Facilitation of trade between members is not the only advantage provided by
EFTA. To an underdeveloped country such as Portugal, the promotion of investment
is extremely important. The Portuguese economy depends very heavily on foreigned
owned industry in her territory and a large number of these foreign concerns
belong to EFTA members. Again British invoivment goes back well before EFTA, but
has increased over the last years. A British firm has the monopoly of public
transport in Lisbon; British owned "Portuguese" Marconi has a monopoly on radio
and telephone communications between Portugal and her colonies; in 1966 British .
firms topped the list for motor car production in Portugal and in July this year
a British banking firm, Lazard Bros, announced that it was making an £11 million
loan to the Portuguese steel industrjteSecently, however, other EFTA countries
have begun moving ins a Norwegian firm, Erling I/olds Konfekjon announced in
January 1967 that it would move its entire production of shirts to Portugal; in
April a Swedish textile firm announced its intention of building a synthetic
fibre factory in Lisbon; another Swedish firm, Electrolux, has a factory at Alf-
erragide. Special EFTA assistance is not confined to encouraging investmentsother
services it provides are very important to a country like Portugal, with a grossly
inadequate educational system? the loan of technical experts, and working teams
to promote industrial development.In this field the Scandinavian countries are
very prominent, providing through EFTA much of the expert personnel.  Although
"Portuguese" Africa is not included in the EFTA area it is not surprising that
this flow of investment in Portugal has overflowed to her colonies: British firms,
not surprisingly,have long been established there ( among them, the Sena Sugar
Corporation of Mozambique accounts for 70JJ of total sugar production in Mozambique);
the Swiss firm Nestle has opened a milk processing factory in Laurenco  Marque*;
a Swedish industrialist Carl Johan L&wnhagen recently visited Angola and stated
that for Sweden Abgola coule be the most important export market in Africa.
It is fairly clear, then, that despite the important part played by W. Germany,
as a group EFTA is the largest source of economic support for Portugal. The question remains of how much this support affects the war in Africa, m  the extracts
quoted at the beginning of this article give us the two standard arguments: from
Mr. Almark the obvious point that a stronger economy means more money to spend on
the army and therefore a more..e,ffecjbi.ve force of oppression; from Mr. Lange, the
government spokesman, tne assertion that economic development is just as likely
to promote a change of heart on the part of the Portuguese government and could
thus bring nearer a peaceful settlement.This last argument is a very common
defense used by countries who try to maintain a liberal international image dbile
retaining close links with openly repressive or fascist states. There is little
evidence to support Ibi  -Who 6'njy countries where extreme fascist government has
been associated with an advanced stage of economic development are Nazi Germany
of the .*30s and present day South Africa. In neither case has there been any
conspicuous internal movement towards a liberalisation of the system. In South
Africa, on the contrary, the last ten years have been years of great economic
progress; they have also seen a hardening of the policy of apartheid and a considerable increase in the repressive measures used to enforce it. In Portugal,
certainly, the recent increase in the national income has been associated neither
with an increase in civil' liberties, nor even with any comparable rise in the
standard of living} the national income has been rising by 6%  per year while the
standard of living of the majority of the population has scarcely changed. Thus
economic development by itself, seems only to reinforce the present inegalitarian
system in Portugal and is therefore unlikely to have the opposite effect in the
colonies. As to the specific role of foreign investment in the war, it should be
enough to point out that foreign owned- enterprises pay large taxes to the