THE PRESIDENT'S DAILY BRIEF 13 MARCH 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993769
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: March 13, 1973

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The President's Daily Brief
13 March 1973
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c;
Exempt from general
?declassilication schedule of E.O. 11652
exemption category 513(1),(2),(3)
declassified only on approval of
die Director of Central Intelligence
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CENTRAL INTELLIGENCE AGENCY
WASHINGTON, D.C. 2.0_505
TF
13 March 1973
EYES ONLY FOR THE PRESIDENT
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
13 March 1973
PRINCIPAL DEVELOPMENTS
The Peronist candidate, Hector Campora, has been de-
clared the winner in the Argentine presidential elec-
tion, eliminating the need for a runoff. (Page 1)
Developments in the international monetary situation
are discussed on Page 2.
Chancellor Brandt has again served notice that he
will move vigorously to block leftist attempts to
challenge the Social Democratic Party's moderate do-
mestic policies and loyalty to NATO at the party's
convention next month. (Page 3)
The NATO allies have agreed to sound out the Soviets
on a proposal to leave the question of Hungarian par-
ticipation in MBFR talks in abeyance for the time
being. (Page 4)
In Cambodia, government positions along Route 2 be-
tween Phnom Penh and the South Vietnamese border re-
main under heavy enemy pressure. (Page 4)
The USSR and Czechoslovakia have agreed to release
Pakistan from further payments on debts accrued in
its former East wing, now Bangladesh. (Page 4)
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FOR THE PRESIDENT ONLY
ARGENTINA
The Peronist candidate, Hector Campora, has
been declared the winner in the preSidential, elec-
tion held Sunday, eliminating the need for a runoff.
Ricardo Balbin, the Radical candidate who finished
a distant second, conceded victory to his opponent
last night. President LanUsse then declared Cam-
pora the victor, although he noted that Campora had
fallen short of a majority, Which technically is re-
quired for victory in the first round. The heavy
?Peronist vote also appears to have carried the fol-
lowers of the former dictator to victory in congres-
sional and provincial elections throughout Argentina.
The final makeup of Congress has not yet been. deter-
mined, however,- and some runoffs may be required.
President Lanusse
expressed disgust with the outcome, but agreed to
declare Campora the winner, saying that the people
will "get what they asked for." The army reportedly
has assured Campora that the military will follow
the rules. The Peronists, in turn, promised to ac-
cept the army's choice of General Lopez Aufranc as
army commander in chief.
Despite these early signs of acquiescence
by the military, it is a long time before
inauguration on 25 May. The many strongly
anti-Peronist officers will have time to
attempt to prevent Campora from gaining
power.
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
INTERNATIONAL MONETARY DEVELOPMENTS
The dollar generally closed firm in European
interbank trading yesterday. According to West
German Finance Minister Schmidt, the six EC nations
that have agreed to float jointly when official ex-
change markets reopen will intervene to prevent
their currencies from appreciating too much rela-
tive to the dollar. Other EC sources indicate, how-
ever, that in the event of a massive speculative
attack, intervention would be held to a minimum
and the exchange rate would be permitted to rise.
Most European reaction to the new arrangement
so far has been favorable, but the Italian finance
minister is disappointed that no agreement has been
reached on pooling European reserves to cope with
speculative flows. A report that a fund of more
than $10 billion had been set up for this purpose
has proved to be inaccurate. EC sources claim that
this proposal, which was presented by the EC Com-
mission, was rejected by the finance ministers as
being "too ambitious." The idea of a reserve pool
apparently will receive further study, however.
The Benelux nations must decide whether or not to
follow Bonn in its approximately three-percent re-
valuation relative to the other partners in the
float.
Meanwhile, Japan announced this morning that
it will support the joint float of the six EC na-
tions against the dollar.
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FOR THE PRESIDENT ONLY
WEST GERMANY
Chancellor Brandt has again served notice that
he will move vigorously to block, leftist attempts
to challenge the Social Democratic Party's moderate
domestic policies and loyalty to NATO at the party's
Convention next month. In an interview published
last weekend, Brandt warned that "whoever questions"
NATO destroys Bonn's detente policies, and he as-
serted that, neither Germany nor Europe can turn
away from the Us..
Brandt predicted that the party convention will
take no decision at odds with the party's successful
election program of 1972 or the basic. political pro-
gram it adopted in 1959. He dismissed the idea that
the party is in danger of a split, saying that the
leftists have nowhereelse to go.
Brandt made the same general: points to Ambas-
sador Hillenbrand late last week.' The ambassador
found Brandt in robust physical conditionand ap-
parently recovered from what Brandt described as a.
voice ailment and succession of colds. The Chancel-
lor admitted that after the election last November
he had lost, his zest for political-activity, but
that his enthusiasm had now returned.
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FOR THE PRESIDENT ONLY
NOTES
MBFR: The NATO allies have agreed to sound
out the Soviets ?on a proposal to leave the Hungarian
participation question in abeyance for the time be-
ing. Moscow has consistently opposed anything short
of a definite solution to the problem before talks
begin, and is likely to reject the offer. The Euro-
pean allies are determined that the Hungarian ques-
tion should remain a matter of substantive importance
and the effort to agree on a response to the ex-
pected Soviet rejection will strain NATO's fragile
unity on MBFR preparations.
Cambodia: Government positions along Route 2
between Phnom Penh and the South Vietnamese border
remain under heavy enemy pressure. Yesterday in-
surgent troops occupied the town of Chambak about
25 miles south of the capital. Other government
positions south and east of the provincial capital
of Takeo are under heavy attack. The government
operation to clear Route 2 between Phnom Penh and
Chambak has made no progress, and a Khmer Krom bri-
gade has been sent to attempt to reopen the highway.
Meanwhile, there has been no progress toward negotit
ations, because the insurgents believe they hold the
upper hand and are not interested in talking.
Pakistan: The USSR and Czechoslovakia have
agreed to release Pakistan from further payments
on debts accrued in its former East wing, now
Bangladesh. Pakistan concluded similar agreements
earlier with China and Yugoslavia. Islamabad's
debt to these four countries now accounts for less
than five percent of its total foreign debt of
almost $4 billion. Pakistan intends to ask the
Western consortium, which will meet later this
month, for a similar agreement, and for long-term
rescheduling of its share of the debt.
(continued)
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FOR THE PRESIDENT ONLY
?Peru: President Velasco's condition remains
precarious following the amputation of his right
leg on Friday. The three armed services chiefs yes-
terday moved Prime Minister Mercado one step closer
to the presidential chair by giving him limited
"temporary" executive powers. It still appears that
no military element is ready to risk endangering
military unity and the government's stability by
opposing his succession.
Ethiopia: ?Crown Prince Asfa Wossen's limited
progress in recovering from a brain hemorrhage
suffered in January has contributed to a sense of
political uneasiness. Factions have begun to form
around the Crown Prince and other contenders for
the succession, including Asfa Wossen's 20-year-old
son, who is next in line. If the Crown Prince
ceases to be a credible heir, the 80-year-old Em-
peror will be under increasing pressures to name a
successor, because prolonged uncertainty could
encourage plotting and intrigues.,
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Top Secret
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