THE PRESIDENT'S DAILY BRIEF 30 DECEMBER 1971

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993054
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: December 30, 1971

Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A010200260001-5
The President's Daily Brief
30 December 1971
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A010200260001-5
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A010200260001-5
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
30 December 1971
PRINCIPAL DEVELOPMENTS
Both the Lao Government and the North Vietnamese are
moving forces into position? for further action in
the north around Long Tieng, while in the western
panhandle the Communists may be preparing a new of-
fensive along Route 9. (Page 1)
President Sadat's latest speech backs away from the
idea of a decisive point in the Egyptian-Israeli
stalemate and keeps the door open to negotiations.
(Page 3)
In Yugoslavia, resolution of a dispute over foreign
exchange between the federal government and the
republics may help ease the situation in Croatia.
(Page 4)
Prime Minister Colombo's government in Italy has
a new lease on life, but still faces serious eco-
nomic and political hurdles. (Page 5)
The Chinese have resumed deliveries of MIG-19? fight-
ers to combat units after a hiatus of several months.
(Page 6)
FOR THE PRESIDENT ONLY
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LAOS: Plaine des Jarres
AREA OF
MAIN MAP
Vientiane
Na Kha
61
Nan' '(ha
Paksong
Bouam Longo
Ban Ban
Muong
Soui
Ban Nam,
Pakagn
Sam T
Defensive
Line
?Phou Pha Sai
Long Tien
Pha Dong
13
0
1,0 2 0 M es
10 io Kilometers
? Government-held location
? Communist-held location
a
-10` ?
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Declassified in Part - Sanitized Copy Approved for Release 2016/06/14: CIA-RDP79T00936A010200260001-5
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
30 December 1971
PRINCIPAL. DEVELOPMENTS
Both the Lao Government and the North Vietnamese are
moving forces into position for further action in
the north around Long Tieng, while in the western
panhandle the Communists may be preparing a new of-
fensive along Route 9. (Page 1)
President Sadat's latest speech backs away from the
idea of a decisive point in the Egyptian-Israeli
stalemate and keeps the door open to negotiations.
(Page 3)
In Yugoslavia, resolution of a dispute over foreign
exchange between the federal government and the
republics may help ease the situation in Croatia.
(Page 4)
Prime Minister Colombo's government in Italy has
a new lease on life, but still faces serious eco-
nomic and political hurdles. (Page 5)
The Chinese have resumed deliveries of MIG-19 fight-
ers to combat units after a hiatus of several months.
(Page 6)
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A010200260001-5
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A010200260001-5
AREA OF
MAIN MAP
Vientiane
LAOS: Plaine des Jarres
Jr
,.?
\r
1
7
6
Na Kha
61
Paksong
)
Bouam Longs \.,
Ban Ban
j
Muong
Soui
Pakagn
Sam T
Ban Na
Long Tien
Defensive
Line
Phou Pha Sal
Pha Dong
13
1,0 20M es
20 Kilometers
? Government-held location
? Communist-held lbcation
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FOR THE PRESIDENT ONLY
LAOS
The North Vietnamese are continuing their ef-
fort to get men and supplies into position for an
attack on the Long Tieng complex before the govern-
ment can regroup its forces and dig in. Air ob-
servers report heavy traffic on Communist infiltra-
tion trails into the area southwest of the Plaine.
Enemy units are in the Phou Pha Sai area and the
174th Regiment of the 316th Division remains near
Ban 'Na.- Captured documents indicate that the North
Vietnamese intend to employ their. 130-mm. field
guns to support a ground assault on the Long Tieng
complex. Priority efforts are being made to locate
these guns and destroy them by air strikes.
One government irregular force of 320 men is
moving three miles north of Sam Thong to take up
high ground positions near Pakagnaung. Two other
irregular battalions are moving to close the gap
in the defensive line at Phou Pha Sai. So far
neither group has met resistance. Six more bat-
talions are soon to be moved to Long Tieng--includ-
ing four more of the irregular units from Savannakhet
that have proved very effective in south Laos.
According to the US Embassy in Vientiane,
the introduction of 11 new battalions, as
well as the replacement of artillery weap-
ons and the prospect of additional rein-
forcements, have improved morale among
? Vang Pao's Meo forces. Troops are again
responding to direction and are moving
forward to take up positions in the de-
fensive line. Vang Pao will also be aided
by the transfer to Long Tieng of General
Thao Ly, until recently the irregular
commander in Savannakhet, who will direct
the eight Savannakhet battalions that will
be operating out of Long Tieng. Thao Ly
has been an unusually effective field
commander.
Farther south, Communist units appear to be
maneuvering into position near Dong Hene on Route
9 in the western panhandle. The town has been under
sporadic rocket attack for the last week and civil-
ians are said to have begun to leave the area. Air
observers have reported that Communist units appear
to have bypassed government blocking positions north
1
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
and south of Dong Hene. Patrol clashes have in-
creased near Seno, farther west along Route 9, and
enemy units may plan new raids against irregular
training sites north of that town. Lao Army com-
manders believe the North Vietnamese will take the
offensive to disrupt the Lao National Assembly elec-
tions scheduled for 2 January.
A North Vietnamese offensive along Route
?
9 would also create pressure for the re-
turn to Savannakhet of some of the bat-
talions sent to Long Tieng.
2
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
EGYPT
President Sadat, in his year-end policy state-
ment on 28 December, finessed his earlier deadline
for a.-"decision" in 1971. Instead, he stressed
that all resources were now being mobilized for the
"battle of liberating occupied territories."
Despite his reiteration of the theme that
hostilities are inevitable, Sadat's re-
fusal to be drawn-out on the timing of the
"battle" and his emphasis on the need for
further preparedness on the domestic front
represent thinly veiled reminders to the
Egyptian people that Egypt is not ready
to take on Israel.
In contrast: to his two particularly:tough':
speeches late last month, Sadat this time:focused-
more.attention on' the need to-pursue political ef-
forts-as well as to strengthen the armed forces,'
and he: dismissed. any idea of. abandoning diplomatic
moves. Although he repeated his assertion that
Washington's bias toward-Israel had -brought negoti-
ation's tp-a dead end, Sadatindicated that the'door
remains-open to "all diplomatic contacts."
3
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
YUGOSLAVIA
The federal government has agreed to allow the
constituent republics to retain a considerably
larger share of their foreign exchange earnings.
The accord will help to defuse the situa-
tion in Croatia, where the issue had be-
come intertwined with nationalistic as-
pirations that in turn Zed to the recent
purge of the republic's leaders. The
agreement should also lessen the resent-
ment of the economically advanced repub-
lics (Croatia and Slovenia) over their
large contributions to the development
of the poorer republics.
Resolution of this issue will provide a
real boost to the economy and is an im-
portant step toward long-term economic
liberalization. The advanced republics
will be able to import more up-to-date
technology, as they have Zong wished.
At the same time, the less developed
regions are guaranteed a "special place"
in the new foreign exchange system. The
agreement has yet to be promulgated into
law.
4
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
ITALY
The government of Prime Minister Colombo, whose
pro forma resignation was rejected yesterday by Pres-
ident Leone, is still facing serious hurdles in both
the economic and political spheres.
--Strong inflationary pressures persist, while
the economy shows no signs of recovery from a
fall-off, 'of production and slack investment.
--Colombo remains under pressure, especially
from organized labor, for reforms he considers
untimely.
--The smaller parties allied with his Christian
Democratic party in the center-left coalition
have been threatening a showdown on policies
and perquisites following the presidential elec-
tion.
ColombO.is likely to meet the 'economic
problem by speeding up the release of
public works funds and increasing invest-
ment in state enterprises. Although he,
will implement social reforms-that'have
already been approved, he,will be hesitant
to Commit: funds for additional reforms in
view of continuing inflation.
The small Republican Party is especially ada-
mant that any new reform legislation,be dependent
on assured financing.
the party may bolt. the center-left-bloc this week,
whichcould prepipitate a crisis:
The Colombo government must.balance such
demands against those of the Socialists,
who are closer to the Communists and favor
faster reform than the other members of
the. center-left bloc. The, gap. between, the
Socialists' andChristian Democrats has.
widened' further as a result' of the presi-
dential,balloting, but the Socialists-are
unlikely to want to pull out of the govern-
ment?at,least before their party congress
in late February.
FOR THE PRESIDENT ONLY
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Communist China: MIG-19 Delivery Flights Resume
MONGOLIA
At least 60 M I G-19s
departed in Dec.
Shen-yang\i?
Some MIG-19s
apparently delivered
Huoog
,PAK.
?
YEW)
SEA
n-chou
hanghai
Wu-han
.Lhasa
NEPAL
EAST
CHINA
SEA
INDIA
BHUTAN
PAKISTAN
BURMA
NORTH
VIETNAM
600 Xtlomete
CULP
TONKIN
SOUTH CHINA SEA
TAIWAN
PHILIPPINES
552368 12-71 CIA
96
THAILAND
1C,S
HAINAN
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FOR THE PRESIDENT ONLY
COMMUNIST CHINA
deliveries
to combat units of new MIG-l9 fighters are resuming
after a,hiatus Of several months. Our evidence in-
dicates that at least 60 of the new aircraft have
leftthe Shen-yang plant sO far this month.
Delivery flights have generally Zagged
this year, and this, along with record'
production.. rates has resulted in a. large
accumulation of new aircraft at production
facilities- The backlog consists primarily
of some 600 MIG-19s and 100 F-9 jet fighter-
bombers. (The F-9 is an aircraft of native
Chinese design) With production of new
MIG-19s continuing at a rate of about 50
a month, a high rate of deliveries for up
to a year may be needed to disperse the
backlog.
Some 17 of the MIG719s delivered this month
apparently went to western China. Their
ultimate, destination may be Pakistan,.
at Ho-tien, the west China field
previously used for such deliveries.
6
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FOR THE PRESIDENT ONLY
NOTES
International Monetary Developments: The US
dollar has strengthened in nearly all major markets,
forcing some central banks to intervene to prevent
the dollar from exceeding its newly established ceil-
ings. The heaviest trading of dollars has occurred
in Japan, followed by France, Canada, and the UK.
Some of the reacquired dollars have been invested in
the US. The remainder have returned to the Euro-
dollar market. A larger switch into dollars is ex-
pected early next year after many international cor-
porations complete their year-end bookkeeping. Prob-
ably as much as $10 billion will flow from foreign
markets back to the US over the next few months.
UK-Malta: London announced yesterday that it
was beginning preparations. to-withdraw its forces
from Malta in response to Prime Minister Mintoff.'s:.
ultimatum.. The British have informed Mintoff, how-
ever, that the withdrawal--involving some 3,500-mili-
tary and, about 7,000 dependents?cannot be completed
by his deadline ofl'January. London-still hopes
thati-lf the pull-out can.. be stalled sufficiently,
the Maltese will become more aware of. the economic
consequences and force- Mintoff to reconsider.. Min-
toff, who appears to have the full support of his'
cabinet, is already taking his case to:the public
vigorously, and formal opposition-will be hampered
by the fact that the parliament is not currently in
session.
7
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\
Top Secret
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