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CONFIDENTIAL

(b)(3)

regional issues, such as Central America. Eventually, the Social Democrats may begin to shed the caution that has tempered their rhetoric since the Carlsson visit to the U.Subst year and revert to their traditional moral posturing on "North-South" issues.

(b)(3)

While a nonsocialist government may temper the rhetoric against US policy in Central. America even further--particularly if Permanent Undersecretary of Foreign Affairs Pierre Schori is replaced--the Liberal and Center parties would probably continue to seek some role for Sweden as a "moral conscience" on the world scene. The non socialists would continue the Carlsson government's efforts to play down Soviet security proposals for the Nordic region and calls for establishing tighter rules for visiting warships. Although either a socialist or a nonsocialist government would implement policies to facilitate adaptation to the EC's 1992 internal market reforms, a nonsocialist government would probably be fraught with bickering between the Moderates, who want to join the EC, and the Center Party, which opposes such a move. (b)(3)

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CONFIDENTIAL L(b)(3)

Approved for Release: 2017/09/13 C06141873.