THE PRESIDENT'S DAILY BRIEF 20 SEPTEMBER 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993936
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: September 20, 1973

Declassified in FG1 - Sanitized Copy Approved for Release 2016/06/15 : CIA-RDP79?00936A011700050005-8
The President's Daily Brief
20 September 1973
??45
Declassified in Part - Sanitized Copy Approved for Release 2016/06/15 : CIA-RDP79T00936A011700050005-8
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Exempt from general
declassification schedule of ED. I 1652
exemption category 5811),(2)13)
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/06/15 : CIA-RDP79T00936A011700050005-8
Declassified in Part- Sanitized Copy Approved for Release 2016/06/15 : CIA-RDP79T00986A011700050005-8
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
20 September 1973
PRINCIPAL DEVELOPMENTS 25X1 25X1
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USSR
Supporters of the ousted Allende government are
organizing in exile, and the junta suspects they
may be regrouping in Chile as well. (Page 2)
The outlook for stability in European currency
markets is clouded. (Page 3)
Kuwait may purchase French rather than US inter-
ceptor aircraft. (Page 4)
China/
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the Soviets have 25X1
resumed work on what is probably their second air-
craft carrier. (Page 6)
FOR THE PRESIDENT ONLY
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USSR
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FOR THE PRESIDENT ONLY
CHILE
The daytime calm in Santiago is still being
supplanted at night by the sound of shooting and
reports of heavy firefights in the suburbs. The
military have been surprised by the number of weap-
ons uncovered and are convinced that many more are
in the hands of leftist extremists. The government
is concerned by its failure to locate some prominent
supporters of the ousted Popular Unity regime.
The army estimates that thousands of mili-
tant Marxists remain at large and believes
that several hundred may be organizing in
a rural area
well suited tor guerrilla activity.
As of now, most visible antigovernment activity
is taking place outside Chile. A "patriotic front"
of Chilean exiles has been formed in Buenos Aires,
Other Latin American leftists
are talking of sending "international brigades" to
help fight the junta. A group of Popular Unity
leaders is gathering in Rome and could try to form
the nucleus of a government-in-exile seeking inter-
national support.
So far, such activity is in the talking
stage, but it could turn to action if a
significant leftist insurgency should de-
velop within Chile.
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INTEMATIMAL MONETARY DEVELOPMENTS
International traders, responding to rumors of
a new European currency realignment--including a
French devaluation--brought heavy pressure on the
franc yesterday. The French, and to a lesser ex-
tent other EC central banks, intervened to the tune
of more than $400 million in order to support the
franc.
Central bank intervention was far less
than reported in some press stories. The
rumors about realignment are feeding on
the uncertainty created last weekend by
the revaluation of the guilder, the an-
nouncement of France's first monthly
trade deficit in over a year, and uneasi-
ness over the rate of French inflation.
The outlook for stability in European cur-
rency markets is clouded.; at a minimum
continued central bank intervention will
probably be required.
Foreign exchange dealers believe that the Bel-
gians will feel constrained to revalue. A large
portion of Belgium's trade is with Germany and the
Netherlands, and both governments have revalued
recently.
Belgian revaluation could ease pressures
on France to devalue, but at the same
time, it could add to pressures for re-
valuation of the mark.
The dollar has gained back some of the ground
lost earlier this week.
The fact that the US balance-of-payments
deficit for the second quarter was the
smallest since 1970 helped the recovery.
3
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/15 : CIA-RDP79T00936A011700050005-8
Declassified in Part - Sanitized Copy Approved for Release 2016/06/15: CIA-RDP79T00936A011700050005-8
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KHUAIT-FRAHCE
The US Embassy in Beirut has acquired informa-
tion that the Kuwaiti Air Force wants the government
to purchase a squadron of Mirage interceptor air-
craft. French defense officials reportedly are now
in Kuwait to submit a final proposal for sale of
the aircraft.
The Kuwaitis have been anxious to modern-
ize their air force since the Iraqi incur-
sion into Kuwait last May. Among the air-
craft under consideration are US-produced
F-5 interceptors and A-7 ground-attack
fighters as well as the French-built Mi-
rages. No contracts have yet been signed.
France has been vigorously trying to cap-
ture a greater share of the arms market
in the Middle East. If the Kuwaitis pur-
chase the Mirages, they would have little
need for the F-5 interceptors. Among
Kuwait's problems with buying US planes
are the restrictions placed by the US on
the transfer and use of such aircraft.
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FOR THE PRESIDENT ONLY
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CHINA
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NOTE
USSR: after
? a pause, the Soviets have resumed work on what prob-
ably is their second aircraft carrier. The ship is
still in the initial stages of construction and may
not be ready for launching until 1975. The Soviets'
first carrier, which was launched in December 1972,
is still fitting out. This work could be completed
next year. Crews will have to acquire operational
experience with shipborne helicopters and vertical
and short takeoff-and-landing aircraft, however, be-
fore the ship will be ready for action.
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Top Secret -
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