THE PRESIDENT'S DAILY BRIEF 3 MARCH 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993761
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: March 3, 1973

Declassified in in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010056-8
The President's Daily Brief
ci
3 March 1973
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Exempt from general
declassification schedule of E.O. 11652
exemption category 58(1),(21,(3)
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
3 March 1973
PRINCIPAL DEVELOPMENTS
The Black September Organization apparently plans
further terrorist action in the Middle East follow-
ing the execution of the three diplomats in Khar-
toum yesterday. (Page 1)
The dollar continued to weaken yesterday, chiefly
in unofficial trading since most major foreign ex-
changes were closed. (Page 2)
West Europeans are showing a growing inclination to
look to the USSR for uranium enrichment services.
(Page 3)
A Soviet naval exercise in the Mediterranean may be
imminent. (Page 4)
Argentine military leaders have reaffirmed their
commitment to the 11 March election but have ex-
pressed concern over the support some political
groups are giving to terrorists. (Page 4)
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FOR THE PRESIDENT ONLY
FEDAYEEN - ARAB STATES
The Black September Organization is planning
another terrorist action "within 48 hours" of its
operation in Khartoum, according to information
given the US Embassy in Beirut yesterday. Among
the operations being considered is the abduction
of the US ambassador to Iran. Another target is
the Jordanian prime minister. Jordanian police
have been alerted to two groups of fedayeen who
have moved to positions in southwestern Syria near
the Jordanian border.
In Khartoum the terrorists, having executed
the three diplomats, were reported demanding safe
conduct for themselves and their remaining hostages--
the Saudi ambassador and the Jordanian charge?to
another country. A BSO spokesman, presumably relay-
ing a message from Khartoum, reiterated today that
the fate of the two hostages depends on the satis-
faction of the Palestinians' demands.
The guerrillas continue to demand the re-
lease of senior BSO official Muhammad
Awadh--the planner of the Munich opera-
tion--and 16 others held in Jordan.
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FOR THE PRESIDENT ONLY
INTERNATIONAL MONETARY DEVELOPMENTS
The dollar continued to weaken yesterday,
chiefly in unofficial trading since most major for-
eign exchanges were closed. Most European curren-
cies appreciated about two percent against the dol-
lar. On the French exchange--the only major offi-
cial market open yesterday--the central bank with-
drew from trading after it had made extensive dol-
lar purchases.
The dollar's fail below the market floor,
despite the bank's support with reported
purchases of over $500 million, indicates
that capital controls have limited effec-
tiveness when stronger currencies, such
as the mark, are not bearing the brunt of
speculative activity.
Japan's foreign exchange market remains closed
today. When trading resumes--after the situation
in Western Europe settles down--the yen float will
continue. In interbank trading yesterday, the yen
appreciated substantially.
The EC finance ministers will meet on Sunday
in an effort to develop a common position.
In the event that the ministers decide on
a float, the modalities probably will be
kept secret, and the float itself is
likely to be a "dirty" one. Existing cap-
ital controls and two-tier systems prob-
ably will also be retained.
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
USSR - WESTERN EUROPE
A West German power company is sending a dele-
gation to Moscow this month to explore prospects
for getting the USSR to enrich enough uranium to
provide the initial loading of anew 1,200-megawatt
nuclear reactor.
The US is currently the source of all West
Germany's enriched fuel.
Moscow already has concluded an agreement
with France to provide uranium enrichment
services and has discussed doing so with
several other countries, including Sweden
and Japan. Moscow's willingness to deal
with a West German company suggests that
it expects an IAEA-EURATOM safeguards
agreement to be completed soon. The im-
passe over that issue has delayed West
German ratification of the Non-Prolifer-
ation Treaty, to Moscow's dismay.
West Europeans are irritated over the re-
cent increase in US charges for enrich-
ment services and changes in contract
procedures, and this is a factor in their
growing inclination to deal with the So-
viets. Looking to Moscow may be only a
temporary or partial expedient, since
they presumably are reluctant to become
dependent on the USSR. These problems
may spur increased interest in the devel-
opment of an EC enrichment facility.
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Soviet Helicopter Carrier, Moskva
Length '620 feet
Beam 112 feet
Draft 27 feet
Displacement.. 20,000 tons
Armament 2 twin SA-N-3 launchers
2 twin 57-mm mounts
1 twin SUW-N-1 ASW rocket launcher
2 12-barrel MBU 2500A rocket launchers
Helicopters.. 18-20 KA-20/25
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FOR THE PRESIDENT ONLY
NOTES
USSR: The helicopter carrier Moskva, accom-
panied by a guided-missile destroyer, transited the
Bosphorus and entered the Mediterranean on 2 March.
The Moskva was last in the Mediterranean in April
1970. A total of six Soviet combatants have made
the same passage in the last three days, suggesting
that a naval exercise is imminent. The Soviets now
have a total of 13 major surface combatants with ?
their Mediterranean squadron.
Argentina: The armed forces leaders have is-
sued a communique reaffirming their commitment to
the 11 March election but expressing concern over
?the support some political groups are giving to ter-
rorists. Although for the time being the military
has decided against proscription of the Peronists,
the tone of the communique suggests that serious
terrorist activity could still result in a move to
block them.
Iraq: Baghdad has agreed to give the Iraq
Petroleum Company oil worth about $300 million as
compensation for all claims against the government,
including nationalization of IPC properties in 1961
and last June. This sum equals about two years'
earnings from the fields nationalized in June. In
turn, the company will pay Iraq about $350 million
in back taxes, and will "endeavor" to more than
double production from its fields in southern Iraq.
Both oil production and government revenue probably
will increase substantially as ?a result of the
agreement.
Korea: Pyongyang has postponed the next round
of North-South talks that were scheduled to begin
on 6 March. North Korea cited "unavoidable internal
reasons" as the cause of the delay, which may re-
flect a desire to review its negotiating strategy
following Foreign Minister Ho Tam's consultations
with Chou En-lai in Peking last month. The Chinese
may have given Ho some further advice on dealing
with the South, especially on the US troop presence
and the Korean issue at the UN.
(continued)
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FOR THE PRESIDENT ONLY
The Yemens: The two countries have interrupted
their unity talks, and neither seems serious about
a negotiated merger. Sana is fearful that unity
would mean domination by Aden's Marxist regime but
is reluctant to torpedo the negotiations. Aden seems
to be using the talks only to gain time, while build-
ing its military strength. Both Yemens accepted the
concept of merger under pressure from other govern-
ments, but this was as much from a desire to stop
fighting as an expectation that unity could be
achieved. Aden, which clearly wants to control Sana,
is quite prepared to work toward its goal through
paramilitary activity and agitation.
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Top Secret
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