THE PRESIDENT'S DAILY BRIEF 3 MAY 1969

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005976756
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: May 3, 1969

Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A007100020002-5
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The President's Daily Brief
3 May 1969
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Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A007100020002-5
FOR THE PRESIDENT ONLY
MAJOR PROBLEMS
VIETNAM
Some enemy units are preparing for renewed offensive
activity in the near future.
This probably will consist largely of widespread
shellings. There are several areas, however, where signifi-
cant ground fighting also appears likely.
Attacks over the past two weeks against heavily
defended American bases northwest of Saigon presumably are
a reflection of this decision on the part of the enemy.
Recent intercepts indicate that further attacks in north=
western III Corps are imminent. The enemy may also be
preparing to step up sapper and terrorist attacks in the
Saigon area. South Vietnamese forces recently captured 450
pounds of explosives from a Communist sapper unit on the
outskirts of Bien Hoa.
In the central part of the country, Communist communi-
cations suggest plans for stepping up attacks in Kontum
Province,
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FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
The South Vietnamese want the upcoming SEATO conference
in Bangkok to issue a clear statement of support for the
allied war effort against the Communists in Vietnam.
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Fedayeen Problem in South Lebanon Prompts Israeli Military Move
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FOR THE PRESIDENT ONLY
Hanoi is now engaged in another Wholesale recall of
diplomatic personnel, presumably for briefings on the
recent policy deliberations. Such general recalls have
been the practice in the past. The present recall for
the first time includes a large number of Liberation
Front representatives.
MIDDLE EAST
President Hilu has ordered the Lebanese Army to take
whatever measures are necessary to control the fedayeen.
He has not told other political leaders of this step, how-
ever, and it is highly questionable whether his new-found
resolve would stand up in the face of their protests. Nor
does the army--whose effectiveness is limited in the best
of times and which at the moment mirrors the growing split
between Christians and Muslims in the country as a whole--seem
likely to take the kind of decisive action Hilu is demanding.
The Lebanese are also aware that the Israelis have
moved troops by helicopter' into the section of the Golan
Heights which is adjacent to the terrorist infiltration
route from Syria into Lebanon. They say that an Israeli
operation against the terrorists in Lebanon would put the
Lebanese Army in an impossible situation, but they would
welcome any attempt to stop the fedayeen before they leave
Syria.
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
Prime Minister Rifai told Ambassador Symmes yesterday
that the fedayeen have agreed to keep their troops out of
Amman. He said this word came from Yasir Arafat himself.
Rifai, however, seemed skeptical that this agreement would
be implemented, and we fully share his skepticism. The
fedayeen have been working toward a major 'test of strength
with the Jordanian Government for weeks.
EUROPE
European foreign exchange market disorders triggered
by De Gaulle's resignation continue. Yesterday saw a
scramble for German marks (DM) by holders of francs,
sterling and dollars. This followed West German Finance
Minister Strauss' suggestion that under certain conditions
the mark could be revalued. Since Strauss' remarks govern-
ment spokesmen have twice denied that a revaluation was in
the works, but this is unlikely to calm the market. With
the DM exchange rate quickly approaching its ceiling, the
Bundesbank took in close to $800 million this week.
The heaviest foreign exchange speculation was against
the British pound, Europe's most vulnerable currency. The
Bank of England lost about $200 million during the past
week defending the pound, most of which slipped out during
the latter half of the week. Britain's entire losses were
absorbed by its reserve holdings because it did not use
the remaining facilities available to it.
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Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A007100020002-5
Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A007100020002-5
FOR THE PRESIDENT ONLY
The Bank of France while permitting the exchange value
of the franc to fall gradually to the lowest level permitted
by international agreement, lost only about $170 million in
foreign exchange in support of the franc during the week.
This outflow, financed primarily through swap arrangements
with the US and other governments, was no greater on a
daily average than the approximately $400 million lost over
the previous two weeks.
SOVIET AFFAIRS
There is nothing significant to report.
OTHER IMPORTANT DEVELOPMENTS
BOLIVIA
Peasant leaders made it clear during ?the burial services
for Barrientos that they want President Siles out of office,
but Siles is hanging on.
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Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A007100020002-5