THE PRESIDENT'S DAILY BRIEF 24 JUNE 1965

• Document Type: FOIA
• Keywords: DIF-DUP
• Collection: President's Daily Brief 1961-1969
• Document Number (FOIA) /ESDN (CREST): 0005967748
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: September 16, 2015
• Document Release Date: September 16, 2015
• Publication Date: June 24, 1965

Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A003800100001-4
CENTRAL INTELLIGENCE AGENCY
THE PRESIDENT'S
DAILY BRIEF
24 JUNE 1965
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DAILY BRIEF
24 JUNE 1965
1. Vietnam
2. Algeria
A battalion of the US 173rd Airborne
Brigade was lifted by helicopter today
into a Viet Cong-held area in Binh Duong
Province 25 miles north of Saigon. Pre-
liminary reports indicate only light con-
tact with the enemy. Elsewhere, the mili-
tary situation was little changed today,
although widespread Viet Cong terrorist
and harassing activity continued.
Viet Cong activity, particularly the
interdiction of transport routes
is doing in-
to the national economy.
There are local shortages, hoarding, and
price rises--an incipient inflationary
situation to which increased government
military expenditures contribute. An
assessment is at Annex.
The Saigon government's announced
decision to break diplomatic relations
with France will presumably have little
immediate practical result. Consular
relations are to be maintained,and South
Vietnam contemplates no seizures of French
interests or breaches of cultural and
economic ties. The French appear uncon-
cerned.
General Thieu has told Ambassador
Taylor that the new regime plans to rule
by committee, and that General Ky's po-
sition will be something less than a true
chief of government.
creasing damage
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The Boumedienne regime is dealing
firmly with continuing but scattered op-
position demonstrations. The military
appears to have matters under control,
but dissident propaganda is circulating
in Constantine as well as Algiers.
The new government has not yet re-
vealed its purposes or its international
affinities. There is some reason to be-
lieve it is having trouble getting orga-
nized, and in particular establishing
relations with various personalities and
factions estranged by Ben Bella,
The Afro-Asian foreign ministers'
meeting scheduled to start today has been
postponed until Saturday. Further slip-
page in the schedule would not be surpris-
ing, and the meeting may not come off at all.
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Cambodia
. 'Greece
5. Cyprus
The "protocol" signed yesterday
in Phnom Penh providing for limited Chi-
nese Communist military technical assist-
ance to Cambodia takes Sihanouk a little
closer to Peiping, but not much. He will
'probably keep the number of Chinese tech-
nicians to a minimum, being well aware
that neither South Vietnam nor Thailand
will view this development with equanim-
ity. For Peiping, the transaction prob-
ably amounts to another excursion in
cautious--and inexpensive--trouble-mak-
ing, designed to keep Cambodia's pro-
Western neighbors uneasy.
The clash which has been brewing
between King Constantine and Prime Min-
ister Papandreou may erupt in the next
day or so.
Papandreou, who seems certain to
win the parliamentary vote of confidence
scheduled for today or tomorrow, is re-
ported planning to announce the replace-
ment of the right-wing army chief of
staff without consulting the King. The
King,
would view this as a direct
threat to the throne, and might well
force a major crisis by asking for Papan-
dreou's resignation.
The US ambassador comments that it
is not certain whether the King has in
fact decided to throw down the gauntlet
at this time. If he does, Papandreou
may--as he has threatened in the past--
take the issue "into the streets."
Greek-Turkish negotiations over
Cyprus are now hung up over how much
land Turkey should be ceded in return
for its agreement to union of Cyprus
with Greece. The Turks have asked for
1,170 square kilometers along the Greek-
Turkish border; the Greeks are thinking
of a counteroffer of 450. The bargain-
ing, temporarily in recess, will be re-
sumed soon when the Greek ambassador to
Turkey finishes consultations in Athens.
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6. Latin America
7. Berlin
8, Communist China
Uruguay is seeking to coordinate
opposition to the establishment of a
permanent inter-American peace force.
Foreign Minister Vidal has been in touch
with Chile, Peru, Ecuador, and Mexico,
all of which--along withAJruguay--op-
posed creation of the force for the Do-
minican Republic. Chile has already
indicated that it could not support the
proposed permanent force, which will be
considered at the upcoming Inter-Ameri-
can Conference.
Despite the recent tendency of some
Western correspondents to cry alarm,
there seems So far to be nothing out of
the ordinary about routine Soviet and
East German troop maneuvers along the
autobahn west of Berlin. Specifically,
there is nothing to indicate a relation-
ship to recent East German helicopter
activity over the city, nor to the 1
July deadline for changes in the regu-
lations covering international rail
and barge traffic.
The last sizable contingent of
Chinese receiving technical training
in the Soviet Union--a group of 47
scientists at the Joint Institute for
Nuclear Research near Moscow--left for
home on 17 June, according to the Chi-
nese press. This training, although
not directly concerned with weapons,
has been valuable for junior Chinese
nuclear scientists. Its termination
is symptomatic of the state of Sino-
Soviet relations.
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9 Dominican Republic The Organization of American States
team has now received mutually unaCcept-
able counterproposals from the rebel and
the loyalist camps, and .a new critical
phase in the negotiations has been opened.
Imbert's response maintains that his
government adequately fulfills the role
of an interim regime and that there is no
?need for the formation of yet another
provisional government. There are mode-
rate notes, however.
Imbert, speaking privately to,Am-
bassadors Bunker and Bennett, indicated
yesterday that he was not yet ready to
step out of office voluntarily. He in-
sisted that he "could not leave now,"
and that his job "was not yet(finished,"
The rebels are probably under
stronger pressure to get an early set-
tlement.
The general strike much touted by
rebel extremists has all but fizzled out,
and several sniping incidents have been
the only recent violence.
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Dons Hal
hakhek
Muang 4,
Sakon Nakh. ?
DEMARCATION LINE
Tchepone;
-16
a nakhet
-
Route 9
cut in Quang Tri j
T H
A LN D
Route 19
4-'(- cut in Binh Dinh
?,
_-- -
7 Route 14 --.
( closed north and south
)
.....1??????'... ....,..?????? of Pleiku city
i\
um OA N?MG
a Nang (Tourane)
Q ng Ngai
QUANC
NGAI
-14
ai Nhon
Pletku
IK
- Route 7
cut in Pleiku
and Phu Yen
A M 0
------ Route 1
closed in Binh Dinh,
Phu Yen, Khanh Hoa, and
Binh Tuy ?
--
Route 20
cut in Lam Dong
Route 13
ui Nhon
Cheo
eo
g Cau
ay Hoa
n Me Thudt
h. T,..g
TUYEN
closed north of Ben Cat
in Binh Duong
Route 2
cut in PhuocTuy
So
Phuoc
LS:on
II,
14
12
y
operational only between
Phan Thiet and
Nha Trang
Railway repair
'iharrassed in Long Khanh,
Binh Tuy, and
Binh Thuan
flNH
ay N
thano
Rea 0????
Duong Dong \
DAO ECU
? OUOC
arnpot Ch
?
'Ha Tien
C. HON CU
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At
-NON PANJANG
GULF OF
SIAM
104
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BUNG
4,4y, n ft ?
Qua EU BA EN V9
.111101
.0Crin Son (Paulo Condone)
CON SON
CON SON
BOUNDARY REPRESENTATION IS
NOT NECESSARILY AUTHORITATIVE
I 6
SOUTH VIETNAM
Viet Cong Sabotage Activity
Against Major Transportation Routes
Railroad presently Closed
---- Road presently closed
X Road presently cut
Hop Tac area
O 25 511 75 100 Moles
O 25 50 25 100 KilooneteoS
1110
10
47943
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ANNEX
The South Vietnamese Economic Situation
The cut in Route 20 between Saigon and Dalat
has interrupted the supply of vegetables to Saigon.
(See map.) Some 20 percent of the rubber planta-
tion workers are estimated to be idle because of
interference with shipments to and from the rubber
growing areas. The rice situation has continued to
deteriorate as stocks in Saigon and the Mekong Delta
have decreased further, and the collection of rice
paddy from the countryside has become. more diffi-
cult. Actual and expected shortages have brought
about sharp increases in the prices of vegetables,
fish, eggs, rice, charcoal, condensed milk, and
wheat flour.
The economy is also under pressure from US and
government military requirements. Labor costs in
Saigon and the coastal cities have risen signifi-
cantly, particularly in construction activities.
There have been greatly increased complaints from
Vietnamese about the inability of the government
and private individuals to compete with higher
prices paid by the US military and by local con-
tractors working on US projects.
Transportation difficulties have created a
large backlog of supplies in Saigon which are needed
in the provinces. Current provincial stocks range
from only one week in Thua Thien and Quang Ngai to
eight weeks in Da Nang city. Coastal shipping is
hindered by the slow turnaround time at Da Nang;
six of eight chartered vessels have been withdrawn
from the Da Nang run by their owners. The US mis-
sion is attempting to meet the problem by the trans-
fer of barges from Saigon to Da Nang to facilitate
off-loading and by plans to utilize junk craft to
carry cargo to the ports north of Saigon.
While the Viet Cong are continuing their at-
tempts to disrupt the South Vietnamese economy, they
are also taking more extensive economic measures in
areas under their control. South Vietnamese currency
(Cont' d)
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ANNEX (Cont'd)
is being replaced by North Vietnamese banknotes in
more areas, and ?the Viet Cong are issuing receipts
in various denominations for forced loans by the
populace; the quality of paper and printing used
for these receipts suggest an intention to carry
out the program on a broad scale and on a permanent
basis. The Viet Cong are also offering good prices
for rice purchases and are encouraging farmers in
the delta to hoard rice not sold to the Viet Cong
by advising them that price increases are likely.
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