THE PRESIDENT'S DAILY BRIEF 8 NOVEMBER 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007863
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: November 8, 1974

Declassified in Part- Sanitized Copy Approved for Release 2016/07/15 : CIA!RDP7f9T06936A012300010040-6
The President's Daily Brief
November 8, 1974
5
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
Exempt from general
declassification schedule of E.O. 11652
exemption category, 513( 1
declassified opt)/ on approval of
the Director of Central Intelligence
r
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
. ?
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RbP79-160936A012300010040-6
FOR THE PRESIDENT ONLY
November 8, 1974
Table of Contents
International Monetary Developments: The dollar con-
tinued its decline on foreign currency exchanges
yesterday. (Page 1)
Saudi Arabia:
(Page 2)
United Kingdom'
(Page 3)
Turkey: Caretaker Prime Minister Ecevit is trying to
'break the stalemate that has prevented formation
of a new government. (Page 4)
Palestine Liberation Organization - UN: Moderate PLO
leaders do not intend to press maximum demands
during the UN debate. (Page 5)
Egypt:
(Page 6)
Egypt-France: Current deliveries of Mirage aircraft
will significantly improve the Egyptian air
force. (Page 7)
China-USSR: The Chinese have made an unusually con-
ciliatory gesture toward the Soviet government.
(Page 8) 0
USSR:
(Page 9)
Notes: Bolivia; USSR; Portugal (Page 10)
FOR THE PRESIDENT ONLY
25X1
25X1
25X1
25X1
25X1
2oAl
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
Percent Per Annum
NJ
?. 03 0 NJ 4 Crs CO 0
Interest Rates for Three-Month Deposits
of Selected Eurocurrencies
e
French Franc
?
UK Pound
US Dollar
Swiss Franc
Ne.e,,
I I
I
/
Netherlands
Guilder
I 1 1 I
I
I
7
556818
14
11-74
21 28
_
4
Sep
-
11 18 25 2 9 16
Oct
23
30
4
Nov
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79-100936A012300010040-6
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
FOR THE PRESIDENT ONLY
INTERNATIONAL MONETARY DEVELOPMENTS
The dollar continued its decline
on foreign currency exchanges yester-
day, while the price of gold eased only
slightly from Wednesday's near-record
level of $178 an ounce. The dollar
has now declined by as much as 3 per-
cent against major European currencies
since the end of October.
The largest declines have been against the
deutschemark and Swiss franc, which have gained 1.6
and 2.8 percent respectively relative to the dollar.
Most other European currencies, including the lira,
have gained slightly more than 0.5 percent, while
the yen has remained unchanged.
The downward trend of short-term interest rates
in the US and the resulting decline in Eurodollar
rates is making other European currencies more at-
tractive, despite some interest-rate declines for
those currencies. Prime rate reductions by US banks
also have encouraged speculation that rates will
fall even lower and have caused some movement out
of dollars into European currencies.
Some traders are citing fears that the election
of a heavily Democratic Congress has hurt the chances
for a successful anti-inflation program in the US;
this factor is probably less important than the in-
fluence of relative interest rates. The possibility
of a coal strike in the US is also a factor.
The surge in the price of gold--up more than
$10 an ounce in the last week--is linked mainly to
prospects of an increase in demand that may result
when US citizens are permitted to enter the market
at the end of the year. The current market is quite
small--daily transactions in London have ranged be-
tween $15 to 20 million--and the entry of US buyers
could increase the speculative demand substantially.
Gold's rise to near-record levels may also be
helped by the general reduction in short-term in-
terest rates, which lowers the cost of holding gold.
Some Swiss bankers are predicting prices of over
$200 an ounce by the end of the year. That price
could be reached or exceeded unless some countries
sell official holdings of gold in order to cash in
on the high price.
1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
_
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
FOR THE PRESIDENT ONLY
SAUDI ARABIA
The death last Tuesday of Anwar Ali,
governor of the Saudi Arabian Monetary
Agency (SAMA), may accelerate the emer-
gence of a less conservative Saudi invest-
ment policy.
In an attempt to reduce SAMA's role, even prior
to Alis death, Saudi officials had laid plans for a
new overseas investment office.
SAMA has had the responsibility for investing
essentially all the Saudi government's foreign assets,
Saudi liquid assets are now at peak levels.
SAMA's operations came to a halt during Ramadan--
Muslim holy days--and some $8 billion in oil receipts
during September and October have piled up in Euro-
pean banks. Over $2 billion in receipts for November
are due next week. Any delay in introducing a new
investment policy will substantially worsen the
problem.
2
25X1
25X1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
25X1
25X1
2
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
FOR THE PRESIDENT ONLY
UNITED KINGDOM
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
25X1
Declassified in Part - Sanitized, Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
FOR THE PRESIDENT ONLY
TURKEY
Prime Minister Ecevit's postpone-
ment of Secretary Kissinger's visit to
Ankara, combined with his withdrawal
as formateur and his threat to resign
from the caretaker government, may have
been in part an effort to break the seven-
week-old political stalemate that has pre-
vented the formation of a new government.
Ecevit's announcement came on the heels of dec-
larations by leaders of the major opposition parties
that they would oppose any attempt to form a minority
government. He had already been turned down earlier
this week in his efforts to put together coalitions
with both the Justice and Democratic parties.
Ecevit may hope that the growing concern of the Turk-
ish military over the possibility of losing US assist-
ance if there is no progress on Cyprus will prompt
the armed forces chiefs to do some arm twisting of
their own to break the political stalemate.
The next step is for President Koruturk to ap-
point someone to make another effort to form a gov-
ernment. The President may turn to the leader of one
of the small right-wing parties or try again to find
support for a nonpartisan government. If these op-
tions remain closed, the opposition parties may yet
decide to support Ecevit in a minority government.
4
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
FOR THE PRESIDENT ONLY
PALESTINE LIBERATION ORGANIZATION - UN
Although moderate leaders of the
Palestine Liberation Organization are
buoyed by their success at the Arab
summit in Rabat, they apparently do not
intend to press their maximum demands
against Israel during the UN General
Assembly debate scheduled to begin next
week.
Some PLO spokesmen are still making hard-line
statements that the establishment of the Palestinian
"national authority" authorized at the Rabat summit
is merely a step toward the achievement of a "secular,
democratic state in all of Palestine." This seems to
be moptly pep talk for internal Palestinian consump-
tion.
During Secretary Kissinger's visit to Cairo this
week, Mohammed Riad, an official in the Egyptian
Ministry of Foreign Affairs, told a senior US official
that agreement had been reached at Rabat that the
PLO would avoid making any statement that could be
interpreted as threatening the existence of Israel.
Riad said that he expected constructive debate and
emphasized that Egypt would try to dampen extremism
on the part of the PLO or other Arab UN representa-
tives.
5
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
FOR THE PRESIDENT ONLY
EGYPT
6
25X1
25X1
25X1
25X1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
FOR THE PRESIDENT ONLY
EGYPT-FRANCE
The Egyptian air force is being im-
proved significantly by the arrival of
French Mirages
The Israelis are almost certainly aware that
the Mirages have begun to arrive in Egypt, and they
may cite this to buttress their arguments for more
support from the US. They are also anticipating
the arrival of MIG-23s.
7
FOR THE PRESIDENT ONLY
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP'79T00636A012300010040-6
FOR THE PRESIDENT ONLY
CHINA-USSR
The Chinese have made an unusually
conciliatory gesture in a message to the
Soviet government marking the anniversary
yesterday of the Russian Revolution. The
gesture is contained in a proposal calling
for a mutual nonaggression and nonuse of
force agreement, a mutual troop pullback
from disputed border areas, measures to
avert armed conflict along the frontier,
and maintenance of the status quo on the
border itself.
The Chinese had greeted
earlier Soviet calls for a nonaggression pact with
contempt, and have insisted that any such agreement
would have to be linked to withdrawal of Soviet for-
ces from "disputed parts" of the frontier. The So-
viets, for their part, argue that there would be no
"disputed" sections were it not for artificial Chinese
claims with no legal basis.
China almost certainly expects Moscow to find
Peking's initiative unacceptable, since it continues
to link a nonaggression pact with withdrawal of for-
ces from contested sections of the border. It seems
likely that the Chinese publicized their proposal for
propaganda purposes in an attempt to escape the onus
for five years of fruitless talks on the border prob-
lem.
Despite the difficulties that the Soviets will
see in the Chinese proposal, they may feel con-
strained to give some positive evidence of a desire
to compose differences. They may even try to take
advantage of the Chinese initiative in an attempt
to show that the state of Sino-Soviet relations is
not as bad as generally believed.
Toward this same end, Moscow could send its
chief border negotiator, Ilichev, back to Peking.
The Soviets might hope in this way to strengthen
their own hand in the talks with you later this month
near Vladivostok. Shortly before the Soviet-US sum-
mit early last summer, Ilichev was sent back to Pe-
king after an absence of nearly a year. He accom-
plished nothing and has since returned home.
8
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
25X1
25X1
A..
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T009--36A012300010040-6
FOR THE PRESIDENT ONLY
USSR
9
FOR THE PRESIDENT ONLY
25X1
25X1
25X1
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T06036A012300010040-6
FOR THE PRESIDENT ONLY
NOTES
Bolivia: President Banzer has moved to restore
his authority in the provincial capital of Santa Cruz,
approximately 350 miles southeast of La Paz, where a
group of dissident politicians revolted yesterday and
briefly took over two radio stations. The President
went to Santa Cruz with reinforcements after receiving
word that troops of an infantry regiment in the area
were supporting the insurgents. Late reports from La
Paz indicate that order has been restored and that
most of the insurgent troops have surrendered. The
rebels are led by Carlos Valverde, a right-wing poli-
tician, and retired General Julio Prado, patriarch
of one of the nation's most prominent families.
USSR: Through the end of October the rate of
Jewish emigration to Israel remained lower than last
year. According to the Dutch, who process Israel-
bound emigrants in Moscow, the ten-month total for
1974 was only 17,200--40 percent lower than the same
period in 1973, when 28,212 were allowed to emigrate.
The Dutch calculated on this basis that the overall
total for 1974 would be 20,000 to 22,000.
Portugal: The army has canceled participation
in a modest US-sponsored training program. The chief
of staff explained that the officers would be needed
at home during a delicate political period. The
Portuguese military is indeed managing a fluid polit-
ical situation and we doubt that any affront to the
US is intended.
10
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
Declassified in Part- Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6
_
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010040-6