THE PRESIDENT'S DAILY BRIEF 31 MAY 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007971
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: May 31, 1974

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The President's Daily Brief
May 31, 1974
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Exempt from general
declassification schedule of E.O. 11652
exemption category 5B( 1),(2),(3)
declauified only on approval of
the Director of Central Intelligence
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IL, I 11-WILLI N I
THE PRESIDENT'S DAILY BRIEF
May 31, 1974
PRINCIPAL DEVELOPMENTS
According to sensitive embassy reports, Saudi Oil
Minister Yamani believes Saudi Arabia can prevent
a decision to increase posted prices at the Quito
meeting of OPEC on June 15 and can force down world
oil prices this summer. (Page 1)
There is a risk of military confrontation between
Greece and Turkey in the eastern Aegean, but both
sides seem to want to settle the dispute through
negotiations. (Page 2)
In Cambodia, the present lull in military action is
probably only temporary on some battlefronts.
(Page 3)
Ital
(Page 4)
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SAUDI ARABIA
Saudi Oil Minister Yamani believes Saudi Arabia
can prevent a decision to increase posted prices at
the Quito meeting of OPEC on June 15 and can force
down world oil prices this summer, according to sen-
sitive embassy reports.
Yamani has implied that if the other OPEC mem-
bers push to raise posted prices at Quito, Riyadh
will threaten to withdraw from active participation
in OPEC, increase production, and unilaterally cut
its posted prices.
Another Saudi strategy would involve holding a
major auction of Saudi crude oil this summer. Yamani
believes that, if two million barrels per day were
put on the market, there would be a sharp decline in
world prices--probably to about $8.00 per barrel from
its present price, which he gives as $10.00-$12.00.
Saudi Arabia would obtain this extra oil for auction
by "substantially" increasing production and by taking
a share of participation oil from ARAMCO.
Yamani apparently has the support of both King
Faysal and Prince Fahd in pursuing his objectives.
1
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SEA .OF MARMARA
Turkish ships -
0 40 80 Miles
0 40 80 Kilometers
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TURKEY-GREECE
The arrival yesterday of a Turkish oil explora-
tion ship escorted by warships in the eastern Aegean
has raised the risk of a military confrontation be-
tween Greece and Turkey. Some military forces in.
both countries are on alert, but both sides want to
settle the dispute.through negotiations.
A Greek ,foreign ministry official has informed
Ambassador Tasca that Athens is taking a "very seri-
ous view" of the situation, but that Greece will re-
main "cool-headed." Greek strongman Ioannidis-has
told a US official that he will try to handle the
problem by "non-military means."
Ioannidis said that the Greek government had
learned that Turkey had decided to send a "seismolog-
ical" ship to the Aegean five days before.Ankara an-
nounced it was doing so. He expressed.anger that
warships were also sent, but added. that this was not
"grounds for a-military. reaction." Ioannidis said
his government would take whatever action is neces-
sary if the Turks seem to be clearly preparing for
"armed conflict" or if they begin drilling in waters
claimed by Greece.
The -US consul in Thessaloniki: has reported that
forces in northern Greece have been-placed on alert
and. that fighter aircraft. have been moved to the
area. He.also noted that one amphibious landing
ship was loading army troops in Thessaloniki yester-
day.
A high-level Turkish official told the US em-
bassy yesterday that Ankara sent the exploration ship
to "make it clear" to the Greeks that it intended to
defend its interests in the disputed area. This
ship, he said, would be in the area for about a week,
probably accompanied by naval escorts.
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CAMBODIA
Military activity is for the moment relatively
light In the Phnom Penh area, Cambodian army units
continue to meet moderate resistance as they try to
force Khmer Communist troops from positions southeast
of the capital between the Bassac and Mekong rivers.
Insurgent infiltrators from this area and Communist
gunners a few miles northeast of Phnom Penh are still
within rocket and mortar range of the capital, but
their sporadic shellings of the city have caused only
light casualties.
North of Phnom Penh, government defenders at
Lovek continue to repel minor attacks. Government
forces that have been conducting clearing operations
along Route 5 south of Lovek are:resting and refit-
ting. Elsewhere-in the north, a Khmer navy convoy
moved up the Tonle Sap River from Phnom Penh to Kom7
pong Chhnang City on May 28--the first transit of
that important supply waterway since the Communists
began their interdiction campaign five weeks ago.
Communist pressure against the northern provin-
cial capital at Kompong Thom and against Prey Veng
City on the east bank of the Mekong River has slack-
ened in the past few days. In the far southwest,
the Communists are continuing to harass the govern-
ment garrison on Route 4 at Kompong Seila, some 90
miles from Phnom Penh.
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The present lull in military action probably is
only temporary on some-battlefronts.
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ITALY
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NOTE
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Top Secret
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