THE PRESIDENT'S DAILY BRIEF 2 SEPTEMBER 1971

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005992839
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: September 2, 1971

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The President's Daily Brief
2 September 1971
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THE PRESIDENT'S DAILY BRIEF
2 September 1971
PRINCIPAL DEVELOPMENTS
On Page 1 we comment on the unusual number of foreign
trips that top Soviet leaders will be making over the
next few months.
The latest satellite photography of the Soviet mis-
sile test center at Sary Shagan showed what appears
to be a new ABM canister mounted on a new type of
support vehicle. (Page 3)
Removal of Ky's name from the ballot means that the
South Vietnamese presidential election will in ef-
fect be a referendum on Thieu's leadership. (Page 4)
South Vietnam's Lower House elections went fairly
well for Thieu, but he still faces some rough polit-
ical sledding against opposition elements. (Page 6)
The latest international economic developments are
discussed on Page 6.
Lanusse is dispatching a personal envoy to Washing-
ton to discuss Argentina's desire for massive finan-
cial assistance. (Page 7)
/South Korea
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USSR
Top Soviet leaders will be making a number of
foreign trips over the next few months.
--Gromyko will visit the UN in mid-September.
According to Ambassador Dobrynin, Gromyko has
no firm dates in mind since he would like to
"coordinate" his stay in New York with Secretary
Rogers' plans.
--Gromyko is coming to Washington 29-30 Septem-
ber.
--Brezhnev will go to Yugoslavia in late Septem-
ber.
--Podgorny is to visit Hanoi in early October,
and will attend the Shah of Iran's gala in
Teheran on 14-15 October.
--Kosygin will be in Canada from 18-26 October;
this trip will also take him to other countries,
among them Algeria.
--Brezhnev and Podgorny will go to France at
the end of October.
--Kosygin is slated to visit Norway in the first
half of December.
Most of these trips have been in the plan-
ning stage for several months and reflect
a wide variety of policy objectives. Sev-
eral apparently are related to a Soviet
effort to inject new life into their di-
plomacy as? a means of countering Peking's
growing international stature. There are,
in fact, reports that several of the coun-
tries on the Soviet itineraries will also
be hosting delegations from Peking soon.
The last time we observed a similar pen-
chant for travel was in January 1966, when
Brezhnev, Kosygin, and SheZepin were re-
spectively in Ulan Bator, Tashkent (to
mediate the Indo-Pakistani crisis over
Kashmir), and Hanoi. Their common goal
at that time was to strengthen Moscow's
position in countries near China.
(continued)
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Related to the Soviet desire to counter
the Chinese is Moscow's interest in demon-
strating an ability to pursue various mat-
ters of substance with the US while imply-
ing that such matters outwei h Sino-Ameri-
can issues.
In the course of their visits the Soviet
leaders will certainly try to line up sup-
port for various Soviet proposals relating
to European security matters. They have
been quick to conclude their travel plans
after progress was achieved on Berlin?the
problem which in the past has blocked the
forward movement of Soviet policies in
Western Europe.
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USSR
The latest satellite photography of the Sary
Shagan missile test center showed what appears to
be a new ABM canister mounted on a new type of ABM
support vehicle. The canister and vehicle were pho-
tographed at a facility where testing of a new large
ABM has been under way since last fall.
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SOUTH VIETNAM
The removal of Vice President Ky's name from the
presidential election ballot means the election will
in effect be a referendum on Thieu s leadership.
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/Thieu may
clarify his intent in a national television appear-
ance in the next day or so.
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SOUTH VIETNAM
The government, which weathered last Sunday's Lower
House elections fairly well, still faces some rough
political sledding against opposition eZements. It
seems likely that, as in the past, Thieu will be
able to muster enough support in the House to secure
passage of all but the most controversial of his
legislative requests. Thieu says that about 60 per-
cent of the deputies will support him. Only a minor-
ity of the incumbents won re-election, however, and
the political affiliation of about a fifth of the
new deputies is unclear. Hence, the actual politi-
cal Zine-up will not be certain until after the
House reconvenes in the fall.
Political opposition in the Lower House centers on
about 25 deputies associated with the An Quang Bud-
dhists and may be somewhat larger and more cohesive
than in the past. Some of the militant Buddhists
charge that Big Minh 's withdrawal from the presiden-
tial race discredited the entire election process
and justifies demonstrations and other extralegal
antigovernment activities.
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INTERNATIONAL ECONOMIC DEVELOPMENTS
The slowly appreciating yen closed about six
percent above the old yen-dollar parity in relatively
stable trading yesterday. Japanese financial author-
ities have imposed stringent new controls on the for-
eign exchange operations of commercial banks to limit
fluctuation in the foreign exchange market.
Moscow is maintaining the ruble-to-dollar rate,
making it necessary to take account of the changing
rates of exchange between the dollar and other for-
eign currencies.
This adjustment of the ruble against other
major hard currencies announced yesterday
will not affect either the international
monetary situation or Soviet foreign trade.
The ruble, a nonconvertible currency, is
essentially a bookkeeping device. As such,
its devaluation will serve only to trans-
late correctly into rubles the value of
Soviet trade conducted in hard currencies.
The deputy finance ministers from five European
Community (EC) countries and the US, UK, Canada,
Japan, and Sweden will convene tomorrow to discuss
multilateral currency realignment prior to the plan-
ned meeting ?of the Group of Ten's finance ministers
in London in mid-September.
The EC Monetary Committee will meet in Brussels
today to prepare for the deputies' meeting, but bi-
lateral talks between West Germany and France have
failed to bring agreement and this will inhibit
progress toward a common position.
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ARGENTINA
President Lanusse is dispatching a personal
envoy to President Nixon in an apparent effort to
present his case for US support of his government
in the form of $500-600 million in financial as-
sistance.
Lanusse ?has requested such assistance
through embassy channels on several oc-
casions in the past two months but has
dismissed suggestions that he turn to
multilateral sources--such as the Inter-
national Monetary Fund--apparently in
the belief that he need only present his
case strongly enough to obtain what he
wants. His rationale is that Argentina
serves US interests in the southern part
of Latin America where it is a force for
stability in an area that includes the
Marxist-governed ChiZe, an unsettled
Uruguay, and chronically unstable Bolivia,
and that the US should, therefore, be
willing to help bail the Lanusse govern-
ment out of its current economic diffi-
culties.
The envoy, Dr. Ismael Bruno Quijano, a well-
known international lawyer, would tell Ambassador
Lodge only that the message he carried was of
"transcendental" importance. He said that Lanusse
was approaching a decisive period that will deter-
mine Argentina's future orientation and interna-
tional alignment and that he wanted President Nixon
to be fully apprised of these vital decisions.
Other matters that Quijano may hope to
discuss in Washington are Argentina's
request for exemption from the ten-per-
cent import tax and the China problem.
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NOTES
South Korea - USSR;/
Pakistan: By appointing A. M. Malik, a Ben-
gali a7TITEF, as governor of East Pakistan, Yahya
clearly hopes to improve prospects for Bengali co-
operation with the government and to lessen foreign
criticism of his East Pakistan policy. The out-
going governor and martial law administrator, Lieu-
tenant General Tikka Khan, is a West Pakistani who
has been the focus of charges of army brutality.
His successor as martial law administrator, how-
ever, is the army commander in the east who has
had even more direct authority over the troops.
Yahya, in any event, will retain ultimate control.
Pakistan:(
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Top Secret
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