THE PRESIDENT'S DAILY BRIEF 23 JUNE 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993857
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: June 23, 1973

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The President's Daily Brief
23 June 1973
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Exempt from general
declassification schedule of E.O. 11652
exemption category 5B(1).(2).(3)
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
23 June 1973
PRINCIPAL DEVELOPMENTS
COSVN guidelines on the "new" cease-fire, dissemi-
nated in South Vietnam in mid-June, maintain the
Communists' emphasis on political struggle. (Page 1)
/The dollar weakened in major European centers yes-
terday and fell to record lows in Frankfurt, Amster-
dam, and Copenhagen. (Page 2)
The EC's readiness to negotiate two major trade is-
sues--the community's approach to multilateral trade
negotiations and compensation owed the US and other
trade partners for trade losses resulting from the
EC's enlargement--will be tested at the Council
meeting on Monday and Tuesday. (Page 3)
World rice stocks have dwindled, and the situation
may worsen still further over the near term. (Page 5)
A Chinese Foreign Ministry official has been accom-
panying a touring ping-pong team to discuss polit-
ical matters with some of Peking's Southeast Asian
neighbors. (Page 6)
Lao Prime Minister Souvanna, under pressure from
army generals and other rightists, has now decided
against accepting Communist demands for stationing
Pathet Lao troops on the outskirts of Vientiane and
Luang Prabang. (Page 7)
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SOUTH VIETNAM
COSVN guidelines on the "new" cease-fire
maintain the Communists' em-
phasis on political struggle. They suggest that,
for the present at least, the Communists will at-
tempt to work within the cease-fire agreement and
keep military action to a minimum.
the Com-
munists had two major objectives in negotiating the
joint communique of June 13. These were to end all
fighting and implement a "true cease-fire" and to
force Saigon to "promulgate and respect the demo-
cratic liberties of the people." The other parts
of the communique, such as the delineation of ter-
ritory, "are not very important,"
since the Communists do not
nent division of South Vietnam.
seek any perma-
The directive emphasizes the importance of
developing political action both within the VC-
controlled zones and in government-held areas.
The Communists recognize that the Thieu
government controls most of the people;
if the Viet Cong remained isolated in
"liberated areas," it would be virtually
impossible for it to undermine the gov-
ernment.
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INTERNATIONAL MONETARY DEVELONENTS
The dollar weakened in major European centers
yesterday and fell to record lows in Frankfurt,
Amsterdam, and Copenhagen. The improvement in the
US balance of payments had little impact on foreign
exchange markets, apparently having been discounted
in advance. The mark continues to consolidate its
position at the top of the European band of floating
currencies.
The Bank of France and the West German Bundes-
bank are jointly extending a $1-billion credit to
the Bank of Italy to help support the lira, currently
the weakest major currency. In addition, all EC
central banks, including those of France and West
Germany, will provide up to another $1.9 billion in
short-term monetary support for Rome.
Although there is concern in Switzerland at the
continued weakness of the dollar in relation to the
Swiss franc, the President of the Swiss National
Bank reportedly feels that the floating of the franc
has worked "amazingly" well. Consequently, the cen-
tral bank has made no attempt to control the franc-
dollar exchange rate.
Despite the dollar's recent downward drift in
Europe, it has gained against the Japanese and Cana-
dian currencies; these two countries account for
40 percent of US trade.
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EUROPEAN COMMUNITIES
The Council meeting on Monday and Tuesday
will test the EC's readiness to negotiate
two major trade issues: the community's
approach to multilateral trade negotia-
tions and compensation owed by the EC to
the US and the community's other trade
partners for trade losses resulting from
the EC's enlargement. There are a number
of indications that France may be ready
to permit the EC to move ahead on both
questions.
Both French and other community officials have
reported that Paris may not be averse to compromises
which would break the deadlock on the compensation
issue and at the same time would permit the EC to
adhere to its past position that nothing is "legally"
owed the US. Consistent with this posture, the
Belgian Foreign Minister may propose at the meeting
that the EC Commission be authorized to explore com-
pensation to the US for a "few highly sensitive
products."
French willingness to compromise has already
permitted progress in revising the community's ap-
proach to multilateral trade talks. French flexi-
bility has been particularly apparent in relaxing
insistence on a connection between monetary and
trade negotiations, in lessening the emphasis on
tariff "harmonization" as a goal in negotiations,
and in modifying Paris' contention that the EC
should take the position that it is owed conces-
sions for the trade liberalization it has already
effected.
Substantial agreement on a community ap-
proach at the Council session would per-
mit the EC to participate in a positive
way at the GATT preparatory committee
in July. This would be the last major
session before the scheduled ministerial
meeting in Tokyo in September.
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PAKISTAN-BANGLADESH- IND IA
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WORD RICE
World rice stocks have dwindled and only spo-
radic sales have been registered in recent months.
Total world rice exports in 1973 may be as low as
six million tons, compared to eight million last
year. A number of major rice consumers--Indonesia,
the Philippines, Singapore, Cambodia, and South
Vietnam--are seeking to make purchases on the world
market, but with little success so far.
Conditions in the major producing countries
suggest the situation will worsen over the near term:
--Thailand, in early June, banned further rice
export commitments at least until August.
--Burma may not sell more than 100,000 tons
this year, about a fifth of its exports in 1972.
--Japan's rice exports may fall short of the
400,000 tons it sold last year if Tokyo decides
to reserve its remaining stocks for domestic
feedgrain.
--China has little if any rice available for
sale now, although its early harvest, which
begins next month, may produce some for export.
--The US harvest, normally the earliest fall
harvest of the major exporters, has been de-
layed and trimmed by heavy rains. Although
the 1973 US harvest will be about 12 percent
above last year, the late harvest and lack of
carry-over stocks will hold down exports for
the remainder of the year.
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CHINA-THAILAND
Cheng Jui-sheng, the head of the Southeast
Asian Affairs section of China's Foreign Ministry,
has been accompanying a touring Chinese ping-pong
team to discuss political matters with some of
China's neighbors. Cheng reportedly met several
times with Thai officials in Bangkok this week,
where he probably reiterated Peking's willingness
to discuss Chinese material and propaganda support
for Thai insurgents. Thai leaders indicated pub-
licly this week that assurance on an end to such
support is a major precondition to normalizing re-
lations with China.
The ping-pong team moves next to Burma, where
Cheng will presumably try to ease Rangoon's growing
concern over Chinese-supported insurgency in Burma's
far northeast.
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NOTE
Laos: Prime Minister Souvanna, under pressure
from Lao Army generals and other rightists, has now
decided against accepting Communist demands that
Pathet Lao troops be stationed on the outskirts of
Vientiane and Luang Prabang.
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Top Secret
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