THE PRESIDENT'S DAILY BRIEF 19 JANUARY 1973

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0005993720
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RIPPUB
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T
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17
Document Creation Date: 
August 14, 2016
Document Release Date: 
August 24, 2016
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Publication Date: 
January 19, 1973
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Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T06936A011500010016-2 The President's Daily Brief a 19 January 1973 45 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 Exempt from general declassification schedule of E.O. 11652 exemption category 5B( I declassified only on approval of the Director of Central Intelligence Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 FOR THE PRESIDENT ONLY THE PRESIDENT'S DAILY BRIEF 19 January 1973 PRINCIPAL DEVELOPMENTS French President Pompidou's electoral coalition is still trailing the Communist-Socialist alliance in the opinion polls. (Page 2) At Annex we ex- amine the current state of the campaign. On Page 3, we report on Chancellor Brandt's second inaugural address. The implications of the Soviet and East European response to the Western invitation for talks on force reductions are examined on Page 4. Moscow is still trying to enhance its influence in Laos. (Page 5) Singapore (Page 6) Peru may begin buying Soviet military equipment on generous credit terms. (Page 7) FOR THE PRESIDENT ONLY Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 25X1 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 FOR THE PRESIDENT ONLY NORTH VIETNAM FOR THE PRESIDENT ONLY 1 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 `25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 FOR THE PRESIDENT ONLY FRANCE With the first round of the National Assembly elections little more than six weeks away, the polls still show the Pompidolian coalition behind the Com- munist-Socialist alliance. The. governing coalition-- though outwardly confident--is off to a slow start as it casts about for ways to improve its prospects. At this stage, it looks like President Pompidou will get something less than the clear-cut personal affirmation which a strong coalition victory would bring him. he is resigned to the loss of some hundred seats in the Assembly, which would leave the coalition with only.a small majority. He fears that a last-minute "whim" of the voters could even result in defeat for the coalition. At Annex we examine .the current state of the campaign. 2 FOR THE PRESIDENT ONLY Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 25X1 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 FOR THE PRESIDENT ONLY WEST GERMANY Chancellor Brandt Made his second inaugural address yesterday, stressing that the Atlantic Al- liance remains the basis of West German security and that a US presence is indispensable for Europe. Brandt turned aside strong pressures to criticize American conduct, in Vietnam, but confirmed that he is prepared to aid both parts of Vietnam after. a cease-fire. The Chancellor would like to see the powers of the European Parliament broadened, and suggested that his government will work for full European political union. Brandt prophesied that with "te- nacity and a sense of purpose" detente could be- cornea reality. In this context, he said that West Germany will improve relations with the USSR and Eastern Europe, placing priority on reconcilia- tion with Czechoslovakia, Hungary, and Bulgaria, but also seeking new areas of cooperation with East Germany. Brandt listed European inflation and interna- tional monetary reform as two international prob- lems having a serious domestic impact. He avoided offering specific solutions to these problems or to any others, perhaps recallinghis first inaugural speech, when he offered specific legislative pro- posals that later failed to pass in the parliament. 3 FOR THE PRESIDENT ONLY Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 FOR THE PRESIDENT ONLY USSR The USSR and its allies, in agreeing to take part in talks on force reductions in Europe, have added that the talks should be open to "other Eu- ropean states that indicate an appropriate inter- est." The Hungarian official who presented his government's note made it clear that this formula- tion ?does not exclude neutrals. This position, reached during the Warsaw Pact meetings earlier this week, should meet Romania's desire for broad partici- pation in the talks and places the burden on the West for excluding any interested European state. The Warsaw Pact proposals on participation apply, as do the Western proposals, only to the forthcoming preparatory talks, not the actual negotiations planned to get under way next autumn. The Pact countries proposed Vienna as the site for the preparatory talks whereas the West had put forward Geneva. Most Western countries are not likely to object to Vienna, and some prefer it because other disarmament talks are being held in Geneva. 4 FOR THE PRESIDENT ONLY Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 \ ,..-0',.- ? A. 1,9 ?,...? i I / ' . l...1, wan Nape Iti Quong Khe Dong Hoi 0 25 50 Mites Derniliio,ized Zone Qucing Tri e Ban angvai jtipcf- 0. ? . - gov ment force Hue THAILAND VIETNAM Kontum CAMBODIA (AC 554020 1-73 CIA CGovernment-held location OCommunist-held location 25X1 Declassified in Part: Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T009-36A011500010016-2 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 FOR THE PRESIDENT ONLY LAOS Following the latest Lao negotiating session on 16 January, Soviet Counselor. Grushin called at the US Embassy for a review of the talks. He said that Moscow expects a Vietnam "settlement" to be announced in the near future and that this would lead to "an early cease-fire" in Laos. He noted the absence of an attack on Prime Minister Souvanna Phouma in the latest Communist statement at the talks, and he implied that his embassy had some- thing to do with this. Grushin also suggested that it would be useful for the US and Soviet embassies in Vientiane to maintain substantive contact, "now that the contest is being transferred from the bat- tlefield to the negotiating table and eventually into the political arena." The Soviets recently have been seeking to improve their relations with both the government and the Communists. They ap- parently see fresh opportunities in the current situation to enhance their limited influence in Laos vis-a-vis that of the Chinese and the North Vietnamese. Meanwhile military activity is continuing at approximately the same level of the past several weeks. On Wednesday, enemy ground attacks and shellings dispersed two government battalions from positions some 15 miles, southeast of Thakhek, a provincial capital. This action May be designed to divert government attention while other North Vietnamese forces to the east complete their preparations for a push along Route 9 to retake Muong Phalane. .::Farther south, lead. elements of a 3,000-man government force are Moving back toward the pro- vincial capital of Saravane, from which they were ousted last week. Opposition has been light so far, but 'is" likely to increase as the government force nears the town Despite heavy air strikes, the North Vietnamese 968th Division and an anti- aircraft regiment remain in the area and there are indications that another regiment recently ar- rived there from North Vietnam. FOR THE PRESIDENT ONLY Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 FOR THE PRESIDENT ONLY SINGAPORE - SOUTHEAST ASIA FOR THE PRESIDENT ONLY Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 FOR THE PRESIDENT ONLY PERU-USSR The Soviets are making a strong pitch to sell military equipment to the Peruvian Government. Pros- pects are strong that the Peruvians will buy four Soviet MI-8 helicopters. The Soviets are said to be offering generous credit terms for this and other military equipment in a bid to conclude their first military sales in South America. Soviet interest in Peru is also evident in the impending signature of contracts for new Soviet economic aid and the re- cent Soviet agreement to assist in pre- paratory work for the huge OZ-mos hydro- electric and irrigation project in north- ern Peru. Peru's access to US military equipment has been thrown in doubt since 12 December, when the seizure of a US fishing boat caused suspension of Peru's eligibility under the Foreign Military Sales program. Since then Peru seems to have declared open season on US tuna boats operating within its claimed 200- mile territorial sea. 7 FOR THE PRESIDENT ONLY Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 FOR THE PRESIDENT ONLY THE FRENCH ELECTION CAMPAIGN The Gaullist party, faced with its first cam- paign without de Gaulle, confronts a real challenge from the Communist-Socialist-left Radical alliance in the National Assembly elections scheduled for 4 and 11 March. Except for inflatiop, on which the government is clearly vulnerable, neither side has been able to find a campaign issue that has caught fire with the electorate. The government, plagued by 18 months of scandals and internal dis- sension and now handicapped by lackluster campaign- ing, is off to a slow start. The left, in con- trast, has put on a good show of unity in the last several months and has managed to capture the head- lines on more than one occasion. These factors, coupled with the news that retail prices rose in November at the highest rate since January 1969, drove the Pompidolians to a new low--and the left to an eight-point lead--in polls taken early last month. While the most recent poll shows the gap has narrowed, the governing coalition has a number of difficulties to overcome in retaining control of the National Assembly. The Gaullist Coalition President Pompidou's ouster of controversial Jacques Chaban-Delmas as premier last June in fa- vor of Gaullist purist Pierre Messmer gave the coalition a greater sense of cohesion, but rifts remain and sometimes come into the open. In De- cember, for example, it became clear that relations among the heads of the three parties--the Gaullist Union of Democrats for the Republic, the Independ- ent Republicans, and a small centrist party--were growing more acrimonious. Gaullist party chief Alain Peyrefitte came under heavy fire for his in- ability to make decisions and his lack of vision in planning election strategy. Pompidou was forced to intervene personally to warn party leaders against narrow partisanship in the face of growing support for the united left. Despite this admoni- tion, it took weeks of semi-public wrangling for the coalition to agree on single candidates in most of the election districts. While the lion's share of those selected are members of the Gaullist party, the lineup represents a more equitable dis- tribution than in previous years. More importantly, the agreement means the right will pose a single opponent to the left in some 433 electoral districts out of 490. (continued) Al FOR THE PRESIDENT ONLY Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 FOR THE PRESIDENT ONLY Sticky charges of corruption among the Gaul- lists are another cause of friction within the co- alition. In early September, the latest scandal broke--one of a series that has surfaced almost continuously since mid-1971 explicitly or implic- itly involving Gaullists in fraud, abuse of public confidence, influence peddling, extortion, or out- right theft. The government has been able to dampen publicity on the latest incident, but the scandals have compromised the party's image after 11 un- tainted years under de Gaulle. While their impact has been blunted by official moves to investigate and correct the irregularities, additional revela- tions could surface at any timewith damaging elec- toral repercussions. The government clearly is in trouble over in- flation. With prices increasing at the highest rate in ten years, the Pompidolians have reason to remember that the French electorate tradition- ally votes its concerns on bread-and-butter issues. Paris announced new measures aimed at slowing in- flation in December, but they are not likely to have much effect--certainly not before the election. Pompidou feels he must avoid anything so unpopular as wage controls, which might be more effective. Government leaders are attempting to minimize the political impact of the price increases by stress- ing that other industrialized nations also suffer from inflation, some to a greater extent than France, and that the competitive position of French exports thus far has not been imperiled. These explanations have not impressed the voters, and the opposition is getting a lot of campaign mile- age out of the "alarming" economic situation. Voter apathy may also be a problem for the Gaullists and their partners. The elections will in no way be a rerun of 1968, when public reaction to the mid-year student and labor crisis helped swell the Gaullist vote to record proportions. A high rate of abstention would tend to hurt the Pompidolians because the leftists--in particular the Communists--are highly efficient in getting their voters to the polls. Because there is no issue on which the left and right are presenting clear-cut opposing programs, the government coali- tion has had a tough time demonstrating the supe- riority of its policies. Finding the opposition an elusive target, it has resorted to the time- honored campaign theme of the dangers of giving power to the left. Although government spokesmen loudly trumpet that only an anti-Communist regime can maintain France's special, but independent, relationship with the USSR, polls show that the left no longer appears as a bogy to the middle-of- the-road voter. (continued) A2 FOR THE PRESIDENT ONLY Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 Declassified in Pail - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T06936A0-11500010016-2 FOR THE PRESIDENT ONLY The United Left Having gotten off to a slow and discordant start after signing a precedent-setting "common accord for governing" last spring, the leftists had by November shown they could give the govern- ment a good run for its money. More tightly or- ganized than the ruling coalition, the leftist alliance--composed of the Socialists, the Commu- nists, and the left Radicals--has been better able temporarily to submerge deep-seated differences in the interest of the campaign. Although there appears to be no personal rivalry between Commu- nist leader Georges Marchais and Socialist chief Francois Mitterrand, most French Communists regard the Socialist leader with deep suspicion. More- over, his obvious aspiration to the presidency in 1976 must cause some tension. Mitterrand is rec- ognized by the French electorate as a shrewd op- portunist, but also as the man who gave de Gaulle a close run in the 1965 presidential race and pulled the left together last year. Twice in the past five months, Mitterrand has put the Communists on the spot while gaining publicity for himself. A regional meeting of the Socialist International in Paris last weekend, which Israeli leader Golda Meir attended, increased Mitterrand's stature as a national and international figure. Earlier, in August, Mitterrand publicly exchanged insults with the Soviet ambassador over Jewish emigration from the USSR and Soviet policy toward Czechoslovakia. In both cases the French Communists, boxed in by their own ambiguous posi- tion and their conflicting loyalties, came off a poor second. Mitterrand is anathema to the Soviets; who see him as personally ambitious rather than devoted primarily to the course of leftist unity. For Moscow, the alliance of the French Communists with such a person illustrates the underlying inconsist- ency of their current position. The Communists must keep their ideological fences mended with Mos- cow while emphasizing at home their willingness to abide by the rules of democracy if they win. They must sustain their opposition to the govern- ing coalition while struggling against Moscow's clear preference for a continuing relationship with the Gaullists. (continued) A3 FOR THE PRESIDENT ONLY 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 Declassified in Pa-rt - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T06936A611500010016-2 FOR THE PRESIDENT ONLY The speech of Kremlin ideologist Suslov at the French Communist Congress last month implied Soviet reservations about the joint leftist program. Soviet party chief Brezhnev subsequently met with Marchais in Moscow, but there is no indication that the Soviets will go out of their way to assist the leftist campaign. In fact, by continuing to cite Franco-Soviet relations as a model for other West European nations and by scheduling the Brezh- nev-Pompidou meeting for last week, Moscow is making it clear that it would prefer to deal with a Gaullist government. Pres- ident Pompidou will attempt to exploit his Russian trip as an indication of his government's ability to deal with the USSR, but since the visit centered on foreign policy issues, he may not get much cam- paign mileage out of it. The timing of the visit irritated the French Communists, who were still smarting from the recent official visit to France of Marshal Grechko, which they also thought ill- timed. Center Split The key to the March elections may rest with centrist politicians who have remained outside the government fold, and with middle-of-the-road and uncommitted voters. The present grouping of the electoral field into two major alliances may re- sult in more winners in the first round than in the last election. In districts in which no can- didate gains an absolute majority of first-round votes, however, centrists who choose to run in the second round could drain votes from the governing coalition and thereby indirectly aid the leftists: Where centrist voters are faced with a choice be- tween a Pompidolian and a leftist candidate, a decision will be difficult for many of them. If Pompidou loses a significant portion of his legislative majority, he will have the option of formally inviting centrists into his coalition or of developing an informal working relationship with some centrist legislators. Anticipating this possibility, the centrists are pulled in two di- rections. Although they could attempt to form a center-left bloc, most would prefer to enter the present governing coalition--a move which would reunite the old centrist bloc. Some, however, still have lingering hopes of translating into reality their dream of a true centrist government and are hesitant about being co-opted into the Pompidolian fold. (continued) A4 FOR THE PRESIDENT, ONLY 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A0T11500010016-2 FOR THE PRESIDENT ONLY Polls- Not Prophecy Preferences measured in the polls do not necessarily forecast the French voting pattern. In the latest poll, for instance, although 43 percent favored the opposition, only 17 percent of those questioned thought the left alliance would actually win a majority. Fifty-one percent predicted the Gaullists and their partners would continue to govern in a coalition enlarged to include the centrists, who have been receiving about 14 percent of the votes in the polls. The French traditionally vote in the first round against their grievances and in the second against their fears. This could work in favor of the gov- erning coalition if it can arouse latent, though evidently diminishing, public fears that victorious leftists would radically change the French system. If the campaigning gets rough, the governing coa- lition will be tempted to exploit allegations that Marchais and Mitterrand were Nazi collaborators, but these charges are hard to prove. The leftists would likely respond to this with sharpened at- tacks on the more immediate issue of corruption among coalition officials. The central theme of the ruling coalition's campaign is support for President Pompidou and his policies. Pompidou of course would like a clear personal affirmation, which would cancel the less than enthusiastic response to his refer- endum in April on enlargement of the European Com- munities. He is not de Gaulle, however, and the length of his coat-tails will be measured on 4 and 11 March. A5 FOR THE PRESIDENT ONLY Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2 -- Declassified in Part- Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00636A011500010016-2 Top Secret Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010016-2