THE PRESIDENT'S DAILY BRIEF 15 JUNE 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993850
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: June 15, 1973

Declassified in Part- Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010064-8
The President's Daily Brief
15 June 1973
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Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010064-8
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010064-8
Exempt from general
declassification schedule of E.O. 11652
exemption category 513(1).12).(3)
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010064-8
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
15 June 1973
PRINCIPAL DEVELOPMENTS
On his return to Argentina next week, Juan Peron
must arbitrate differences that have developed
within the Peronist movement, set a firm course for
the government, and put down terrorism. (Page 1)
I (Page 2)
Popular support for the Indian Government and the
ruling Congress Party is fast eroding although Mrs.
Gandhi retains much of her personal popularity.
(Page 3)
IZRt\
/ (Page 4)
Saudi Arabia,
The Soviets launched an unmanned Soyuz spacecraft
early this morning from the missile and space center
at Tyuratam. (Page 5)
European traders have demonstrated considerable
skepticism about the impact of the new US economic
policy. (Page 5)
Negotiations are continuing between the Libyan Gov-
ernment and Western oil companies, but company rep-
resentatives find no flexibility in Tripoli's posi-
tion. (Page 5)
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ARGENTINA
Juan Peron will be faced with imposing tasks on
his return to Buenos Aires next week. He must arbi-
trate differences that have developed within the
Peronist movement, set a firm course for the govern-
ment, and put down terrorism.
Even some of Peron 's political opponents
say that he is the only individual who
can restore order and get things moving.
Campora so far has been unable or unwill-
ing to challenge groups that have occupied
radio stations, hospitals, and universi-
ties or to reduce the bickering that has
stalled appointments to several posts be-
low the cabinet level.
Only the new economic team headed by Fi-
nance Minister GeZbard has made any prog-
ress. It has instituted price controls
and reached agreement with labor on belt-
tightening measures designed to slow in-
flation.
1
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CHILE
General Prats bluntly warned President Allende
early this week that the government must act auickly
to halt the present economic deterioration.
Prats did not include himself in the lineup
but may have his eye on the post of prime
minister or vice president. Neither exists
now, and Prats wants one of these positions
created by constitutional amendment.
Allende has worked out "irreconcilable"
differences before, usually to his advan-
tage. This time, however, the task looks
much harder. In any event, impeachment
proceedings now under way in congress
against three key ministers will force
some cabinet changes very soon.
2
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INDIA
Popular support for the government and the
ruling Congress Party is fast eroding. The govern-
ment's inept handling of the recent drought, suspi-
cion that Mrs. Gandhi is trying to pack the Supreme
Court and muzzle the press, and rumors of corruption
at the highest levels of the administration are fac-
tors in its decline.
The Congress Party is faltering in several
states where the Prime Minister earlier replaced
troublesome, but politically astute, local leaders
with trusted functionaries lacking a personal power
base. In three states Congress Party governments
have been replaced this year by direct "President's
Rule" from New Delhi. Congress Party candidates
have also fared poorly in several recent by-elections.
The Congress Party is riven by ideological
disputes, and caste and personal rivalries. In
addition, the Communist Party of India, formerly a
de facto ally of the Congress, no longer gives un-
conditional support to the government. Opposition
parties, encouraged by the trend, have become more
active.
Mrs. Gandhi retains much of her personal
popularity and has no serious rival for
power within the party. She does not face
national elections until 1976, and is free
to decide whether elections scheduled for
early 1974 in several states should be
postponed under an extension of President's
Rule. She can also time a dabinet re-
shuffle to strengthen her somewhat tar-
nished reputation as an administrator.
Other developments over which she has no
control could be even more beneficial;
a good monsoon in the next few weeks or
the early arrival of food grains promised
from overseas would be of considerable
help.
3
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SAUDI ARABIA - EGYPT
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NOTES
USSR: The Soviets launched an unmanned Soyuz
spacecraft early this morning from the missile and
space center at Tyuratam. The mission, which will
coincide with Brezhnev's visit to the US, probably
is a test of modifications made to the spacecraft.
International Monetary Developments: The dol-
lar closed lower in almost all European currency
markets yesterday, but at a point substantially
above last week's low. Traders demonstrated wide-
spread skepticism about the impact of the new US
economic policy. They expressed fear that US plans
for controls on food exports and reduced tariffs on
imports of scarce materials will set back improve-
ment of the US balance of payments. There was some
disappointment that President Nixon did not announce
specific measures to strengthen the dollar's market
performance. The first official foreign reaction to
the new US measures came from the Canadian Finance
Minister who expressed concern that other countries
might retaliate against US export controls.
Libya: Negotiations are continuing between
the government and Western oil companies, but com-
pany representatives find no flexibility in Tripoli's
position. The companies are maintaining their offer
of a 50-50 joint operating arrangement against the
government's demand for 100-percent participation.
Company officials are concerned that Tripoli is
overestimating its negoti'ating strength and may
force itself into a position from which it would
view nationalization as the only alternative.
5
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Top Secret
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