NOTES: PRINT 41 LOCATION: MADRID, SPAIN TITLE: GISCARD MADRID SERVICED DATE: 06/29/78 NO: LNC94401 DATE SHOT: 06/28/78 LENGTH: 41FT SECONDS: 1.05 SOUND: NATSOF DATE OF ARRIVAL: FILM SHOWS: FRENCH PRESIDENT VALERY GISCARD D'ESTAING AND HIS WIFE ARRIVING IN MADRID AT START OF STATE VISIT TO SPAIN AND BEING GREETED BY KING JUAN CARLOS AND QUEEN SOPHIA OF SPAIN. LEAD IN: FRENCH PRESIDENT VALERY GISCARD D'ESTAING SAID THURSDAY (29 JUNE) THAT NEGOTIATIONS FOR SPAIN'S ENTRY INTO THE COMMON MARKET (EEC) SHOULD BE NO MORE DIFFICULT THAN PREVIOUS BARGAINING WITHIN THE EUROPEAN COMMUNITY. GISCARD, THE FIRST FRENCH CHIEF OF STATE TO VISIT SPAIN IN 72 YEARS, REITERATED HIS SUPPORT FOR MADRID'S ENTRY INTO THE COMMON MARKET IN A SPEECH TO THE CORTES (SPANISH PARLIAMENT). SOME SPANIARDS HAVE BEEN SCEPTICAL OF FRANCE'S SUPPORT OF THEIR EEC BID, BECAUSE THE POWERFUL FRENCH GAULLIST AND COMMUNIST PARTIES HAVE COME OUT AGAINST LETTING MADRID IN. GISCARD SINGLED OUT TWO PROBLEMS. HE SAID A SOLUTION MUST BE FOUND FOR FRENCH FARMERS WHO WILL BE HURT BY SPANISH COMPETITION AND THAT SPAIN WILL FACE VIGOROUS FOREIGN COMPETITION ON A NUMBER OF NEW FRONTS. THE FRENCH PRESIDENT AND HIS WIFE ANNE-AYMONE ARRIVED IN MADRID ON WEDNESDAY (28 JUNE) FOR A FOUR DAY STATE VISIT. FEET R/SECS 3 0.05 GV PLANE TAXIES TO HALT 7 0.11 LS SPANISH KING & QUEEN WALK UP RED CARPET 20 0.32 MS GISCARD AND WIFE EXIT FROM PLANE. GREETED BY KING AND QUEEN 28 0.45 GV GISCARD AND JUAN CARLOS REVIEW TROOPS 35 0.56 MS GISCARD SHAKES HANDS WITH SUAREZ AND OTHER MEMBERS OF SPANISH GOVERNMENT 41 1.05 MS GISCARD AND OTHERS GET INTO HELICOPTER COMMENTARY: THE FOUR-DAY STATE VISIT WAS EXPECTED TO CENTRE ON BILATERAL ECONOMIC AND TRADE RELATIONS AND THE NEW DEMOCRATIC SPAIN'S PLACE IN EUROPE. KING JUAN CARLOS AND QUEEN SOPHIA OF SPAIN GREETED GISCARD AND HIS WIFE ANNE-AYMONE AT THE FOOT OF THE OFFICIAL FRENCH DC-8 AIRCRAFT IN BLAZING CASTILLIAN SUNSHINE. THE FRENCH MINISTERS OF INDUSTRY, AGRICULTURE, FOREIGN AFFAIRS AND CULTURE ACCOMPANIED THE PRESIDENT ON HIS TRIP. POLITICAL SOURCES SAID THEIR PRESENCE INDICATED THE IMPORTANCE BOTH SIDES GIVE TO THE VISIT. AT THE NEW HONOUR PAVILLION OF BARAJAS AIRPORT, GISCARD AND JUAN CARLOS REVIEWED A SQUADRON OF AIR FORCE TROOPS AND THEN TOOK OFF BY HELICOPTER FOR THE PALACE OF ARANJUEZ SOUTH OF MADRID FOR THEIR FIRST ROUND OF PRIVATE TALKS. IN THE FIELD OF ECONOMIC AFFAIRS THERE ARE SEVERAL PROBLEMS TO BE IRONED OUT BETWEEN FRANCE AND SPAIN. ONE PREOCCUPATION OF THE FRENCH IS THAT THE BALANCE OF TRADE BETWEEN THE TWO COUNTRIES SWUNG IN FAVOUR OF MADRID LAST YEAR FOR THE FIRST TIME AND THIS YEAR'S FIGURES SHOW SPAIN'S TRADE SURPLUS HAS INCREASED STILL FURTHER.