THE PRESIDENT'S DAILY BRIEF 7 SEPTEMBER 1971

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005992849
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 6
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: September 7, 1971

Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009900070001-1
The President's Daily Brief
7 September 1971
8
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
7 September 1971
PRINCIPAL DEVELOPMENTS
Major international economic developments are re-
viewed on Page 1.
A spectacular prison break by more than 100 terror-
ists has severely undermined public confidence in
the government of Uruguay. (Page 2)
Serious frictions may be developing among the rulers
of Sudan. (Page 3)
Malta's Prime Minister has rejected Britain's latest
offer. (Page 3)
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009900070001-1
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FOR THE PRESIDENT ONLY
INTERNATIONAL ECONOMIC DEVELOPMENTS
The week opened with only minor adjustments
among exchange rates on markets in Europe. Inter-
vention by the Bank of Japan maintains the yen about
six percent above parity.
European officials are alerting the public
not to expect a quick resolution of the
monetary problem. Their motive seems to
be to avoid a series of increased expecta-
tions and subsequent disappointments.
Soundings that may lead to a least common
denominator reaction to US moves will be
sought at many meetings between European
states scheduled this month as well as in
the ad hoc consultations taking place in
the wake of the Group of Ten meeting last
week.
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For the
time being, market uncertainties will keep
international commercial transactions at
a reduced level. Sales of ships on the
London market, for example, are reported
to be at a virtual standstill. As time
passes, however, the postponement of nor-
mal trade will result in pressure on gov-
ernments to move toward a settlement.
The Latin American economic grouping--bemoaning
the status of less developed countries "left out" of
world councils on topics affecting them--has drafted
an appeal to the US cataloging its concern over the
import surcharge and potential foreign aid cuts.
These countries have also proposed a restructuring
of the world monetary system. In the meantime, they
wishy their interests to be protected by the addition
of a Latin American representative to the Group of
Ten.
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
URUGUAY
The mass escape from prison on Monday of 106
Tupamaro terrorists has severely undermined public
confidence in the administration of President Pa-
checo. The smoothly organized tunneling operation
may have had the assistance of prison guards. A
similar tunneling effort earlier this year failed
only because of the effects of heavy rains. The
latest escape follows the mass breakout of 37 female
members of the band in July as well as the success
of yet another of the group's leaders in walking
away from jail by using a simple ruse.
The shocked'polide seem to be in a state
of- ineffective rage. Pressures, will grow
on. Pacheco to impose strict extraconstitu-,
tional controls-in-an attempt to counter
the terrorists; who are believed by many-
to'be,an imminent threat to the security.
of the nation, Earlier-this year, frus-
tration at- the ineffectiveness of the
government's efforts to bring.the Tupamaros-
to. heel Zed to the formation-of counter-
terror unitsin the security forces Now
their-extralegal activity is likely to
increase., At the same time; the already
formidable capabilities of the terrorist.'
group-have been-improved with the escape
of a number: of-its -top- leaders. Political
violence.can_be expected to become'more
common, especially because this is -an-
election year.'
President Pacheco is running for re-election
in November, primarily on a law-and-order
platform. His campaign has suffered a
disaster, and he and his Colorado party
are already under attack from the opposing
left-wing electoral coalition, the Frente
Amplio. Only the implementation of rapid
and uncharacteristically efficient counter-
measures will restore any degree of public
confidence that the administration is ca-
pable of meeting the problems posed by the
Tupamaros. Such measures, however, do not
appear to hemn the offing, and in the
short term, the government will probably
follow a familiar script, considering
cabinet and other resignations, as well
as imposing emergency security measures
to tighten controls on the media and the
population.
2
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FOR THE PRESIDENT ONLY
NOTES
Sudan: Serious frictions may be developing
between Prime Minister Numayri and two key members
of the Revolutionary Command Council. One of them,
the minister of interior, is said to oppose Numayri's
plan to dissolve the council and to install himself
as president with full executive authority. Perhaps
associated with this situation, there are rumors
circulating in Khartoum that an attempt to assassi-
nate Numayri?may be made before the presidential
election on 15 September. There are allegations
that two attempts already have been made on Numayri's
life since his return to power in late July.
? Malta: Mintoff has rejected London's latest
negotiating proposal and demanded that Heath come
to Malta with a more generous one. British offi-
cials in London indicate that the Prime Minister
will not go, and stress the generosity of the UK-
NATO package, which has now edged up to about
$22.2 million. A speech by Mintoff on Saturday
still appeared to leave room for an agreement with
Britain, but he could use the occasion of Malta's
current week-long National Day observance to an-
nounce acceptance of Libyan or even Soviet finan-
cial assistance instead.
FOR THE PRESIDENT ONLY
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Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009900070001-1