THE PRESIDENT'S DAILY BRIEF 11 APRIL 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007720
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: April 11, 1974

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The President's Daily Brief
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April 11, 1974
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Exempt from general
declassification schedule of E.O. 11652
exemption category 511(1).(2).(3)
declassified only on approval of
the Director of Central Intelligence
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THE PRESIDENT'S DAILY BRIEF
April 11, 1974
PRINCIPAL DEVELOPMENTS
the Soviets have halted delivery of military equip-
ment under "old" contracts, and that their economic
aid shipments also have ceased. (Page 1)
Prime Minister Meir's announced intention to resign
does not appear to be a ploy to force the Labor Align-
ment to unite behind her, but a statement of her gen-
uine belief that she no longer commands the support
necessary to govern effectively. (Page 3)
As Australia heads for new elections on May 18,
neither Labor nor the Liberal-Country coalition is
in a strong position. (Page 4)
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?The month-long cease-fire on the Iran-Iraq border 25X1
appears to be holding.
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Notes on Egypt-Israel, UK-NATO, Tunisia-Egypt, and the
USSR appear on Page 6.
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EGYPT-USSR
/the Soviets had "just" halted delivery o
military equipment under "old" contracts./
/deliveries were stoppe
in late March, and the deputy Tass director in Cairo
acknowledged to the US Embassy on Tuesday that arms
supplies had been "cut off." The Tass man implied,
however, that there is nothing immutable about the
Soviet decision.
Although Egyptian claims that Mos-
cow is not fulfilling prewar contracts have been a
familiar refrain in recent months, seaborne military
deliveries have been maintained at usual levels.
The reports could, however, refer to a Moscow deci-
sion to halt aid shipments at some future date--after,
for instance, deliveries under specific contracts
have been fulfilled. The halt would not show up in
ship movements for several weeks.
There have been signs over, the past several
months that the Soviets have tried to use their mili-
tary aid to gain leverage with Cairo. The Egyptians
have complained publicly--that Soviet compensation
for war losses and the general level of military aid
have been far from adequate. The communique follow-
ing Soviet Foreign Minister Gromyko's trip to Cairo
last month did not mention military aid.
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MIDDLE EAST
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ISRAEL
Prime Minister Meir's announced intention to
resign does not appear to be a ploy to force the
badly divided Labor Alignment to unite behind her,
but a statement of her genuine belief that she no
longer commands the political support necessary to
govern effectively.
She reportedly will head a caretaker govern-
ment if, as seems probable, she submits her resigna-
tion today to President Katzir.
If she resigns, two possibilities exist: Katzir,
after consultations with the political parties, can
ask Mrs. Meir or someone else, presumably from the
Labor Alignment or the rightist Likud, to form a
new cabinet; otherwise, the Knesset can vote to call
new elections on a date it specifies. Whatever hap-
pens, instability and uncertainty are likely to con-
tinue for some time.
Labor Party. leaders .are already casting about
.for a successor to Mrs. Meir who could keep the
Alignment together and form anew cabinet. There
are strong pressures from the public and from within
the Alignment, however, for a completely new leader-
ship, preferably one untainted by the war last Octo-
ber and by internecine party. strife. These senti-
ments work against the old, traditional front-run-
ners such as Finance Minister Sapir, and favor
men like the popular Yosef Almogi, ex-minister of
labor and recently elected mayor of Haifa. Almogi
has been spearheading efforts over the past several
days to keep the Alignment together. Should it
prove impossible to form a new cabinet under Labor's
leadership, however, the Alignment factions would
appear to have no choice but to go to the polls once
again.
Until the political crisis is resolved--which
could take months--the outlook for a breakthrough
in negotiating a Middle East peace settlement is
dim. Although a caretaker government could pursue
the negotiations, it would not be willing to commit
Israel to any binding arrangements beyond perhaps
an initial disengagement on the Syrian front pending
the formation of a new cabinet.
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AUSTRALIA
As Australia heads for new elections on May 18,
neither Labor nor the Liberal-Country coalition is
in a strong position.
The Labor government, under Prime Minister Whit-
lam, has fallen short of its domestic goals and has
made only uneven progress toward forei n ?olic ob-
s.
Pub-
lic opinion polls have shown steady slippage in his
government's popularity over the past months, and
some party leaders fear the party may lose seats in
the new elections.
On the other side, the Liberal-Country coalition
is handicapped by infighting among its leaders
The opposition will
over rising inflation
probably try to playon
and .labor trouble.
anxiety
The weariness of the public with the Liberal-
Country coalition's 23 years of rule brought Whitlam
to power in the first place, and he is probably count-
ing on his more dynamic style. of leadership to carry
the day once again.
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IRAN-IRAQ
The month-long cease-fire on the Iran-Iraq bor-
der appears to be holding.
The arrival of the UN inspection team headed by
Luis Weckmann, former Mexican ambassador to Bonn, has
been a.major reason for the reduction of tension.
The UN team began its survey of disputed border areas
on April 5; it is scheduled to report its findings to
the Security Council by the end of May.
During the cease-fire negotiations between the
Baath party leader and the Iranian ambassador to
Baghdad, the two countries apparently agreed to at-
tempt again to resolve their problems.
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MOTES
Egypt-Israel:
UK-NATO: London may reduce its contribution
to NATO in order to meet the Labor Party's pledge
to cut defense spending. The most likely candidates
for reduction are equipment modernization programs,
some of which may be delayed or even canceled. These
include the European Multirole Combat Aircraft, the
improved Sea Harrier aircraft, and a new small air-
craft carrier now under development.
Tunisia-Egypt:
? USSR;
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Top Secret
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