THE PRESIDENT'S DAILY BRIEF 30 SEPTEMBER 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007829
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: September 30, 1974

Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010006-4
The President's Daily Brief
September 30, 1974
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Exempt from general
declassification schedule of E.O. 11652
exemption category 513(1),(2),(3)
declassified only on approval of
the Director of Central Intelligence
'T
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FOR THE PRESIDENT ONLY
September 30, 1974
Table of Contents
Portugal: Prime Minister Goncalves has called the
aborted pro-Spinola demonstration a reactionary
attack on the Armed Forces Movement. (Page 1)
Cambodia: Despite coup rumors, army officers are
unlikely to try to oust Lon Nol government.
(Page 3)
Fedayeen-Jordan:
(Page 4)
International Finance: Bonn calls for international
bank to recycle oil revenue. (Page 5)
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PORTUGAL
Prime Minister Brigadier General Vasco
Goncalves told the Portuguese people in a
television address late last night that
they had just lived through "a first full-
fledged attack by reaction" on the govern-
ment set up after the coup on April 25.
He said that the demonstration in support of
President Spinola scheduled for September 28, the
cancellation of which triggered two days of tension,
was directed against the Armed Forces Movement.
Goncalves assured his listeners that the episode
had strengthened the unity between the armed forces
and the Portuguese people and improved conditions
for the development of democracy in Portugal. The
Prime Minister defended the government's achieve-
ments, particularly the decolonization policies in
Africa, and re-emphasized the determination of the
Armed Forces Movement to carry out its program and
to avoid civil war in Portugal "above all."
Goncalves did not refer to President Spinola,
who is scheduled to address the nation early today.
The period of tension began on Saturday when
the Armed Forces Movement, which is dominated by
young, left-leaning officers, persuaded President
Spinola to cancel a political rally that had been
billed as a pro-Spinola demonstration by the "si-
lent majority."
The Movement, and virtually all other polit-
ical forces to the left of center, regarded the
rally as the beginning of an effort by the polit-
ical right to regain power in Portugal.
The sponsors of the rally probably were hoping,
in fact, for a large demonstration that would help
Spinola in his continuing contest for power with
Prime Minister Goncalves, one of the leaders of
the 'Movement. Rightists at the rally might have
provoked violence, which could have been used by
Spinola as evidence that the government could not
maintain order and should be replaced by one that
could.
Spinola had been aided in previous disputes
with the left by chief of staff General Costa Gomes,
who is highly respected throughout the armed forces.
On this occasion, Costa Gomes appears at the last
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moment to have thrown his weight against the rally.
Without the support of Costa Gomes in the future,
Spinola's position would be seriously weakened.
Spinola met yesterday with the Coordinating Com-
mittee of the Armed Forces Movement, presumably to
discuss the status of the government. It seems cer-
tain that the Movement is insisting on curbing
Spinola's authority and increasing its own.
Another effect of the developments over the
weekend will be to reduce the chances of an orderly
campaign leading to the scheduled election next
March. Regardless of what ulterior motives they
may have had, conservatives were prevented from
having a political rally at a time when leftist
demonstrations are commonplace. Political parties
of the center and right, which have just begun to
emerge, could conclude that they cannot gain power
except by force.
The affair also demonstrated once again that
the left, and the Communist Party in particular,
is far better organized than any other political
group. The Communists mobilized all of their con-
siderable assets in the media and in labor to
achieve their objectives. They also effectively
sealed off access to Lisbon in order to keep at-
tendance at the rally low. Leftist vigilantes
were observed with Communist Party armbands direct-
ing traffic and searching cars, and, according to
the US consul in Oporto, Communist Party members
were able to stop all railroad traffic from the
north.
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CAMBODIA
Despite continuing unrest in Phnom
Penh, where coup rumors have been cir-
culating, it does not seem likely that
Cambodian army officers will attempt
to oust the government of Lon Nol any-
time soon.
Rumors late last week of an impending move by
senior Cambodian army officers against the govern-
ment added to the widespread unrest already caused
by economic problems. In addition, a number of
generals and civilian officials are greatly dis-
turbed by the return to Phnom Penh of the Presi-
dent's controversial younger brother, Lon Non,
who has already been throwing his weight around.
The strongest deterrent to a coup is the real-
ization on the part of potential plotters that the
US strongly opposes such a move.
Disaffected military leaders also seem
aware of the adverse impact an overthrow of Lon
Nol would have on Phnom Penh's prospects for re-
taining its UN seat during the credentials battle
this fall in the General Assembly.
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FEDAYEEN?JORDAN
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INTERNATIONAL FINANCE
West Germany has called for the es-
tablishment of an international bank that
would attract surplus oil revenues from
oil exporters and lend to governments and
businesses in oil-importing countries.
This suggestion, and similar proposals for
multilateral recycling of such revenue,
will be discussed at meetings of the In-
ternational Monetary Fund this week in
Washington.
The West Germans consider recycling necessary
to aid countries unable to finance deficits on
their own. A large multilateral plan could help
Germany's trading partners in this way and prevent
some of them from adopting restrictive trade meas-
ures.
In addition, a wide multilateral scheme would
probably make it unnecessary for the EC to estab-
lish a limited recvclina operation of its own.
The British also favor a multilateral recy-
cling plan, largely because they are aware they
may be forced to borrow from such an institution
in the future.
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Top Secret
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