THE PRESIDENT'S DAILY BRIEF 7 JUNE 1975

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006014818
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: June 7, 1975

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The President's Daily Brief
June 7, 1975
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Exempt from general
declassification schedule of E.O. 11652
exemption category, 5B( 1),(2).(3)
declassified onhi on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
June 7, 1975
Table of Contents
UK-EC: The British electorate's overwhelming en-
dorsement of EC membership means that Prime
Minister Wilson's gamble on his political
future paid off. (Page 1)
OPEC: Recent press speculation on a $4 per barrel
oil price increase is misleading; we have rea-
son to believe that the hike will be substan-
tially less. (Page 3)
Cambodia-Vietnam: Fighting has broken out between
Vietnamese and Cambodian communist forces near
the disputed Pouli Wai Islands. (Page 4)
Laos: There have been no major anti-American demon-
strations in Vientiane for nearly a week, but
harassment of Americans is continuing. (Page 5)
Portugal-Azores: The military are in control after
separatists tried to seize power yesterday.
(Page 6)
Portugal: Renewed fighting in Angola is posing
serious problems for Portugal's Armed Forces
Movement. (Page 7)
Argentina:
(Page 8)
Notes: France; North Korea; USSR (Page 9)
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UK-EC
The British electorate's overwhelming
endorsement of EC membership in the refer-
endum on Thursday confirms that Prime Min-
ister Wilson's gamble with his political
future paid off. Over 67 percent voted
in favor of remaining in the EC. Roughly
65 percent of the electorate turned out--
less than normal for general elections,
but sufficiently high for the government
to declare that the voters had made clear
their views. Wilson hoped that a positive
vote in the referendum would put to rest,
particularly within his own Labor Party,
the question of Britain's European con-
nection.
Now that the referendum campaign is over, Wil-
son is expected to move in two directions before the
parliamentary recess in mid-July:
--shuffle the cabinet to move some of the vocal
anti-marketeers to less important positions;
--address growing economic problems, especially
rising inflation and unemployment. In partic-
ular, he will search more urgently than before
for a substitute for the nearly defunct "so-
cial contract."
The unqualified British support for continued
EC membership is being greeted with immense relief
in the EC capitals. The Community can now devote
more attention to problems that had been deferred
while the British question preoccupied the Nine.
The referendum is a major political success for the
Community and could provide new forward momentum.
At the least, it should temporarily still anti-EC
sentiment in Denmark that was deriving inspiration
from the UK.
London will move quickly to mend fences with
its EC partners and assuage the considerable re-
sentment currently felt in many quarters toward
London. The Labor Party, for the first time, will
(continued)
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now take seats in the European Parliament, and British
representatives, including those from the trade union
sector, will attend meetings of the economic and so-
cial committee.
No major changes in London's position on prin-
cipal issues under EC competence are expected anytime
soon, and Britain will continue a strong defense of
its national interests in EC forums. British in-
fluence has been to broaden and liberalize the Com-
munity's external policies while making its machinery
more pragmatic and less bureaucratic. This positive
impact can be expected to continue, as will London's
efforts to counter the EC's tendency to evolve along
protectionist lines. Politically, British presence
provides a healthy counterweight to potential French
and German hegemony, either alone or in tandem.
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OPEC
Recent press speculation on an OPEC
price increase of $4 a barrel is mis-
leading. We have several reasons to
believe that the price hike on October
.1 will be substantially less than most
figures mentioned in the press.
--Oil Minister Yamani of Saudi Arabia has
stated that there will be no "sharp" price
hikes, and Prince Fahd has indicated that
Saudi Arabia wants a "stable" price.
--The Shah of Iran has stated that, although
a 35-percent increase would be justified, the
actual increase would be less.
--The Kuwaitis reportedly are beginning to
doubt that a price rise this year would be
Kuwait's interest/
in
Interior Minister Amouzegar--one of the few
authoritative Iranian spokesmen besides the Shah--
undoubtedly stated the truth when he said that the
size of the price increase in October is as yet
undetermined, but will be between "zero and 35
percent." Our current estimate is that it will
be at the lower end of this range, perhaps less
than $1.00. The increase in October might well
be followed by a somewhat larger increase in
early 1976.
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Koh
Kong
SOUTH
VIETNAM
Koh Rong
Poulo Wai
0
"Oft Disputed Islands
Sion Panjang
Dao Phu
auoc
Non Rai
ar:1)
43Quan Dec
Nam Cu
CAMBODIA
? Miles
0 50
558031 6-75 CIA
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CAMBODIA-VIETNAM
Fighting has broken out between
Vietnamese and Cambodian communist
forces near the disputed Poulo Wai
Islands.
Intercepted messages on Thursday and yesterday
reveal that over 25 Cambodians and "many" Vietnamese
were killed or wounded in a clash between Cambodian
and Vietnamese gunboats. The messages also sug-
gest that Vietnamese aircraft were involved in the
fighting.
The potential for such an incident has been
building since late April when the new regime in
Phnom Penh moved quickly to assert its claims to a
number of off-shore islands. Cambodian troops
sent to Poulo Wai, in fact, were ordered to "fight
diligently" against any Vietnamese attempts to
occupy islands.
The Cambodians also occupied disputed islands
north of Phu Quoc and may have dispatched a garri-
son force to Hon Panjang, some 50 miles southeast
of Poulo Wai. On the mainland, Cambodian troops
in the southeastern provinces of Takeo and Kampot
have clashed with the Vietnamese over territorial
rights along the ill-defined border
Senior officials on both sides have been try-
ing to keep the disputes within bounds and it is
as yet not clear which side initiated the fighting
near Poulo Wai.
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LAOS
There have been no major anti-US
demonstrations or disturbances in Vien-
tiane for nearly a week, but harassment
of Americans continues unabated.
Yesterday, a so-called "protest committee"
claiming to represent some 2,700 Lao employees of
AID demanded that American officials give an extra
three months' severance pay to these employees on
top of the termination benefits already promised
them. In an effort to keep the AID dissolution
negotiations on track and to protect the safety of
the 200 or so Americans still in the Lao capital,
US officials had little choice but to acquiesce.
The Lao communists, for their part, are con-
tinuing to enter the private residences of American
AID personnel, ostensibly for the purpose of inven-
torying the "furniture." In some cases, they have
confiscated refrigerators, stoves, and air condi-
tioners--probably in the belief that AID personnel
will attempt to remove these appliances when they
leave Laos on or before June 30.
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AZORES
q31
ifILHA DO CORVO
\s(%)
DISTRITO DA HORTA
ILHA DAS
FLORES
27 26
GRACIOSA
goiSanto Cruz da Graciosa
- 39 --- ---------..----.--.+-------- 139
( DISTRITO DE ANDRA
co MEROtSMO
11.14/? sike Cajes
FAIAL JORGE 1ERCEIRA-
c",.?1 Velas
bgrii, (-ezz:.
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Ponta Delgack
..,.....
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SAO MIGUEN
DISTRITO DE
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o 2,5 5.0 75 100 Miles .N...
;
0 25 50 7.5 100 Kilometers
37 - + - ?
28 27
SANTA MARIA
26 Vila do Por'
558033 6-7!
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PORTUGAL-AZORES
The local military have taken over
the Azorean island of Sao Miguel, after
a protest demonstration forced the resig-
nation of the civil governor and appar-
ently touched off a separatist effort to
seize control. Separatists apparently
sought to exploit a demonstration by
some 3,000 Azoreans who occupied the
Portuguese civil governor's office in
Ponta Delgada yesterday afternoon.
The separatists closed Ponta Delgada airport
and took over a local radio station, The airport
was later reopened, apparently on orders of the
military governor. There were early indications
that some army members on Sao Miguel had acquiesced
in the separatist effort. After some vacillation,
the military appear to have decided to remain loyal
to Lisbon, at least for now. A communique issued
in Lisbon last night claimed that the situation was
fully under the control of the Armed Forces Movement.
The military governor's tie to Lisbon appears
to be weak, however, and may be cut if Portugal's
ruling military authorities seek to retaliate for
yesterday's events. So far, apparently, no one has
been arrested, and separatists are thus free to try
to capitalize on the support they received yesterday
and to try again, perhaps with more preparation. Co-
ordination with groups outside Ponta Delgada was not
established yesterday, and nothing happened on other
islands. US military officials at Lajes air base, on
Terceira Island, report the situation there remains
calm. There was no interference with the seven NATO
ships--including a US and a Portuguese ship--visiting
Ponta Delgada.
Lisbon's initial reaction to the developments
was subdued, but charges of a rightist attempt to
thwart the Portuguese revolution are sure to arise.
Leftists are likely to make an effort to link the
US to the disturbances.
Portugal's military rulers have announced that
the Socialist newspaper Republica will reopen, but
they refused a Socialist demand to transfer the com-
munist printers who shut the paper down last month.
The Socialists apparently have not yet decided whether
to accept this solution or to resign from the govern-
ment. Socialist Party chief Soares reportedly has ex-
tended the deadline for decision from today until Mon-
day.
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PORTUGAL
Renewed fighting in Angola between
contending native groups is posing ser-
ous problems. for Portugal's ruling Armed
Forces Movement, which is divided on how
to deal with its African colony.
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Meanwhile, the influx of white refugees from
the Portuguese colony could cause additional
problems for Portugal's leaders. As many as 5,000
Portuguese emigrants may have already left Angola,
with 1,500 returning home. As many as 50,000 more
are said to have booked passage. The refugees who
do return to Portugal will not only swell the ranks
of the unemployed, but also reintroduce into Portu-
gal's turbulent political life a large number of
conservative military officers who view present
political developments in Lisbon with alarm.
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ARGENTINA
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NOTES
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France
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Top Secret
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