THE PRESIDENT'S DAILY BRIEF 2 MARCH 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993760
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: March 2, 1973

Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
The President's Daily Brief
2 March 1973
45
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
Exempt from general
declassification schedule of E.O. 11652
exemption category 5B( I ).(2).(3)
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
'7:414.0t114..t,
Declassified in Part --Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9 25X1
1 ? 25X1
EYES ONLY FOR THE PRESIDENT
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
2 March 1973
PRINCIPAL DEVELOPMENTS
On Page 1 we report the status of the BSO capture
of US and other diplomats in Khartoum.
Major money markets are closed today following yes-
terday's unprecedented selling of the-dollar:in-
Europe. (Page. 2)
In Vietnam, an intercept shows that the Communists
are worried that they cannot conceal a concentra-
tion of men and materiel near an ICCS team site in
western Quang Tri Province. (Page 4)
Peking has stepped up its propaganda favoring the
reunification of Taiwan with the mainland. (Page 5)
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
225X1
25X1
25X1
2f.25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
FOR THE PRESIDENT ONLY
FEDAYEEN -SUDAN
This morning the Black September Organization
continues to hold US Ambassador Noel, DCM Moore,
and three other diplomats in Khartoum as hostages
for guerrillas imprisoned in Jordan. The terrorists
seized the Saudi Arabian Embassy yesterday at the
end of a reception in honor of the departing Moore.
Noel, Moore, and the Belgian charge were slightly
injured but have received medical treatment. The
Saudi ambassador and the Jordanian charge are also
in custody.
After initially making more extensive demands,
the BSO team is now focusing on the release of
senior BSO official Muhammad Awadh and 16 others
held in Jordan. The Jordanians captured them last
month as they prepared to kidnap the Jordanian
prime minister. Amman has refused to free the Awadh
group, and announced that it will accept no bargain-
ing with the terrorists. King Husayn is scheduled
to fly back to his capital today from Morocco.
The Sudanese Government has ruled out the use
of force and has been stringing out talks with the
terrorists. They have extended their deadline for
satisfaction of their demands several times.
1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
FOR THE PRESIDENT ONLY
INTERNATIONAL MONETARY DEVELOPMENTS
Major money markets are closed today following
sustained and unprecedented selling, of the' dollar
throughout Europe yesterday. Total European central
bank purchases in support. of the dollar yesterday
amounted to almost $4 billion. West German inter-
vention alone reached. almost $2.8 billion, a one-
day record. Dutch purchases of $604 million were
almost twice that country's total interventions
before last month's dollar devaluation.
The closing of the major exchange market
amounts' to a tacit admission that fixed
currency rates cannot be maintained. A
decision to introduce a joint EC float
is the most likely outcome of the present
situation. This decision would require
answers to such. problems as the system
of intervention to be used, the capital
controls to be allowed, and the position
of the now-floating pound and lira rela-
tive to the other' countries' currencies.
In Japan the Finance Ministry has stated that
it intends to await developments in Europe before
deciding when to open its exchange market. The
yen closed yesterday with a revaluation of 15.6
percent compared with its old dollar rate--up from
14.5 percent the previous day.
2
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
FOR THE PRESIDENT ONLY
USSR
3
FOR THE PRESIDENT ONLY
25>25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
DEMILITARIZED
ZONE
GULF OF TONKIN
, 0 .44
fis %/1
14f J.
5 10
? 1.-4,444,E5
. I 4.
5541 95 3-73
ojr 141 ? ? 14, t
? ? ??If ? "
4\1 )
S QuANG;4,N_A#01,i.
\)Aj
14,N,4ek
?ie.1' vcr'fr 111)1 )0 .
t `1$ ? 4/' ? ra ? /
Declassified in Part -Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
FOR THE PRESIDENT ONLY
VIETNAM
The Communists are worried that they cannot
conceal a large concentration of men and materiel
in western Quang Tri Province near an ICCS team
site. According to an intercepted message of 26
February, North Vietnamese units were "crowded to-
gether elbow-to-elbow" along a 12-mile stretch of
Route-9 between Lao Bao and Khe Sanh awaiting "or-
ders" to move on to Cam Lo and Dong Ha. There were
also artillery, "missile," and antiaircraft em-
placements on high ground on both sides of the road.
The message warned that the Communists could no
longer use the border town of Lao Bao for assembly
and storage of equipment because the ICCS team had
already arrived there.
Substantive political talks between the Thieu
government and the Viet Cong will be delayed until
at least 12 March, according to a sensitive, South
Vietnamese intercept. The two sides had earlier'
agreed to open the negotiations this week. The in-
tercept indicates that the Viet Cong are threaten-
ing to put off the talks even longer--until 18
March--unless the Thieu government designates the
official head of its delegation immediately. The
Viet Cong, have also informed Saigon that the head
of their delegation will not be Madame Binh, "but
a man."
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
FOR THE PRESIDENT ONLY
CHINA - NATIONALIST CHINA
In the wake of last week's Sino-US communique,
Peking has stepped up its propaganda campaign stress-
ing reunification of Taiwan with the mainland. For
the first time since 1965, mainland media have given
wide publicity, including extended broadcasts beamed
to Taiwan, to the anniversary of an uprising of-na-
tive Taiwanese against Nationalist officials shortly
after World War II.
The speeches quoted are generally conciliatory
in tone. While they stress Peking's determination
to "liberate" Taiwan, they make no reference to the
use of force. The speakers call-for "unity of ac-
tion" on the part of the mainlanders and local Tai-
wanese, but the main appeal for reunification is
clearly addressed to officials of the Nationalist
government itself. A former Nationalist general
calls specifically for direct negotiations, adding
that secret or open informal contacts might be a
first step.
Since last autumn Peking has been engaged
in a largely private two-pronged effort
on the Taiwan issue. Chou En-lai and
other Chinese leaders have told visiting
foreigners that Peking does not contem-
plate the use of force to regain the is-
land, that the reunification process might
take several decades, and that present
foreign investments on the island would
initially not be disturbed. At the same
time, Peking has used the themes of recon-
ciliation and leniency to encourage Tai-
wanese living abroad to visit the People's
Republic.
While the Communists obviously judge the
time is ripe to move this campaign into
higher gear, they have neither privately
nor publicly spelled out their terms for
reunification.
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
FOR THE PRESIDENT ONLY
JAPAN
6
25X1
25X1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
FOR THE PRESIDENT ONLY
NOTES
Ireland:
China-US:
Over the last few months, Peking
purchased about 90,000 tons of US cotton worth
about $75 million. China's cotton crop last year
was not good, and there are reports of cuts in this
year's cotton ration in at least one province.
Pakistan: Islamabad reportedly plans to con-
tinue its current high levels of, wheat imports de-
spite projections that a record domestic crop will
be harvested this spring. The government hopes to
import about 1.2 million tons during the next fiscal
year, compared with 1.5 million tons this year, pre-
dominantly under US PL-480. Pakistani officials
are worried, however, that the US may not fulfill
their total needs. If they purchase the entire 1.2
million tons commercially, the cost will be about
$130 million, equivalent to 20 percent of Pakistan's
annual export earnings.
Chile: Santiago has canceled ITT's managerial
rightg-rE-the Chilean Telephone Company under a law
that went into effect on Tuesday. Under a pending
constitutional amendment, the government is seeking
to nation.alize all telephone company assets in a
manner similar to the take-over of US copper com-
panies in July 1971, in order to pay little or no
compensation for the expropriated property. ITT
values its telephone property investment at more
than $150 million, of which some $108 million is in-
sured by OPIC.
(continued)
7
25X1
25X1
25X1
25X1
25X1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
FOR THE PRESIDENT ONLY
Morocco:
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
25X1
25X1
Declassified in Part -Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A011500010055-9