THE PRESIDENT'S DAILY BRIEF 16 FEBRUARY 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993746
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: February 16, 1973

Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A011500010042-3
The President's Daily Brief
16 February 1973
45
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Exempt from general
declassification schedule of E.O. 11652
exemption category 513(1),(2),(3)
declassified only on approval of
the Director of Central Intelligence
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THE PRESIDENT'S DAILY BRIEF
16 February 1973
PRINCIPAL DEVELOPMENTS
We report on the international monetary situation
on Page 1.
The Soviets are beginning to share some of their
views concerning the International Conference on
Vietnam. (Page 2)
The Communists may control more of the countryside
than the South Vietnamese Government is admitting.
(Page 3)
A political agreement between the government and
Pathet Lao is shaping up in Vientiane. (Page 4)
A new policy of "national reconciliation" is being
spoken of by Cambodian First Minister Hak. (Page 5)
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Japan
The European Communities are girding for friction
and strain with the US on economic matters, but not
on fundamental political interests. (Page 8)
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INTERNATIONAL MONETARY DEVELOPMENTS
The yen remained effectively revalued by about
16 percent today after floating sharply upward yes-
terday. Only small interventions were required by
the central bank.
The dollar continues firm in Europe as of the
market opening today. Yesterday, despite an early
decline, the dollar closed with slight gains against
the mark, the commercial lira, the pound, and the
French commercial franc. The floating Swiss franc,
however, continued to appreciate against the dollar.
The price of gold in London continued to rise yes-
terday and reached a record $73.65 an ounce.
The EC finance ministers met in a restricted
council session Wednesday to discuss the interna-
tional monetary situation. In a?press release,
the ministers expressed support for the dollar de-
valuation and the yen float. They also reaffirmed
the Council's determination to step up work toward
EC economic and monetary union.
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USSR - VIETNAM CONFERENCE
On Wednesday, a Soviet diplomat in London
called on US Embassy officials to probe US and UK
views on the International Conference on Vietnam.
The Soviet diplomat wanted to discuss how the con-
ference should be organized, its functions and pur-
pose, and how to provide for continuing interna-
tional supervision of the peace. He said that the
Soviets shared the UK's frustration and unhappiness
with their experience as co-chairmen of peace super-
vising organizations and did not think that it would
be any better to have a single participant or com-
bination of conference participants act as a point
of appeal for the ICCS. He wondered what the US
thought of the idea of giving the conference chair-
manship and subsequent supervisory role to the UN
Secretary-General acting in his personal capacity.
The Soviet diplomat's positive remarks on
a significant role for Waldheim at the
conference and after it are a change from
views expressed earlier by another Soviet
official. The Embassy in London points
out, however, that the Soviet bills him-
? self as an expert on Southeast Asia and
notes that when Soviet Embassy officials
take the trouble to call at the US Embassy,
they are usually well-informed.
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SOUTH VIETNAM
During the past week,(
Communist holdings in the countryside are more ex-
tensive in certain areas_than is admitted in offi-
cial South Vietnamese appraisals: In the delta
for example,.!
/the Communists now.
hold 46 hamlets, but the province chief officially
claims that no hamlets are under Communist control.
In another delta province, Chuong Thien, the gov-
ernment's local security evaluation shows that only
13 hamlets are held by the Viet Cong. American
officials in the province report that the Communists
control 53 of Chuong Thien's hamlets.
Reports from Military Region 2 also show dis-
crepancies. National police figures for Phu Yen
Province list only 24 hamlets as contested or under
enemy-control. US officials in the province, how-
ever, report that the Communists now hold 27 and
have enough presence in 27 more to threaten govern-
ment control.
General Lu Mong Lan,: Inspector General of South
Vietnam's Joint General Staff, told an American
official recently that he is aware. province chiefs
have not fully reported the extent of Communist
presence in local areas. Moreover, he claimed
that some hamlet chiefs, contrary to official in-
structions, have allowed unarmed Communist cadre
to enter certain localities, ostensibly to live
peacefully in the hamlets and befriend the local
residents.
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LAOS
Souvanna's willingness to accept such an ar-
rangement is making rightist elements in Vientiane,
who object to an equal sharing of power with the
Communists, very unhappy.
Their opposition is no doubt fed by the
fear that Souvanna, who would in effect
occupy a tie-breaking position in such a
new government, might become Less depend-
ent on rightist support and less respon-
sive to their interests.
Despite Souvanna's agreement with the Commu-
nists?on the shape of a future government, yester-
day's private negotiating session proved that other
issues, such as the date of troop withdrawals and
references to US bombing, remain in dispute.
In the past few days, neither side has been
able to gain much additional territory before a
cease-fire. Irregular units, with the aid of air
support, are gradually taking control over hills
around Paksong on the Bolovens Plateau. In the
central panhandle, other government units have held
their ground just west of Muong Phalane while in-
tensive US air strikes are hitting enemy units near
the town.
There has been little change in the situation
in the north. The Communists are putting up a
dogged defense at Muong Soul, northwest of the
Plaine des Jarres, and have kept Vang Pao's troops
off the Plaine itself.
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CAMBODIA
Hak did not specify when elections would
be held, but Information Minister Keth
Reth told the press on 15 February that
the government would not attempt to open
negotiations with the insurgents until
after the International Conference on
Vietnam convenes in Paris on 26 February.
Although the insurgents have steadfastly
opposed any political compromise with the
Lon Nol government, the anti-Sihanouk fac-
tion within the insurgent movement may be
tantalized by the possibility of a polit-
ical solution that could include them but
exclude Sihanouk.
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JAPAN
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EUROPEAN COMMUNITIES - US
A report presented to the European Parliament
earlier this week by EC Commission President Ortoli
minces no words in cataloguing EC complaints about
policies growing out of protectionist pressures in
the US. He cited limitations on Community steel
exports, US government procurement and tax prac-
tices, and anti-dumping duties. The report noted
the "growing insistence and vigor" of US "reproaches,
interventions, and protests" of Community policies
such as the common agricultural policy and EC ar-
rangements in the Mediterranean.
?
The Commission foresees, moreover, that "points
of friction and strain" are likely to increase as
the Community grows, in part because the US will
dissociate its political support for European union
from an "unbending defense" of its economic inter-
ests. The report also warns the Community itself
against "absurd" recriminations with the US on
specific points that have no relation to the essen-
tial and fundamental common interests.
The report's frank comments are evidence
of the new assertiveness of the Brussels
executive and of the stronger lea?dership
role it hopes to assume in the enlarged
Community. It also shows the Commission's
intention to be the watchdog of what it
views as the neglected political funda-
mentals of the Atlantic relations.
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?
French IRBM Launch
Atlantic Ocean
- FRANCE
Landes missi e.aordocum
test center 4 ?
St. Christol
1,600 nautical mile;
0 Azores
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?
ion ago 390
STATUTE MILES
Madeira
SPAIN
MOROCCO
0 Mediterranean
Sea
ALGERIA
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NOTES
Southeast Asia: The foreign ministers of the
Association of Southeast Asian Nations--Indonesia,
Malaysia, Singapore, Thailand, and the Philippines--
have decided not to rush into a regional conference
on postwar developments in Southeast Asia. A joint
communique issued at the end of yesterday's minis-
terial meeting in Kuala Lumpur for the first time
publicly expressed the desire to expand ASEAN into
a regional forum that would include Burma and the
states of Indochina, but acknowledged that efforts
in this direction would have to be postponed until
"an appropriate time in the future." The communique
appears to reflect a consensus within ASEAN that any
broad regional meeting could not be productive un-
til the political and military situation in Indo-
china is clarified.
Finland-USSR: The Soviets have convinced the
Finns to postpone signing a free-trade agreement
with the European Communities perhaps until the
end of the year. /
MALTA: Prime
British that he is
quarter payment of
wants negotiations
ment to continue.
Minister Mintoff has told the
now willing to accept the first-
3.5 million pounds, but that he
looking to a permanent settle?
-
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