THE PRESIDENT'S DAILY BRIEF 18 DECEMBER 1969

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005977201
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: December 18, 1969

Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79-1010936A007800160001-4
The President's Daily Brief
19 December 1969
25
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THE PRESIDENT'S DAILY BRIEF
18 December 1969
PRINCIPAL DEVELOPMENTS
The Arab summit conference, opening Saturday in Rabat, 50X1
promises to be a stormy affair because of divergent
viewpoints on the conflict with Israel. (Page 1)
Libya
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(Page 2) 50X1
Soviet attempts to develop markets in Western Europe
for natural gas are beginning to pay off. (Page 3)
Negotiations between Pankow and Bonn have been
brought a step closer with the East German parli-
ment's action "authorizing" government and party
leaders to take the "necessary measures" for estab-
lishing relations with West Germany. (Page 4)
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ARAB STATES
The Arab summit conference, which opens in Ra-
bat on Saturday, is likely to be stormy. The par-
ticipants have sharply differing viewpoints on the
Arab-Israeli confrontation.
Egypt and Jordan, having concluded that a peace-
ful solution to the Arab-Israeli conflict is unlikely,
are expected to demand more financial assistance from
the oil-rich states to increase their military capa-
bilities.
Another thorny problem will be the wording of
the communique to be issued at the end of the confer-
ence.r
The fedayeen probably will be represented by
Yasir Arafat, leader of Fatah and the Palestine Lib-
eration Organization. His main effort is likely to
be directed toward obtaining greater financial sup-
port.r
The US is likely to receive more verbal
abuse. Tangible expression of radical
Arab displeasure, such as the breaking of
diplomatic relations, may be suggested,
but the more moderate states are unlikely
to go along with such proposals.
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LIBYA
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USSR - WESTERN EUROPE
Moscow this month has concluded two major agree-
ments for the sale of natural gas in Western Europe.
On 19 December the USSR and Italy signed a 20-year
agreement for the delivery of gas beginning in 1973.
The Soviets will receive an initial credit from Italy
of some $200 million with which to buy pipe and other
equipment for the USSR's natural gas pipeline systems.
The gas will come over a pipeline extending from
Czechoslovakia through Austria.
The second agreement was signed with a West Ger-
man firm earlier in the month. It calls for the de-
livery of natural gas to Bavaria via a pipeline
through Czechoslovakia for a 20- ear ?eriod, also be-
ginning in 1973.
These agreements are particularly advanta-
geous to the USSR because they provide it
with Western credits for the immediate de-
livery of pipe and other equipment needed
to spur the Zagging construction of oil
and gas pipeline networks from Siberia
and Central Asia. By the time Soviet de-
liveries to West Europe begin in the early
1970s, the USSR's natural gas imports from
Iran, scheduled to begin next year, and
increased flows from Afghanistan will more
than offset gas exports to Western Europe.
What is more, these deals come at a time
when Soviet hard currency earnings from
petroleum deliveries to the West appear
to be leveling off.
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EAST GERMANY - WEST GERMANY
The East German parliament yesterday "author-
ized" both the Council of State, headed by party
leader Ulbricht, and the government, headed by Pre-
mier Stoph, to take "the necessary measures" for
establishing relations with West Germany. This sug-
gests that the East Germans may propose negotiations
on several levels.
Ulbricht last week had indicated that Pan-
kow was willing to negotiate with Bonn
and would not impose preconditions for
beginning talks. He hinted, however, that
Pankow would await a proposal from Bonn
to begin negotiations. Yesterday's action
suggests that the East Germans may now
believe that they must take the initiative.
With Poland and other Eastern European
states about to follow Moscow's example
in negotiating bilaterally with the Fed-
eral Republic, the East German action is
probably a defensive one. Even if there
are high-level talks, no early breakthrough
should be expected.
The parliament's resolution specified that rela-
tions between the two Germanies should be governed
and secured by agreements valid under international
law. Bonn, on the other hand, has indicated that
it is only willing to accept "binding agreements"
with the East Germans--but not formal state treaties,
which it considers would be tantamount to de jure
recognition. The Brandt government insists that
relations between East and West Germany must be of
a special type.
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ECUADOR
A month-long strike of teachers has closed 75
percent of the country's public schools. The teach-
ers are demanding the payment of back salaries, a
guarantee that they will be paid on time in the fu-
ture, and the dismissal of the minister of education.
Students have joined them in their demonstrations,
primarily because they, too, want to dump the minis-
ter. President Velasco announced on 1 December that
he was borrowing from the next year's budget to pay
delinquent salaries, but the strike continued.
The government's stand has hardened into what
Velasco has termed "a principle of authority." The
President has received the public support of his
military leaders, who regard students as their nat-
ural enemies and have let it be known that they
would sanction strong-arm measures to break up the
strike.
University classes have already been suspended
for the holidays, and on Wednesday the government
declared a three-week holiday in the elementary and
secondary schools to begin at once. That may be
enough time for teachers and students to cool off.
During his past four attempts to govern
Ecuador, Velasco has not been prone to
compromise. It appears, however, that a
peaceful settlement of the strike calls
for just that quality.
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NOTE
South Vietnam:
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Top Secret
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