EUROPEAN BRIEF (DELETED) FOR 20 APRIL 1988.

Created: 4/20/1988

OCR scan of the original document, errors are possible

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SUBJECT: EUROPEAN BRIO0 APRIL

FROM:

1. PERSIAN GULF: SITUATION REPORT

X. PANAMA: SITUATION

3. OENNARX: NEW (LECTIONS

k, USSR-US: INFORMATION

LANDi VISITING FOREIGN MINISTER UNDER FIRE AT HOME

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BRIEF

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I. PERSIAN GULF: SITUATION REPORT

IRANIAN

MORt

IRANIAN ACTI0N5 YESTERDAY WERE LESS CONFRONTATIONAL ANO U

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COMMANDER OF THE RtVOLU

BOTH THREATENED FURTHER ACTION AGAINST

OlNECTEO SES

t

OWED BY ANO OIL PLATFORMS OPPCATUNITIES TO BY US OIlWOJtMERS. BUT. ARE LESS LIKELY

S fCW AGGRESSIVE ACTIONS TCSTEROAYT COMWrfiCTAl. TARGETS AH0_URflOUBTtPLY .HERE JR RESPONSE ON MONDAY-

FOR NOW. IRANSHOW TNAT IT HAS HOT CONTIHUIHC TO.-ATTACK VULNERABLE MERCHANT SHIPS THE SOUTH!RH GULF. TEHRAN KAY KEEP LOOKING FOR STRIKE AT THE FEW PLATFORMS OPERATED PHIRANIAN MILITARY FORCES WILL DEE END THEMSELVES FOR NOW TOONFRONTATION WITH US FORCES

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IN POLITICAL REACTION

IRANIAN LEAOCRS ARE CALLING THE UI ATTACK ON IRANIANTHC CUIF ANO IRAQ'S ASSAULT ON AlOORDINATED EFFORTBAGHDAD FROK DEFEAT AHO DCSTRO' TNE ISLAMIC REPUBLIC.US HELICOPTERS PARTICIPATEO IN THE IRAQI ATTACK ANOOF ALLOWING IRAQ TO USE AH ISLANDTAGINGSPEAKER RAFSANJANI SUGGESTED TCSTEROAY THAT THE SOVIETSPARTICIPATED IN THE CONSPIRACY BY RCITIHATIHC THEY GAVE IRAQ LMISSILES USED AGAINST IRANIAN CITIES.

TEHRAN HAS WAAMEO THAT THE US '1 ENTRY1' INTO THE WAR ON IRAQ'S SIDE WILL BRING AN IRANIAN RESPONSE THATSEVER THE ROOTS Of THE US EXISTENCE IN THE REGION." IRANIAN LEAOCRS HAVEATIONWIDE MOBILIZATION TO CONTINUE THE WAR ANO THWART IRAN'S MANY ENEMIES.

ACE-5On Th. DEFENSIVE anOPE rTSlHAYIHG IRAN'S RECENT SETBACKSS-LEO CONSPIRACY WILL

THAT

BE INS PERCCIVEO AS Wt AX AND VUL NERAI

HELP FOCUS POPULAR ANGER AWAY FROM THI CLERICAL RCCIKE. THE APPEARANCEOORDINATION BETWEEN EXTERNAL ENEMIES IS LIKELY TOERS IN TEHRAN WHO WILL ARGUE THAT IRAN MJST ULTIMATELY RESPOND AGGRESSIVELY IN THE fACJ Of SETBACKS OR RISK

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HOSE VtST EUROPEAN REACTIONS

THI WCST EUROPEANS CONTINUE TO CAHtO/I IRAN'S RENEWED MJNINC

or the Persian cmr but arc oivioto ovtr thi trrcHT or support for

THE US RESPONSE. THE WESTERN EUROPEANb YESTERDAY CAELtO 'OR AM IMEDIATE END TO ALL HtNING AHO OTHER ACTS AGAINST INTER.'ATISHIPPING, WITHOUT MENTIONING IRjULu AHO NOTED. SUCHJUM1HC PROyWCS

ENSJ DUTCH

A UN PRESENCE IN THE

. wi-HOUT hik- "N'ft'W US, WHILE THIEAKER LINE. IN SEPARATE STATEHEHTS. TAEIAR$ THE IRAN HAD INVITEO US RETALIATION. 1

DUTCH. IR1NCH. AND ITALIAN NAVAL >ORCIS HAVE RfORTIO

UNLIKE THE STATEMENTS Ot SUPPORTON MOHDAY, THE MUTED SUPPORT 'OR US ACTION

CCNCEfWtD_JHl HIHIHO, ANO NORWAY CALLED 'OR CULf.'

BELGIUM.

AHO OETOTTRK ON MOHDAY, THE MUTED 5UPP0K1 runAR THAT THE ESCALATION Of FIGHTING WILL DRAG THI INTO THE CONFLICT EVEN FURTHER.ILEO TO TAKE POSITION ON TNI US RESPONSE "IRAN SMINCLAYIHG THC FRENCH ARLHOT LIKELY TOTATEMENT ON THI ONDAY.

LACK OE MINELAYINC ACTIVITY WAS ONE RUSOH BELGIUM HADOUT Of THE GULF. THE COALITION COVIPNMNT NOV BEINGBRUSSELS WILL MAKE THE FINAL DECISION. THE MEW GOVERNMENTMEMBERS Of THE FLEMISH SCClAL OCHOCRATIC PARTY. HE OEHSYKCNTTHE OUT

SOVIET CRITICISM

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QAOER STRATE INKED THE Tl

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A PRAVDA COrvnENTARY YESTERDAY COMJirW.

M cm-INC

fNlCftCING

AS ACTS OF PIRACY AHO REVENGEOflMNTARY SAIO THE ACTION WAS PARTflINFLUENCE lit THE OIL-RICH REGION AjNfH IN THES ROVES TO TH* ASSASSINATION OF PLO CFFIC

THE UN

AT THE US RESPONSE COUPLED WIT* TNE TEHRAW ANO AS lit HI MATEO ANY CCASE-FIRf RESOLUTION ON THE IRAN-IRAQ

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TO SEC

CARO FOR

MC OF THI

HINTING EAST. IM

NCAE

PROSPECT WAR.

I. PANAMA; SITUATION REPORT -

SANK IMG OCVCLOfUNTS

AFTER THE BANKS OPENED ftONQAY TO DEPOSITS, CUSTOMERS WtE ALLOWED TO WITE CHECKS BUT NOT 'OR CASH. AKO THE RtSJflE

TlftUllf RfClkt ACCEPTING SUCH CHECKS

* il*

yjhZlnttTT TXAT PUBLIC VTPLITJIS Will ACCEPT

BANKS PROIABIT ANOTHER AT7WT TO LEKOTO THE FINANCIAL

HEE CANNOTARK TO PEftToAnBANKS PLAN TO CLEAR CHECKSS CUftRlRSCnE, FOR OOflESTIC BANKS TO FUNCTIONTOAN* TAUSTE3 BY AIL BANKS

UlCN BANK TO ft TKANSACT ECUS FOR THE VA*OL

PR 88

BELIEVES HE CAN GAIN VALUABLE US OPTIONS HOSTOPPOSITION OPEN

HE IS NOTELT TOMAJOR CONCESSIONS ASAS HrTHIHAi CAN WEATHER THErbVJ>

ENMARK: NEW ELECTIONS SIT

POLICY ON hHlP

PRIME MINISTER SCNLUETIR WILL TRY TO MAKE THE ELECTION ONA REF ERENOUM ON OINMARK'S NATO MEMBERSHIP. WHICH HE SAYS BY TNE PARI IAH1NTARY RESOLUTION TIGHTENINGON SHIP "

APPARINTLY CALLEp'thE ELECTION BECAUSE Of THE AT IVI REACTIONS TO THE RESOLUTION FROM THE HATO ALLNO THE UWUUNGHfSS Ot THE OPPOSITION SOCIAL DEMOCRATS TO ABEND IT. THE GOVERNING PARTIES WILL PORTRAY THE SHIP-VISIT ISSUE AS THI LATESTERIES Of SOCIAL OEMOCRATIC-SPONSORFD RESOLUTIONS THAT HAVE WEAKENEDELIABILITYATO ALLY.

SCHLOCTEP'S EFFORTS TO FOCUS TNE ELECTION CI NATO HIHBERSHlP MAY OVERCOME PRELIMINARY PROJECTIONSOW VOTER TURNOUT-WHICH TRADITIONALLY HAS BINIFITIO THI WILL-ORGANIZED SOCIAl DEMOCRATS. POLLS HAVE CONSISTENTLY SHOWNAJORITY OF OANES SUPPORT DENMARK'S NATO MIMBIRSHlP. IN ADDITION. THI WON-SOCIAlI ST! MILL BI

ABLE TO STRtSS THllR HANOLINC Or THE ECONOMY. INCtUCINS TOUC-

POLICISS THAT LAST YEAR CONTRIBUTEDEBCINT DECLINE IN ThI CURRENT ACCOUNT DEFICIT. WHICHHAVE LONG REGARDED AS THE COUNTRY'S CHIEF ECONOMIC PROBLEM.i

SOCIAL DEMt FOR NATO MEMBERSHIP SHIP-VISIT ISSUES AlERCH* UNEMPLOYMENT. AND TI TO EXPLOIT THE APPA* CHAIRMAN AUKEN. WHO VISIT ISSUE EVEN Wll

TO TRUMPET THE IR OWNATIONALISTIC CAMPAIGN CASTING THE IK DISPUTE. THEY WILL ATTACKN SOME ECONONiC ISSUE. SUCK AS TO DEFLECT EFFORTS BY NONSOCIAlISTS IID POSITION OF SOCIAL DEMOCRATIC

rOfLHIS HANDLING OF THE SHIP-

OWN PARTY.

THE NONSOCIAUSTSLEAR VICTORY. THE SNIP-VISIT ISSUE MAT REMAIN UNRESOLVED BICAUSI THI GOVERNMENT IS UNLIKELY TOLEAR MAJORITY. THE RADICAL LIBERALS MAY. HOWEVER. BE WILLING TO REVERSE THEIR VOTITHE SOCIALLUT|ON THAT PASSED

LAST THURSDAY ANCEFORMULATED POLICY NONtTHIlISS.

ANOTHER NONSOCIAUST GOVERNMENT WOtlO CONTINUE TO REIT, ON THEOCRATS IN FORMULATINGAIL DEFENSE

USSR-US: INFORMATION TAINS

CHAIRMANHE

TALKS OPINING TODAY IN WASHINGTON 1ITWIIN SOVIET AND US OFFICIALS ARE LIKELY TO INVOLVE HEATED EXCHANGES ABOUT SCViEl DISINFORMATION PRACTIC1S. THE SOVIETS ARE SINDINC A IJ-MIMJIR DELEGATION TO THI THREE-DAY TALKS TO DISCUSS WAYS TO IMPROVE BILATERAL COOPERATION. IHCLUOINC THE PRINT AND EltCTRONIC MIDPA. THE

HEAD OF THI SOVIET OILIGATION. VAt.FNTIK FALIH,

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PACE 0O6 TOT: JOOfiOQI APft flfl

MOVOST* PRESS AGENCY. GENERAL SCCAETAAY GORBACHEV tNCOUaACEDlEETING AT THE SUfVlfT CAST DICE

THAILAHO: VISITING FOREIGN flfHlSTER UMOEft FIRE AT

THAI FCttElCftISIT TO WASHIHCTCW BEGINNINGE IS UNDER INCREASING PRESSURE IN BAKfttOft.

HO MAS OQAtNATEO THAI PQUIfN

AND PAGflASLi

LEG I .

LOWIA PRCf IL

AEFAIRSFGR EIGHT YEARS- -WILL BE SINGLED OUT FO* ESPECIALLY SHARP CRJTlClSn CURING THE COKING IWST TV* ENTIRE CAS I

DOHI RETAINSI1INISTER PRIA'S STEAOfASTOT STEP OOWH. QE5PITE CROUIKG OPPOSITION IN THE CRITICS. HOWEVER. KAY FORCE SJOOH I TOOREIGN POLICY ISSUES WITH OOfiCSTlCONS,

ISTER IS LIKELY TO EXPRESS HISTI CH THAT WASHINGTONA OECISIQN OH CSP UHTIL TNE ENO Of THIS

YEAR ANO rUY OfFER RE THAT THE L COPYRIGHT

A".Oil NTL PASS QUR.NC THE SRRIK LEGISLATIVE SESSION.

I'-HOtfCVER, flAY URGE THAT BANCKO* BE ALLOWED rtORE TlflE TO ENACTSURE5 SOUGHT BY WASH INGTOKPROTECTION

OF PH ARflfClJTl CAl PATCHTSrHAT FACE L PUBLIC OPPOSITION

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AT US-COSTA RI CAN CULTURAL CENTER IN SAN NO TWO US CITIZENS . .IMILAR TO

EUROPE

IBS AGO BY RADICALS PROTESTING US

IE

EAR SENTENCE IOR ABBAS HArtflAOI SUFFER THAN (XPECTEO . .HOW OF JUDICIARY'S INDEPENDENCE NAY HURT EFFORT TO FREE LAST HOSTAGE . . IZBALLAH HAY ATTACK WEST CtRjUtLJNTERESl TO DISCOURAGE SIMILAR TREATMENT 0' BROTHER MOHAMMED.

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CYPRIOTS 1AST WEEK BEGAN STAMPING TOURIST PASSPORTSRAVELERS FRON SOUTH . .OUTH RESPONDED BY LETTING ONLY DIPLOMATS THROUGH CHECKPOINT . .URKISH CYPRIOTS EVIDENTLY

TO SHOW INDEPENDENCE. UNDERMINE CREEK-TURKISH RAPPROCHEMENT.

MIOOLE EAST

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