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By Marvine Howe; Special to The New York Times
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January 18, 1977
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LISBON, Jan. 17—Portugal announced today that it would allow the manufacture of Coca‐Cola after years of opposition to the soft drink.
In the past, the late dictator, Antonio de Oliveira Salazar, fought the introduction of Coca‐Cola, alleging that it was a symbol of American imperialism and a habit‐forming drug. In democratic Portugal the fight continued, mainly waged by the Communists who took up the Salazar cause with the same arguments.
The principal opponents have been the country's soft‐drink manufacturers and beer and wine producers, who feared the competition.
Today, the Socialist Government, seeking to encourage foreign investment, published a decree in the official gazette outlining the terms of the agreement for manufacture of Coca‐Cola.
Fernando Abranches Feral, a lawyer for the new venture, the Industrial SoftDrink Company, said that distribution of Coca‐Cola would start in April. The company plans to build three factories and will also export Portuguese wines and other products.
Campaign Launched by Association
The National Association of Soft‐Dring and Fruit Juice Manufacturers recently launched a press campaign. against the admission of Coca‐Cola, using Salazar's arguments. The drink is “harmful” to health, the association charged, because it contains caffeine and phosphoric acid “and used to have cocaine as well.” The association also suggested that Portugal was being forced to accept a poisonous drink by the United States” for reasons of political dependence.”
The Communist daily O Diario, emphasizing the same themes, went so far as to publish a formula for the drink —which it said came from a United States Government report — listing ‘mounts of caffeine, phosphoric acid and alcohol. A cartoon in O Diario pictured a Coca‐Cola bottle with tentacles and gun firing “bottled imperialism.”
Antonio Barahona de Almeida, president of the soft‐drink association, said in a recent interview that the entry of Coca‐Cola would be followed by others that in a short time would “liquidate” the national soft‐drink industry. It would also hurt the fruit‐juice industry, beers, wines and even milk, he said.
The independence left‐wing press has opposed the local manufacture of Coca Cola because it will be a highly automated industry providing few jobs and threatening existing jobs in small and medium‐sized factories. It has also warned that the import of machinery and payment of royalties will mean a new drain on foreign exchange reserves.
Coca Cola is to be represented here by a joint venture between the Swiss Felder company and a group of Portuguese companies including Jose Maria de Fonseca, which produces the famous Lancers wine.
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