THE PRESIDENT'S DAILY BRIEF 18 JUNE 1968

• Document Type: FOIA
• Collection: President's Daily Brief 1961-1969
• Document Number (FOIA) /ESDN (CREST): 0005976207
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: September 16, 2015
• Document Release Date: September 16, 2015
• Publication Date: June 18, 1968

Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9
The President's Daily Brief
23
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9
50X1
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9 -50X1
THE PRESIDENT'S
DAILY BRIEF
18 JUNE 1968
1. South Vietnam
At Annex we examine the uneasy po-
litical climate in Saigon in terms of
how the Viet Cong may be viewing it and
what they might hope to do about it.
50X1
50X1
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9 -
50X1
2. Canada
3. Rhodesia
4. Uruguay
General elections are one week
from today and Trudeau's Liberal Party
still looks good for a small majority
in the new parliament. The prime min-
ister has run a well-organized campaign
focused on foreign policy and national
unity. He has stayed away from Canada's
economic problems where the Liberals
are most vulnerable.
Trudeau's edge might be a little
larger had he not been pushing so hard
for the unity of French and English-
speaking Canada. This may put a few
seats in Quebec in jeopardy. An unex-
pectedly large turn-out against Trudeau
in the French-speaking province could
even cost the Liberals a majority.
After more than two and one half
years, economic sanctions still have
had little impact on Rhodesia. Eco-
nomic growth has slowed a bit, but
there have been no serious disruptions.
The UN's latest effort to cut off
Rhodesia's remaining foreign trade--a
resolution passed 29 May by the Secu-
rity Council--will be no more than a
minor irritant as the Rhodesians al-
ready have found there are plenty of
people willing to buy and sell, UN reso-
lutions or no.
The Communist-dominated National
Labor Convention has called a 24-hour
strike today. This is to protest the
limited state of siege imposed last
week. The strike is not illegal, and
neither the government nor labor want
trouble. Given the tensions involved,
however, there could be riots, particu-
larly if the police get heavy-handed.
50X1
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9
? Declassified in Part - Sanitized Copy Approved for Release 2015/07/24: CIA-RDP79T00936A006200090001-9
5, Israel
6. France
In his latest effort to outmaneu-
ver Moshe Dayan, Eshkol has put some
serious strains on his own party and on
the coalition government it dominates.
Last week Eshkol abruptly desig-
nated Labor Minister Yigal Allon deputy
prime minister. Dayan boycotted the
meeting at which Allon's appointment was
approved by most leaders of the Israel
Labor Party. Now the popular defense
minister is crying foul and threatening
to stay out of party meetings until
there is a vote with all his followers
present.
At least four of the other five
political parties in the government are
also angry because Eshkol failed to con-
sult them. One or more may pull out of
the coalition when the cabinet acts to
approve Allon's appointment.
A hero of the 1948-49 war, Allon
leads an important faction of the Labor
Party. He has been Dayan's leading
rival for succession ?to Eshkol--and the
prime minister's latest move would seem
for the moment to give him the inside
track.
The French, who only a few months
ago were leading the attack on the dol-
lar, now are trying to get dollars to
support the franc. In fact, today
France will sell $400 million in gold
for dollars. The US has been offered
$200 million; Swiss and other European
central banks the remaining $200 mil-
lion.
To make the sale, the French are
dipping into their reserves. While
these reserves are still ample, they
have been hit for about $1 billion dur-
ing the crisis. The French hope to
keep the franc pegged at 20.11 US cents.
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9
50X1
50X1
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9
50X1
ANNEX
Communist Views of Saigon Politics and
Possible Courses of Action
Communist propaganda for.the past few weeks
has.given heavy play to the continued "squabbling"
between Thieu and Ky and has predicted even more
serious .and violent political crises ahead. The
Communists' own scenario counts heavily On the weak-
ening and ultimate collapse of the regime in Saigon.
The Communists view the recent shake-ups in the
government as resulting in Ky being "relegated to an
inferior position," - They credit their, own military
and psychological pressure for Much of what has hap-.
pened so far and are probably looking for ways to
heat up the power struggle.
From a purely political point of view, the Com-
munists are somewhat limited in their ability to
force a confrontation between leaders in Saigon.
They can spread rumors of coup plotting and, accord-
ing to Ky, are now doing so. But these probably add
little to those already rolling from Saigon's own
rumor. mills. We would expect new attacks, both by
rocket and by ground forces, against the capital.
The Communists, however, will be somewhat wary of
moves which could have the effect of causing Saigon's
factions to close ranks.
Ky told Ambassador Berger on 17 June that he
had "intelligence" that the Communists planned to
attack the presidential palace and Tan Son Nhut air
base in South Vietnamese Army uniforms, allegedly
in the guise of a Ky-sponsored coup. In such a
scheme they would probably hope to dupe some Viet-
namese Army troops into supporting their efforts--a
remote possibility particularly if Tan Son Nhut, a
Ky stronghold, were attacked.
Were Ky to stage a real coup attempt, the Com-
munists would stand a far better chance of exploit-
ing the disarray either militarily in and around
Saigon and in the rural areas or politically in the
aftermath, both at home and abroad. They might,
under the circumstances, surface new members or re-
cruits for their Alliance and might even regard the
moment as propitious for proclaiming a rival Alliance
50X1
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9 -50X1
government. They would almost certainly try to ex-
ploit the tensions in the South Vietnamese Army by
intensive appeals for defection, and they would
probably attempt to step up sabotage and terrorism,
hoping to pin much of the responsibility on either
Thieu's or Ky's supporters. Ky, however, appears
fully aware of these dangers and is declaring him-
self opposed to coup efforts.
_
50X1
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9
Top Secret
FOR THE PRESIDENT'S EYES ONLY
.) Special Daily Report on North Vietnam
.) North Vietnamese Reflections of U S
Political Attitudes
Top Secret 50X1
16
18 June 1968
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9,ci
Special Daily Report on North Vietnam
for the President's Eyes Only
18 June 1968
I. NOTES ON THE SITUATION
Bombing Effects: The Communist head of Italy's
biggest labor union recently returned from a trip
-to Hanoi and described North Vietnam as suffering
"gravely" from US bombing, but determined to fight
on for another 10 to 20 years if necessary.
Luciano Lama who is also a Communist member of
Parliament told a news conference on 17 June that
the bombings had not weakened the North Vietnamese
spirit. He said that while the North Vietnamese do
not expect "any immediate results" from the current
talks, fruitful peace talks could begin when the
Americans halt the bombing of the North.
50X1
50X1
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9 -
NORTH VIETNAMESE REFLECTIONS OF US POLITICAL
ATTITUDES ON THE WAR
Reaction to Possible McCarthy Visit to Paris:
North Vietnamese diplomats in Paris have hinted that
they welcomed a reported suggestion by Senator
?Eugene McCarthy that he would like to visit Paris
and look in on the peace talks according to Western
Press reports.
-2-
50X1
50X1
50X1
50X1
50X1
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A006200090001-9