THE PRESIDENT'S DAILY BRIEF 14 JANUARY 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007646
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: January 14, 1974

Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010036-6
The President's Daily Brief
January 14, 1974
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010036-6
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Exempt from general
declassification schedule of E.O. I 1652
exemption category 59(
declassified only on approval of
the Director of Central Intelligence
't
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
January 14, 1974
PRINCIPAL DEVELOPMENTS
Minor violations occurred yesterday on both fronts
in the Middle East. The Algerians may withdraw
their military units from Egypt, Syria, and Libya.
(Page 1)
The proposed union of Libya and Tunisia into an
"Arab Islamic Republic" may never become much more
than a paper agreement. Neither side has named a
target date for complete merger, and the referendum
to approve it has already been postponed. (Page 2)
European central bankers are concerned about the
viability of present exchange rates in the face of
increased oil prices. Several of them think current
exchange rates have become outdated; French bankers
stress that it is more important for the Europeans
to maintain the joint float than to support individ-
ual rates vis-a-vis the dollar. (Page 3)
Communist units were active in the Phnom Penh area
over the weekend. A rocket attack Saturday damaged
the airport, but normal air operations continue.
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(Page 4) 25X1
Turkey's left-of-center Republican People's Party
and the Islam-oriented National Salvation Party an-
nounced last night that they had agreed to form a
coalition government. (Page 5)
/Soviet(
//(Page 6)
Brezhnev's trip to Cuba reportedly is now set for
January 18. (Page 6)
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
ARAB STATES - ISRAEL
Minor cease-fire violations, continued to occur
on both fronts yesterday. Sporadic firing broke out
along the Syrian cease-fire line in the morning and
by early afternoon had expanded into a heavy artil-
lery duel. One Israeli was killed before the firing
stopped, according to Jerusalem radio reports.
In Egypt, UN observers reported intermittent
skirmishes between Israeli and Egyptian forces at.
several points along the.Suez Canal.- Four Israeli
aircraft were involved in reconnaissance flights
over the area south of Suez city.. Otherwise, flight
activity was limited on both, fronts.
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FOR THE PRESIDENT ONLY
LIBYA-TUNISIA
The proposed union of Libya and Tunisia into
an "Arab Islamic Republic" may never become much
more' than a paper agreement, Neither side has
named a target,date.for complete merger, and the
referendum to approve it?initially scheduled for
January l8--has already been postponed by Tunisian
President Bourguiba until March 20.
The scheme is almost. certainly a Libyan initia-
tive. Qadhafi apparently turned to Tunisia in an
attempt to recoup some of the prestige and influence
he lost when plans fpr a Libyan-Egyptian merger
failed last September. Since then, relations with
Cairo have deteriorated further, and union with
Egypt is now a dead issue.
Qadhafi; had tried in late 1972 to win Dour-
guiba's agreement to forge a United country and
offered to make him president, but Bourguiba re-
sisted.. What accounts for his recent change of
heart is nOt clear. He may have been attracted
in part by the financial benefits he expects from
close, union with Libya. Bourguiba may also see
in theproposed merger an opportunity to exert a
moderating influence on Qadhafi and to end Libya's
isolation in the Arab world. This would seem an
impossible task, however, since it would require
a considerable .mellowing Of Qadhafi's views and
behavior,
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Bourguiba has publicly expressed the hope .
that Algeria, Mauritania, and Morocco will even-
tually join,Tunisia and Libya in an even broader
union., Earlier attempts to achieve unity .in the
Maghreb have foundered, largely because of deep
mutual distrust and economic rivalry, Indeed,
Algeria has already branded the Tunisian-Libyan
merger,- not without reason, an "unnatural construc-
tion."
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FOR THE PRESIDENT ONLY
INTERNATIONAL MONETARY DEVELOPMENTS
At a closed meeting last week in Basel, Euro-
pean central bankers reportedly showed considerable
concern about the viability of present exchange rates
in the face of increased oil prices. Several of the
participants suggested that current exchange rates
have become outdated, and the French representative
stressed that it is more important for the Europeans
to maintain the joint float than to support individ-
ual rates vis-a-vis the dollar. There was general
consensus on the necessity to preserve the float.
Finance ministers from major countries will
meet on January 17-18 in Rome to discuss the impact
of the energy crisis on the world monetary situation
and on prospects for international monetary reform.
The meeting was originally scheduled to take up
monetary reform, but there is little chance for
early progress on this issue.
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Phnom Penh
4-?
Communist
held
Communists
close road
Government 1\
counterattack
taIled
PHNOM PEN
Kompong
Speu
Prey Veng
Nel< Luong
PHNOM \\
PENH N.
7 .'1(0./1G
2nd Division
555068 1-74 CIA
Statute Miles
_
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FOR THE PRESIDENT ONLY
CAMBODIA
? Military activity remained centered in the Phnom
Penh region over the weekend. The Cambodian Army
counterattack against Khmer Communist forces three
to five miles northwest of the capital has bogged
down in the face of stiff enemy resistance. Army'
commanders have committed additional armored units
to this sector in an effort to break the deadlock
there. A Communist rocket attack on January 12 dam-
aged both the runway and the control tower at Phnom
Penh's Pochentong airport, but normal air operations
continue.
Communist units again cut Route 4 southwest of
Kompong Speu City over the weekend, forcing a truck
convoy bound for Phnom Penh to turn back. Army com-
manders last week pulled major units back from the
Route 4 front to counter the threat to Phnom Penh.
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TURKEY
Turkey's left-of-center Republican People's
Party and the Islam-oriented National Salvation
Party announced Sunday night an agreement to form
a coalition government. The two parties have about
235 deputies in the 450-member National Assembly.
The badly split legislature has been unable to form
a government since the inconclusive elections in mid-
October.
There have been indications that the Turkish
military, restless over the three-month political
stalemate, has been applying pressure to secure a
government acceptable to it. Still, the coalition
proposal presents Turkish officers with a dilemma.
They have a strong secular tradition and have op-
posed allowing the National Salvation Party a part
in the government.
If the President accepts the coalition, the
military may decide to let such a government take
office and then assess its early performance. On
the other hand, it might decide on strong pressure
to bring about a broad national coalition or a gov-
ernment based on cooperation between the Republican
People's Party and the Justice Party, the parties
with the largest representation in parliament.
The Embassy in Ankara believes the military's
decision could go either way.
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FOR THE PRESIDENT ONLY
NOTES
USSR:
USSR-Cuba: Well-informed Soviet sources re-
ported on January 12 that party chief Brezhnev's
trip to Cuba is now set for January 18, according
to Western correspondents in Moscow.
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Top Secret
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