THE PRESIDENT'S DAILY BRIEF 17 OCTOBER 1969

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005977043
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: October 17, 1969

Declassified in 'Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
The President's Daily Brief
17 October 1969
19
50X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
17 October 1969
PRINCIPAL DEVELOPMENTS
West German financial officials are recommending a
revaluation of the mark in the 8 to 10 percent range
(Page 2)
The communist Chinese are strengthening their air
defenses 'along the Soviet and Mongolian borders.
(Page 3)
La Paz is considering a plan for nationalization of
Bolivian Gulf Oil. (Page 4)
Japanese Prime Minister Sato is moving adroitly to
line up wide political support for his handling of
the Okinawa issue. (Page 6)
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
50X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
FOR THE PRESIDENT ONLY
VIETNAM
Th
1
50X1
50X1
50X1
50X1
50X1
FOR THE PRESIDENT ONLY?
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
FOR THE PRESIDENT ONLY
WEST GERMANY
at a meeting
on 9 October, Germany's Central Bank Council at the
urging of Bundesbank President Blessing recommended
an 8-10 percent revaluation of the mark. Blessing
had earlier preferred a revaluation of about 6.5
percent; this new recommendation presumably reflects
the views of the incoming Brandt government. The
German Council of Economic Experts has recommended
a similar revaluation. The new exchange rate is to
be set during the weekend of 25 October, after the
new cabinet takes over.
Revaluation of this magnitude is not
likely to have an immediate adverse ef-
fect on the West German economy. Indus-
try is operating at full capacity, and
orders already, on the books guarantee a
high level of production and employment
for several months. There will probably
be a permanent repeal of the fourl percent
border, tax measures, thereby reducing the
effective rate--as far. as German industry
is concerned--to no more than 4-6 percent
Brandt, by making his first major decision
one in the economic area, will fulfill his
previously announced intent to concentrate
on domestic issues. This tactic serves to
remove the spotlight from the realm of for-
eign policy, where the government's ap-
proach, particularly its more activist line
toward the East, could prove controversial.
2
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
50X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
China Strengthens Air Defenses
Sibericn
Militery District
300
Miles
USSR
.Trensbaykal
Military District
Lake
Baykal
MONGOCIA
CH
Far East \ ?
Military District
MIG jet
fighters
deployed
+Haiku-
Shen-yang
Air District
t least 16 aircra t o
? .+Charsu-thi
.Hu;ho-hao-re
NA
Peking
Air
District
Peking
NORT4
KOREA'
-
SOUTH
?-,Sectors.with radar
stations activated
YELLOW SEA
SEA OF
JAPAN
\KOREA)
A
:?2
96321 10-69 CIA
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
50X1
50X1
50X1
Declassified' in Part - Sanitized Copy Approved for Release 2016/07/19: CIA-RDP79T00936A007600150001-7
FOR THE PRESIDENT ONLY
CHINA-USSR
Satellite photography of August showed that
Chinese jet fighters had been deployed to Hailar
airfield for the first time. Hailar is about 65
miles from the Mongolian border in northeastern
Inner Mongolia. The most recent satellite photog-
raphy showed 16 aircraft at another 50X1
airfield near Hu-ho-hao-t'e, also in Inner Mongolia.
The planes appear to be jet fighters; The airfield--
Cha-su-chi--was started 14 months ago and was rushed
to completion only last month.
These developments fit a pattern we have
noted for some time: the gradual improve-
ment of China's air defenses along the
Soviet and Mongolian borders to close
large gaps.
During the past several months the Soviets
have been strengthening the western and
central sectors of the frontier where
their forces are weakest. Earlier they
,had deployed ground and air units to bor-
der positions opposite Manchuria, where
the Chinese have also been strengthening
their air defenses.
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
50X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
FOR THE PRESIDENT ONLY
BOLIVIA
The cabinet, under pressure from its ultrana-
tionalistic members, is now considering a plan for
nationalization of Bolivian Gulf Oil. Somewhat un-
realistically the ministers are discussing a scheme
whereby Bolivia would receive aid from Europe and
Japan that would enable it to operate the company's
holdings profitably.
Since Ovando took over the government on
26 September, there has been a growing
outcry for the nationalization of the com-
pany. Demands of students, labor, and
leftist political groups for expropriation
were encouraged and given respectability
by Ovando's own nationalistic statements.
Ovando declared recently that such a dras-
tic move is "unnecessary," but he may be
unwilling or unable to withstand the pres-
sure for nationalization from both within
and outside the government.
4
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
50X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
FOR THE PRESIDENT ONLY
BRAZIL
Interior Minister Costa Cavalcanti has told
the US Embassy in Rio de Janeiro that President-
designate Medici plans to make a number of cabinet
changes. The shift of Labor Minister Passarinho
to the education ministry, replacing ineffective
Tarso Dutra, raises the possibility of reforms in
this long-neglected field. The designation of Am-
bassador to the US Mario Gibson to replace Foreign
Minister Magalhaes Pinto could be a boost for US-
Brazilian relations. Some improvement is also
likely in the ministries of Health and Agriculture,
whose present heads--along with Dutra--are consid-
ered the least effective men in the cabinet. Fi-
nance Minister Neto will be retained.
the new minister for that service will prob-
ably be General Orlando Geisel, currently chief of
the armed forces joint general staff. Medici also
plans to name retired Admiral Rademaker Grunewald
as vice president and to appoint Alfredo Buzaid as
justice minister.
These shifts indicate that the general
policy lines of Costa e Silva will be re-
tained but that the over-all competence
? of the cabinet will rise noticeably. The
appointments of Rademaker Grunewald and
Buzaid could be unpopular among Brazil-
ians desirous of reform. The admiral
does not have the united support of the
navy, and some officers of the other
services, particularly the air force,
strongly oppose him. Buzaid is greatly
disliked by students and liberals for his
heavy-handed purge of professors at the
? University of Sao Paulo last year.
5
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
50X1
50X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
FOR THE PRESIDENT ONLY
JAPAN
Sato met this week with opposition leaders from
the middle-of-the-road Komeito and Democratic Social-
ist parties to reaffirm the government's commitment
to get reversion of the Ryukyus by l972. The party
leaders urged the prime minister to press the US for
"homeland level" reversion, which calls for removal
of nuclear weapons from Okinawa and placing US forces
there under the same restrictions that apply in Ja-
pan. They also reaffirmed that friendship between
Japan and the US was basic policy in their respec-
tive parties.
Sato, looking toward his talks next month
in Washington, is missing no opportunity
to prove that his policies represent bed-
rock national consensus, and is moving
skillfully to harness support above party
lines for his handling! of the Okinawa is-
sue. The timing of his own party's an-
nouncement this week that it supported
continuation of the Japan-US security
treaty "for a considerable length of time"
suggests that it too was intended to
strengthen his hand in the forthcoming
talks.
6
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
FOR THE PRESIDENT ONLY
NOTE
7
FOR THE PRESIDENT ONLY
50X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936-A007600150001-7
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A007600150001-7