THE PRESIDENT'S DAILY BRIEF 21 AUGUST 1971

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005992817
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: August 21, 1971

Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
The President's Daily Brief
21 August 1971
4 6
51DX1
7-7orS-emae.L,_
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
21 August 1971
PRINCIPAL DEVELOPMENTS
LSoviet/
China,
IPage
Presentation of new. US ABM proposals is expected to
quicken the pace of SALT. (Page 3)
Our latest assessment of international economic de-
velopments is given on Page 4.
There are indications that Sudanese-Soviet tensions
may be easing. (Page 5)
/Israel/
(Page 6)
In Bolivia, time appears to be running out for Torres
as the rebels gain control of most provincial cities.
(Page 7)
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
50X1
50X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
FOR THE PRESIDENT ONLY
USSR-US-CHINA
(continued)
1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
50X1
50X1
50X1
50X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
FOR THE PRESIDENT ONLY
2
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
50X1
50X1
50X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
FOR THE PRESIDENT ONLY
SALT
The pace of the talks seems bound to quicken with
the new US ABM proposals presented by Ambassador
Smith yesterday. (It allows for either side to
choose between two 100-launcher sites protecting
ICBM fields and one 100-launcher NCA defense.) There
is not much reporting as yet on Moscow's reaction,
but the Soviets have clearly been hoping for US move-
ment to a two-and-one ABM plan, and their earlier
remarks provide some clues as to what might be ex-
pected.
On 11 August Timerbaev and KishiZov had volunteered
the information that their delegation had come to
Helsinki prepared to deal with a possible two-and-
one Safeguard/Moscow proposal. Their remarks indi-
cated that, in discussing such a plan, they might
well press for an equal number of interceptors.
Kishilov has also stated that if the US wishes two
sites, it will have to be on .a "two-and-two" basis.
Moscow could initially counter with either of these
lines.
The Soviet proposal of 10 August which allowed for
US protection of one "administrative-industrial"
site in return for the Moscow NCA system indicated
at least a willingness to accept the principle of
protection of dissimilar targets. Earlier, the So-
viets had refused to do this.
The US offensive arms limitation proposal tabled on
27 July has not yet been discussed in depth. Semenov
has made an effort to assuage US concern about this,
but it is clear that the Soviets would like to nail
down something on ABMs before going on to offensive
discussions.
There are additional indications that Moscow will
balk at the freeze on SLBMs proposed in the US draft.
Timerbaev, KishiZov, and Semenov have all stated that
this should not be a subject for treatment in an in-
terim accord, and should be dealt with in a future
offensive limitations agreement. In an effort to
drive home Moscow's seriousness on this point, Tim-
erbaev threatened that "the question of FBS would
arise" if the US insisted on including SLBMs in the
freeze agreement. Semenov made a less direct threat
along, the same lines.
3
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
FOR THE PRESIDENT ONLY
INTERNATIONAL ECONOMIC DEVELOPMENTS
Most Japanese businessmen now feel some adjust-
ment in the ven-dollar nArify iq
the Japa-
nese overnmen wou e 0. ry to tie?yen revalua?
-
tion to a reduction, or elimination, of the ten-per-
cent import surcharge imposed by?the US. In other
financial developments, heavy, dollar selling resumed
on the Tokyo foreign exchange market this morning
amid reports that exchange controls might be further
tightened. The Bank of Japan purchased about $2.3
billion to maintain the yen-dollar rate from 16
through 20 August. Also the Tokyo stock market was
again down. this morning, reversing a brief upsurge
on Friday.
All the major European foreign exchange markets
are expected to reopen on Monday. As a result of the
failure of the European Community (EC) council to
agree upon a common position yesterday, each govern-
ment will follow independent policies with respect
to its own foreign exchange market. For example, .
West Germany will resume floating its currency, and
France will introduce a dual rate system. The EC'
countries, however, have.pledged to minimize the ex-
change rate fluctuations among their currencies and.
although Some disruption of.commerce and finance is
unavoidable., it is not likely, to be serious enough
to force an early solution.
These make-shift arrangements are expected to
prevail at least until 13 September when the EC fi-
nance ministers again will seek to resolve their dif-
ferences. Two days? later, the Group of Ten key West-
ern industrial nations will gather to discuss the
broader, need for exchange rate adjustments and other
reforms to the monetary system.
The members of the EC now are turning their at-
tention to the US import surcharge, which GATT will
take up next week. the
Belgians, French, and possibly the Italians, are
disposed to take a hard line against the surcharge,
while the attitude of the Dutch will depend on
whether it believes itis:administered in a discrim-
inatory way. /
4
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
50X1
50X1
50X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
FOR THE PRESIDENT ONLY
SUDAN USSR
The period of bitter mutual recriminations
touched off by the execution of leftist coup leaders
and three top local Communists last month may be
coming to an end. Both countries appear to be edging
toward more normal--although still cool--relations.
Sudanese spokesmen have stressed recently. that Khar-
toum does not wish to perpetuate the state of hos-
tility with Moscow and that trade agreements with
the USSR and Eastern Europe would be honored. Some
Soviet military advisers are reported to be resuming
their activities, Icurtailed since the coup.
On the Soviet2sidei.critical:comments in; the
Soviet:press have subsided and the Soviet ambassador,
in. returned to Moscow for reassignment,
presumably as a further- gesture to appease Numayri.
Sober reflection presumably has persuaded
Numayri that he could not sacrifice vital
Soviet military aid and advisory programs
to emotions of the moment. The Soviets,
for their part, have apparently decided
that abandonment of their efforts to de-
fend local Communists is an acceptable
price to pay for recovery of their posi-
tion in Sudan.
5
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
FOR THE PRESIDENT ONLY
ISRAEL-USSR
6
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
50X1
50X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
FOR THE PRESIDENT ONLY
BOLIVIA
Nearly all of the important military units out-
side La Paz have now joined the rebels and Torres
retains the backing only of leftist labor and stu-
dent elements and major air force units in the cap-
ital. The army units in La Paz--whose support is
essential for the cou 's success--have remained un-
committed
Little fighting has been reported as the rebels
have extended their control from city to city, but
serious clashes could occur if troops move on La
Paz. Several truckloads of miners armed with rifles
and dynamite arrived in La Paz yesterday, according
to press reports/
The rebels apparently have no clear plans
for governing the country. Although rebel
leaders in Santa Cruz yesterday proclaimed
former Colonel Hugo Banzer--a prime organ-
izer of the rebellion--president of Bolivia,
it is far from certain that he will assume
the presidency in the event Torres is de-
posed. Banzer was reported to have been
captured in the early stages of the rebel-
lion and other military leaders have taken
over, the direction of the rebel movement.
Leaders of the Bolivian Socialist Falange
and the center-left National Revolutionary
Movement have also played major roles in
the rebellion and presumably would have
important positions in a successor. govern-
ment.
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
50X1
50X1
Declassified in Part- Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180-001-0
FOR THE PRESIDENT ONLY
NOTES?
Ceylon: The ?overnment has res onded to recent
coup rumors
and to increased insurgent activity, by
tightening security around Prime Minister Bandara-
naike and by extending the curfew to key towns in
outlying areas./
Pakistan: Yahya has told,Ambassador Farland'
that he plans to remove: Military, Governor_ Tikka Khan
about 'l September and appoint A. M. Malik, a Bengali
civilian, as governor of East Pakistan. Tikka--known
as the "Butcher of- Baluchistan" for his part in sup-
pressing a.tribal rebellion in West Pakistan?is
generally regarded as the person most tp blame for
army brutality in the East Although,Malik, the
Refugee Coordinator in the.East:Wing, has been de-
scribed as:a tired old man, his appointment should
at least lessen some of.. the foreign. criticism' of
Yahya's,policies in the East..
rrqc-P.
8
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
50X1
50X1
50X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009800180001-0