THE PRESIDENT'S DAILY BRIEF 2 MARCH 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007666
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: March 2, 1974

Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A012000010001-2
The President's Daily Brief
March 2, 1974
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Exempt from general
declassification schedule of E.O. 11652
exemption category 513(1),(2),(3)
declassified only on approval of
the Director of Central Intelligence
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THE PRESIDENT'S DAILY BRIEF
March 2, 1974
PRINCIPAL DEVELOPMENTS
The new French cabinet which reflects renewed coop-
eration between President Pompidou and orthodox Gaul-
lists, is designed to tackle the country's economic
problems. (Page 2)
Italian politicians are meeting this weekend to see
if Prime Minister Rumor's coalition, government can
be saved- following the resignation of Treasury min-
ister La Malfa. (Page 3)
The European Community is proceeding to explore pros-
pects for extensive cooperation with the Arab States.
(Page 4)
The situation in the Ethiopian capital of Addis Ababa
has begun to ease and the Emperor is Said to have
acceded to some of the dissidents' demands for re-
forms. (Page 5)
During February, North Vietnam continued a moderate
rate of troop infiltration into the South. (Page 7)
Notes on Egypt-Israel, Iran-France, and Australia -
New Zealand appear on Page 8.
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FRANCE
The new French cabinet, announced yesterday,
is smaller by a third and apparently is designed
to handle the country's economic problems more ef-
ficiently. There were no dramatic portfolio changes,
but the manner in which the cabinet was shaped is
another reflection of President Pompidou's interest
in patching up his differences with the orthodox
wing of the Gaullist party.
Pompidou and Prime Minister Messmer consulted
only three advisers in their deliberations leading
to the cabinet changes. One of these, Pierre
Juillet, has been attempting to arrange a reconcil-
iation between Pompidou and the Gaullist "barons,"
and his inclusion in these discussions suggests
that the cabinet changes--unlike the previous
change of government--were coordinated with party
leaders.
In addition, Pompidou has recently had confer-
ences 'with Gaullist leaders Michel Debre, Jacques
Chaban-Delmas, and Roger Frey. The recent appoint-
ment of Frey to a prestigious consultative office
is another sign that the barons have drawn closer
to Pompidou.
Pompidou has also appeased the Gaullists with
the recent nationalistic trend of his foreign poi-
icy. They had previously suspected Pompidou of .
diverging from De Gaullels principles: The 'depth
of the reconciliation is not certain, hOwever.
There is no evidence that Pompidou has agreed to
support Chaban-Delmas: as the governing coalition's
Candidate in the next presidential election.
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ITALY
Leaders of Italy's four center-left coalition
parties will meet this weekend to determine whether
Prime Minister Rumor's government can be preserved.
If these efforts fail, Rumor will probably step down.
According to one report, he may do so today.
The Republican Party directorate yesterday en-
dorsed Treasury Minister La Malfa's withdrawal from
the government, but refused to accept his resignation
as party leader. Although the directorate stopped
short of promising to support the government in par-
liament, it indicated that the Republicans would "act
responsibly," a tactic used in 1971 to keep a center-
left coalition alive for almost a year after a simi-
lar Republican withdrawal.
To keep the party's support Rumor will have to
mediate the long-festering dispute between the Repub-
licans and the Socialists over basic economic policy
that led to La Malfa's resignation.
So far, however, no one has suggested dissolving
parliament and holding new elections. Party leaders
reportedly fear the electoral repercussions of the
energy shortage, inflation, austerity measures, and
a simmering scandal involving alleged pay-offs to
politicians by the oil companies.
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EC
The European Community is proceeding to explore
prospects for extensive cooperation with the Arab states.
The Nine have demonstrated rare unanimity in support
of this move and are likely to give it their final
approval at a meeting of foreign ministers on March 4,
if a postponement is not requested by Britain or Italy
where governments may be changing.
Under the plan, the West Germans, who now hold
the chairmanship of community bodies, would initiate
talks with the Arab states in order to explore the
possibilities of cooperation in such fields as indus-
try, agriculture, energy, raw materials, science and
technology, financial cooperation, and vocational
training. This would be followed by the establishment
of joint commissions and a meeting of the EC and Arab
foreign ministers this fall.
At the same time, the EC governments participat-
ing in the follow-up work of the Washington energy con-
ference are responding cautiously to the agenda pro-
posed by the US at the first organizational meeting
of the Energy Coordinating Group earlier this week.
Reaction is tentatively favorable to the US suggestion
that the High Level Group of the Organization for Eco-
nomic Cooperation and Development handle conservation
and demand restraint, accelerated development of con-
ventional energy resources, and oil sharing. Pro-
posals that ad hoc groups, or the coordinating group
itself, handle such matters as energy research and
development or producer-consumer relations will run
into the objections of those EC members who are op-
posed to establishment of new international groups
to handle the energy crisis.
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ETHIOPIA
The situation in Ethiopia has begun to stabilize.
The number of troops in Addis Ababa has been reduced,
army units guarding key points have been replaced by
police, and roadblocks have been lifted.
Leaders of the military dissidents have decided
to enter into direct negotiations with Emperor Haile
Selassie. Their demands, which the Emperor reportedly
has already accepted, call for educational, economic,
and land reforms and the prosecution of corrupt of
These demands are, for the most part not, new,
but they were_largely ignored by the former govern-
ment.
Some of the dissidents pressed for the ouster of
Prime Minister Endalkatchew, but the majority favored
an accommodation. Endalkatchew has enhanced his po-
sition by taking a conciliatory stance toward demands
for reform and has promised to take into considera-
tion talent, youth, and experience in appointing the
rest of the cabinet. The demand for Endalkatchew's
removal could be renewed, however, if the new govern-
ment fails to carry out the promised reforms.
The growing opposition of students, teachers,
and labor unions to the new Prime Minister, however,
Introduced a new element into the situation. A major
demonstration yesterday by students opposing Endal-
katchew was dispersed by army units. The students
had marched on the Emperor's residence, calling for
Endalkatchew's ouster, land reform, free elections,
and freedom of the press.
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NORTH VIETNAM
Hanoi continued a moderate rate of troop infil-
tration to South Vietnam during February, and a recent
intercept indicates additional troops will be moving
south in March.
According to intercepts, 16 groups, totaling about
8,800 troops, started 'south r last month. Of this total,
some 5,600 troops are going to the southern half of
South Vietnam, about 1,700 are 'earmarked for the cen-
tral highlands, and approximately 1,500 are heading
toward areas along the northern and central coast.
Since the North Vietnamese are now using vehicles
to transport troops to their destinations, most of the
infiltrators should arrive in the next few weeks.. In-
tercepts also suggest that fewer infiltrators are now
being lost along the way due,tO.sickness and injury
than in the past, when most infiltration was by foot.
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NOTES
Egypt-Israel:
Iran-France: Iran has placed an order, valued
at more than $100 million, for six large missile-armed
patrol boats from France. The vessels are larger and
faster than the Soviet OSA-class missile patrol boats
in Iraq's naval force and will help protect Iran's
offshore oil facilities: This purchase moves Iran
toward the Shah's goal of quadrupling his fleet by
1978. Because of the large number of back orders for
this patrol boat, delivery to Iran may not take place
for two to three years.
Australia - New Zealand:
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