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ACTION EUR-25
INFO OCT-01 ISO-00 AEC-11 AID-20 CEA-02 CIAE-00 CIEP-02
COME-00 DODE-00 EB-11 FEA-02 FPC-01 H-03 INR-10
INT-08 L-03 NSAE-00 NSC-10 OMB-01 PM-07 RSC-01 SAM-01
SCI-06 SPC-03 SS-20 STR-08 TRSE-00 PA-04 PRS-01
USIA-15 DRC-01 EURE-00 /177 W
--------------------- 082825
P R 011548Z MAR 74
FM AMEMBASSY HELSINKI
TO SECSTATE WASHDC PRIORITY 7228
INFO AMEMBASSY COPENHAGEN
AMEMBASSY MOSCOW
AMEMBASSY OSLO
AMEMBASSY STOCKHOLM
USMISSION OECD PARIS
USMISSION EC BRUSSELS
C O N F I D E N T I A L HELSINKI 0435
E.O. 11652: GDS
TAGS: PINT, ECON, ENRG, FI
SUBJECT: FINNISH COALITION GOVERNMENT SURVIVES NO-
CONFIDENCE VOTE ON ENERGY POLICY
1. SUMMARY: THE FOUR-PARTY SOCIAL DEMOCRAT-LED
COALITION GOVERNMENT TODAY TURNED BACK THE UNITED
OPPOSITION BY 104 TO 90, WITH 5 ABSTENTIONS, AND
SURVIVED YET ANOTHER OF THE MANY NO-CONFIDENCE VOTES
IT HAS FACED DURING ITS LIFE SPAN. END SUMMARY
2. IN HIS OPENING-OF-PARLIAMENT SPEECH ON FEBRUARY 4,
PRESIDENT KEKKONEN PROMISED THAT THE GOVERNMENT WOULD
PRESENT A SPECIAL REPORT TO PARLIAMENT ON ITS ENERGY
POLICIES AND ACTIONS. BY FINNISH PARLIAMENTARY
CUSTOM THIS AUTOMATICALLY MADE IT A NO-CONFIDENCE
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QUESTION.
3. THE GOVERNMENT SUBMITTED ITS REPORT ON
FEBRUARY 26. THE REPORT AS SUCH WAS RATHER GENERAL,
CALLING FOR CONTINUED ENERGY SAVING MEASURES, THE
CREATION OF STORAGE RESERVES CORRESPONDING TO THREE
MONTHS' CONSUMPTION, A STUDY OF REQUIREMENTS FOR
THE NEXT TEN-YEAR PERIOD, SERIOUS ATTENTION TO
POSSIBILITIES OFFERED BY NUCLEAR ENERGY, ATTEMPTS TO
INCREASE OIL AND COAL IMPORTS, AND A REALIZATION
THAT THE DAYS OF CHEAP ENERGY WERE GONE FOREVER.
4. FROM THE VARIOUS SPEECHES IT WAS CLEAR THAT THE
GOVERNMENT PARTIES WERE NOT IN FULL AGREEMENT AMONG
THEMSELVES AS TO HOW THE SITUATION SHOULD BE
HANDLED, WITH DIFFERENCES OF OPINION EMERGING ON
THE EXTENT OF GOVERNMENT MONOPOLY AND THE DEGREE TO
WHICH THE GOVERNMENT-OWNED NESTE OIL REFINERY CONTROL-
LED PRICES. THERE WAS GENERAL DISAGREEMENT ON THE
RELATIVE BURDEN-SHARING OF COST INCREASES AS BETWEEN
CONSUMERS AND INDUSTRY, PUBLIC AND PRIVATE TRANSPOR-
TATION, AMONG ALMOST ALL THE PARTIES.
COMMENT: THE INCREASING BRITTLNESS OF THE CEMENT
HOLDING TOGETHER THE COALITION GOVERNMENT WAS AGAIN
EVIDENT. IT IS QUITE POSSIBLE THAT WERE IT NOT FOR
PRESIDENT KEKKONEN'S REPORTED WISH TO SEE THIS MAJOR-
ITY GOVERNMENT SURVIVE AT LEAST BEYOND THE FINAL
CSCE STAGE THIS SUMMER, IT MIGHT WELL FOLD. AS A
SOURCE IN ONE OF THE SMALLER COALITION PARTIES TOLD
US, THE FACT THAT THE COUNTRY IS RIGHT NOW IN A
SITUATION WHERE THE WAGE AND INCOMES POLICY NEGOTIA-
TIONS ARE AT A CRITICAL JUNCTURE MAY HAVE BEEN THE
ONLY OTHER REASON WHY THE GOVERNMENT MANAGED TO
PAPER OVER INTERNAL DIFFERENCES ON ENERGY AND OTHER
MATTERS AND STAY TOGETHER TO SURMOUNT THE CHALLENGE
OF THE NO-CONFIDENCE VOTE.
KREHBIELE
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