THE PRESIDENT'S DAILY BRIEF 2 JANUARY 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007636
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: January 2, 1974

Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010026-7
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The President's Daily Brief
January 2, 1974
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Exempt from general
declassification schedule of E.O. 11652
exemption category 5B( 11.f 21.13)
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
January 2, 1974
PRINCIPAL DEVELOPMENTS
Israeli and Arab forces are on alert,
but leaders of both sides appear disposed to go back
to the Geneva talks today. (Page 1)
Mrs. Meir will probably form Israel's new government
without a change in coalition partners. Her prin-
cipal opponent, the Likud group, did not gain enough
seats to form a government or to force Mrs. Meir to
take it into the coalition. (Page 2)
Israe
\ Egypt/
/(Page 3)
A major reshuffle of China's military region com-
manders has taken place. The transfers separate
military leaders from provincial power bases secured
during the Cultural Revolution. (Page 4)
The Nigerian Government has sold its share of the
Country's total production for $22.60 per barrel.
Similar crude produced in the US has been selling
for less than $9.00. (Page 5)
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ARAB STATES - ISRAEL
While both sides are maintaining state
of alert, they apparently plan to continue
for the time being to seek a negotiated peace settle-
ment. Today's meeting of the disengagement talks in
Geneva is expected to proceed as scheduled.
Neither side has given any indication of a
willingness to modify its position, but neither
appears anxious to break off the talks at this
point. For the immediate future, the principal
Arab leaders appear inclined to wait and find out
what type of government emerges from the Israeli
elections.
There were only minor cease-fire violations
on either front during the past two days. The Is-
raelis continued to carry out aerial reconnaissance
of both fronts.
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ISRAEL
Monday's parliamentary elections failed to
give any party a clear majority, and Mrs. Meir's
Labor Alignment faces long and difficult bargaining
over the make-up of a new coalition government.
Any government probably will be cautious about con-
cluding a peace agreement that includes extensive
territorial concessions.
In a heavy voter turnout, the Alignment re-
ceived just under 40 percent of the vote, losing,
according to preliminary returns, 6 of its 57 seats.
The Alignment-led government coalition lost 8 of
its 77 seats. The total number of deputies to the
Knesset is 120.
There will probably be no change in coalition
partners in the new government when it is eventually
formed. Mrs:. Meir's major coalition partner, the
.National Religious Party (NRP), which lost only one
Seat,.will probably seek to take advantage of the
Alignment's losses to enhance its own position and
influence within the government.
As anticipated, Likud, the rightist opposition
group, emerged the big gainer, receiving jut over
27 percent of the vote and increasing its Knesset
seats from 31 to 38 or 39, according to the pre-
liminary tabulations. Its leader, Menahem Begin,
claimed at a post-election rally yesterday that
Likud's strong showing demonstrated to all the
world that there is in Israel a "clear majority"
against any proposals to "repartition" the country.
Likud failed, however, to gain enough seats to
enable it to form a government or to force the
Alignment to take it into a national unity gov-
ernment.
Final election results are not expected for
several days. Counting of the ballots cast by
voters in the military, an estimated 15 percent of
the electorate, is particularly slow but is in any
case not expected to change significantly the over-
all results.
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EGYPT ISRAEL
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FOR THE PRESIDENT ONLY
CHINA
New Years Eve rallies reveal a massive reshuffle
of politically powerful military region commanders.
Chinese news agency reports indicate that the shifts
involved commanders of seven of China's 11 military
regions and the head of the army's General Political
Department. No purges have resulted, but the trans-
fers separate military leaders from provincial power
bases secured during the Cultural Revolution.
It is not yet known whether the military region
chiefs, all but one of whom headed their provincial
party and government bodies, also exchanged the lat-
ter positions. If not, a majority of top provincial
party and government jobs could revert to civilians
for the first time in over seven years.
The shifts reflect the continuing power strug-
gle in Peking. At least one of the provincial mil-
itary region commanders, Politburo member Chen
Hsi-lien, figured prominently in the politically
motivated debates over education and other policies
which were conducted in the media last summer. Chen
has been moved from his Manchurian base to the Peking
Military Region. He will thus be more directly ac-
countable to his political opponents, but may also
have the opportunity to play a greater role in the
leadership councils in concert with his political
allies.
Li Te-sheng, a party vice chairman and head of
the army's General Political Department, has re-
placed Chen in Manchuria. On the surface, this
switch represents a promotion for Chen and a demotion
for Li, who had appeared to be a candidate for a top
central military post.
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NOTE
Oil: The Nigerian Government has found buyers
for its share of total Nigerian production--14.5
percent (320,000 barrels per day)--at $22.60 per
barrel. Prospective purchasers earlier refused to
buy oil at this price, but after the announcement
of higher prices last week by the Gulf states, sev-
.eral US and Japanese oil companies expressed inter-
est. Similar US-produced low sulfur oil, not regu-
lated by the Cost of Living Council, has been sell-
ing at less than $9.00.
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Top Secret
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