THE PRESIDENT'S DAILY BRIEF 1 OCTOBER 1966

• Document Type: FOIA
• Collection: President's Daily Brief 1961-1969
• Document Number (FOIA) /ESDN (CREST): 0005968555
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 6
• Document Creation Date: September 16, 2015
• Document Release Date: September 16, 2015
• Publication Date: October 1, 1966

Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A004700320001-0
CENTRAL INTELLIGENCE AGENCY
THE PRESIDENT'S
DAILY BRIEF
1 OCTOBER 1966
23
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DAILY BRIEF
1 OCTOBER 1966
1. South Vietnam
2. Indonesia
3. Yemen
There are more signs that the mili-
tary leadership is taking measures to
assure that it retains a foothold in a
future constitutional government.
A year ago today General Suharto
and the army slapped down an open grab
for power by Indonesian Communists.
Suharto and a group of military and
civilian leaders are now the real rulers
of the country. They can look back
over the year at some significant ac-
complishments, which are briefly dis-
cussed in today's Annex.
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4. Soviet Union
5. Brazil
Brezhnev is continuing gradually
to expand his authority inside the
Soviet "collective" leadership. We see
this in the field-of political appoint-
ments--most recently in putting a buddy
from the old days in the Ukraine in
charge of the country's militia.
There is also
the fact that the General Secretary is
still widening his role as the regime's
number one spokesman.
Congress willselect a new-presi7
dent on Monday. Retiredllarshal
Costa e Silva is unopposed. Students
in Sao:Paulo,are calling for labor sup-
-port for protest demonstrations .on Mon-
day against the "repressive military
dictatorship." Similar demonstrations
may well occur in other cities.
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ANNEX
Suharto Looks Back
A year ago today armed bands of assassins were
searching out key army generals who were the last
brake on Sukarno's plunge into Communism. The world's
fifth most populous country seemed about to disappear
behind the Bamboo Curtain.
But the army, under General Suharto, struck
back within hours and the 1 October coup failed. To-
day Suharto and his military and civilian co-leaders
can look back over the past year with some sense of
accomplishment. Sukarno is now on a short tether,
his radical policies reversed. The world's third
largest Communist party has been crushed, and Indo-
nesia is taking the first steps toward unraveling its
economic chaos.
Suharto and his colleagues have handled Sukarno
with care, slowly siphoning off his authority and
carving the super-ego down to size. Sukarno, in fact,
is sure to be cut down even further when his former
chief lieutenant, ex-foreign minister Subandrio, goes
on trial in Djakarta tonight. Subandrio, who worked
long and hard to get Indonesia into the Chinese camp,
is being tried for his role in the abortive events
of 1 October, but it is really Sukarno who will stand
in the prisoner's dock./
While reducing Sukarno's prestige and ability
to influence developments, Indonesia's new leaders
have reversed the course of his Peking-oriented for-
eign policy. They took a big step toward actual -
nonalignment by returning Indonesia to the United
Nations on 28 September. ,The days of foreign policy
by personal whim are over.
In the economic sphere, Indonesia submitted a
stabilization plan to Western creditors in a Tokyo
meeting last week. The plan talks of a balanced
budget, private capital, credit controls, and a
(Cont'd)
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'ANNEX "(Cont'd)
realistic exchange rate--all a far ?cry from the free-
wheeling charge account techniques of Sukarno.
The Indonesian delegation in Tokyo could also
point.to.attempts to cut government expenses and to
increase tax collections.
Suharto and company have a reasonably good re-
port card for the past year. Whether or not they can
keep up their marks depends to a large extent on
their determination to enforce the tough economic
measures which are sure to be painful and unpopular.
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TOP SECRET
TOP SECRET
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