THE PRESIDENT'S DAILY BRIEF 14 MAY 1971

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005992647
• 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 14, 1971

?
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009500160001-5
The President's Daily Brief
14 May 1971
22
Tp Secret-
50X1 ,
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009500160001-5
I
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A0095.00160001-5
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
14 May 1971
PRINCIPAL DEVELOPMENTS
Sadat's continuing purge of possible rivals is dis-
cussed on Page 1.
Favorable Japanese reactions to a Communist Chinese
delegation may pave the way for a resumption of-,ex-
tensive contacts. (Page 3)
In response to the uncertain international monetary
situation, free market gold prices have risen to
their highest level since October 1969. (Page 4)
A clash with army troops may signal start of the
active military phase by Burmese rebels. (Page 5)
The influx of East Pakistani refugees is straining
Indian relief facilities and creating explosive new
tensions. (Page 7)
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009500160001-5
50X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T60936A009500160001-5
FOR THE PRESIDENT ONLY
EGYPT
The "resignations" announced yesterday in Cairo, in-
cluding Interior Minister Sharawi Goma, Minister for
Presidential Affairs Sami Sharaf, and War Minister
Fawzi, were augured in conflicting rumors of impend-
ing changes stimulated by the dismissal of Vice Pres-
ident AZi Sabri on 2 May. Goma, who controlled the
internal security services, and Sharaf, with exten-
sive connections in the Presidency, were considered
two of the most powerful men in the nation.
50X1
Al- 50X1
t oug severa o e 2,gures sepose. -bn exten-
sive shakeup cannot be characterized as leftists,
most do qualify in some way as people whose first
loyalty was not to Sadat. This suggests that Sadat's
basic aim was to dispose of critics and possible
rivals.
Also, the successful elimination of possible chal-
lengers would give Sadat more freedom in working
out the details of his attempted accommodation with
the Israelis. Only Ali Sabri and his associates
in the Arab Socialist Union are known to have openly
opposed negotiations, but Sadat has had very few ac-
tive supporters of his efforts. The need for loyal
subordinates to implement his diplomatic policies
and the prospect of sharper criticism if he fails to
produce early results may, therefore, also be factors
in the high-level purge. If he can neutralize the
ousted ministers, Sadat will be able to exert per-
sonal control over the affairs of the country and
deal with domestic and foreign problems in his own
way.
A start has been made in filling the vacated posts
with the announced appointment of a close Nasir as-
sociate, Mamduh Salim, as interior minister. Re-
cently appointed governor of Alexandria, Salim's
background in security work makes him technically
qualified to head the Ministry of the Interior.
Chief of Staff Muhammad Sadiq, the new minister of
war, is reputed to have broader support in the mili-
tary than did his predecessor.
(continued)
1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19: CIA-RDP79T00936A009500160001-5
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19: CIA-RDP79T00936A009500160001-5
FOR THE PRESIDENT ONLY
The boldness of Sadat's move indicates a high degree
of confidence in his ability to make the changes
stick. In this he appears to have been encouraged
by the response to his cultivation of the major mili-
tary commanders, who are reported to have given a
firm endorsement when he consulted them on AZi Sabri's
dismissal. The replacement yesterday of the lack-
luster General Fawzi may have been intended to gain
further favor with the military. A statement broad-
cast by Cairo Radio last night seemed designed to
generate broad civilian support for Sadat's actions
by implying that at least some of those ousted had
been plotting to impose "tutelage and domination over
the people" through "repression and terror."
Sadat will need all the support he can get; the men
he has dismissed have strong claims to Nasir's mantZe
themselves and some, notably Goma and Sharaf, have
had time to establish power bases of their own. The
statement Sadat is scheduled to broadcast today
should make clearer what he intends to do and how he
expects to go about it.
2
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009500160001-5
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79-10-0936A609500160001-5
FOR THE PRESIDENT ONLY
JAPAN - COMMUNIST CHINA
Wang Hsiao-yun, political leader of the Chinese
ping pong delegation which recently spent a month in
Japan, met with a wide variety of Japanese during
his visit. In addition to seeing Peking's well-known
friends in labor and the opposition parties, Wang
held unprecedented meetings with two leading con-
servative.aspirants for the prime ministership to
sound out their attitudes on relationswith China.
He also met with the chairman of. the Buddhist-based
Komeito party and with a Wide spectrum of business
leaders, ranging from textile industry leaders to a
Tokyo group close to Sato. The delegation extended
numerous invitations for unofficial visits to the
mainland. The Chinese avoided political subjects
and refrained from public attacks on the Sato gov-
ernment.
This skillful Chinese diplomacy has re-
sulted in a favorable public Japanese re-
action to the visit. It has further in-
creased pressure on Prime Minister Sato
to take a more positive stance on the China
issue. The way may now be open for a re-
sumption of extensive Japanese-Chinese
contacts.
3
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009500160001-5
_
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009500160001-5
FOR THE PRESIDENT ONLY
GOLD
Free market gold prices reached $41.30 per
ounce yesterday, the highest level since October
1969. Uncertainty regarding the future of the in-
ternational monetary system and recent purchases of
$422 million of US Treasury gold by the central
banks of Belgium, the Netherlands, and France are
contributing to the unsettled market.
These purchases bring the US monetary gold
stock to its lowest level since World War
II, covering less than one quarter of US
short-term liabilities to foreigners.
The increase of the free market gold
price, however, does not signal the im-
minent collapse of the two-tier system,
in which monetary authorities deal in
gold at $35 per ounce, but the free mar-
ket price is determined by supply and de-
mand. Until new German and Dutch currency
parities are fixed, however, the free mar-
ket price of gold probably will fluctuate
in an erratic manner.
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009500160001-5
Declassified in Part -Sanitized Copy Approved for Release 2016/07/19: CIA-RDP79T00936A009500160001-5
92 96
CHINA ? 1
0--
BHUTAN
LBrahmapt t ra
INDIA
BAY
OF
BENGAL
RAN.GOON*
Moulmei
Armed clash
Exile Troops Clash with Burmese Army
100 200
MILES
Myawadi
THAILAND
!6
Area of Rebel
Operations
BANGKOK*
v7ETZ"
$01.1#1I
IETNAM
Gill!' OF
THAIIAND
5 514 1 81
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19: CIA-RDP79T00936A009500160001-5
50X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T60936409500160001-5
FOR THE PRESIDENT ONLY
BURMA
Rebel forces of former prime minister U Nu
killed five Burmese Army troops near Moulmein on 5
May, while suffering only one fatality themselve
50X1
50X1
Since the first of the year, rebel bands
which have ranged through the remote bor-
der areas of eastern Burma have concen-
trated on recruiting and propaganda and
have generally tried to avoid military
contact. U Nu's forces may now feel ready
to open the oft-postponed military phase
of their pZans.
The military capabilities of U Nu's some
500 men under arms remain extremely lim-
ited. Nevertheless, continuing rebel
action around Moulmein- -whereantiregime
sentiment is still strong following the
forceful suppression of a student uprising
last November?could bring to life the
relatively subdued Burmese public inter-
est in U Nu's resistance movement.
5
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009500160001-5
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A609500160001-5
FOR THE PRESIDENT ONLY
50X1
50X1
50X1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009500160001-5
is
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009500160001-5
FOR THE PRESIDENT ONLY
NOTE
India-Pakistan: The influx of about two mil-
lion East Pakistani refugees has sorely strained
Indian relief facilities, and sharply rising food
prices in the border areas are antagonizing the
. local Indian population. New Delhi is concerned
that tension between the residents and the refugees
could lead to violence between Indian Hindus and
East Bengali refugees, many of whom are Muslim.
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009500160001-5
-
Declassified in Part- Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009500160001-5
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009500160001-5