THE PRESIDENT'S DAILY BRIEF 24 JULY 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007773
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: July 24, 1974

Declassified in Pa-171 - Sanitized Copy Approved for Release 2016/07/15: CIA-RDP79T00936A012200010021-8
The President's Daily Brief
July 24, 1974
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Exempt from general
declassification schedule of E.O. 11652
exemption category 5B(1),(2),(3)
declassified only on approval of
the Director of Central Intelligence
t-s
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
July 24, 1974
PRINCIPAL DEVELOPMENTS
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Governmental changes in Athens and Nicosia hold out
hope that peace negotiations can begin later this
week in Geneva. Despite another UN-negotiated cease-
fire on Cyprus last evening, sporadic shooting con-
tinued through the night and heavier fighting has
resumed this morning as both sides try to improve
their positions. UN forces now occupy the Nicosia
airport. (Page 2)
Egyptian President Sadat took a relatively concilia-
tory line toward the USSR in his Revolution Day
speech yesterday. (Page 4)
Bangladesh, by its own admission, is. on the brink of
economic collapse: The situation coincides with
growing popular disenchantment with the government
of Prime Minister Mujibur Rahman. (Page 5)
North Vietnam appears to be sending relatively few
troops south, although it is training large numbers
for future infiltration into South Vietnam. (Page 6)
Portuguese Foreign Minister Soares has told AMbassa-
dor Scott that members of the new cabinet share the
priority aim of establishing a democratic society
along Western lines. (Page 7)
Lisbon's decision to turn over administrative control
of Angola to the military was prompted by recent
rioting in the territory's capital. (Page 8)
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ISRAEL-SYRIA
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BULGARIA
ALBANIA
The sailoniki
o.
E-1
ITALY LGREECE
1-3
Ankara
Adana.
Mersin..
CYPRUS
LEBAN
SUEZ
CANAL
Kyrenia
Kokkina
Famagusta
Akrotiri
massol
Larnaca
CYPRUS
UK Sovereign base area
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MILES
20
556254 7-74 CIA
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CYPRUS
Former Greek prime minister Constantine
Karamanlis returned to Athens last night, reportedly
assured that he would have a free hand in forming
a civilian government. He is expected to form a
cabinet of rightist and centrist politicians.
Karamanlis also is said to have the agreement of
military leaders to stay out of politics. Presi-
dent Gizikis, however, apparently will stay in
office, despite his military background.
Karamanlis has provided few clues to his
policy toward Turkey and Cyprus. He is under pop-
ular pressure to take some military action, at least
to send reinforcements to Cyprus, if the Turkish
forces there do not strictly observe the cease-
fire.
The announcement of the power shift in Athens
followed by only a few hours word that Glafkos
Clerides, president of the Cypriot House of Dep-
uties and the constitutional successor to Makarios,
had replaced Nicos Sampson as president. Consid-
ered a moderate on the sensitive issue of union
with Greece, one of Clerides' first acts yesterday
was to meet with Turkish Cypriot leader Denktash to
seek ways of enforcing the cease-fire.
In New York, Archbishop Makarios said Clerides
took over "with my agreement." Makarios added
that he expected to return home in a few weeks to
resume his duties as president. There is no indi-
cation that Clerides sees himself as an interim
president.
The governmental changes hold out hope that
negotiations can begin later this week in Geneva.
Both new governments, however, are threatened by
cease-fire violations attributed to Turkish forces.
Greek military leaders threaten war against Turkey
if violations continue, and demand that the Turks
return to the original cease-fire lines.
Despite another UN-negotiated cease-fire last
evening, sporadic exchanges of small arms fire
occurred through the night. Reports of resumed
2
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fighting early this morning indicated that the
Turks are continuing to push out from their posi-
tions.in Nicosia. The major fighting yesterday
involved Turkish attacks in Nicosia and Kyrenia;
Greek Cypriots, meanwhile, continued successful
attacks against Turkish Cypriot enclaves. Both
sides appear to be trying to improve positions or
gain ground in areas wherever they can.
UN forces now occupy the Nicosia airport. Its
Greek defenders have been escorted back to Nicosia,
and the Turks hold positions just north of the air-
port. The Turks maintain that they do not recog-
nize the UN protection of the airport and threaten
further attacks. The fighting in Kyrenia yesterday
temporarily delayed evacuation of foreign nationals
from the north coast, but nearly all are gone now.
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EGYPT USSR
President Sadat adopted a relatively concilia-
tory position toward the pssR yesterday in his Rev-
olution Day speech. Sadat, developing a line he has
used in public since the Soviet postponement of For-
eign Minister Fahmi's visit to Moscow, expressed
puzzlement over the Soviet attitude toward Cairo's
better relations with the US. He professed confi-
dence that misunderstandings would be cleared up and
madea concession to Soviet sensitivities by assert-
ing that Middle East peace efforts will not be con-
fined to one big power.
Sadat's decision to swallow the Soviet rebuff
did not come easily, but he presumably feels that no
practical alternate source of military equipment and
spare parts for his Soviet equipment exists. He
also needs the relationship with Moscow to offset
closer ties with the US in the eyes of some of the
other Arabs.
It is now clear that postponement of Fahmi's
visit was a deliberate Soviet rebuff. A subsequent
series of Soviet actions appears to be a deliberate
effort to put a chill into relations with Cairo.
The Soviets may well be seeking some indication
from Sadat that he intends to moderate his swing
toward the US. Moscow, for example, might be seek-
ing the removal of Fahmi. It may also hope to con-
vince Sadat that he should drop his own reluctance
to visit Moscow.
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BANGLADESH
Bangladesh, by its own admission, is on the
brink of economic collapse. Foreign exchange re-
serves are so low that exporters will not accept
letters of credit on the state-owned Bangladesh bank
unless they are backed by 'a foreign bank. Dacca has
been unable to pay for some purchases and has can-
celed over 100,000 tons of food-grain imports.
Dacca has asked for emergency assistance from
previous aid donors and international agencies. It
wants cash and commodities, including food grains.
over and above amounts already scheduled, and would
like to convert project aid into commodity aid.
Around $700 million of aid extended by the US and
other donors is available, but most is tied to spe-
cific projects and cannot be used for commodity
imports.
The economic crisis coincides with growing pop-
ular disenchantment with the government of Prime
Minister Mujibur Rahman. His well-publicized efforts
to have the army prevent lawlessness and root out
corruption have had limited success. The removal
of a few inefficient and corrupt members from his
government has been generally viewed as cosmetic
treatment where surgery was needed.
Mujib, nonetheless, remains the only politician
in Bangladesh with a nationwide following. Only the
armed forces appear capable of threatening his hold
on government
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VIETNAM
North Vietnam appears to be sending relatively
few troops south, although it is training large num-
bers for future infiltration. Intercepted messages
indicate that three new infiltration groups--the
first detected near the top of the pipeline since
late May--passed through southern North Vietnam this
week. Two groups are destined for South Vietnam's
northern provinces, and the other probably will re-
inforce logistic units along the infiltration sys-
tem.
Since June 1, some 23 battalions, with about
550 men each, have been noted undergoing pre-infil-
tration training in North Vietnam. The actual num-
ber of units engaged in such training is almost cer-
tainly higher than the number detected.
Some battalions appear to be in advanced stages
of training. Many, however, have only recently be-
gun and probably will not come south until next
fall. It is not possible at this time to tell
whether these troops will augment forces in the
south or replace losses ?and fill rotational billets.
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PORTUGAL
. Portuguese Foreign Minister Soares has told
Ambassador Scott that members of the new cabinet
share the priority aim of establishing a democratic
society along Western lines. Soares, head of the
Socialist Party, stressed that the most important
result of the cabinet reorganization was the ouster
of Pereira de Moura, leader of the People's Demo-
cratic Movement, which Soares described as a Commu-
nist front.
According to Soares, the eight military offi-
cers in the 17-member cabinet are "liberals" with-
out party affiliation. He called Prime Minister
Goncalves an expert political theoretician.
The foreign minister suggested that the new
cabinet would be able to speak with one voice, even
when it comes to producing controversial economic
and labor legislation. This is where the previous
cabinet faltered. The coming weeks will show
whether or not Soares' optimism is warranted; at
present reading, the difficulties facing the gov-
ernment are not likely to be overcome quickly or
easily.
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NOTE
Angola: Lisbon's decision to turn over admin-
istrative control Of Angola to the military was
prompted by recent disturbances, including race
riots in the territory's capital. Local authorities
eventually put down the rioting, but not before some
.40 persons had been killed. Lisbon's action does
mot mean that the Portuguese.government is any less
committed to eventual self-determination for Angola.
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Top Secret
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