THE PRESIDENT'S DAILY BRIEF 28 JUNE 1975

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006014836
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: June 28, 1975

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The President's Daily Brief
June 28, 1975
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Exempt from general
declassification schedule of E.O. I 1652
exemption category 5I3(11,121.(3)
declassified only on approval of
the Director of Central Intelligence
ir a
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FOR THE PRESIDENT ONLY
June 28, 1975
Table of Contents
Lebanon: Fighting in Beirut has intensified sharply
in the past two days. (Page 1)
Argentina: A television appearance by President
Peron last night bought her government time in
its fight with labor over wages. (Page 3)
Portugal: With the decolonization process well
under way in Africa, Lisbon has now turned its
attention to settling colonial affairs in Asia.
(Page 4)
Notes: Cambodia-Vietnam; India; Panama; Laos
(Pages 5 and 6)
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FOR THE PRESIDENT ONLY
LEBANON
Fighting in Beirut has intensified
sharply in the past two days. Accord-
ing to the Lebanese police, at least 45
persons were killed during the 24-hour
period that ended yesterday morning.
The chief protagonists are still the Lebanese
security forces on the one side and Lebanese and
fedayeen radicals on the other. The Phalangist
militia has become involved to a limited extent--
primarily in erecting roadblocks to protect its
positions--but the Lebanese army and the large
fedayeen organizations remain on the sidelines.
Palestinian forces continue to participate
with Lebanese forces in joint security patrols.
The US embassy has been unable, however, to con-
firm several earlier reports that Fatah forces have
independently engaged the radical fedayeen.
The intense firing Thursday night, which was
heavier than any that occurred during April or May,
may have been the result of a determined effort by
the security services to put down a group of pro-
fedayeen Lebanese leftists in Beirut. These radi-
cals apparently are an amalgam of Lebanese Commu-
nists, members of the Syrian Socialist National
Party, and elements of several Libyan-backed Nasir-
ist Lebanese groups.
The Lebanese hope that their attack on this
group will dissuade other Lebanese radicals from
inciting violence during the current government
crisis, strengthen Arafat's hand in disciplining
the smaller fedayeen organizations that cooperate
with the Lebanese radicals, and eliminate one es-
pecially troublesome group supported by the Libyan
government.
(continued)
1
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President Franjiyah has convened sessions of
the military cabinet twice since Thursday night,
but still appears uncertain about how much force
to use in overcoming radical fedayeen resistance.
2
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FOR THE PRESIDENT ONLY
ARGENTINA
In an effort to ease the most serious
confrontation yet with organized labor,
Argentine President Peron last night par-
ticipated with labor leaders in a nation-
ally televised discussion of workers' prob-
lems. It was clear that no solution had
been reached, but the President probably
bought time.
Earlier in the day, the potent Peronist labor
confederation staged a general strike and demon-
strations to protest Economy Minister Rodrigo's
call for the annulment of recently negotiated wage
contracts, which specified huge increases. Despite
President Peron's appeal to workers not to heed the
strike call, as many as 100,000 converged on the
downtown area for a mass protest, while security
forces took up positions nearby.
Yesterday's actions were the culmination of
a series of sporadic work stoppages and demonstra-
tions in a number of cities. Workers have been
aroused by recent, massive price increases and suc-
cessive efforts by the government to limit salary
increases. The price hikes, as well as the deval-
uation of the peso, were among the first measures
announced by Rodrigo, who took office a month ago.
Labor had rejected suggested wage increases
of 38 and then 45 percent. Contracts worked out
less than a week ago between labor. and management
called for increases of up to 130 percent, more in
keeping with the sharp rise in prices.
Chief presidential adviser Lopez Rega--who
arranged for the appointment of Rodrigo, his
protege--was probably behind the move to overturn
the wage increases. For some time, it has been
apparent that Lopez Rega, acting through Rodrigo,
seeks to undermine labor's leaders by thwarting
their efforts to secure substantial wage increases.
This factor, as well as growing worker dissatis-
faction, has led union officials to press hard.
3
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FOR THE PRESIDENT ONLY
PORTUGAL
With the decolonization process
well under way in Africa, Portugal's
military government has now turned its
attention to the settlement of colonial
affairs in Asia.
Portuguese officials have begun discussions on
a decolonization plan for Portuguese Timor with rep-
resentatives of two Timorese political parties.
Official spokesmen at the talks, held in Macao, have
cautioned not to expect too much from the meetings,
but the Portuguese appear determined to move ahead
and end their role on the island as quickly as pos-
sible.'
The Portuguese are anxious to keep the process
as painless as possible. They will probably attempt
to satisfy those Timorese who favor independence,
but at the same time try to avoid offending the
Indonesians, who have made no secret of their de-
sire to annex the territory. The Portuguese may
look to a popular referendum as the best way to
resolve the dilemma. The Indonesians, for their
part, have assumed a more relaxed attitude about
Timor in recent weeks, and now seem convinced that
the Portuguese will eventually cede the island to
them.
The Portuguese delegation will also take ad-
vantage of its stay in Macao to discuss the draft
political statute for that island with local of-
ficials. The statute is expected to maintain the
Portuguese administration of Macao, but will prob-
ably allow greater autonomy in local matters.
In deference to Peking's desire to maintain
the status quo,'Portugal has not given Macao the
option for independence that has been granted to
all the other territories. The Portuguese are anx-
ious to curry China's favor, in hopes of establish-
ing diplomatic relations. Thus far, the Chinese
have remained aloof, although there has been limited
contact through third-party intermediaries. The
Chinese probably want to wait to see whether Portu-
gal will fall under Soviet influence.
4
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THAILAND
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FOR THE PRESIDENT ONLY
NOTES
The Cambodians publicly announced yesterday
that they had "solved the border problem," appar-
ently referring to their territorial disputes with
the Vietnamese.
The two sides may have difficulty making any
agreement stick. Border clashes were continuing
in the Parrot's Beak area--where territorial claims
overlap--as late as Wednesday, according to inter-
cepted messages, and at least two Cambodian divi-
sions appear to have been sent to the area to rein-
force local units. The skirmishing disrupted at-
tempts by the Khmer Communist Party Central Commit-
tee to arrange a meeting with senior officials in
South Vietnam. Tensions also remain high in the
Gulf of Thailand, where Vietnamese naval craft
evidently are patrolling near Cambodian-occupied
islands.
Some demonstrations erupted in India yester-
day in opposition to Prime Minister Gandhi's recent
actions, but government security forces appear to
have the situation well in hand.
A number of opposition leaders were not appre-
hended in Thursday's roundup and apparently have
gone underground. In a nationwide radio speech,
Mrs. Gandhi sought again to justify both her crack-
down on the opposition and the imposition of press
censorship, and she promised to announce important
new economic measures within the next two or three
days. She said these would not include further
nationalizations or extensions of government con-
trols.
(continued)
5
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FOR THE PRESIDENT ONLY
Panamanian General Torrijos is outwardly calm
about the vote in the US House of Representatives
to deny funds for the Panama Canal treaty talks,
but his concern about the status of the negotiations
is growing.
In a statement to the press on June 26, Torn-
jos said he was confident that the US will uphold
its commitment to negotiate, despite the House vote.
You will recall that earlier this week, however,
Torrijos indicated his impatience with the pace of
the talks and, in a message to our negotiators,
said that he might have to make some public "hints"
to the effect that the US has been absent from the
negotiating table for a long time.
Communist-inspired harassment of the US Mis-
sion in Laos resumed today.
Early this morning, a mixed group of Pathet
Lao soldiers, police, and students occupied a US
Information Service office complex and warehouse.
A Pathet Lao soldier said that the government had
ordered these facilities closed and all property
seized. No US officials were at either location
at the time. American officials speculated that
the occupation was a prelude to a large anti-US
demonstration scheduled for Monday. They believe
Prime Minister Souvanna Phouma can keep the situa-
tion from getting out of hand, but do not rule out
isolated acts of violence.
6
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Top Secret
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