THE PRESIDENT'S DAILY BRIEF 19 SEPTEMBER 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993935
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: September 19, 1973

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The President's Daily Brief
19 September 1973
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Exempt from general
declassification schedule of E.O. I 1652
exemption categoty 5B( I
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
19 September 1973
PRINCIPAL DEVELOPMENTS
King Husayn hopes his amnesty toward convicted, de-
tained, or wanted fedayeen--announced yesterday--
will induce Syria to restore relations with Jordan
and open the way for a resumption of Kuwait's annual
subsidy. (Page 1)
The dollar weakened against major European currencies
following the revaluation of the Dutch guilder last
weekend but remains significantly stronger than it
was in July and early August. (Page 2)
In Chile, attacks on security forces seem to be
tapering off, and the junta plans to begin its eco-
nomic restructuring effort in earnest today. (Page 3)
Chinese
(Page 4)
Notes on USSR-Egypt and Cambodia appear on Page 5.
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
JORDAN-FEDAYED
King Husayn's announcement yesterday of a general
amnesty for all convicted, detained, or wanted feda-
yeen, whether in or out of Jordan, was reportedly
prompted by his belief that he has been too dogmatic
and negative since the 1970 civil war--a mood induced
by his meeting with Sadat and Asad in Cairo last week.
He still has no intention of allowing the commandos
to establish actual bases, nor does he intend to take
part in any Arab military "adventures." In fact,
his gesture will weaken the feda-
yeen, since it may lead to in-fighting and possibly
even reprisal assassinations against those accepting
the offer.
Husayn is obviously hoping that this move
will give Asad the excuse he needs to re-
store relations with Jordan; he has appar-
ently become convinced that his continued
adamant position could undermine Asad at
home. He may be responding, too, to pres-
sure from Sadat to help Asad remain in
power
Husayn also' hopes that the amnesty will
open the way to a resumption of Kuwait's
annual subsidy. In this he is probably
mistaken. If anything, Kuwait has recently
hardened its line on the subsidy; a govern-
ment spokesman told the press last Sunday
that restoration of relations with Egypt
and Syria would not be enough, and that
the PLO itself would have to approve.
Such approval is unlikely to be forthcom-
ing. PLO propaganda organs in Lebanon
have begun a concerted campaign against
any Arab rapprochement with Jordan, and
Asad moved this week to shut down Fatah
outlets in Syria that had condemned the
Cairo meeting.
Husayn could find himself hard put to sell
the amnesty to his army, which is vehemently
opposed to the slightest sign of concili-
ation toward the fedayeen, and dead set
against allowing any of them back into the
country.
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The European Currency Band, 1973
Percent Charlie From Central Rate
Mark
revalued
2
19 26 2 9 16 23 30 7 14
MAR APR MAY
554616 9-73
1 1 1 1
21 28 4 11
JUN
The band's upper and lower limits are defined
at any one time by whichever currencies
have appreciated (or depreciated) most and
least relative to their central rates.
III
18 25 2
JUL
I I I
9 16, 23 30 6 13 20 27 3 10 17
AUG SEPT
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FOR THE PRESIDENT ONLY
INTERNATIONAL MONETARY DEVELOPMENTS
The dollar weakened somewhat on Monday and
Tuesday against the major European currencies fol-
lowing the revaluation of the Dutch guilder last
weekend. The dollar is significantly stronger than
it was in July and early August, however, and the
Bundesbank reportedly has no plans to support it
unless the dollar rate falls to 2.40 marks. The
dollar closed at over 2.41 in Frankfurt yesterday.
Traders shifted into marks and Belgium francs
anticipating that these currencies would appreciate
and possibly even be revalued in the wake of The
Hague's decision. The renewed strength of the Ger-
man and Belgian currencies required increased inter-
vention by major European central banks to maintain
the European joint float. The French and Norwegian
central banks, whose currencies are now at the bot-
tom of the float, are selling the strong currencies
while the German and Belgian central banks have been
buying French francs and Norwegian crowns.
The EC commission publicly criticized The Hague
for acting without prior EC consultation, although
it recognized the domestic economic justification
for the revaluation.
fear that the Belgian Government--de-
spite its intentions to maintain the franc's parity--
may be forced to revalue.
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FOR THE PRESIDENT ONLY
CHILE
Attacks on security forces seem to be tapering
off. Santiago and the provinces were quiet yester-
day, although arrests of extremists and raids in
search of weapons reportedly have increased.
The regime now says that many of the 5,200
persons under arrest will be freed after interroga-
tion. It claims the arrests were required to pre-
vent the escape of persons suspected of armed re-
sistance or sabotage. These individuals will be
tried by military courts.
The junta plans to begin its economic restruc-
turing effort in earnest today, the first regular
work day since the coup. Government workers have
been told that if they do not appear today, they
will lose their jobs. Apparently in an effort to
avert labor problems by giving workers a sense of
participation, the government is considering turning
over 50 percent ownership of state-owned enterprises
to workers and selling the remainder to the public.
Companies taken over by the Allende government, but
not legally owned by the state, reportedly will be
returned to their owners.
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CHINA
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NOTES
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USSR-Egypt:
UN-Cambodia: Phnom Penh's prospects for re-
taining its seat at the United Nations have been
strengthened by Japan's agreement to serve on the
credentials committee of the General Assembly.
Probably joining Japan and the US to validate Phnom
Penh's credentials would be Nicaragua, Uruguay, and
Greece. Objections are expected from China, Tanzania,
and the Central African Republic, with an abstention
from the USSR.
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?
Top Secret
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