THE PRESIDENT'S DAILY BRIEF 20 FEBRUARY 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993750
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: February 20, 1973

Declassified in Part- Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T.00936A011500010045-0
The President's Daily Brief
20 February 1973
45
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Exempt from general
declassification schedule of E.O. I 1652
exemption category 5111(1),(2),(3)
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010045-0
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010045-0
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
20 February 1973
PRINCIPAL DEVELOPMENTS
On Page 1, we report on international monetary de-
velopments.
The Chinese are trying to buy combat aircraft from
the UK. (Page 2)
In South Vietnam, heavy fighting rages along the
coast and in the western highlands. (Page 3)
The Laotian sides are still negotiating toward a
cease-fire and a political agreement, while fight-
ing continues throughout the country. (Page 4)
The Soviet Communist Party will begin its examina-
tion of each member's conduct on 1 March. (Page 6)
We expect Canada to make permanent the restrictions
it has recently placed on export of crude oil to
the US. (Page 6)
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010045-0
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FOR THE PRESIDENT ONLY
INTERNATIONAL MONETARY DEVELOPMENTS
In Tokyo today, the dollar closed slightly
down. The yen appears to have stabilized, at
least temporarily, at a revaluation of about 16
percent relative to the dollar. Pressures for
a further appreciation may build soon, however,
as large export contracts that were delayed ear-
lier in the month begin to come due.
In early European trading, the dollar is sub-
stantially above its parity with all non-floating
currencies except the Swedish kroner. The West
German Bundesbank yesterday sold as much as 30 mil-
lion dollars to prevent the mark from breaking
through its floor.
This is an insignificant amount relative
to the six billion dollars the bank
bought during the crisis, but it was the
first official German dollar sale since-
last summer and the first to maintain
the mark floor since 1969. The weaken-
ing of the German currency probably re-
flects some unwinding of speculator posi-
tions in a thin market.
The Swiss cabinet decided to intervene in the
market in support of the dollar, and has promised
to end the float of its franc soon. The price of
gold is still climbing.
1
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
CHINA
The British Foreign Office has confirmed that
the Chinese have approached the Hawker-Siddeley Air-
craft Company about purchasing Harrier ground attack
fighter aircraft. AP and UPI have reported that the
Chinese are seeking 150 to 200 Harriers at a cost of
$2.4 million each. The Harrier was demonstrated for
the Chinese minister of foreign trade in the UK last
month.
This is the first known Chinese attempt to
buy combat aircraft from the West. China's
large aircraft industry produced about 900
planes in 1971, but has been in the dol-
drums for over a year. The Chinese may be
dissatisfied with the old-model Soviet air-
craft (MIG-17s and MIG-19s) they have been
producing.
The Harrier is the only operational fixed-
wing vertical-takeoff fighter in the free
worZd. This jet-powered plane 's unique
capability to change the direction of its
engine thrust enables it to outmaneuver
other fighters at low altitudes, It is
used in the British air force and by the
US Marine Corps.
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14: CIA-RDP79T00936A011500010045-0
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010045-0
DEMILITARIZED ZONE
SOUTH
VIETNAM
Tay Ninh Province
SOUTH
CHINA
SEA
ptured by
Vietnamese
Route 14
closed
554157 2-73 CIA
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25X1
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FOR THE PRESIDENT ONLY
SOUTH VIETNAM
Aerial photography shows two operational SA-2
surface-to-air missile sites near the Khe Sanh air-
field in the Communist-occupied portion of Quang Tri
Province. Presumably, the missiles are there to
guard the Khe Sanh airfield, where repairs are nearly
complete.
Five SA-2 sites were located in northern
Quang Tri Province from April through June
last year, but all units from these sites
were withdrawn to North Vietnam because of
the heavy allied air strikes late last sum-
mer. It is conceivable that these units
left at least some of their equipment be-
hind, stored in the rugged hills around
Khe Sanh.
Farther south in Military Region 1, the heaviest
fighting in Vietnam rages along the coastal strip
near Sa Huynh. In the western highlands, the road
between Kontum and Pleiku is still contested. In
Tay Ninh Province, COSVN has told its forces that
their offensive is over and that it is now time to
turn to the "political struggle."
The commander of the provinces around Saigon,
General Nguyen Van Minh, told an American official
yesterday that he does not consider the Joint Mili-
tary. Commission (JMC) appeal to stop the fighting
applicable to his command. Minh made the point that
his troops have been fighting a "defensive war" and
would continue to do so until the Communists honored
the cease-fire agreement. Minh said'he has limited
his air and artillery strikes and taken a "let it be"
attitude toward main enemy formations that remain
quiescent. He added, however, he would not hesitate
to stop the movement of Communist forces toward pop-
ulated areas, regardless of the presence of JMC or
other control and supervisory teams. Not surpris-
ingly, initial Communist reaction to the JMC appeal
has been to hold the US and Saigon entirely respon-
sible for violating the agreement.
3
FOR THE PRESIDENT ONLY
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LAOS
t