THE PRESIDENT'S DAILY BRIEF 27 JUNE 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007994
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: June 27, 1974

Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A012100010051-6
The President's Daily Brief
June 27, 1974
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Exempt from general
declassification schedule of E.O. 11652
exemption category 5130
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
June 27, 1974
PRINCIPAL DEVELOPMENTS
King Husayn has made public his threat not to par-
ticipate in the Geneva peace talks unless a Jordanian-7
Israeli-disengagement accord is.worked out first.
(Page 1)
Italian Prime Minister Rumor will probably get par-
liamentary approval of the government's austerity
program, but continuing dissension within the coali-
tion and reservations on the part of labor could im-
peril the progam. (Page 2)
The Chinese, apparently concerned about their ap-
proaching harvest, are buying record_ amounts of.
grain for delivery this year, a total of 9.4 million
tons. (Page 3)
Notes on Iraq, China, Saudi Arabia - EC, and Pakistan-
USSR appear on Page 4.
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FOR THE PRESIDENT ONLY
JORDAN
King Husayn has made public his threat not. to
participate in the Geneva peace talks unless a Jor-
danian-Israeli disengagement accord is worked out
first. In an interview published in a Beirut daily
on Monday, the King insisted that Israel would have
to pull back a "reasonable depth" from the Jordan
River as a prerequisite for Jordanian participation
a.t.Geneva, and that ultimately the Israelis would
have to withdraw from the Arab portion of Jerusalem.
Only then, he added, could a referendum be held on
the West Bank to decide the area's future.
Husayn indicated that Jordan, Egypt, and Syria
will also have to come up.with z coordinated negoti-
ating strategy before the Geneva conference recon-
venes., By publicly threatening to boycott the talks
and insisting on a coordinated Arab position, Husayn
hopes to force Egypt and Syria to support his efforts
to get Jordanian-Israeli disengagement negotiations
rolling. He also hopes to spur the Israelis to be
more responsive to his proposals.
The King reiterated that he had no objections
to the presence of the Palestine Liberation Organi-
zation at the Geneva talks. He seemed to take a
slightly harder position than on previous occasions,
however, on the respective roles Jordan and the PLO
should play. He said the Palestinian group's mandate
should be limited to handling the still vaguely de-
fined question of "Palestinian rights," while Jordan
would negotiate the return of the West Bank and East
Jerusalem to Arab custody.
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ITALY
The Italian political scene remains tense in
the wake of the accord on economic issues that was
reached by the four center-left parties last week.
Parliamentary debate on the government's austerity
program begins today. Prime Minister Rumor will
probably be diode to get it approved, but continuing
dissension within the coalition and reservations
on the part of labor could imperil implementation
of the program.
The Socialists are still exuding confidence
from their gains in the Sardinian regional election
last week and will drive a hard bargain in discus-
sions on how to implement the program. The Social-
ist Party directorate this week strongly implied
that its approval was based on the assumption that
the Communist Party and labor unions will be con-'
suited as the measures are implemented.
The dominant Christian Democratic Party., mean-
while, is divided over the leadership of Amintore
Fanfani and the policies he represents. The party's
left wing appears to be gathering support for its
view that Fanfani's policies are responsible for
Christian Democratic defeats in the divorce referen-
dum and the Sardinian elections. A party national
council meeting is to be held next month, and the
left wing is expected to challenge Fanfani's leader-
ship at that meeting and try to shift the party's
policies leftward.
The Communists are debating how best to capital-
ize on the Christian Democrats' weakened position.
Several major Communist leaders think the party
should try to bring down the Rumor government--a
development they believe would ultimately lead to
the replacement of Fanfani by a leader more sym-
pathetic to cooperation with the Communist Party.
Others hesitate to push the Christian Democrats too
hard, fearing that such tactics could lead them to
close ranks against the Communists.
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
CHINA
China is buying record amounts of grain this
year in apparent concern about the approach' har-
vest. Peking has contracted for a tota
million tons of grain for delivery this year, in-
cludingmillion tons of US wheat and 1.1 million
tons of US corn. Last year, it importe,a_:LLJDIk__
lion tons of grain; 4.1 million tons were of US
origin.
Yesterday, the Canadian Wheat Board announced
a $350-million wheat sale to China--some 2 million
tons--its largest since 1972. One of the two con-
tracts for this sale is in addition to those antic-
ipated in the three-year sales agreement reached
last October. The Canadian official who announced
the sale indicated that delivery will begin in July
and will be concluded before the end of the year.
China has also signed a new purchase contract
for 600,000 tons of US wheat, presumably for deliv-
ery beginning next month. This contract comes on
the heels of an agreement with at least three trad-
ers to resume US wheat shipments that had been
stalled for several months.
A small portion of the grain China is buying
could possibly be diverted to North Vietnam and
Albania. Earlier this year, China bought some
260,000 tons of corn from Argentina--230,000 tons
for North Vietnam and the rest for Albania. China
has also sent North Vietnam some Australian wheat
and some 26,500 tons of US corn.
North Vietnamese food imports are already run-
ning at record levels, and Hanoi should be able to
satisfy its minimum needs until rice is available
from the spring crop. That crop should be reach-
ing the markets in the next few weeks, but the
outlook is for a poor harvest.
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FOR THE PRESIDENT ONLY
NOTES
Iraq:. The army may have launched a major drive
against the Kurds in an attempt to isolate them and
cut their supply lines with Iran. Tehran is concerned
that the fighting may lead to more serious clashes be-
tween Iran and Iraq. On June 21, forces of the two
countries reportedly exchanged fire for several hours
at -a point on the border some 100 miles northeast of
Baghdad. The Iraqi government has tried before to
prevent the Kurds from getting supplies from Iran,. but
has failed largely because of the mountainous terrain
and stubborn Kurdish resistance.
China:
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Saudi Arabia - EC:
An end of the embargo would clear the way
for substantive talks between the Arab nations and the
EC.
Pakistan-USSR: Pakistani Prime Minister Bhutto
will make an official visit to the USSR beginning on
July 8. His main concern is expected to be the rami-
fications of India's detonation last month of a nuclear
device. He is also likely to request clarification of
the USSR's attitude toward Afghan-Pakistani relations,
in light of Moscow's recent expression of support for
"negotiation" of the dispute over Pushtunistan. Pak-
istan insists that this is an internal problem and
that only "discussions," not "negotiations," are pos-
sible.
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Top Secret
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