THE PRESIDENT'S DAILY BRIEF 14 AUGUST 1969

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005976932
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 7
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: August 14, 1969

Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79f00936A007400120001-2
The President's Daily Brief
14 August 1969
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Top Semi,
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FOR THE PRESIDENT ONLY
VIETNAM
The latest surge of Communist military activity was
shortlived; action yesterday and today was greatly reduced.
This reinforces earlier signs that the autumn campaign will
consist of a series of "highpoints" followed by periods of
relatively light activity. The next attacks may be sched-
uled to coincide with the Communist holidayon 19 August,
honoring Ho Chi Minh's takeover in Hanoi after the Japanese
withdrawal in 1945.
Thieu and Huong met yesterday and issued a statement
in which they agreed that a much more broadly based cabinet
should be formed. This reinforces earlier indications that
Huong has agreed to Thieu's plans for including more poli-
ticians in the cabinet, in contrast to the government of
technicians Which the prime minister had previously favored.
There is no indication that they have agreed as yet on the
make-up of the new cabinet, but it now appears likely that
Huong will stay on as prime minister.
SOVIET AFFAIRS
Ceausescu demonstrated his unchallenged leadership over
the Romanian Communist Party at the congress which ended on
'Tuesday. Seventy foreign parties sent delegations to the
meeting.
Ceausescu advanced numerous "second generation" Commu-
nists to national-level party positions by deftly manipulating
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
the composition of top-level bodies to ensure a membership
tipped more to his favor. By electing representatives of
the military and security forces, the intelligentsia and
ethnic minorities, the congress advanced the image of na-
tional unity. At the same time the few "old guardists" still
in top-level posts, although downgraded, were not displaced.
Romanian speakers at the congress reaffirmed Bucharest's
independent course in foreign affairs. Ceausescu, in his
opening speech, left little doubt about Romania's determina-
tion to resist any attack by "imperialists," which he defined
in a way that could equally apply to both the US and the USSR.
Aware that the President's visit was still fresh in the
mind of the Romanian people, Ceausescu tried to redress the
balance. He labored to put the best face possible on Romanian--
Soviet relations. He paid lip-service to Bucharest's attach-
time
ment to CEMA and the Warsaw Pact.
He also spent some
discussing the Soviet army's role in "liberating" Romania and
predictably criticized the US four times in his .speech.
Now that the congress is ended, Bucharest is prolonging
its festive atmosphere until 23 August, when the country will
celebrate the 25th anniversary of its "liberation." It seems
doubtful at this point that the Soviets and their allies will
send high-level delegations to this event. Some Romanian
leaders are expected, however, to meet their allies on the
highest-level on 9 September, in Sofia, when Bulgaria celebrates
its 25th "liberation" anniversary. Unidentified diplomats in
Bucharest have claimed that Moscow may take the Romanians to
task at the Sofia meeting. The Romanians can be expected to
hold their ground.
FOR THE PRESIDENT ONLY
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SIN 0?SOVIET BORDER ,
MILES
SOO
New Incident Reported Along Sino-Soviet Border
SIREPIAN 1LIT4RY DISTRICT. ?
TPANSRAVKAL MIUTARY ?.STPICT
U. S. S. R. IcJ
.AR.f.AST MILI.TART olsrrzicr
LaAv Boabash
Khabarovsk
Border clashes along
ysstiri.RiVer, March 1969
Druzhba
Armed clash
of 13.August
Urumchi?
MONGOLIA
CJ?IINA
INDIA
SEA OF
JAPAN
?Lr
NORTH
Peking
sourm
x0REA j -
"f YELLOW SA JAPAN
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EUROPE
There was a massive run on the pound sterling yester-
day, triggered by announcement of an unexpected increase in
the British trade deficit for July. The devaluation of the
franc had already weakened the pound's position. If a run
of this magnitude ($500 million in Bank of England foreign
exchange between noon and close of business to keep the
sterling up) continues, the Bank has only a few days of
reserves left unless it obtains additional resources from
other nations.
Prospects for this are not bright since
London still owes $6 bill-ion which it borrowed to defend
the pound in previous crises.
SOVIET UNION - COMMUNIST CHINA
Yesterday's clash between the Soviets and the Chinese
is only the latest in -a series of armed incidents that have
occurred recently along this same stretch of the Sinkiang-
Kazakhstan border. In June, the Chinese charged Moscow
with an "armed intrusion" in which one of their soldiers
was killed, while in May the Soviets claimed that Chinese
troops had "illegally" occupied several square miles of
their frontier territory.
Peking was the first to publicize the latest clash
apparently in an attempt to portray the Soviets as the
unreasonable aggressive party in the dispute.
3
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The closest known Soviet Army
, unit (an 1800 man motorized regiment) is at the Dzungarian
Gate near the border. No sizable Chinese Army units are
known to be in the area of the reported clash.
Recent developments, including the limited agreement
on border river navigation signed in Khabarovsk last week,
suggest that neither side wishes the inflamed border situa-
tion to get out of hand. Neither is likely to compromise
fundamental positions, however, and questions of national
prestige could lead to intensification of any even minor
incident. This latest flare-up can only increase the ex-
plosive potential of the border situation.
FOR THE PRESIDENT ONLY
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Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A007400120001-2