THE PRESIDENT'S DAILY BRIEF 24 DECEMBER 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007901
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: December 24, 1974

Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012400010019-9
The President's Daily Brief
December 24, 1974
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012400010019-9
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012400010019-9
Exempt from general
declassification schedule of E.O. 11652
exemption category 5%1),(2),(3)
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012400010019-9
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15: CIA-RDP79T00936A012400010019-9
FOR THE PRESIDENT ONLY
December 24, 1974
Table of Contents
Portugal: Announcement of new economic plan likely
this week. (Page 1)
Chile-Peru:
(Page 2)
China: Grain harvest this year may have fallen
short of expectations. (Page 3)
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China-USSR: Chinese officials elaborate on Peking's
recent proposal on the border dispute. (Page 4)
USSR-Iraq:
(Page )
Notes: Venezuela-US; India (Page 6)
FOR THE PRESIDENT ONLY
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PORTUGAL?
Announcement of Lisbon's new eco-
nomic plan, delayed for nearly a month
by disagreements within the provisional
government, is expected this week.
The plan apparently does not provide the strong
measures that are needed to boost the sagging Portu-
guese economy. It is a short-term compromise en-
compassing conflicting economic views, and is not
expected to last beyond the constituent assembly
elections next spring.
The program has been a major bone of conten-
tion between Prime Minister Goncalves and his gov-
ernment. Even after the cabinet and the Armed
Forces Movement's Superior Council approved the
general provisions of the program, Goncalves con-
tinued to insist that the draft be strengthened
to provide for tighter government control in all
sectors.
FOR THE PRESIDENT ONLY
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C
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. -
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FOR THE PRESIDENT ONLY
CHILE?PERU
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FOR THE PRESIDENT ONLY
CHINA
The Chinese used unusually re-
strained rhetoric in reporting their
"biggest grain harvest in history" and
in claiming "output showed a fairly big
increase over last year," suggesting
that the harvest once again fell short
of expectations.
Increases in grain production averaged less
than 1.5 ?ercent a ear between 1970 a
production in 1973 was below 250 million tons, al-
though the Chinese have claimed publicly that the
harvest was greater.
We are not yet able to estimate precisely how
much grain was harvested, but crops did get off to
a poor start this year. The wheat crop was hurt by
drought, and output did not measure up to that of
past years, despite a record acreage. Early rice
was hurt by frost, but recovered in time to yield
a good crop.
The more important fall harvest was unusually
late. Drought, typhoon, and prolonged autumn rain-
fall apparently caused considerable damage before
the crops could be harvested.
Peking has asked all of its major suppliers
to postpone the delivery of almost 2 million tons
of grain scheduled for 1974 to the latter part of
1975. This does not mean, however, that the har-
vest was unusually favorable. Rather, these meas-
ures are the outgrowth of a tight foreign exchange
position created by a fall-off in sales of Chinese
exports. Peking has also canceled contracts for
substantial quantities of soybeans and cotton)
FOR THE PRESIDENT ONLY
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CHINA-USSR
The Chinese are amplifying the pro-
posal they made on November 6 for dealing
with the Sino-Soviet border dispute, ap-
parently in reaction to Brezhnev's rejec-
tion. Chinese diplomats are quietly
spreading the word through the diplomatic
community in Moscow that Peking's pro-
posal for the withdrawal of troops from
disputed territories is more reasonable
than the Soviets claim.
In recent conversations with American and Nor-
wegian embassy officers, the Chinese have indicated
that the disputed areas refer to territory the So-
viets now occupy that is not covered by the 19th
century "unequal" treaties. These treaties gave
Russia much of eastern Siberia and what is now
known as the Soviet Far East. The Chinese specifi-
cally mentioned disputed islands in the Ussuri
River and grazing land adjacent to Sinkiang.
The Chinese diplomats charge that Moscow de-
liberately misinterpreted the Chinese proposal by
claiming that it includes territories covered by
the "unequal" treaties. This shows, according to
the Chinese, that the Soviets do not want serious
negotiations.
Peking has long held that it does not expect
to undo the 19th century treaties in dealing with
the Sino-Soviet border and that little territory
is in dispute. In using this line to question cur-
rent Soviet motives, the Chinese appear simply to
be trying to put the Soviets on the propaganda de-
fensive.
4
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
USSII?IRAQ
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5
FOR THE PRESIDENT ONLY
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Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012400010019-9
FOR THE PRESIDENT ONLY
NOTES
Venezuela-US: The Perez administration has
expressed deep concern over the effects of the re-
cently passed US trade bill. The Venezuelans be-
lieve that the legislation, which would deny US
tariff preferences to "members of' cartelsthat raise
prices on vital commodities," is designed to punish
Venezuela and other OPEC countries. President Perez
reportedly has urged oil-producing-countries to re-
ject "this discriminatory treatment," and politi-
cians across the political spectrum have taken the
same line. Some Venezuelan officials have already
threatened that Caracas will retaliate if trade
preferences are denied because of OPEC membership.
Some indication of Perez' intentions may come in
his New Year's Day address.
India: Prime Minister Gandhi may soon call
for a general election in February, a year before
the five-year term of the lower house of Parliament
expires. A decision to hold early elections would
reflect Mrs. Gandhi's serious concern about a cam-
paign headed by J. P. Narayan, a widely fespected
reformer and pacifist. He and his followers are
protesting the central government's misuse of power
and its inability to curb inflation, corruption,
and unemployment. An early election would catch
the opposition unprepared to wage an effective cam-
paign. A new Parliament must be seated in time to
approve the national budget before the beginning
of India's fiscal year on April 1.
FOR THE PRESIDENT ONLY
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? 'Om
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Top Secret
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