THE PRESIDENT'S DAILY BRIEF 28 MARCH 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993782
• 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 28, 1973

Declassified in -Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79--100936A011500010077-5
The President's Daily Brief
28 March 1973
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Exempt from general
declassification schedule of E.O. 11652
exemption category 5B(
declassified only on approval of
the Director of Central Intelligence
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EYES ONLY FOR THE PRESIDENT
TURKEY
President Sunay's term ends today and no
successor has been named. The armed forces are
split on how to react to the politicians' rejec-
tion of the military's choices for a new presi-
dent
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
28 March 1973
PRINCIPAL DEVELOPMENTS
The price of gold has reached a record high
Meanwhile, the Japa-
nese are trying to keep the yen's appreciation at
about 16 percent. (Page 1)
Libya is providing support to Oman in its fight
against guerrillas backed by Yemen (Aden). (Page 3)
Chile has a new cabinet. (Page 4)
Australian Prime Minister Whitlam has defended the
ANZUS Alliance. (Page 5)
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INTERNATIONAL MONETARY DEVELOPMENTS
The price of gold reached a record high of
over $90 an ounce yesterday.
A recent forecast by a prominent London
gold trader that the price will go over
$100 an ounce this year probably was the
major factor in the rise.
The central bank is intervening heavily in
Tokyo's foreign exchange market to maintain the
yen appreciation of about 16 percent compared with
its old central rate. During the last two days,
the Bank of Japan sold an estimated $240 million
to prevent strong demand for dollars from eroding
the yen-dollar exchange rate.
These sales reflect the need of commer-
cial banks to rebuild dollar balances to
required end-of-the-month levels, con-
tinued rapid growth in imports, and one-
time payments to the US for uranium en-
richment services and equipment for nu-
clear power plants. Some weakening of
the dollar is likely after the end of
the month, and contracts to buy yen in
the future indicate'an even higher ap-
preciation to come.
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LIBYA-US
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Libyan Air Force fighters are now on 24-hour
alert with orders to attack any foreign military
aircraft that appears to be reconnoitering the
Libyan coast, according to a senior Libyan air
defense officer. The officer said that the attack
on the RC-130 last week was not per se an anti-
American act and that Libya's reaction would have
been the same if the plane had been Soviet or French.
In fact, neither the Soviets nor the French
fly reconnaissance in this area. Libya
appears serious about enforcing the 100-
mile restricted flight zone it has de-
clared around Tripoli, and the chances
are good that, given the opportunity, it
will try to bring down a reconnaissance
plane.
Libya's press has been quiet about the
incident so far; the first mention o it
was published yesterday.
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LIBYA-OMAN
Libyan President Qadhafi has apparently decided
to provide about $30 million to support Oman's mili-
tary effort against guerrillas in the western Omani
Province of Dhofar.
Qadhafi would like to extend his influence
in the Persian Gulf states. He also finds
it natural to support a fellow Muslim
state against forces backed by the Marxist
leaders of Yemen (Aden).
The Libyan aid should help to ease some
of Oman's financial problems. Saudi Ara-
bian financial and military aid to Oman
has not reached expected levels, and the
Omani defense budg-et has nearly doubled
since 1.971 because of the fighting in
Dho far.
The Omanis currently depend primarily on
the UK and Iran for military support.
British officers are the mainstay of the
Omani Army, and two British Army support
units operate in Dho far. Iran recently
sent a 150-man combat unit and nine heli-
copters to Oman. The guerrillas receive
most of their support from Yemen (Aden),
which funnels Soviet arms across the bor-
der into Dhofar.
FOR THE PRESIDENT ONLY
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CHILE
The cabinet sworn in by President Allende yesterday
appears to be a compromise meant to alleviate grow-
ing dissension within his Popular Unity coalition.
There are five new ministers.
The important decision not to reappoint members of
the armed forces as ministers is a concession to
the radical wing of Allende's Socialist Party.
None of the Socialist ministers named, however, is
identified with that group's extremist policy. The
retention of only three ministries was probably
made palatable to Communist Party leaders by the
selection of moderate Socialists and of several
additional ministers from insignificant coalition
parties.
Before swearing in the new cabinet, Allende said
that the military will play a major role in further
economic development programs. Such assurances,
however, sound hollow, because he retained develop-
ment chief Vuskovic and other top economic officials
known for their radical policies.
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AUSTRALIA
Prime Minister Whitlam has made his most forth-
right defense to date of the ANZUS Alliance. In re-
marks on March 25 to a conference of the Victoria
State Labor Party, the stronghold of the party's
left, Whitlam stressed his commitment to agreements
covering US military and scientific installations
in Australia. He told his audience that the party
had no "mandate" to break agreements with the US,
and urged the leftists not to "blame the Yanks for
everything you don't like in this country."
Whitlam's comments helped to defeat a
draft resolution calling for removal of
US facilities, but an amended measure op-
posing new US installations did pass. Al-
though left-wing resistance within the
party may delay approval of the US Omega
navigational aid station now under con-
sideration, Deputy Prime Minister Barnard
has assured the US Ambassador that these
political problems can be resolved satis-
factorily.
FOR THE PRESIDENT ONLY
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NOTES
CSCE: The multilateral preparatory talks in
Helsinki, leading to convocation of a Conference
on Security and Cooperation in Europe in June, are
making progress. The US delegation expects that
when this round recesses for two weeks on April 6,
draft mandates will have been produced on "princi-
ples of security," economic cooperation, and in-
creasing human contacts between East and West.
Such drafts will then be subject to intensive NATO
(and perhaps Warsaw Pact) consultations. The ques-
tion of a fourth mandate, for establishment of per-
manent machinery to follow up the conference, which
the Soviets have been pushing against Western re-
sistance, is not likely to be resolved before the
April recess.
South Vietnam: The bilateral talks in Paris
between the Thieu government and the Viet Cong are
making little progress. After three formal sessions,
the two sides have agreed that the agenda should in-
clude the question of general elections for South
Vietnam and the creation of the Council for National
Reconciliation and Concord. Saigon wants to add the
question of the demobilization of Vietnamese armed
forces, including the withdrawal of Hanoi's troops;
the Viet Cong want the subject of "democratic liber-
ties" in South Vietnam on the agenda. Each side is
trying to pin responsibility on the other for the
slow pace of the talks, and both may be waiting to
see what happens after withdrawal of US troops and
President Thieu's meeting with President Nixon next
week.
India: The outlook for the important spring
wheat crop has improved in the northern and western
parts of the country, due to better weather condi-
tions in the past month. Drought continues, however,
to hurt spring crops in other sections of India.
The improved prospects for the wheat crop--which
accounts for two thirds of total spring foodgrains--
probably has reinforced the government's earlier
decision to delay buying large amounts of foreign
foodgrains because of high prices and tight supplies.
In the meantime, there is hunger in many areas, and
the current situation apparently is more serious
than official statements indicate.
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Top Secret
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