EUROPEAN BRIEF

Created: 7/13/1976

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EUROPEAN BRIEF!

1- PORTUGAL I

THE INAUGURATION ON LED NESS ay OF GENERAL ANTONIO RAMALHO CANES AS PRESIDENT OF |PORTUGALEU PHASE IN THEREVOLUTION. THE TRANSFER OF POWER TO AN ELECTED LEADER IS

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EXPECTED TO GO SMOOTHLY* ALTHOUGH THERE HAVE BEEN RUMORS OF POSSIBLE DISRUPTIVE EFFORTS BY THE LEFT.V

AS ONE OF HIS FIRST ACTS AS PRESIDENTt EANES ISTO APPOINT SOCIALIST LEADER MARIO SOARES PRIMESOARES IS COMMITTED TOINORITY GOVERNMENT BUT HAS GIVEN NO HINTS ON THE COMPOSITION OF THE CABINET.V

| SOARES MAY BE HAVING SOME TROUBLE PUTTINGUALIFIED TEAM OFNDEPENDENTSi AND MILITARYSOME BETTER KNOWN ECONOMISTS* FORESITATE TO RISK THEIR REPUTATIONS BY PARTICIPATINGOVERNMENT THAT WILL HAVE TO MAKE MANY TOUGH ECONOMIC DECISIONS ALMOST IMMEDI-ATELY.V

I HOPING TO SPREAD THE BLAME FOR UNPOPULAR MEASURES

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THAT L'ILL BE REQUIRED* THE SOCIALISTS ARE PRESSING TO 6ETSENSITIVE LEGISLATION OUT OF THE MAY UHILE THE OLD GOVERNMENT IS STILL IN OFFICE.V

i SOME OF THE LEGISLATION HAS BEEN HASTILY CONCEIVED. POORLY PLANNED MEASURES TO REDUCE THE CONSUMPTION OF ELECTRICITY

HAVE INCLUDED DAILY POWER CUTS THAT ARE WREAKING HAVOC IN MANY

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INDUSTRIES* FORCING MANAGEMENT TO REVISE WORKING HOURS AND.TO THE STRAINS IN RELATIONS WITH LABOR.V

| PROBABLY THE MOST SENSITIVE LEGISLATION PUSHED THROUGH IN RECENT DAYS DEFINES THE ROLE OF WORKERS'ELECTED BY THE WORKERS WHICH HAVE ASSUMED VIRTUAL CONTROL OF SOME INDUSTRIES. THE NEW LAU RESTRICTS THE COMMISSIONSONITORING ROLE AND PROHIBITS THEM FROMOMPANY'S NORMAL OPERATIONS.V

| LEAR INDICATION OP THE TROUBLE THAT AWAITS THE NEW GOVERNMENT* THE COMMUNISTS AND THE LABOR CONFEDERATION THEY CONTROL HAVE ISSUED STATEMENTS DEPLORING THE NEW LAU AND SERVING NOTICE THAT THE WORKERS WILL NOT TOLERATE BEING ROBBED OF THEIR

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