THE PRESIDENT'S DAILY BRIEF 8 JULY 1975

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006014843
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: July 8, 1975

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The President's Daily Brief
July 8, 1975
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Exempt from general
declassification schedule of EO. 11652
exemption category, 5B0 L(2).(3)
declassified ?nits, on approval of
the Director of Central Intelligence
--N?
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FOR THE PRESIDENT ONLY
July 8, 1975
Table of Contents
USSR: Brezhnev may be flirting with the idea of
retirement. (Page 1)
Portugal: The Armed Forces General Assembly convenes
today to debate the relatively moderate policy
statement issued on June 21 by the Revolutionary
Council. (Page 3)
CSCE: The Finns say the summit finale to the Euro-
pean security conference can no longer be ar-
ranged by July 28. (Page 4)
Notes: Romania (emigration); Romania (emergency
relief); Saudi Arabia - Iran; OPEC; Malaysia-
China; Morocco-Algeria; Argentina (Pages 5,
6, 7, and 8)
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USSR
Brezhnev seems to be reviewing his
future political plans, and may be flirt-
ing with the idea of retirement. Twice
in his conversations last week with the
delegation of US senators, he alluded
to such a possibility.
The US embassy quotes Brezhnev as saying, "No
one is eternal and life being what it is there comes
a time when a person must leave, whether for retire-
ment or because of illness, but when one is at the
helm one must do what one can for the future." The
sensitivity of his remark was underscored by the
fact that the Soviet interpreter did not translate
the reference to illness. According to a Reuter
report, Brezhnev joked about "giving up" his job
because it was too worrisome to put up with argu-
ments from "fellows like Jackson."
In recent conversations with Western officials
and correspondents, Brezhnev has gone out of his
way to stress how full his schedule is for the rest
of the year. He told the US senators that he
planned to meet Secretary Kissinger following the
latter's talks with Foreign Minister Gromyko later
this week. He noted that he was looking forward to
seeing you in Helsinki and again later in Washing-
ton.
Last month, Brezhnev also talked to reporters
about his travel plans and went on to discuss prep-
arations for the party congress next February.
"There is little time," he said. "There are many
visits, but the congress still has to be prepared
for, so I am faced with an immense amount of work."
In looking beyond the party congress, however,
it would not be surprising if Brezhnev were toying
with the idea of retiring.
(continued)
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His remarks about the
immense amount of work facing him seem to reflect
his awareness of and concern with the problems
caused by his long periods of inactivity.
Brezhnev does not seem to be under pressure
from his colleagues to retire. If his health con-
tinues to improve and his policies are moderately
successful during the rest of the year, thoughts
of retirement are likely to fade.
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PORTUGAL
The Armed Forces General Assembly
convenes today to debate the relatively
moderate policy statement issued by the
Revolutionary Council on June 21.
Since that date, the authority of the present
military leadership has been eroded by:
--Widespread strikes and civil disobedience.
--The unresolved dispute over the Socialist
newspaper Republica.
--The refusal of the Catholic Church to con-
form to an order nationalizing its radio sta-
tion.
--The massive jailbreak by members of the se-
cret police of the former regime.
The session today provides an opportunity for
extreme leftists within the military to press for
a more radical interpretation of the policy state-
ment issued last month. Proposals for organizing
"direct links with the people" will be one of the
key items on the agenda. In its policy statement
last month, the Revolutionary Council approved of
direct links between the Armed Forces Movement and
the people in principle, but did not rule on how
this was to be implemented.
The US embassy reports that pressures are
building within the Movement to tilt further to the
left. In preparatory meetings for today's assem-
bly, the army called for immediate steps to "ensure
a correct, progressive interpretation" of the pol-
icy statement and for firm action to reassert au-
thority. The navy also demanded strong action to
strengthen "progressive" forces.
Socialist Party leader Mario Soares, meanwhile,
has threatened mass demonstrations if press freedom
is not assured. The Communists, according to press
reports, have placed their followers on alert be-
cause they fear an effort may be made to oust Prime
Minister Goncalves, their chief supporter in the
military.
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CSCE
The Finns announced yesterday that
they can no longer arrange a summit-level
finale to the European security confer-
ence in Helsinki on July 28; they say
they require a minimum of three weeks'
notice.
Tentative agreement was reached over the week-
end on most of the outstanding East-West issues,
and a fragile compromise was worked out with the
French that would allow follow-up meetings of senior
officials and possibly a second conference. Agree-
ment is now being held up by the demands of several,
smaller Western and neutral states that want fur-
ther progress on other issues first. Turkey and
Malta are the most firmly opposed, but the Nether-
lands, Belgium, Spain, and Romania also have objec-
tions.
Turkish demands for exemption from certain
confidence-building measures and for Turkish Cyp-
riot representation at Helsinki remain the major
obstacles. Demarches are being made by certain
NATO states in Ankara in hopes of bringing about a
change in Turkish policy when the cabinet meets
tomorrow. Western delegates, believing that the
key to the Turkish position is held by the military,
are hoping also that the West Germans will have
some success during the visit to Bonn, of the chief
of the Turkish Armed Forces, which began yesterday.
Debate in Geneva yesterday centered on a French
proposal that the end of July be set as the target
date for the summit and that the participants be
given until July 12 to work out their differences.
Should the deadline not be met, the participants
would assume Finland's costs for preparations al-
ready made. If the EC political directors, who are-
meeting in Rome today, support the French proposal,
the deadlock in Geneva might be broken.
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NOTES
Romania-'-s new effort to facilitate Jewish em-
igration .in order to gain approval of the US Con-
gress for most-favored-nation status has the back-
ing of the "highest level."
During
the first quarter of this year, about 150 Jews
were allowed to leave Romania each month; 199 ar-
rived in Israel in June, and between 250 and 300
are expected to arrive in July.
Romania may be on the verge of asking the US
for emergency relief because of the most severe
floods to hit the country since 1970.
Although the waters now appear to have crested,
the flooding apparently did considerable damage in
the area around Bucharest. Agricultural production,
which was beginning to show promising signs after
last year's drought, may have been seriously af-
fected. In 1970, 268,000 people were left home-
less by the floods, and 162 were killed. At that
time, Romania requested emergency relief from the
US and China.
(continued)
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Saudi Arabia and Iran, in their final commu-
niqug ending Crown Prince Fahd's visit to Tehran,
agreed that the Persian Gulf should remain a
"peaceful, secure, and stable region, free from
foreign interference and bases."
An official of the Saudi foreign ministry who
accompanied the Prince told our officials in Jidda
that the reference to foreign bases included not
only US Navy facilities in Bahrain and Soviet in?
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stallations in Iraq, but also applied to US commu-
nications facilities in Iran. Despite agreement
with the Iranians on the issue of foreign interfer-
ence, the Saudis apparently showed little enthu-
siasm for Tehran's proposed Gulf security confer-
ence. The Saudis favor general cooperation among
Gulf states, but are suspicious of any formal de-
fense pact. They fear that such an arrangement
would legitimize a stronger Iranian role on the
Arab side of the Gulf.
The three wealthiest OPEC members--Saudi
Arabia, Kuwait, and Iran--are increasing their
Lending on commercial terms to other governments.
In the first six months of 1975, Saudi Arabia
and Iran put nearly 15 percent of their surplus--
$2.2 billion--into loans to foreign governments;
their total for all of 1974 was $3.1 billion.
Kuwait, so far this year, has made government-to-
government loans totaling $195 million. The num-
ber of governments observed receiving such loans
now totals 13, including other OPEC members facing
growing financial difficulties. Further loans
among OPEC members are likely, especially if the
growing financial gaps among producers begin to
strain the unity of the cartel. At the end of
1975, over 65 percent of OPEC wealth will be con-
centrated in the hands of Saudi Arabia, Kuwait,
and Iran.
(continued)
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Malaysia has increased misgivings about its
ties with China, which were established last year.
Last April, the Chinese Communist Party sent
anniversary greetings to the Malayan Communist
Party. Although there is no evidence that the Chi-
nese are materially aiding the Malayan communists,
the message coincided with a spurt in communist
terrorism. Now the Malaysian government is dis-
tressed over growing Chinese embassy contacts with
Malaysian Chinese. Some Malaysians-see this de-
velopment-as-confirming their fears that a Chinese_
diplomatic presence would lead to subversion. Rap-
prochement with China, nevertheless, remains cen-
tral to Kuala Lumpur's nonaligned foreign policy.
Malaysia's disappointment could reinforce the cau-
tious attitude of Indonesia and Singapore toward
the normalization of diplomatic relations with
Peking.
Tension between Morocco and Algeria has
eased at least temporarily with the publication
of a joint communique in Rabat late last week on
the future of the Spanish Sahara.
Algeria's actual acceptance of the common
understanding expressed in the communique would
clear the way for a partition of the disputed ter-
ritory with the phosphate-rich northern region
going to Morocco and the southern portion, contain-
ing iron ore deposits, to Mauritania. So far, how-
ever, there has been no confirmation from Algiers
of its intentions other than publication of the
joint communique, which is sufficiently vague to
allow Algeria room for maneuver. We doubt that
President Boumediene, who has consistently opposed
Morocco's claim and has supported self-determina-
tion for the territory, is ready to make such an
about-face. Algeria may clarify its position
somewhat when it makes an oral presentation of
the problem this week to the International Court
of Justice.
(continued)
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Peronist politicians and labor leaders appar-
ently formalized their demand for the removal of
Argentine Welfare Minister Lopez Rega and his pro-
tege, tTe minister of the economy, at a meeting
yesterday afternoon.
The Peronist proposal on this issue and on re-
solving the wage dispute that sparked the general
strike, now in its second day, reportedly was de-
livered to President Peron's residence yesterday
evening.
Even if Lopez Rega is forced from the
cabinet he will probably remain the President's
private secretary and principal adviser.
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