THE PRESIDENT'S DAILY BRIEF 27 FEBRUARY 1975

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006014732
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: February 27, 1975

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The President's Daily Brief
February 27, 1975
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Exempt from general
declassification schedule of E.O. 11652
exemption category 511(1),(2).(3)
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
February 27, 1975
Ta4.1.;e Contents
Egypt-Syria: Presidents Sadat and Asad have at-
tempted to respond in a positive way on the
non-belligerency issue during the past two
weeks. (Pagel)
USSR:
Mexico: The Mexicans are interested in leasing
refinery capacity in the US and marketing re-
fined products here. (Page 4)
Notes: Cambodia; North Vietnam; Egypt; Egypt-USSR;
--Ethiopia; Korea; India (Pages 5, 6, and 7)
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EGYPT-SYRIA
Neither Egypt nor Syria has given
clear public signals that the gap between
their negotiating proposals and Israel's
is narrowing. Nevertheless, in press
interviews over the past two weeks, both
Sadat and Asad have attempted to respond
in a positive way on the critical non-
belligerency issue.
In a discussion with a Washington Post editor
earlier this month, Sadat rejected the notion of
providing Israel with.a written guarantee. He
promised, however, that Egypt Would not attack. Is-
real as long as negotiations continue and suggested,
in effect, that the US could serve as the guarantor.
of Egypt's peaceful intentions.
Sadat further hinted in his Post interview
that he is prepared to assuage any Israeli fear
that substantial concessions to the Arabs now will
only lead to unacceptable demands in the future.
The Egyptian leader risked drawing fire from the
Palestinians and King Faysal by asserting that he
is prepared to accept the internationalization of
the entire city of Jerusalem as an alternative to
the return of the Arab sector to the Arabs. Sub-
sequently, the counselor of the Egyptian embassy
to the Vatican told a US official that Sadat's
statement is a firm government decision.
Asad, in an interview appearing in the current
issue of Newsweek, also called for .an end to the ?
state of belligerency as a first step and added
that a US defense guarantee for Israel would be
acceptable to Syria as part of a final settlement,
not as part of an interim package. By not reject-
ing out of hand the notion of a defense guarantee,
Asad may be indirectly signaling Tel Aviv that he..
could live with some form of US guarantee for a
second-stage Egyptian-Israeli settlement along the
line suggested by Sadat to the Post.
(continued)
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In any case, Asad's admission in the Newsweek
interview that he would be willing to sign a long-
term peace treaty with Israel is the clearest public
indication to date,of his commitment to the nego-
tiating prodess. This isthe first time Asad has .
been willing to be as explicit as Sadat, who re-
peatedly has said that Egypt is ready to sign a
peace treaty when the time comes and to accept the
right of Israel to exist.
By going on record now, Asad may. hope to elicit
a positive Israeli response to Syria's demand that
some movement on the Golan be linked with any for-
mula for a second-stage Israeli-Egyptian agreement.
Asad indicated that he is not insisting upon an
immediate return to Geneva, and he clearly left
open the possibility that he would be willing to
negotiate a second-stage withdrawal on the Golan.
He claimed, however, that a limited Israeli pull-
back in the southern Golan--leaving the hills around
Qunaytirah in Israeli hands--was of no interest to
Syria.
By. using US media to transmit these signals to
Israel, Sadat and Asad may hope ,to avoid arousing
domestic criticism of their departures from ortho-
doxy, but both must reckon with the reaction of
doctrinaire Arab critics, in particular, the Pales-
tinians. '1111e clearest acknowledgement of this .con-
straint came yesterday when Asad's press ,office said
that the Newsweek interview did not "faithfully ex-
press" his comments on a peace treaty with Israel.
Sadat has also come under fire from the Palestinians
for his statements on Jerusalem.
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USSR
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MEXICO
The Mexicans have told US embassy
officials of their interest in leasing
unused refinery capacity in the US or
other countries and marketing the re-
fined products in the US under arrange-
ments with American oil companies.
The leasing plan would help achieve Mexico's
goal of exporting refined products rather than
crude oil in order to obtain the maximum income
from its petroleum resources. Mexico could also
use some of the refined products to replace im-
ports from other countries until domestic refiner-
ies under construction come on line. In addition,
the arrangement would expand commercial relations
with US oil companies that Mexico could exploit in
the future as it expands its own refinery capacity.
These efforts to maximize revenues lend cre-
dence to reports that Mexico is considering domes-
tic gasoline rationing to free additional petroleum
products for export.
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NOTES
Cambodia's deteriorating economic and mili-
tary situation has stimulated anti-Chinese demon-
strations in the northwestern city of Battambang
and in Phnom Penh.
The tight supply situation and rising prices
of some basic commodities have increased tradi-
tional Cambodian resentment over the control of
commerce by local Chinese and Vietnamese. Given
the already considerable tensions that exist in
Phnom Penh, further demonstrations against the
Chinese could easily get out of hand and assume
anti-government overtones. Morale and discipline
among available security forces in the capital
area are low; the government might be unable cope
with widespread disorders.
North Vietnam appears about to move one of
its reserve divisions--the 341st--to the south.
This month the 341st has received large quan-
tities of supplies, including medicine and body
bags, and has established communications with the
senior Communist headquarters responsible for
moving troops and materiel south. On February 23
the division communicated with the military high
command in Hanoi. The 341st has given no indica-
tion of its ultimate destination, but two likely
places are northern South Vietnam or southern Laos.
The head of the Egyptian economic delegation
has returned home from Moscow with little to show
for his efforts.
The Soviets appear to have taken a tough line
in the economic negotiations as a way of keeping
pressure on President Sadat. Cairo undoubtedly is
particularly disappointed with the lack of progress
on rescheduling payment of Egypt's military debts.
Until last year, Moscow had deferred most of these
payments. Although four sessions in Moscow were
devoted to the issue, press reports indicate that
all the Egyptians got was a Soviet commitment to
"study" their proposals. One influential Egyptian
commentator said that resolution of the debt ques-
tion must await General Secretary Brezhnev's elu-
sive visit to Cairo.
(continued)
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Egypt apparently received its first shipment
of SU-20 fighter-bombers since the Soviet suspen-
sion of aircraft deliveries in late 1973.
A Soviet freighter arrived in Alexandria on
February 22 with: at least four fuselage crates
associated with SU-7 and SU-20 aircraft. These
crates probably are the first shipment of the 18
SU-20s to be delivered under a Soviet-Egyptian
arms accord reached in 1973.. The SU-20 is -a
swing-wing version of the SU-7 ground attack air-
craft with a greater range. Delivery of the SU-20s,
as well as the ten MIG-23S that arrived in Alexan-
dria earlier this month, was probably arranged dur-
ing the visit of Egyptian Foreign Minister Fahmi
to Moscow last December.
Eritrean insurgents and Ethiopian government
forces engaged in a two-hour firefight tate last
night near the US consulate and the Kagnew facili-
ties in Asmara; there were no American casualties.
the rebels--who hold no large
population center--will soon try to seize the town
of Keren, some 55 miles northwest of Asmara. If
they are successful, they will declare Eritrea in-
dependent.
South Korean naval vessels challenged North
Korean fishing boats well south of the west coast
Northern Limit Line. A South Korean destroyer re-
portedly collided with, and sank, one of them
Other South Korean ships and jet fighters
were dispatched to the general area. The North
Koreans conducted defensive fighter patrols both
north and south of the line and sent some naval
ships south of the line, probably to escort the
fishing boats back home.
(continued)
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Indian officials have reacted with relative
restraint to the announcement that VS arms sales
to Pakistan will be permitted.
Prime Minister Gandhi told the Indian upper
house yesterday that the US action would reopen
old wounds and hinder the bourse of normalization,
but her comments were made in the bourse of debate
and apparently were not from a prepared statement.
Foreign Minister Chavan has canceled an official
visit to Washington, but his statement in parlia-
ment on Tuesday was moderate, New Delhi had been
anticipating the US policy change, the immediate
impact of which was overshadowed by New Delhi's
almost simultaneous announcement of a new polit-
ical arrangement in Indian-controlled Kashmir and
the arrival of Soviet Defense Minister Grechko.
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s.)
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Top Secret
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