THE PRESIDENT'S DAILY BRIEF 16 OCTOBER 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007843
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: October 16, 1974

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The President's Daily Brief
October 16, 1974
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Exempt from general
declassification schedule of EO. 11652
exemption category 5B( I
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
October 16, 1974
Table of Contents
USSR-Egypt: Brezhnev's visit to Cairo in January
will be significant step toward better rela-
tions; no sign yet, however, of major break-
through in resolving outstanding problems.
(Page 1)
European Security 'Conference: Soviets show some
give. (Page 2)
Portugal: President Costa Gomes' fortunes are on
the rise on eve of visit here. (Page 3)
Mexico: Government weighing policy on new oil
finds. (Page 4)
South Korea: Antigovernment protest spreads.
(Page 5)
Cyprus: Denktash embittered by Ankara's tactics.
(Page 6)
France:
(Page 7)
Notes: Argentina; European Communism; USSR
(Page 8)
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USSR-EGYPT
Yesterday's announcement that Gen-
eral Secretary Brezhnev will visit Cairo
in January is a substantial Soviet step
toward improving relations with.Egypt.
It has not been accompanied, however,, by
any sign that a breakthrough has been
achieved in resolving the problems that
have weakened Soviet-Egyptian ties over
the past two years.
The agreement to hold a summit meeting was an-
nounced after Foreign Minister Fahmi's first full
day of talks in Moscow. Fahmi brought with him a
.personal letter from Sadat to Brezhnev that may
have contained some commitment intended to ease the
way for a visit by the Soviet leader. Until now,
Brezhnev has resisted. going to Cairo; he has been
chary of directly involving his prestige in Moscow's
troubled dealings with the Egyptians.
Brezhnev may now believe that a personal meet-
ing can smooth over some of the disagreements be-
tween the two countries. Last Friday he said pub-
licly that contacts with Arab leaders are?"espe-
cially necessary and useful."
The wording of the announcement of the visit,
however, implies that neither side has made any
basic concession on divisive issues. It said that
Brezhnev and Fahmi had "defined" issues that "could
underlie future accords." This suggests that Moscow
still expects tough bargaining with Fahmi over the
next few days.
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EUROPEAN SECURITY CONFERENCE
After blocking all movement for
more than a month at the European se-
curity conference in Geneva, the So-
viets have begun to appear more flex-
ible.
Ambassador Mendelevich, the chief Soviet
delegate, returned from Moscow to Geneva on Monday.
He told a member of the US delegation that he had
been instructed to wind up the conference "even
sooner than possible."
Last week saw the first substantive progress
of this negotiating round and other_signs:of. So,.
viet willingness to cooperate 4 text concerning
measures to broaden the dissemination of foreign
newspapers and magazines in both Eastern?and West-
ern Europe won subcommittee approval. This is
one of the most controversial issues connected
with efforts to promote freer povement.oEpeople
and ideas. Soviet representatives, have been. .participating in bilateral discussions. designed to
narrow the many remaining differences on freer
Movement
Moscow has long wanted a speedy conclusion
to the security conference but--.at least until
now--has been unwilling to make significant con-
cessions. It is still too early to expect rapid
progress in Geneva, but increased flexibility on
the part of the Soviets could permit the confer-
ence to make substantial progress.
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PORTUGAL
President Costa Gomez'. fortunes
seem on the rise as he leaves Lisbon
tOday for the US.
Last week the government followed through on
Costa Gomes pledge that he woula deal with the left-
ist bias of the Portuguese news media. Centrists
and Socialists met in Lisbon to protest Communist
Party control over a television station. They were
successful in persuading Prime Minister Goncalves to
prevent the telecast of Communist chief. Cunhal's
press ?conference from receiving special treatment.
Costa Gomes can also take some. satisfaction
from the fact that the conservatives had to. abandon
any plans they may have had to convert the religious,
celebration at Fatima on Sunday into a rightist
rally. The rightistsapparently concluded that they
could not mobilize the necessary support and, in.
these circumstances,were reluctant to give the left
a chance to move against them.
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MEXICO
President Echeverria is said to be
very upset by US press reports of large
oil discoveries near the Gulf of Mexico,
and the subsequent public debate over na-
tional oil policy. The size of the dis-
covery was being closely held for domes-
tic political reasons, probably because
no decisions have yet been reached on
the level of production and exports.
Two Mexican officials indicated in a press con-
ference last night that Mexico would sell its oil
at prices set by the Organization of Petroleum Ex-
porting Countries and would seek to join OPEC as an
observer. These remarks could signal a change in
the government's oil export policy, but President
Echeverria may also have instructed the officials
to hint at aligning Mexico with OPEC in order to
deflect criticism of alleged US attempts to influence
Mexico's oil policy.
One of the officials who spoke, Horacio Flores
de la Pena, is a leftist and an extreme economic
nationalist, who has been the chief advocate of
"anti-colonialism" in Mexico's economic and foreign
policies.
Officials of the government petroleum monopoly
have indicated their belief that Mexico should go
slowly on exports. Powerful leaders of Mexico's
ruling party are pressing to limit oil sale g to the
minimum required to earn essential foreign exchange
and cover domestic petroleum needs.
With a maximum development effort, total exports
could reach 1.2 million barrels a day in about three
years; under a "Mexico-first" policy, exports might
not exceed 500,000 barrels a day.
If Mexican leaders become convinced that a rapid
increase in output would contribute to a solution of
the country's pressing problems without seriously
jeopardizing future domestic supplies, they can be
expected to push ahead rapidly with development.
The Mexicans have clearly and repeatedly expressed
a desire to export refined rather than crude products.
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SOUTH KOREA
Clashes between students and riot-
police have spread to a number of pro-
vincial universities; disturbances con-
tinue in Seoul at a reduced level.
The stu-
dents--like other opponents of President Pak--
consider
the present a good time to try to wrest concessions
from the government. They apparently believe that
Pak will be reluctant to move forcefully to suppress
them
So far, Pak is exercising restraint in dealing
with the disorder, and only a few arrests have been
reported. At least six universities have been closed
down temporarily, however, and the administrators
of other schools have been warned that they must keep
order or lose their jobs.
Yesterday, the major opposition party endorsed
student demands for the release of jailed comrades
and a return to democratic rule. ?The government re-
mains unwilling to accommodate basic opposition de-
mands; it is taking additional measures to prevent
the disturbances from getting out of hand.
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CYPRUS
Turkish Cypriot Vice President Denk-
tash told UN special representatives Weck-
mann on October 11 that unless the Turkish
government stopped undercutting his posi-
tion, he could not continue negotiations
with Acting President CZerides.
Denktash is embittered by Ankara's appointment
of individuals to his administration who are his
political enemies and are completely subservient to
Ankara. The US embassy believes Denktash's complaint
reflects a realization that he is close to losing to
Ankara what little authority he still has within the
Turkish Cypriot community.
Denktash stated that Ankara is pressuring him
to back down on some agreements already reached with
derides, and said that "as a Cypriot," he was ap-
palled at the "inhuman treatment" accorded Greek Cyp-
riots by the Turkish army. Denktash said he could
not accept such a situation and still face Clerides.
The two community leaders met on Monday, how-
ever, and it was later announced that the exchange
of prisoners would resume on October 18. Denktash
and derides will meet again on the same day.
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FRANCE
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NOTES
Argentina: Security forces are bracing for a
new wave of violence on Thursday, when thousands of
the late president Juan Peron's followers converge
on downtown Buenos Aires to mark the anniversary of
Peron's first bid for power in 1945. The extremist
Montonero guerrillas, who recently broke with the
government and began a campaign of terrorism, are
said to be planning attacks to disrupt the observance..
Likely targets are foreign and local businesses and
Argentine military officers.
European Communism: Delegates convene in War-
saw today for a three-day meeting to make plans for
a European conference of Communist parties to be held
late this year or early next. The Yugoslays are at-
tending, thus ending their boycott of such gatherings,
where they often have come under fire. They will
join the Romanians and some West Europeans in op-
posing any attacks against the Chinese. The prelim-
inary meeting will try to draw up an agenda for the ,
formal conference, which probably will focus on Euro-
pean security, economic integration, and cooperation.
USSR: General Secretary Brezhnev, speaking at
a dinner last night for Treasury Secretary Simon.,
termed as "utterly irrelevant and unacceptable" any
attempt to tie the most-favored-nation issue to any
matter "lying fully within the domestic competence"
of the USSR. It is high time, he added, that there
be a "clear understanding" of Moscow's :views on such
an attempted linkage. This language represents the
party chief's most explicit public comments on the
relationship between Soviet Jewish emigration and
the trade bill. Brezhnev emphasized that the USSR
could "do without" further economic ties with the US
if "negative factors" are not eliminated.
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