THE PRESIDENT'S DAILY BRIEF 4 APRIL 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007715
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: April 4, 1974

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The President's Daily Brief
April 4, 1974
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Exempt from general
declassification schedule of E.O. I 1652
exemption category 5B(1),(21,(3)
declassified only on approval of
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THE PRESIDENT'S DAILY BRIEF
April 4, 1974
PRINCIPAL DEVELOPMENTS
Egyptian President Sadat lashed out at the USSR last
night, in a speech intended to justify to his Arab
allies his postwar turn away from Moscow. (Page 1)
King Husayn, who arrives today in Cairo,
Worldwide demand for grain-will be up 5 percent this
fiscal year, despite high prices and a 10-percent in-
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crease in.production. (Page 3).
Pathet Lao Chairman Prince Souphanouvong and Lao Prime
Minister Souvanna intend to present the new coalition
cabinet and advisory council. to the King for investi-
ture either today or tomorrow. (Page 4)
South Korea's government announced a new emergency
measure yesterday in a further effort to halt renewed
student protest. (Page 5)
The Soviets are increasing their reliance on US tech-
nology to tap Siberian oil reserves. (Page 6)
A note on Vietnam appears on Page 7.
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EGYPT
Egyptian President Sadat lashed out at the USSR
last night, in a speech intended to justify to his
Arab allies his postwar turn away from Moscow. He
charged that the Soviets reneged on promises of mil-
itary aid and that they consistently tried to dissuade
Egypt from going to war.
Sadat avoided making invidious comparisons be-
tween Cairo's attitude toward Moscow and its improved
ties with the US. More than once, he criticized the
US as well as the Soviet Union for failing to move
toward a Middle East settlement. He seemed to blame
the Soviets, however, for US inaction in the past.
Charging that the Soviets had deliberately sought to
ensure that the Arabs remain militarily inferior to
Israel, Sadat said the US had come to believe that
Egypt and the Arabs were "motionless corpses."
In effect, Sadat said that Moscow's behavior had
forced Egypt to take matters into its own hands. By
stressing that the decision to initiate the war was
entirely an Egyptian one, Sadat seemed to be warning
other Arabs--particularly Syria--not to depend on
the USSR to advance Arab aims. Cairo has shown con-
cern recently that Soviet sniping at Egypt's postwar-
policies, particularly its dealings with the US,
might affect Syrian willingness to pursue talks on
military disengagement.
Sadat's criticism of the Soviets may presage
even sharper attacks in the future. His speech was
preceded yesterday by an Al Ahram editorial calling
into question the value of the Soviet-Egyptian friend-
ship treaty. Sadat himself avoided the subject, but
he laid the groundwork for a later call for modifica-
tion of the treaty, in the event he concludes that
it means too close a relationship with Moscow.
Such a move could endanger Egypt's major source
of military aid, however, and Sadat will approach
this issue cautiously. He also wants to avoid pro-
voking the Soviets into active meddling in internal
Egyptian affairs. The Egyptians have already ex-
pressed fear that Moscow may be attempting to foment
discontent over Cairo's domestic as well as foreign
policies.
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JORDAN-EGYPT-FEDAYEEN
King Husavn, who arrives today in Cairo
The King may also publicly acknowledge the
Palestine Liberation Organization (PLO) as the "sole
representative of the Palestinian people."
Sadatls chief concern is to get the PLO involved
in negotiations, and he will undoubtedly press Husayn
to make a public statement accepting the PLO.. Sadat
is anxious to bring both the Palestinians and Jordan
to the Geneva Conference table.. He is unlikely, how-
ever,,to commit himself to either party's position
on the West Bank once: they have agreed'to attend the
talks,
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WORLD GRAIN SITUATION
Worldwide demand for grain will be up 5 percent
this fiscal year, despite unusually high prices and
a 10-percent increase in world production.
To meet the record needs, reserve grain stocks
of the major exporters--particularly the US--will be
drawn down to their lowest level in 25 years. If de-
mand for wheat reaches 33 million tons, for example,
US stocks would drop from 12 million to less than 5
million tons. Consequently, US exports of wheat,
rice, and possibly corn, in the next fiscal year
will have to come largely out of this summer's har-
vest.
The world's wheat production during this fiscal
year has risen 10 percent over last year's level,
while demand remains at last year's high level. Un-
certainties regarding weather, availability of nitro-
gen fertilizers, and the size of Indian and Chinese
harvests, however, could have an adverse impact on
increasing output for the next fiscal year. If one
of the major wheat producers suffers a reduced crop,
or if there is an unanticipated rise in world con-
sumption, food shortages and record high prices could
result next year.
Rice output probably will .set records, but still
will be insufficient to meet demand. The US crophas
increased only modestly. The world market for rice
will continue to be characterizedby low stocks,
shortages, and higher prices
World production of and demand for-feedgrains
are up substantially over last year. Exports-are
setting a new record, but the feedgrain market will
remain tight for the balance of this year.
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LAOS
After more than 13 months of negotiations, the
two Lao sides are finally about to accept a new coa-
lition government. Pathet Lao leader Prince Souphan-
ouvong, who arrived in Vientiane yesterday, plans to
go to the royal capital of Luang Prabang today with
Prime Minister Souvanna. The two leaders intend to
present the new coalition cabinet and advisory polit-
ical council to ?the King for investiture either today
or tomorrow.
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KOREA
The Pak government announced a new emergency
measure yesterday in a further effort to halt renewed
student protest. It defines antigovernment activity
as both Communist-affiliated and subversive and stip-
ulates harsh penalties for organized student politi-
cal action.
Until now, the regime has been quietly arresting
students suspected of trying to, generate opposition
to President Pak. A rally at Sogang University in
Seoul on March 28, however, shook the confidence of
the Korean National Police in their ability to con-
trol the student situation. The police
appear to believe that coordinated stu-
dent planning for antigovernment activity has been
going on at schools other than Sogang.
April 19 is the anniversary of the 1960 student
uprising that overthrew President Rhee. The new
emergency measure seems pointed toward breaking the
back of student dissent before that date.
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USSR-US
Moscow is increasing its reliance on US technol-
ogy to tap Siberian oil reserves. US exports of oil
field equipment to the USSR exceeded $100 million
last year. The backlog of Soviet orders with US
firms is probably double that amount.
Most of the imports can be used in arctic or
permafrost regions; the US has a near monopoly.on
this type of equipment. In addition, the USSR has
a great need to import other advanced prodUction
equipment--manufactured tainly, in the US--for 'old.)
aswell as new fields.
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NOTE
Vietnam: The southern part of North Vietnam
is apparently experiencing significant rice-short-
ages. An intercepted message last week called the
shortage "critical," and another raised the possi-
bility that local disorders could result. In refer-
ring to a "Central Military Affairs Committee" di-
rective on the problem, other messages suggest that
the shortages are not confined to just a few scat-
tered areas. The problem appears to be principally
one of distribution, and the overall rice supply
in the country should be adequate to meet aggregate
needs.
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