THE PRESIDENT'S DAILY BRIEF 28 MAY 1971

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005992621
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: May 28, 1971

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The President's Daily Brief
28 May 1971
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THE PRESIDENT'S DAILY BRIEF
28 May 1971
PRINCIPAL DEVELOPMENTS
On Page 1, we comment on the Soviet-Egyptian treaty
signed in Cairo.
The US consul in Dacca expects prolonged turmoil in
East Pakistan, increasing the danger of military
conflict between Pakistan and India (Page 2); India,
meanwhile, plans diplomatic moves aimed at increasing
economic pressure on Pakistan. (Page 3)
In Laos, Souvanna has taken a flexible approach to
the latest Pathet Lao peace proposals as rains be-
gin to slow Communist supply movements through the
panhandle. (Page 4)
A protocol has been signed between the Soviet eco-
nomic delegation now in the US and Mack Truck.
(Page 5)
Chile is intensifying its moves to nationalize its
economy. (Page 6)
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USSR-EGYPT
The treaty of "friendship and cooperation" signed
by Presidents Podgorny and Sadat yesterday in Cairo
formalizes the special relationship between their
two countries, but sets forth no new commitments by
either side. It spells out in some detail their de-
sire for further development of their present polit-
ical, economic, and cultural relations, however,
and proclaims the willingness of both parties to
continue working for a "lasting and fair peace" in
the Middle East. It also expresses, in separate
articles, their intention to continue cooperating
in military matters on the ?basis of "appropriate
agreements" and to consult "without delay" whenever
they see a threat to peace. The treaty, when rati-
fied, is to remain in force 15 years and has a pro-
vision for automatic renewal.
Moscow almost certainly took the initiative in con-
cluding the new treaty in an effort to insure its
interests in Egypt over the long term. It is aware
that its present influence on Cairo rests largely
on the military support it provides the Egyptians
in their conflict with IsraeZ. Recent rapprochement
between Washington and Cairo, together with Sadat's
purge of numerous pro-Soviet officials, have clearly
aroused Soviet fears that their influence could in
time be eroded.
The treaty provides Egypt a means of dispelling So-
viet fears and guaranteeing continued Soviet sup-
port. Sadat carefully stressed in a speech yester-
day that the treaty is merely "a further expression"
of a relationship that has been in existence many
years.
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EAST PAKISTAN
Consul General Blood in Dacca sees no early
end to the present turbulent conditions in East Pak-
istan. He cites several factors as being respon-
sible for the turmoil. First, the effects of a
growing guerrilla resistance are now being felt, in?
-
cluding the disruption of transportation and commu-
nications. A second factor is the disruption result-
ing from the apparent systematic persecution of the
Hindu population by the Pakistan Army that threatens
the eventual dislocation of a fifth of the province's
population. Finally, in all but a few major cities,
criminal elements have begun exploiting the dearth
of law enforcement officials.
The consul general believes such conditions
mean that the refugee flow will continue for some
time, thus increasing the chance of an eventual
Indo-Pakistani military confrontation. The break-
down of law and order will have an adverse effect
on the sowing and harvesting of crops, on industrial
production, and on commercial activity in general.
As attitudes harden and personal grievances and
losses mount, the prospects for a political settle-
ment between East and West Pakistan, in Blood's
judgment, will recede even further.
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INDIA-PAKISTAN
The Indian Government is thinking of sending a
delegation of cabinet ministers to those countries
which are members of the Pakistan Aid Consortium.
The Indians believe economic pressure is ?the strong-
est weapon available to bring Pakistan to modify
its present policies toward East Bengal. Foreign
aid donors will be asked not to underwrite Islama-
bad's policies in East Pakistan by concluding new
aid agreements. The planned diplomatic-economic
offensive is projected for the first half of June,
well before the Pakistan Aid Consortium meeting in
August.
Pakistan's deteriorating economy and. rap-
idly disappearing foreign exchange re-
serves make it particularly vulnerable to
this kind of effort by India.
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LAOS
Prime Minister Souvanna, in a letter given to
Pathet Lao emissary Souk Vongsak on 26 May, proposed
that the two sides get talks started without further
foot-dragging. Blaming the unproductive contacts so
far on Communist stalling and posing of preconditions,
Souvanna stressed the urgent need for a total and
complete cease-fire--on the ground and in the air--
and said that negotiations should not be limited in
anyway. He also suggested that, to facilitate
talks, Souk be empowered to negotiate directly with
Souvanna's representative.
This reply to the most recent Pathet Lao
proposals is softer than Souvanna's state-
ments in public that the government will
not negotiate while under military pressure
and will not accept any bombing halt with-
out a provision for the supervised with-
drawal of all foreign troops from Laos.
It presumably reflects Souvanna's desire
to avoid any impression that he is not
bending every effort to end the war.
heavy rains are slowing vehicles transport-
ing supplies through the Laotian panhandle, but the
Communists apparently intend to persevere as long as
they can, some
portering of supplies will be needed until road con-
ditions improve.
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USSR-US
? ?A protocol has been Signed by Mack Truck and
the chief of the high-level Soviet economic delega-
tion now visiting the US,- The protocol...proposes
that Mack adt as principal consultant for engineer-.i
ing services and for equipment purchased from the
West.
If the protocol is fully carried out, the
huge Soviet truck plant now being built
on the Kama River will receive extensive
US engineering and technical assistance,
and the combined value of contracts could
reach $700 million. The Soviets have kept
their options open, however, and retain
the right to buy or not to buy equipment
recommended by Mack. They may be inflat-
ing, in the early stages of the negotia-
tions, the amount they intend to purchase
in order to improve prospects for Mack to
obtain official approval of export licenses.
If export licenses are granted, however,
the Soviets almost certainly will purchase
a substantial amount of US-manufactured
plant equipment. The Soviets are particu-
larly anxious to procure American foundry
equipment and specialized machine tools
for automotive production.
5
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CHILE
The Allende government used some relatively
harsh tactics this week to accelerate movement to-
ward centralized control. On Monday, Economy Min-
ister Vuskovic told the Chilean Manufacturers' As-
sociation that 200 of the country's leading indus-
trial enterprises would be nationalized in the next
few weeks. When negotiations for the purchase of
14 major textile factories subsequently foundered
over the government's price offers, textile workers
occupied the plants. As a result, the government
has now requisitioned the factories in the name of
law and order.
The government's actions in this instance
are a warning of what could occur to the
186 enterprises yet to be nationalized.
? Allende gave the impression, in a long
meeting with US officials Wednesday, that
? he was prepared to take a tough stand
also toward US copper subsidiaries in com-
ing negotiations with such firms as Ken-
necott and Anaconda.
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NOTES
Argentina:
. Japan:, Tokyo. is bracing for a possible series
of protests by radical students against the :terms
of the Okinawa reversion agreement, which leftists
believe will not sufficiently reduce- US presence and.
activities :on the island.. Formal- announcement' of,
the terms ;is tentatively scheduled for sometime next
month. The first large demonstrations are planned.
for this Sunday (a date of no special significance)
and the police intend to mobilize lgun 0 . men- to cope
with -them.
Greece: Prime Minister PapadopoulOs has re-
lieved. the head of the army parachute . training school.
and six other officers because he suspected them of
planning a coup. /
I Once again, Papadopoulos has displayed an
ability to neutralize his opponents. Strains be-
tween him and various military officers are likely
to persist, but he has averted an immediate threat.
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