THE PRESIDENT'S DAILY BRIEF 9 JULY 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007759
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: July 9, 1974

Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012200010008-3
The President's Daily Brief
July 9, 1974
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012200010008-3
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012200010008-3
Exempt from general
declassification uhedule of E.O. I 1 652
exemption category 58( 1
declassified only on approval of
the Director of Central Intelligence
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THE PRESIDENT'S DAILY BRIEF
July 9, 1974
PRINCIPAL DEVELOPMENTS
Chinese
(Page 2)
Israeli
/ (Page 3)
Following the loss by Japanese Prime Minister Tanaka's
Liberal Democratic Party of its clear majority in the
upper house of the Diet in the election on July 7,
Liberal Democratic maneuvering will focus on the
party's leadership contest, particularly the effort
by Tanaka's major opponents to unseat him this sum-
mer. (Page 4)
A shake-up in the Portuguese cabinet is expected
soon.
President Spinola appar-
ently is determined to give the regime a more con-
servative cast and may, in the process, upset the
balance of political forces he has been trying to
maintain. (Page 5)
In Cambodia, the Lon Nol government issued a formal
declaration today inviting the Khmer Communists to
enter immediately into talks without prior conditions.
(Page 6)
The recent shake-up in the high command of the Peru-
vian navy may open the way for the purchase of Soviet
cruise missile patrol boats, (Page 7)
Notes on the USSR, South Korea, Morocco-Syria, and
Canada appear on Pages 8 and 9.
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ISRAEL
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JAPAN
Nearly complete returns from the election on
July 7 indicate that Prime Minister Tanaka's Liberal
Democratic Party lost its clear majority in the up-
per house of the Diet. With 126 of the 252 seats,
the party could regain a majority if some of the in-
dependent winners affiliate with it. The upper
house is the less important of the two houses of the
Diet, but the increased strength of the opposition
may allow it to hamper some of the ruling party's
legislative efforts.
Japanese politicians are attributing the outcome
of the election to economic discontent. Tanaka's
conduct of the campaign, particularly his heavy use
of corporate contributions, may also have cost the
Liberal Democrats a few seats. The weak Liberal
Democratic performance will almost certainly damage
Tanaka's recently reviving prestige within the party.
With the upper house elections over,-political
maneuvering in the Liberal Democratic Party will now
focus on the party leadership race next summer, and
particularly on the efforts of Tanaka's major fac-
tional opponents to unseat him as party president,
and hence as prime minister.
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PORTUGAL
A shake-up is expected in the Portuguese cabi-
net soon, apparently the result of a rift in the
forces that have supported President Spinola in
power since last April. Spinola may be determined
to give his regime a more conservative cast. Fol-
lowing aneight-hour meeting of the Council of
State during-the night, a Council member told re-
porters that the body had considered adjustments to
the constitutional law that would give the government
greater powers.
--According to one source of the US embassy in
Lisbon, leftist members of the cabinet split
with Prime Minister Palma Carlos over pending
legislation, particularly on labor matters.
The Prime Minister offered to resign, but
Spinola refused and instead plans to dismiss
five leftist ministers. The junta and Armed
Forces Movement are said to have agreed to
authorize the Prime-Minister to legislate.by
decree..
Spinola reportedly believes he has the support
of the junta and enough of the military rank and
file to remove leftists in the Armed Forces Movement
who oppose him.. He reportedly also has a new com-,
mando regiment outside Lisbon to support him in such
an endeavor. If Spinola moves abruptly against the
left, whether in the cabinet or Armed Forces Move-
ment, he will upset the equilibrium of political
forces that he has thus fat been trying so hard to
maintain.
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CAMBODIA
The Lon Nol government issued a formal declara-
tion on negotiations today inviting the Khmer Com-
munists to enter immediately into talks without prior
conditions at a mutually agreeable time and place.
The declaration expresses the hope that such a dia-
logue will lead to a cease-fire, to the withdrawal
of all foreign forces, and to unity and national
reconciliation. It appeals to all countries to
help the two Cambodian sides establish a dialogue.
This is the government's first major peace in-
itiative since July 6 of last year, when it issued
a six-point proposal aimed at resolving the Cambo-
dian problem. That proposal, unlike the new decla-
ration, stressed the need for the withdrawal of
foreign troops and a cease-fire before negotiations
could start. Although Phnom Penh probably is not
optimistic that its new, more flexible formula will
draw a favorable reaction from the Communists, it
apparently believes the statement will put them on
the diplomatic defensive.
The Communists have consistently rejected any
negotiations with the present regime in Phnom Penh.
In the past few months they have insisted that the
only way to peace is a withdrawal of all US support
to the Lon Nol government. The insurgents nominal
leader, Prince Sihanouk, has also underlined the
need for the withdrawal of American backing for
Lon Nol. ?He reportedly stated in early June that
if this condition were met he would be ready to be-
gin negotiations with Washington "at any time."
There have been no signs, however, that the Commu-
nists share Sihanouk's interest in dealing directly
with the US.
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PERU-USSR
The recent shakeup in the hi4h command of the
Peruvian navy may open the way for the purchase of
Soviet cruise-missile patrol boats. The Peruvians
have discussed buying Osa and Komar boats during
intermittent talks with the Soviets over the past
several years. The Osa carries four cruise missiles
that have a range of 20 to 25 nautical miles; the
smaller Komars are armed with two such missiles.
In the past, high Peruvian naval officials
have been reluctant to conclude such a deal with
the USSR, mainly because of Soviet insistence on
retaining sole responsibility for servicing the
missile system.(
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Ir.-, ?
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NOTES
USSR:
USSR:
South Korea: Leaders of South Korea's 800,000
Roman Catholics are moving into open opposition to
the Pak government. On July 5, the Catholic Bish-
ops' Gonference on Korea issued a pastoral letter
affirming the right and responsibility of the Church
to speak and to act in support of human rights. In
effect, the letter is a relatively moderate and gen-
eralized statement of support for the many Protes-
tants and other dissidents now on trial in Seoul
?
for alleged antigovernment activities. On July 6,
Bishop Chi Hak-sun, one of the most vigorous anti-
Pak Church leaders, returned to Seoul from Rome,
and was promptly arrested. Chi's arrest is further
evidence of President Pak's willingness to call even
the best known public figures to account for op-
posing him.
(continued)
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Morocco-Syria: The Moroccan expeditionary force
that was sent to Syria over a year ago arrived home
late last week. The force had more than 2,000 men
and about 60 tanks; it took part in the fighting
around Mount Hermon during the October war.
Canada: The Liberal Party pulled an upset in
the election yesterday when it won a majority in the
House of Commons. The victory was a personal triumph
for Prime Minister Trudeau, whose aggressive campaign
style and engaging wife helped restore his popularity.
A majority Liberal government, without pressure from
the nationalistic New Democratic Party that held the
balance of power in the last Parliament, will be less
prone to a Canada-first approach. The current policy
of trying to lessen Canadian dependence on the US,
however, will still have strong bipartisan support.
Tory leader Stanfield, who lost his.
chance to lead his party to victory, will probably
resign or be replaced.
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