THE PRESIDENT'S DAILY BRIEF 31 JANUARY 1975

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007930
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: January 31, 1975

Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012400010048-7
The President's Daily Brief
January 31, 1975
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012400010048-7
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Exempt from general
declassification schedule of ED. 11652
exemption category 58(1),(2).01
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
January 31, 1975
"Table :of ',Contents.. ,
Israel:
Turkey: The government appears to be moderating
its hard line with regard to Cyprus and the
Aegean dispute. (Page 3)
France-Egypt: The French foreign minister has
given the US ambassador some views on Presi-
dent Sadat's recent visit. (Page 4)
Notes: Pakistan; USSR; UK; Thailand; Portugal
(Pages 5, 6, and 7)
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ISRAEL
(continued)
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TURKEY
The Turkish government appears to be
moderating its hard Zine with regard to
Cyprus and the Aegean. dispute as the Feb-
ruary 5 deadline for a cutoff of US mili-
tary assistance approaches.
Following meetings with his National Security
Council and political party leaders, Prime Minister
Irmak announced on Wednesday that Nicosia airport
may soon be opened under joint management and that
the port of Famagusta would be reopened to inter-
national navigation.
Turkish Cypriot leader Denktash
will propose the following at his meet-
with Greek Cypriot negotiator derides today:
--The opening of the Turkish-controlled port
of Famagusta to Greek and Greek Cypriot ship-
ping in return for similar facilities for
Turkish shipping through Limassol.
ing
--The return of about 5,000 Greek Cypriots to
certain villages near the edge of Turkish-
controlled territory.
--A guarantee by the military that Greek Cyp-
riots would not be harassed.
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no early withdrawal of the Turkish front line.
The positions of the two sides have been so
far apart on the question of the ports that there
is little prospect that the issue will be resolved
by February 5.
On the dispute with Greece on the Aegean,
Irmak told the press that "in principle" Turkey
favors taking the controversy to the International
Court of Justice as the Greek prime minister pro-
posed earlier this week. Irmak noted, however,
that Turkey still intends to carry out seismic ex-
ploration in the Aegean beginning next month.
the Turkish
National Security Council agreed with the General
Staff assessment that action must be taken to try
to avoid the threatened halt in US military assist-
ance. The announcement that a commando brigade of
some 1,000 troops was being withdrawn from Cyprus
was part of this effort.
no further troop reductions are expected
before February.
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FRANCE EGYPT
French Foreign Minister Sauvagnargues
yesterday gave the US ambassador in Paris
some views on Egyptian President Sadat's
visit.
The French minister confirmed that France would
supply Egypt with 50 Mirage fighter aircraft. Con-
tinuing negotiations will determine whether Egypt
gets model III or the newer F-1. Sauvagnargues did
not detail other arms sales, but General Badri,
Egypt's minister of war production, is still in Paris
talking to suppliers.
Sadat asked President Giscard for agreement in
principle to supply Egypt with an 800-megawatt nu-
clear reactor--to be used solely for industrial
purposes. Giscard did not refuse, but said formal
approval would depend on the outcome of talks on
controls and guarantees. Sauvagnargues said France
is looking for a middle way between safeguards such
as those defined by tho International Atomic Energy
Agency--which the French believe are not strong
enough--and more stringent safeguards which impose
control over the entire nuclear cycle of the im-
porting country.
Sauvagnargues told Ambassador Rush he had been
reluctant to include in the final joint communique
the statement that French military sales would par-
tially make up for Egypt's 1973 war losses. France
wished to avoid the implicit insult to the Soviets,
but Egyptian Foreign Minister Fahmi was insistent.
Giscard expressed amazement over Sadat's
vehement criticism of the Soviets, according to
Sauvagnargues.
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NOTES
Pakistani
The USSR recently canceled some wheat con-
tracts in what appears to be a reaction to com-
modity market price fluctuation rather than any
basic change in the USSR's demand for grain.
The Soviets originally contracted for almost
7 million tons of wheat and corn for delivery in
fiscal 1975, some at a peak price of $200 per ton.
A major portion was bought to meet Soviet grain
requirements without drawing down stocks because
the .1974 grain harvest was below expectations. A
small part of the imports, however, probably rep-
resented a hedge against tight world supplies
and a shortfall in Soviet grain output in 1975.
Grain prices have dropped to about $160 per ton
and may go lower, and the Soviets apparently want
to get out of their hedge contracts in light of
good prospects for Soviet winter grain. Some
100,000-200,000 tons of US wheat may be involved
in current negotiations the Soviets are conducting
to cancel contracts or switch them to corn.
(continued)
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The UK has announced a four-year plan to de-
crease its current account deficit of $8.7 billion
by shifting resources from consumption to invest-
ment.
The Labor government intends to halve food
subsidies and subsidies to unprofitable national-
ized industries while increasing investment in in-
dustry and agriculture, particularly in the coal
and gas sectors. It is aiming for an average an-
nual growth rate of 3 percent in gross domestic
product in the next four years while holding the
rise in living standards to a range of 0.4 to 1.7
percent a year. Britain's intentions, however, may
be overtaken by short-term financing difficulties.
If a sell-off of sterling by private holders should
develop this year, the government might have to
tighten up on private consumption even more rapidly
than indicated in the White Paper.
Thailand's Democrat Party leader Seni Pramot
may be ale to form a viable government despite the
Zack of a clear mandate from the election last Sun-
day.
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conservative parties throw their support behind the
politically moderate Democrat Party. If this were
done, the Democrats would have a working and perhaps
stable majority in the lower house. There is some
evidence that Seni would be amenable to such a
solution; it is far from clear, however, that the
Democrat Party membership is ready to endorse a
coalition with the right.
(continued)
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Portugal's moderates appear to have emerged
somewhat strengthened and more cohesive from the
political maneuvering of the past week.
The violence last weekend by leftist extrem-
ists against the first congress of the center-right
party and the threat of new violence in demonstra-
tions that had been scheduled for today seem to
have alerted moderates inside and outside the armed
forces to the danger from the left. If the most
violence-prone extremist group defies the govern-
ment ban on demonstrations today, the government
may declare the organization illegal. Moderates
are said to be encouraged by the aggressiveness of
the Socialist Party in opposing the Communists and
the more extremist groups.
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Top Secret
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