THE PRESIDENT'S DAILY BRIEF 25 OCTOBER 1971

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005992936
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: October 25, 1971

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Declassified in Part - Sanitized Copy Approved for Release 2016/07/18 : CIA-RDP79T00936A010000220001-1
The President's Daily Brief
25 October 1971
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THE PRESIDENT'S DAILY BRIEF
25 October 1971
PRINCIPAL DEVELOPMENTS
Armed clashes along the Indian-East Pakistani bor-
der continue, but there are also signs that tensions
may be easing a bit. (Page 1)
Communist China
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Cambodia has announced economic reforms, clearing
the way for a US aid grant, as well as the creation
of an international exchange support fund. (Page 3)
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Soviet
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INDIA-PAKISTAN
incidents along the border
between East Pakistan and India continue perhaps at
an increasing rate.
On Saturday Indian officials confirmed
that all of India's 700,000 army reserves were being
called up, as well as selected navy and air force
reserves.
Of the army reserves, only some 44,000 are
sufficiently trained and equipped to be
considered useful in the near future.
Against this background, a few hopeful
straws in the wind have appeared. Mrs.
Gandhi's brief speech to the nation on
the eve of her departure yesterday for a
three week foreign trip was relatively
mild. T. N. Kaul, the senior Foreign
Ministry civil servant accompanying her,
told US Charge Stone yesterday that ten-
sion had eased somewhat in the last few
days.
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COMMUNIST CHINA
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CAMBODIA
Finance Minister Sok Chhong has announced re-
forms to stabilize the economy and check inflation.
The key elements are liberalization of imports and
abandonment of the official exchange rate of 55
riels per US$1 in favor of a flexible rate. The
program also encompasses cuts in spending, higher
tax rates, stronger credit controls, and .a possible
relaxation of price controls.
Implementation of the reforms will clear
the way for .a $20-minion US cash grant
needed to bolster Cambodia's critically
low foreign exchange reserves. Action
on the reforms is also considered more
or less a prerequisite to obtaining for-
eign contributions to an international
exchange support fund now under consid-
eration. Cambodian officials hope to
complete plans for the fund at a donors'
meeting in early November.
The reforms will be unpopular in some
circles. Sok Chhong is said to have re-
ceived a chilly reception from a group of
Phnom Penh businessmen when he announced
the new stabilization measures. Some of
the audience were applauded when they
berated Chhong for the increased prices
that the program will cause at first.
The government has also announced the general
thrust of press censorship to be applied during the
present "state of emergency." Articles need not be
submitted for review before publication, but the
regime has warned that if it considers any article
inimical to government interests or as giving solace
to the Communists, the offices of the offending pub-
lication will?be closed. Moreover, those responsible
for publishing such articles will be subject to trial
by a military tribunal.
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CYPRUS
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NOTE
USSR: The Soviets are expending much scarce
hard currency to buy large amounts of Western grain
for delivery through mid-1972. Contracts so far
this year amount to $300 million. Even though this
fall's harvest has been very good, Soviet trade rep-
resentatives are dickering for another $200-300 mil-
lion worth of Western feed grains, apparently to in-
crease the production of meat. Should these deals
go through, Moscow may need to sell some gold if it
intends to maintain purchases of industrial goods
incorporating advanced western technology, at recent
levels.
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