THE PRESIDENT'S DAILY BRIEF 12 MAY 1975

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006014795
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: May 12, 1975

t.
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
The President's Daily Brief
May 12, 1975
5
?..-'/-4(?-Srelgg25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
Exempt from general
declassification scheduk of E.O. 11652
exemption category, 58111,(21(3)
declassified only on approval of
the Director of Central Intelligence
s r
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
FOR THE PRESIDENT ONLY
May 12, 1975
? Table' of Contents
Laos: Vientiane remained generally quiet but tense over
the Constitution Day weekend. (Page 1)
Vietnam: Communist forces are continuing to encounter
isolated pockets of resistance. (Page 4)
Saudi Arabia - South Korea: Riyadh has reportedly agreed
in principle to loan Seoul $500 million. (Page 5)
Venezuela: The Venezuelan congress is likely to begin
formal debate this week on the government's bill to
nationalize the petroleum industry. (Page 6)
Note: Dominican Republic. (Page 7)
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
udorn,
HAIL A (NI D
hi _7-L?
i
ARCATION
LINE
HAM
.11
Predomin7tly communist-c
attime of (February 1973 cea
0 MILES I 100
557851 5-75
MBODIA
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
Declassified' in Part - Sanitized Copy Approved for Release 2016/07/15: CIA-RDP79T00936A012600010032-2
FOR THE PRESIDENT ONLY
LAOS
Vientiane remained generally quiet
but tense over the Constitution Day week-
end. No further anti-American or anti-
rightist street demonstrations were re-
ported, but there were widespread fears
that the rightist military leaders still
left in the country might be planning a
coup attempt.
The Pathet Lao are especially worried. Com-
munist Deputy Prime Minister Phoumi Vongvichit be-
lieves that Royal Lao Army tanks and artillery--
under the direction of General Kouprasith Abhay and
"the Sananikones"--are located north of Vientiane
and plan to move against the city. US observers in
Vientiane report there is no hard evidence to sup-
port Phoumi's fears.
The US embassy does believe, however, that one
or more desperate officers could lead some kind of
terrorist action against Pathet Lao officials in
Vientiane. Given the near collapse of Royal Lao
Army will and morale, and the growing number of de-
fections to the Pathet Lao, any such effort would
almost certainly be short-lived and futile. Never-
theless, innocent Lao as well as Americans and other
foreigners could easily be endangered.
The US country team judges, however, that the
situation in Vientiane and elsewhere in Laos, ex-
cept at the southern city of Pakse where civil un-
rest continues, while volatile, does not require
implementation Of emergency evacuation measures.
Thirteen dependents and nonessential US personnel
stationed in Pakse have been flown to Vientiane
and Udorn, Thailand.
Almost all of the most important rightist mil-
itary and political leaders, including Kouprasith
and the Sananikones, have left Laos. Those right-
ist leaders remaining include generals yang Pao,
Thao Ly, and Chao Sinh--three of the most effective
combat leaders of the Royal Lao Army. Army com-
mander in chief General Bounpone Markthepharaks is
also still in Vientiane, but has little taste for
bloodletting and has told Prime Minister Souvanna
Phouma of his intention to resign.
(continued)
1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
FOR THE PRESIDENT ONLY
yang Pao has acceded to Souvanna's request that
he resign his command in northern Laos. Over the
weekend, he sent about 100 of his followers and
their families by air from Long Tieng to Udorn. The
evacuation of key Meo tribal leaders, senior offi-
cers, and dependents is expected to continue.
yang Pao has reportedly accepted the rapid
collapse of the non-communist political and mili-
tary leadership in Laos with remarkable calm. Nev-
ertheless, ousted rightist finance minister Ngon
Sananikone recently told the US charge that yang Pao
(as well as Chao Sinh and General Etam, the Royal
Lao Army psychological warfare chief) intended to
wage guerrilla warfare against the Pathet Lao.
yang Pao reportedly remains at his headquarters
at Long Tieng. He has refused Royal Lao Army orders
to relocate the T-28 tactical aircraft based there.
Meanwhile, in his Constitution Day address in
Vientiane yesterday to an audience mainly of Pathet
Lao members of the coalition government, but also
including Lao King Savang and the foreign diplomatic
corps, Souvanna virtually conceded political victory
to the Lao communists. He told the assemblage that
a "new situation" had unexpectedly and abruptly ap-
peared in Laos and the rest of Indochina and that,
as a result, "it was necessary to yield to the evi-
dence and prepare for the future in accordance with
the march of history."
Otherwise, Souvanna's speech was generally
optimistic, with considerable emphasis on the im-
portance of the Lao constitution and its durability
since 1947. He cited the King's recent vi.O.t to
Pathet Lao headquarters at Sam Neua and his recep-
tion there as an event of "historic significance"
for national reconciliation and unification.
Souvanna made no mention of a cabinet reshuffle
during his speech, but later in the day he issued
an official order appointing Pathet Lao Deputy De-
fense Minister Khammouane Boupha as acting defense
minister. Boupha is now in command of all armed
forces throughout Laos, even though Souvanna--in
the same order--asked Royal Lao Army commander Boun-
pone and air force chief Bouathong to remain.
(continued)
2
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
FOR THE PRESIDENT ONLY
According to press reports, Boupha's first
official act was to forbid the movement of troops
or equipment without his orders and to demand all
units to declare their loyalty to the coalition
government. Several units, including a garrison
vital to artillery, armor, and logistic operations,
reportedly have complied.
Boupha's appointment could set a precedent for
Pathet Lao officials replacing all of the ousted
rightist cabinet ministers.
two days prior to Boupha's
selection--Souvanna asked communist Deputy Prime
Minister Phoumi Vongvichit to determine whom the
Pathet Lao leadership in Sam Neua wanted to replace
the departed conservatives.
3
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
THAILAND
\ ?
MR 1
LAOS
N._?\1. -
Ban Me
Thtiote
-4)1
PHNOM PENH
Bien'
-.Boa ,
Gulf of
Thailand
MR 4
?
CAPITAL
SPECIAL
ZONE
4,0
MR 3
?
???,\\
,
'
South China 3ea
SOUTH VIETNAM
0 25 50 75
Statute Miles
557853 5-75
s.
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
Declassified' in Part - Sanitized Copy Approved for Release 2016/07/15: CIA-RDP79T00936A01260001003-2
FOR THE PRESIDENT ONLY
VIETNAM
Communist forces are continuing to
encounter isolated pockets of resistance.
An intercepted communist message lists the
Ban Me Thuot area, the northern part of Military
Region 1, and various small areas along Route 1
as places where resistance has not been eliminated.
The resisting forces, besides ambushing vehicles,
have obtained North Vietnamese uniforms and are
said to be using them in "sabotage" missions,
causing the populace to be suspicious of the North
Vietnamese forces.
Another message disclosed a clash in Kien
Tuong Province in the northern delta on May 6.
Communist forces claim to have eventually destroyed
the resisting unit, which was apparently made up
of at least remnants of a South Vietnamese regional
forces battalion.
Meanwhile, preparations are under way to move
South Vietnamese prisoners of war into central
areas, according to yet another intercepted mes-
sage. Prisoners from as far north as Chao Reo in
the central highlands are to be moved into a camp
near Bien Hoa. At the camp they are to be segre-
gated into groups of enlisted men and noncommissioned
officers, and officers and "tyrants." The prisoners
are to undergo "re-education."
4
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15: CIA-RDP79T00936A012600010032-2
FOR THE PRESIDENT ONLY
SAUDI ARABIA - SOUTH KOREA
Riyadh has reportedly agreed in prin-
ciple to loan Seoul $500 million.
South Korea has been actively seeking foreign
funds to finance a current-account deficit that may
reach $2.4 billion this year. Negotiations for the
loan took place during South Korean Prime Minister
Kim's visit to Saudi Arabia in early May.
Preliminary arrangements call for $200 million
in medium-term, low-interest bank loans and $300
million in project loans. The $200 million is
likely to be used to bolster South Korea's official
holdings of foreign exchange, although the military
is reportedly lobbying to use the funds for arms
purchases. Use of the project loans will require
joint agreement by the two governments.
Korean economic experts will visit Riyadh,
probably early this summer, to negotiate details
of the loans.
5
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
FOR THE PRESIDENT ONLY
VENEZUELA
The Venezuelan congress is likely
to begin formal debate later this week
on the government's bill to nationalize
the petroleum industry. Nationalization
of the $1.5 billion industry is not in
question; debate will focus on the role
of private oil companies after nation-
alization.
The administration has the political strength
to push the bill through congress quickly, but Pres-
ident Perez is stressing the desirability of achiev-
ing national consensus and seems willing to compro-
mise with the opposition on some key sections of the
bill. He will insist, however, on being given flex-
ibility to work out arrangements with the companies.
Congressional debate will be keyed to the do-
mestic audience and will be strongly nationalistic.
Most of the small leftist opposition political
parties oppose any role for the companies after
nationalization, but the largest opposition party,
the Social Christian Party of former president Cal-
dera, may be moving toward the administration's
position.
Most Venezuelans now accept the need for for-
eign assistance to operate the industry. Government
officials are talking of getting company assistance
in such areas as international marketing, the selec-
tion and purchase of equipment and supplies, and
technological research.
Talks between the administration and company
officials are to resume after congressional debate
concludes in several weeks. The government will
then announce its arrangement for compensation.
The final congressional vote may not come until
early July. Perez may chose either Independence
Day, July 5th, or Simon Bolivar's birthday, July
24th, to announce the nationalization.
6
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
Declassified. in Part - Sanitized Copy Approved for Release 2016/07/15: CIA-RDP79T00936A012600010032-2
FOR THE PRESIDENT ONLY
NOTE
The resignations of the four top Dominican
Republic military officers on Saturday poses no im-
mediate threat to President Balaguer.
The armed forces secretary of state and the
chiefs of staff of the three services resigned in
protest over Balaguer's appointment last week of his
strong supporter General Neit Nivar as national
police chief. The four former military chiefs ap-
parently expected their resignations would cause the
President to rescind Nivar's appointment. Balaguer's
decisive reaction appears to have caught them by
surprise. It is not clear whether Balaguer delib-
erately set out to precipitate the resignations,
but he periodically pits competing power groups
against one another in order to strengthen his posi-
tion.
7
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
?
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012600010032-2