THE PRESIDENT'S DAILY BRIEF 18 MARCH 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007700
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: March 18, 1974

Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79-100936A012000010034-6
The President's Daily Brief
March 18, 1974
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A012000010034-6
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A012000010034-6
Exempt from general
declassification schedule of E.O. 11652
exemption category 513( I )2).1.3)
declassified only on approval of
the Director of Central Intelligence
?
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
,March 18, 1974
PRINCIPAL DEVELOPMENTS
No overt rebellious activity has been reported in
Portugal since March 16, but the young officers' move-
ment may cause further trouble. (Page 1)
Khmer Communist official has reit-
erate the insurgents' refusal to talk with the Lon
Nol government, but says they are worried that they
may come under international pressure ?to negotiate
when the dry season ends. (Page 2)
Communist attacks launched this weekend against sev-
eral government outposts near Kontum City in South
Vietnam's central highlands appear to be among the
heaviest since the cease-fire went into effect.
(Page 3)
Saudi Oil Minister Yamani said late Sunday that
OAPEC has agreed to end its oil embargo against the
US and partially restore production. Egypt's semi-
official newspaper, however, says the decision may
be referred to the Arab foreign ministers meeting
On March 25 because of Libyan opposition. (Page 4)
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
PORTUGAL
No overt rebellious activity has been reported
since 200 dissident troops were disarmed and arrested
after trying to move into Lisbon on March 16. The
government has arrested about 30 military officers,
including a close friend of former deputy chief of
staff Spinola.
For the moment, the regime is still in control
and reportedly will prohibit a second printing of
Spinola's book, which advocates relaxing controls
on Portuguese territories in Africa. More problems
may lie ahead, however. The young officers' move-
ment--which about half of the country's captains and
majors are said to support--has been critical of the
establishment's hard line on the African territories.
Premier Caetano may share the views of these officers,
but his room for maneuver has probably been reduced by
the Spinola crisis. Those members of Portugal's busi-
ness community who want closer ties with Europe may
also grow more critical of the regime as the EC con-
siders moves to persuade Portugal to modify its African
policy.
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FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
CAMBODIA
Khmer Communist official told
a supporter of Sihanouk that the Khmer
Communists will never negotiate with the Lon Nol gov-
ernment. He said Khmer Communist "diplomats" have
begun an intensive campaign to inform friendly gov-
ernments that a Vietnam-style cease-fire and settle-
ment are unacceptable in Cambodia.
The Communist official was concerned, however,
that this tough stance may become harder to maintain.
He said the Khmer Communists are worried over indica-
tions that unnamed "great powers "--which from the
Khmer point of view might include Hanoi as well as
Washington, Peking, and Moscow--are waiting until
?the end of the dry season to exert pressure for ne-
gotiations. For this reason, insurgent forces are
doing all they can to win a decisive victory during
this dry season. He did not say whether the Commu-
nists would re-evaluate their position if the offen-
sive should fail to overthrow the Lon Nol government.
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FOR THE PRESIDENT ONLY
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?16
?14
104
THAILAND
06
NORTH
VIETNA
LAOS
CAMBODIA
?12
?10
PHNOM PENH
Gulf of
Thailand
1?4
555447 3-74 CIA
Neirong
T;ly Ninh
SE GON
106
Demilitarized Zone
Central
Kontum.
Highlands
Pleiku.
MR 3
Capitol Special Zone
110
CAM
'RANH
South
China
SOUTH VIETNAM
110
16-
14-
12-
10 ?
1 8 MILES ' 1110
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FOR THE PRESIDENT ONLY
SOUTH VIETNAM
Communist forces launched sharp attacks this
weekend against several government outposts near
Kontum City in South Vietnam's central highlands.
Two government ranger positions six and eleven
miles northeast of Kontum were hit by heavy artillery
barrages on March 16; the shellings continued yester-
day. Some Communist elements reportedly have moved
to within a few miles of Kontum; initial accounts
indicate that the fighting is among the heaviest
since the cease-fire went into effect. An inter-
cepted message Of March 13 had disclosed that the
Communists were preparing for the attacks.
Communist attacks may be in the works elsewhere
in the highlands and in northwest Military Region 3.
The Vietnamese Communists could be planning
intensified military activity to mark March 19, "All
People's Anti-American Day."
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
OIL
? Saudi Oil Minister Yamani said late Sunday. that
OAPEC had reached agreement to bring its oil embargo
against the US to an end today. He also stated pro-
duction would be partially restored, but gave no de-
tails.
Al Ahram reported this morning, nevertheless,
that the decision to lift the embargo may be referred
to the Arab foreign ministers' meeting in Tunis on
March 25. The newspaper said that Libya remains op-
posed and that "Egypt insists on a unanimous Arab
decision."
The agreement Yamani referred to would have been
reached during informal talks he initiated. The min-
isters had been unable to agree to lift the embargo
in their formal meetings earlier in the day, probably
because of Libyan and Syrian opposition. Syria ap-
parently decided to go along with the majority deci-
sion, but Libya evidently, is still opposed.
The reported Arab agreement followed an early
Sunday decision by OPEC members to maintain current
posted prices during the next quarter. This agree-
ment and those of OAPEC were not easily reached,
primarily because the oil-producing countries are
aware that any substantial increase in petroleum
production must ultimately lead to a lowering of
prices. Although Arab petroleum production is only
85 percent of the level in September 1973, prices
in the world crude oil market have been softening
for several weeks as adjustments to higher prices
have curbed demand.
The decision by OPEC to maintain current posted
prices for the next quarter was a compromise between
Saudi Arabia and the hard-line countries. Saudi
Arabia had hoped to lower them, while Algeria, Libya,
and Iran pressed for higher prices. Yamani's state-
ment that production would be only partially restored
apparently reflects a compromise with the Algerians,
who opposed lifting the embargo unless production
were maintained at the present level.
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FOR THE PRESIDENT ONLY
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_
Top Secret
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