THE PRESIDENT'S DAILY BRIEF 21 JANUARY 1974
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
0006007652
Release Decision:
RIPPUB
Original Classification:
T
Document Page Count:
13
Document Creation Date:
August 14, 2016
Document Release Date:
August 24, 2016
Sequence Number:
Case Number:
Publication Date:
January 21, 1974
File:
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Body:
i=t 71)eclassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A011900010042-9
The President's Daily Brief
January' 21, 1974
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Exempt from general
declassification schedule of E.O. 11652
exemption category 56( t ),(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
January 21, 1974
PRINCIPAL DEVELOPMENTS
Israeli Chief of Staff Elazar yesterday announced
that Israeli forces will begin their withdrawal from
the west bank of the Suez Canal on January 25.
(Page 1)
Egyptian Foreign Minister Fahmi is scheduled to go
to Moscow today, presumably to try to convince the
Soviets that Cairo has not cooperated too closely
with the US in negotiating the disengagement agree-
ment. The Soviet delegation in Geneva has suggested
that the Geneva talks be reactivated soon. (Page 3)
Paris' decision to float the franc unilaterally has
prompted major foreign capitals to shut their inter-
national money markets, out of fear of a run to dol-
lars or gold. Prospects for the survival of the
joint float are still poor. (Page 4)
Fighting was light and indecisive along Phnom Penh's
southern defenses over the weekend, and there is
still no indication as to when the Khmer Communists
will commit major elements to the campaign. (Page 5)
The Chinese gained complete control over the Paracel
Islands yesterday after following up yesterday morn-
ing's air strikes with an amphibious assault. (Page 6)
President Peron has publicly declared war on terror-
ist groups in Argentina following yesterday's massive
guerrilla attack on an army garrison south of the
capital. (Page 7)
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
ARAB STATES ? ISRAEL
Israeli Chief of Staff Elazar yesterday announced
that Israeli forces will begin their withdrawal from
the west bank of the Suez Canal on January 25. The
first area to be evacuated will be that south of the
Cairo-Suez road. This withdrawal will reopen the road
to Egyptian traffic, thereby freeing the encircled
Third Army.
The announcement came after a meeting yesterday
between Elazar and Egyptian Chief of Staff Gamasy at
Kilometer 101. Their meeting was the first of several
scheduled to work out arrangements for implementing
the disengagement agreement signed on January 18.
Since the accord was signed, no significant cease-fire
violations have been reported.
Egyptian officials are making determined efforts
to marshal wide Arab backing for the agreement with
Israel. President Sadat over the weekend took his
case to the leaders of Saudi Arabia, Syria, Kuwait,
Bahrain, Qatar, and the United Arab Emirates. Al-
though most appeared eager to be briefed on the de-
tails of the disengagement accord, none proffered
enthusiastic public support.
Sadat is particularly eager that Syria's Presi-
dent Asad withhold criticism of Egypt's initiative
in negotiating with Israel. Syria so far has not
issued an official reaction to the agreement.
At home, Egyptian officials are appealing for
popular support for the agreement by stressing the
concessions made by Tel Aviv. Egypt's only political
party, the Arab Socialist Union, issued a statement
on January 19 minimizing Egypt's commitments under
the agreement and emphasizing that Cairo had accepted
the buffer zone "on the basis that it can move any
amount of its forces and equipment" to the east at
any time if necessary.
The Egyptian media have publicized the general
terms of the agreement and have praised it as com-
pleting implementation of the earlier six-point ac-
cord. Al Ahram has cautioned, however, that the
latest agreement is but a preliminary step toward the
implementation of more basic UN resolutions and that
disengagement must also be applied to the Syrian front.
(continued)
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FOR THE PRESIDENT ONLY
Libya, Iraq, and radical fedayeen groups have
criticized Egypt for signing the agreement with Is-
rael. Opposition from the Palestine Liberation Or-
ganization may be restrained somewhat when Chairman
Yasir Arafat returns to Beirut from Cairo; Arafat
has already denounced the position taken by the PLO
In his absence.
Israel's leaders continue to defend the agree-
ment in their efforts to counter criticism from the
opposition Likud bloc. The Jerusalem Post has pub-
lished a front-page story purporting to give details
of the secret bilateral accords signed by Egypt and
Israel with the US; the story may have been leaked
by government officials hoping to play up provisions
of the agreement that could help reduce domestic op-
position.
Likud is calling for mass protest demonstrations
to coincide with this week's opening of the new Knesset.
An initial rally in Tel Aviv Sunday night drew a crowd
estimated at several thousand. Following an address
by Prime Minister Meir tomorrow, the Knesset is sched-
uled to debate the agreement.
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FOR THE PRESIDENT ONLY
USSR-EGYPT
Egyptian Foreign Minister?Fahmi is scheduled
to go to Moscow today, according to Cairo's Middle
East News Agency. Part of his task presumably will
be to convince the Soviets that Egypt has protected
its own interests and has not cooperated too closely
with the US in negotiating the disengagement agree-
ment.
In Geneva, Soviet Ambassador Vinogradov--who
heads the Soviet delegation to the Geneva confer-
ence--on January 17 largely reiterated the criti-
cism voiced the previous day in Moscow by Foreign
Minister Gromyko to the Egyptian ambassador there
Vinogradov told the Egyptian ambassador in
Geneva that Cairo had forgotten its true friends
and that he was under pressure from certain Arab
states to reconvene the Geneva conference. When
asked to identify these states, Vinogradov report-
edly backed off. Vinogradov's deputy, Y. D. Pyrlin,
got in touch with the US delegation in Geneva on
January 18 for the first time in two weeks and sug-
gested that the Geneva talks be reactivated soon.
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FOR THE PRESIDENT ONLY
INTERNATIONAL MONETARY
In reaction to France's unilateral decision to
let the franc float, West Germany, Japan, Belgium,
and the Netherlands have closed their international
money markets. Foreign capitals are fearful that
traders will step up their movement into dollars or,
to a lesser extent, gold.
Paris' decision will put more pressure on the
industrial nations to resolve financial problems re-
sulting from higher oil prices.
Finance ministers and central bank governors
from the Benelux countries met yesterday to discuss
the issue. They called for a meeting of Common Mar-
ket countries to consider ways to maintain what is
left of the European joint float.
Although the French action eases the strains on
the joint float, its prospects for survival are poor.
With the French pullout, the mark is the only major
currency left. The Scandanavian and Benelux nations--
the other participating countries--will be reluctant
to draw down their reserves to support a truncated
float.
The French decision clearly reflects the heavy
reserve losses Paris has experienced in defending
the franc; France has spent over $2 billion since
last fall to maintain the franc's position in the
joint float. Some French observers predict that
Paris will take further steps, such as tightening
exchange controls, to protect its reserves.
FOR THE PRESIDENT ONLY
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Phnom Penh
Government
makes slight gains
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JVO
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CAMBODIA
Fighting was light and indecisive along Phnom
Penh's southern defenses over the weekend. Several
minor Communist penetrations along the western end
of the defense line were due more to jittery govern-
ment defenders than to serious enemy pressure. In-
conclusive skirmishing also occurred along the Bassac
River southeast of the city.
There is still no indication as to when the
Khmer Communists will commit major elements to the
campaign. An intercepted message indicates that
government pressure has made it difficult for at
least one Communist unit to move into position.
Other messages, however, make it clear that heavy
fighting is in the offing.
Northwest of Phnom Penh, government troops made
their first gains in over two weeks against enemy
units dug in north of the airport. Recent inter-
cepted messages reveal Communist concern over their
inability to maintain pressure on the northern front
until a major thrust occurs in the southwest.
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China
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FOR THE PRESIDENT ONLY
CHINA - SOUTH VIETNAM
The Chinese gained complete control over the
Paracel Islands yesterday. According to a South
Vietnamese spokesman, the Chinese followed up yes-
terday morning's air strikes with an amphibious as-
sault on Pattle, Money, and Robert islands and fur-
ther clashes with South Vietnamese troops. Saigon
has ordered its naval and air forces to withdraw
from the area, and the South Vietnamese have aban-
doned their troops on the islands. Among those
left behind is an American liaison officer from
the defense attache's office.
Saigon has not commented as yet on casualties
suffered in yesterday's fighting. It had admitted
to some 8 killed, 39 wounded, and at least 67 miss-
ing in previous actions.
Until recently, the South Vietnamese had main-
tained a presence only on Pattle Island. The ap-
pearance of Saigon's troops on neighboring islands
may have provided the stimulus for Peking's mili-
tary actions.
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FOR THE PRESIDENT ONLY
NOTE
Argentina: President Peron has publicly de-
clared war on terrorist groups in Argentina follow-
ing yesterday's massive guerrilla attack on an army
garrison some 300 miles south of the capital--a bat-
tle described as the biggest guerrilla operation so
far. Recent government efforts to stem mounting
terrorism have not been successful, and Peron can
be expected to take stronger measures. He will un-
doubtedly press for quick passage of an antiterror-
ist bill now before Congress, and may push for more
active military participation in countersubversion.
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