THE PRESIDENT'S DAILY BRIEF 24 JUNE 1975

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006014832
• 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 24, 1975

Declassified in Part - Sanitized Copy Approved for Release 2016/07/14 : CIA-RDP79T00936A012700010012-3
The President's Daily Brief
June 24, 1975
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Exempt from general
declassification uhedule of E.O. 11652
exemption category, 58( I
declassified only on approval of
the Director of Central Intelligence
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Declassified in Part - Sanitized Copy Approved for Release 2016/07/14 : CIA-RDP79T00936A012700010012-3 ?
FOR THE PRESIDENT ONLY
June 24, 1975
Table of Contents
Portugal: The Socialist Party moved quickly to take
advantage of the moderate tone of the communi-
que -released Saturday by the Armed Forces Move-
ment. (Page 1)
Nuclear Safeguards: Representatives of seven major
exporters of nuclear equipment and technology
met in London last week to continue discussions
on the imposition of stricter safeguards on
exports to non-nuclear countries. (Page 2)
World Sugar: Depressed demand and prospects for a
record harvest next year have caused a drastic
drop in world sugar prices. (Page 3)
Nationalist China: Premier Chiang Ching-kuo has
instructed Taiwan's defense and scientific
establishments to move ahead in developing a
broad range of weapons. (Page 4)
Notes:
(Pg-
USSR-Somalia; Thailand-China
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PORTUGAL
The Socialist Party moved quickly
to take advantage of the moderate tone
of the communique released Saturday by
the Armed Forces Movement. Several
thousand Socialists and other non-
communists marched through the streets
of Lisbon and Oporto last night in
support of the Revolutionary Council
and its affirmation of political party
activity. The crowd dispersed peace-
fully after a conciliatory talk by
President Costa Gomes, who called for
unity to overcome the country's prob-
lems.
Sharp ideological splits within the Revolu-
tionary Council and the Movement have not been re-
solved by the Council's compromise statement. Last
night's show of strength by moderate civilian forces
is presumably intended to encourage moderates in the
military and help head off further attempts to
eclipse them by radical officers in coming sessions
of the Armed Forces General Assembly.
The Socialists probably also wanted to show
that they too could mobilize the populace behind
the Armed Forces Movement. Since the dispute over
the Socialist newspaper Republica .began, the Commu-
nists have monopolized mass activity. The Commu-
nist Party ordered its supporters not to participate
in the rally "in anyway."
The promotion of General Otelo de Carvalho
from deputy head of the internal security forces
to commander reportedly was announced a short time
before the rally began. President Costa Gomes,
who formerly held the position, retains ultimate
responsibility for security in his capacity as
armed forces chief of staff. Carvalho, however,
has exercised a free hand with the security troops
as deputy commander, and his promotion represents
official recognition of this fact. It may also
have been intended to repudiate rumors that he
would soon be removed.
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NUCLEAR SAFEGUARDS
Representatives of seven major
exporters of nuclear equipment and
technology?Canada, France, Japan,
the UK, US, USSR, and West Germany--
met for two days last week in London
to continue discussions on the im-
position of stricter safeguards on
exports to non-nuclear countries.
When the meeting was over, the participants
had still not agreed on:
--A proposal to gain more extensive safeguards
through greater use of the leverage individual
supplier states already have. This is a major
issue, for example, in the recent nuclear deal
between West Germany and Brazil.
--A suggested mandatory provision that any
export of a reprocessing plant be of a multi-
national character. This provision would give
added assurance that the supplier state would
remain involved in the management of the plant
and perhaps prevent the location of nuclear
facilities in possibly insecure areas such as
Taiwan or South Korea.
France is the major obstacle to consensus on
both these requirements. The French, although will-
ing to impose safeguards on their own exports, will
not try to force recipients to accept blanket safe-
guards on all their facilities. In objecting to a
multinational form for all reprocessing plants, the
French argue that bilateral agreements in some in-
stances would afford a better opportunity for con-
tinuing supervision and effective control by a sup-
plier.
The next such talks on the subject are sched-
uled for September, though informal bilateral dis-
cussion on safeguards will continue among the
suppliers during the summer.
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WORLD SUGAR
Depressed demand and prospects for
a record harvest next year have caused
world sugar prices to drop to 12 cents
a pound at Caribbean ports--80 percent
below the record price of last November
and the lowest since December 1973.
Consumer resistance to high prices and increas-
ing use of sugar substitutes have turned an expected
world shortage this year into a surplus. The de-
cline in sugar consumption has been particularly
sharp in industrial countries like the US, which
normally accounts for about a third of the purchases
on the world market.
Expanded plantings and the return of normal
weather in most of the major producing countries
are expected to boost world production in the crop
year beginning September 1. Production probably
will reach 81.5 million tons, about 6 percent above
the current crop year.
Most of the increase will occur in the USSR,
Europe, and the US. Higher production in the USSR
and the EC will enable them to discontinue buying
sugar on the world market. Their purchases were
a major factor in the 1974 price rise. Gains in
output are also anticipated in Brazil and Australia,
but drought seems likely to prevent increases in
Cuba and the rest of the Caribbean.
Consumption will probably rise less than pro-
duction during the coming year, and stocks will
grow substantially for the first time since 1971.
Despite lower current prices for raw sugar, demand
will remain slack for some months until high priced
inventories are sold. In some large consuming coun-
tries, demand may remain permanently affected by
the increased use of sugar substitutes. The pros-
pect of excess sugar probably will keep world
prices around 10 cents a pound for the rest of 1975.
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NATIONALIST CHINA
Premier Chiang Ching-kuo recently
instructed Taiwan's defense and scien-
tific establishments to move ahead vig-
orously to develop a broad range of weap-
ons, including missiles, nuclear weapons,
and chemical warfare agents.
Chiang's remarks on missile development and
chemical warfare agents as well as nuclear weapons
reflect Taiwan's current drive to modernize its
armed forces and to attain a degree ?of self-suffi-
ciency in production of advanced armaments. Taipei
is clearly looking to a time when overwhelming mili-
tary pressure from a numerically superior force
could be parried only by an array of sophisticated
weapons. Since Taipei cannot rely on the US for
modern weapons over the longer term, it is develop-
ing its own advanced armaments industry and is at-
tempting to expand contacts
elsewhere. Posses-
sion of nuclear weapons is viewed as a necessary
deterrent to a communist invasion
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NOTES
President Siad has lavished praise on the So-
viet Union during the past week for its assistance
to Somalia.
Siad's touting of the relationship follows a
short period during which he played down his ties
with Moscow while he sought to burnish his Arab
credentials preparatory to the now-postponed Arab
summit meeting in Mogadiscio. Siad's pro-Soviet
publicity was prompted by the announcement on June
18 of a $60-million Soviet economic assistance
package, part of which will be used to combat the
effects of the drought that has afflicted Somalia
along with other countries of sub-Saharan Africa.
The new Soviet aid package will probably not sat-
isfy those Somalis for whom criticism of the Soviet
relief effort has been a convenient way of showing
displeasure at the substantial Soviet role in the
country.
Thai Prime Minister Khukrit, rather than For-
eign Minister Chatchai, will head the delegation
to Peking on June 30 to open diplomatic relations
with the Chinese.
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Top Secret
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