORTUGUESE AND SPANISH APPLICATIONS WERE DIFFERENT. ENTRY NEGOTIATIONS, AS WE HAD GOOD REASON TO KNOW, WERE A DIFFICULT MATTER, BUT HE STRONGLY SUPORTED PORTUGUESE ACCESSION AND WE WOULD DO WHAT WE COULD TO HELP. HE WOULD SEE WHETHER THERE WAS ANYTHING WE COULD DO TO ENCOURAGE PROGRESS IN JULY. SALGUEIRO COMPLAINED THAT THE COMMUNITY WAS TREATING PORTUGAL AS A MEDITERRANEAN COUNTRY, WHICH IT WAS NOT: AS A MET IMPORTER OF FOOD WITH A TRADITION OF CHEAP COLONIAL FOOD IMPORTS IT HAD PROBLEMS MUCH CLOSER TO THOS WE BRITAIN THAN OF SPAIN. THE COMMISSION AND SOME TEMPER..STATES

ALSO FAILED TO UNDERSTAND PORTUGALS INDUSTRIAL SITUATION. MITH ITS TRADITION OF EFTA COMPETITION, THE PORTUGUESE MARKET SAS QUITE UNLIKE THE SPANISH. THE COMMUNITY FAILED TO UNDERSTAND THAT PORTUGALS TEXTILE INDUSTRY FACED THE SAME PROBLEMS OF RESTRUCTURING AS EXISTING MEMBERS. FUTSCHER PEREIRA SHOWED CONSIDERABLE INTEREST IN BILATERAL DISCUSSIONS ON COMMUNITY ISSUES AT OFFICIAL LEVEL.