THE PRESIDENT'S DAILY BRIEF 13 MAY 1969

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005976771
• 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 13, 1969

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The President's Daily Brief
13 May 1969
19
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BURMA
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CHINA
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NORTH
VIETNAM
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OF
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a Tinh
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ang Ngai
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93465 1-69
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FOR THE PRESIDENT ONLY
MAJOR PROBLEMS
VIETNAM
Communist harassing activity fell off sharply during the
night. Five rocket rounds hit in the outskirts of Saigon, but
caused no casualties and little damage. An increased number
of terrorist attacks have been aimed primarily at police and
government personnel and at public utilities.
With the opening of the "May action phase" of their 1969
military campaign, the Communists have put into play the mil-
itary part of their plan to prod the US into a negotiated set-
tlement on Hanoi's terms. This round probably will be limited
in scope and duration. The enemy will try to inflict heavy
casualties on US units, hoping thereby to increase the level
of domestic pressure in the US for an early end to the war.
Judging by the first round of attacks, ARVN may also be hit
hard this time.
Documents and prisoners say that the Communists intend
to follow the May phase with a larger summer offensive, prob-
ably to begin in June or July. Hanoi may believe that by
staging a continuing series'of such offensives it can force
the US to abandon any plan for "Vietnamizing" the war.
The Communists would like to convince the US that the
only way out of the war is through a settlement which will
give them a guaranteed and secure status in South Vietnam.
1
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They apparently believe that through a combination of diplo-
matic moves in Paris and military actions on the battlefield,
the US can be brought to grant such guarantees. From what we
have seen both on the battlefield and from intelligence as-
sets, the enemy high command still believes it can keep enough
forces in the field to accomplish its objectives. Thus far in
May we have detected only two new infiltration groups entering
the pipeline in North Vietnam. This suggests the enemy did
not see a requirement for another transfusion of manpower be-
fore beginning the May action phase. We would expect to see
an increase in the replacement flow very soon, however, if any
larger summer campaign is contemplated.
The enemy threat is increasing again in northern I Corps.
Intercepts indicate that the North Vietnamese 304th Division
is moving south and east once 'again in the Laos panhandle, and
that the two independent regiments may also be on their way
south. These regiments were pulled back into North Vietnam
from northern I Corps last fall.
MIDDLE EAST
2
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*
In Lebanon, President Hilu's three-day meeting with Fa-
tah leader Yasir Arafat has ended in a stalemate. Arafat
threatened to turn out the Palestinian refugees living in
Lebanon for large-scale demonstrations against the govern-
ment. He demanded full freedom for fedayeen operations in
Lebanon, including the right to maintain base camps without
any control by the Lebanese military. Hilu had already re-
fused a compromise solution which would have allowed the
fedayeen to operate in clearly defined areas of southern
Lebanon under agreed measures of Lebanese Army control.
Although he is still inclined to stand firm, Hilu's re-
solve may have been weakened by his doubt that General Bustani,
the army commander, will give him the complete support he
needs to act against the fedayeen. In addition, Hilu appar-
ently can no longer hope for the support of Muslim Prime Min-
ister Karami, who tends to temporize on the fedayeen issue.
King Husayn's private secretary has told our embassy in
Amman that Husayn got nowhere during his recent visit to
Cairo, in moving Egypt to restore diplomatic relations with
the US. Husayn had difficulty getting Nasir even to talk
about the subject. When Nasir finally did, it was merely
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
to say that his government had decided that a restoration of
relations was not worthwhile at this time.
EUROPE
Some speculators have begun to run for cover, withdraw-
ing funds hastily placed in Deutsche marks during last week's
hectic trading. About $565 million worth were withdrawn from
the German central bank yesterday. Nevertheless, the foreign
exchange markets are still highly uncertain.
SOVIET AFFAIRS
There is nothing significant to report.
II. OTHER IMPORTANT DEVELOPMENTS
COMMUNIST CHINA - SOVIET UNION
Peking has accepted Moscow's proposal to discuss naviga-
tion rights on the border rivers, the Amur and Ussuri, in Kha-
barovsk next month. Behind China's acceptance probably is the
hope that these talks can be used to revive Chinese claims to
the disputed islands in the Ussuri.
FOR THE PRESIDENT ONLY
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CHILE
The government has proposed major revisions in the "Chil-
eanization" agreements it signed with US copper companies in
1967.
The proposal involves a complex formula under which the
government could lay a claim to "surplus profits" being earned
under prevailing high market prices. One US company estimates
that under the new arrangement its income would be less than
half of what it now receives. If the companies do not agree
to these changes, the Frei administration threatens to take
unilateral action through the congress.
Frei may hope that by getting more money from the com-
panies he will be able to head off increasing pressure for
complete nationalization, an issue which appears more and
more tempting to the Chilean left as the presidential cam-
paign of 1970 approaches.
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Top Secret
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