THE PRESIDENT'S DAILY BRIEF 23 FEBRUARY 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993753
• 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 23, 1973

Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A011500010048-7
(
The President's Daily Brief
23 February 1973
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Exempt from general
declassification schedule of E.O. 11652
exemption category 58(1),(2),(3)
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE-PRES-WENT S DAILY BRIEF
23 February 1973,
PRINCIPAL DEVELOPMENTS
The price of gold rose further yesterday, and general
uncertainty produced some dollar, weakening in Europe.
(Page 1)
It seems likely, that the International Conference on
Vietnam will ratify the accords in fairly short order-
and establish some mechanism to which supervisory
teams can report. (Page 2)
North Vietnam
(Page 3)
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Lao Government... and- Pathet Lao negotiators were sched7
uled to Meet yesterday- -to consider cabinet composi7-
tion and other aspects. of the- new government Prime
Minister SouvannaPhouma today accused-the Communists 25X1
of 29 serious-cease-fire violations. (Page 4)
Japan
(Page 5)
In the'MBFR -talks, there new appears-to be only the
slightest chance that the Soviets will agree to in
elude Hungary in the reduction zone without also in7.
eluding Italy. (Page 6)-
Two versions, of Hafiz Ismail's-visit to Mescew agree-
that its purpose was to signal no change in Egypt!s
basic,position on a-Middle East settlement.': On-
coming-to Washington,,IsmaiI was to listen carefully
to see whether- a possibility exists "for beginning-
a process toward settlement." (Page. 7)
The Organization of Petroleum Exporting Countries has-
agreed to Venezuela's request for a special meeting
on 16 March to discuss the world energy crisis.
(Page 8)
Peking
(Page 9)
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INTERNATIONAL MONETARY DEVELOPMENTS
The price of gold rose to over $90 an ounce
yesterday, an appreciation of over 31 percent from
the pre-devaluation level. Profit-taking by specu-
lators forced the price down to $86.50 at the close
of the day. Money managers, who are still uneasy
about the future of the major currencies, have been
buying gold as a hedging medium with the dollars
obtained from divesting earlier speculative hold-
ings.
The record price of gold apparently re-
flects strong speculator demand from Mid-
dle Eastern and Far Eastern interests and
new rumors that. Japan will ease restric-
tions on gold imports.
The general uncertainty also produced some dol-
lar weakening in Europe yesterday. The mark rose
from its floor to near its new dollar parity. There
were no dollar sales by the Bundesbank for the. first
time in four days:- In Switzerland., the Swiss franc
closed at almost 18 percent .above its old dollar
parity, the greatest appreciation of any currency
to date.- No intervention was reported by the Swiss
National Bank, which apparently is not inclined to
take in any more, unwanted dollars:- Only in Tokyo
did the dollar remain essentially unchanged.
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FOR THE PRESIDENT ONLY
VIETNAM
Most of the 13 participants in the International
Conference on Vietnam that convenes in Paris on 26
February want a short, largely pro forma session,
and the past few weeks have seen a spate of diplo-
matic activity designed to develop a basis of agree-
ment before the formal sessions begin. Disputes
could still disrupt the proceedings, but it cur-
rently appears that the conference will ratify the
accords in fairly short order and establish some
mechanism to which supervisory teams can report.
The participants could most easily run into diffi-
culties over the supervisory mechanism. The Viet-
namese Communists clearly want responsibility for
the maintenance of the accords to rest essentially
with the four former belligerents with outside in-
terference kept to a minimum. They have been es-
pecially firm in opposing participation by interna
tional bodies--a stand that explains their reluc-
tance to see Waldheim named chairman of the confer-
ence.
Although Moscow and Peking have echoed some of the
Vietnamese Communist demands, their basic aims at
the conference differ from those of their Vietnam-
ese clients. Both want to defuse Vietnam as an im-
portant issue in big-power politics. Both seem to
want a conference communiqug that expresses strong
but general support for the accords, backed perhaps
by private understandings to supplement arrange-
ments for continuing supervision.
The Thieu government has been publicly reticent on
the conference but has clearly implied that it
wants more stringent guarantees against Communist
encroachment than it seems likely to get. So far,
however, the note of deep concern that surfaced in
the official and semi-official press last fan has
been absent'from current output, suggesting that
Thieu will be willing to *live with conference re-
sults.
Participants other than the big powers and the Viet-
namese parties seem likely to play a Secondary role.
Some of them-the French and Canadians?may perform
usefuZ,service as go-betweens.
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VIETNAM
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FOR THE PRESIDENT ONLY
LAOS
The two sides were scheduled to meet yesterday
to start negotiations on cabinet composition and
Other aspects of the new government.
Rightist tempers apparently have cooled since
the stormy cabinet sessions immediately following
the cease-fire announcement.
there are no signs that these elements plan to
challenge the accords.
At :a press? conference.today,'Souvanna accused
the Communists-of.29 serious ceasefire violations
and claimed that he would seek renewed US. air sup-
port' if the violations continue.'
One. government battalion is still holding high
.ground east of Paksong which was captured by the
Communists yesterday shortly after the cease-fire
went into effect.
Communist units yesterday also dispersed one
government battalion west of Saravane and another
north of Khong Sedone.
In the north, irregular positions just west of
the Plaine des Jarres have been sub'ected to heav
artillery attack
/ Shellings and ground
assaults are reported this morning in the area of
Sala Phou Khoun. Small-scale shellings have also
been reported at Long Tieng in the north and near
Thakhek in the central panhandle.
4
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JAPAN
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FOR THE PRESIDENT ONLY
MBFR
The Soviets and Hungarians have refused to
budge on the question of Hungary's status in the
talks. The allied position, designed to provide
the Soviets with away to back down if they so de-
sired, was presented on Wednesday by the US and
Dutch representatives in Vienna. The Dutch spokes-
man--to
the dismay of the Soviets?went beyond the agreed
NATO instruction to comment that the Western in-
terest in Hungary's participation was stronger with
respect to "related agreements" than to force re-
ductions.
The comment reflected recent Dutch efforts
in NATO to gain assurance that if Hungary
is excluded from the reduction zone--as
the Soviets wish--it will be included in
a broader contraints area. Such inclusion
is intended to deter the USSR from aug-
menting its forces in Hungary while re-
ducing them elsewhere.
The Hungarian described the position as "old
wine in new bottles." The Soviet delegate told the
US representative that the authorities in Moscow
were "highly excited and worked up" over Western
obduracy on the Hungarian issue. He added that the
Dutch reference to "related agreements" would "send
them through the roof."
There now appears to be only the slightest
chance that the Soviets will agree to in-
clude Hungary in the reduction zone with-
out also including Italy. The deadlock
will increase support in NATO, particularly
among the flank states, for the US proposal
to leave the status of Hungary in abeyance
in order to get the meeting started. Many
allies still feel, however, that there is
no urgent need to compromise. The British
in particular wish to continue a leisurely
pace.
The caution of some NATO allies reflects
in large part their belief that the US
proposal is only the first step toward ac-
cepting Hungary's exclusion from the ini-
tial reduction zone. They may in the end
agree to this, but not until they are con-
vinced that there is no flexibility in the
Soviet position.
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FOR THE PRESIDENT ONLY
EGYPT
Our embassy in Moscow has provided two versions
of Hafiz Ismail's recent visit to Moscow. One ver-
sion comes from Yevgeniy Pyrlin, a counsellor on
Middle Eastern affairs in the Foreign Ministry. The
other comes from the second secretary of the Egyp-
tian Embassy in Moscow, who said he was briefed by
Ismail.
Both sources agree that Ismail visited Moscow
to signal that there was no change in Egypt's basic
position on a Middle East settlement. The second
secretary said the visit was also to inform the So-
viets of Ismail's intention to visit Washington.
Pyrlin claimed that Ismail continued to reject all
plans for a partial settlement not clearly linked
to an overall solution; the second secretary said
the Soviets advised Ismail that this was their po-
sition as well.
Pyrlin said Egypt demands that Israel ultimately
withdraw from all Egyptian territory and insists
that there be no change in Egyptian or Syrian borders.
Egypt could tolerate, however, modification of the
Israeli-Jordanian frontier. The second secretary
did not comment on these points.
Both agreed that Egypt does not require sover-
eignty over the Gaza Strip and would accept the re-
sults of an internationally supervised plebiscite
in Gaza after the Israelis withdraw. They also
agreed that Egypt could accept international control
over Sharm ash-Shaykh, but the Egyptian said his
country "definitely" could not tolerate Israeli par-
ticipation in such control, while Pyrlin said Ismail
was "unclear" on Egypt's attitude on this subject.
Pyrlin's version dovetails with the Egyptian's
statement that Ismail is coming to Washington to
discuss details of the US proposal for an interim
canal settlement. Ismail is under instruction from
Sadat to listen carefully to see if a possibility
exists "for beginning a process toward settlement."
Any canal opening arrangement must include "some
kind of Egyptian military presence" on the east bank.
Both Pyrlin and the Egyptian went out of their
way to say that the omission of Jarring's mission
from the communique issued after Ismail's visit did
not mean they had lost interest in it. The Soviet
said his government wants to reactivate Jarring;
the Egyptian said the omission was a "grievous over-
sight."
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FOR THE PRESIDENT ONLY
VENEZUELA-OPEC
The Organization of Petroleum Exporting Countries
has agreed to Venezuela's request for a special meet-
ing to discuss the world energy crisis. The meeting
is scheduled to open on 16 March.
Venezuelan officials have so far been vague
on the proposals they intend to make. We
expect them to seek agreement on raising
thq price of oil. Also, Venezuela's petro-
leum minister has privately intimated that
Venezuela may seek other ways for the pro-
ducing countries to get a better deal from
the consuming nations. This suggests that
Caracas may resume pressure for a confer-
ence involving major oil consumers and sup-
pliers.
President C1 rLs lsc) lonkina into nthor
possibilities.
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CHINA
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Top Secret
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