THE PRESIDENT'S DAILY BRIEF 24 JULY 1975

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006014857
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: July 24, 1975

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The President's Daily Brief
July 24, 1975
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Exempt from general
declassification schedule of E.O. 11652
exemption category, 51311),(2).(3)
declassified onhi on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
July 24, 1975
Table of Contents
Egypt-Israel: There has been no indication of a
decrease in the status of Egypt's military
alert following President Sadat's statement
yesterday extending the UN force mandate for
three months. (Page 1)
Saudi Arabia: Crown Prince Fahd has made state-
ments suggesting that the Saudis may be adopt-
ing a more conciliatory attitude toward the
USSR and the East European communist countries.
(Page 3)
Portugal: Portugal was relatively calm yesterday;
the president's office denied reports that a
move is afoot to restructure the present mili-
tary regime. (Page 5)
Thailand-Philippines-SEATO: Thai Prime Minister
Khukrit does not want to disband the Southeast
Asian Treaty Organization. (Page 6)
Notes: Norway-USSR; USSR; Cyprus (Pages 7 and 8)
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EGYPT-ISRAEL
So far there has been no indication
of a decrease in the status of Egypt's
military alert in the wake of President
Sadat's statement yesterday extending
the UN force mandate for three months.
In a letter to the Security Council president,
Foreign Minister Fahmi cited the council's appeal
for an extension as justification for Cairo's posi-
tive response. Last week Fahmi had called on the
UN to live up to its responsibilities--which he
never clearly specified--before Egypt could renew
the mandate.
Sadat may have so abruptly relaxed his politi-
cal pressure over the UN issue because he believes
prospects for negotiating an interim agreement are
encouraging. His exercise in brinkmanship over the
renewal question has served in the meantime at
least two of his political objectives. It shows
the domestic and Arab audience that he remains
"tough" in his demands despite his tactical nego-
tiating relationship with the US and reminds his
wider international audience (including Israel)
that he can, if he wishes, recreate a crisis at
virtually any time he is not satisfied that nego-
tiating progress is being made.
The military exercise is likely also to prove
useful politically with the Egyptian military
leadership and practical as a partial rehearsal
of Egyptian planning.
At the same time, by backing down from his
tough stance without achieving visible progress,
Sadat has left unfulfilled Arab expectations that
he could force the pace of negotiations.
The Israelis will draw satisfaction from the
fact that they kept their powder dry for six days
before reacting to Egyptian military demonstrations.
Prime Minister Rabin fired the first shot in the
next round with his statement yesterday that nego-
tiations for an interim agreement will not be con-
cluded "without a face-to-face parley" between
(continued)
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Egyptian and Israeli delegations. The negotiations
are taking a long time, he said, because of the
.Egyptians' insistence on dealing through the good
offices of the USE,
The Israeli embassy in Washington, worried
about the impact of Rabin's statements, has been
quick to point out that Rabin's remark concerning
face-to-face talks was not a demand for new ground
rules, but rather was a reference to Israeli and
Egyptian representatives working out directly the
details of negotiations as they did during the
last disengagement.
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SAUDI ARABIA
Saudi Crown Prince Fahd has made
statements to the press recently that
suggest the Saudis may be adopting a
more conciliatory attitude toward the
communist governments of the Soviet
Union and Eastern Europe.
Fahd told a North Yemeni newspaper in early
July that "Saudi Arabia follows an open-door
policy toward all countries of the world, whether
eastern or western, and has economic relations with
all states." His interview was then replayed by
the Saudi press, probably at the encouragement of
the Saudi ministry of information. Fahd was
quoted during the same week by a Beirut daily as
saying, "We want good relations with both East
and West on the same footing. We will conduct
our relations with foreign states in the light of
our best interests and according to the positions
adopted by those countries toward our causes."
Such comments contrast sharply with the late
King Faysal's uncompromising hostility toward
communism, which he invariably equated with Zionism.
The Saudis are unlikely to go so far as to exchange
diplomatic representatives with the Soviet Union
at present; such a dramatic shift in Saudi policy
would be undertaken only after protracted deliber-
ation.
The Saudis may see several advantages, how-
ever, in a more open policy toward the Soviets.
--They could see such a stance as a useful
signal to the US that results must be forth-
coming in Arab-Israeli negotiations if Wash-
ington is to continue its close ties with
Riyadh.
--They may wish to prevent the breach in
Arab-Soviet relations from widening, perhaps
with a view to Soviet support for Egypt in
the event of renewed fighting with Israel.
(continued)
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--They may hope their more conciliatory pos-
ture will encourage the Soviets to allow a
marginally greater degree of religious freedom
to Muslims within the USSR, a factor mentioned
by Fahd in one of his statements.
The Soviets, who have been interested in
developing a relationship with Saudi Arabia for
some time, have publicly noted Fahd's statements.
They may follow up with low-key demarches to find
out whether there has been an actual change in
Riyadh's attitude. Recently, a senior Soviet
diplomat said Soviet UN representative Malik was
maintaining "limited contacts" with the Saudis
in New York.
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PORTUGAL
Portugal was relatively calm yester-
day. The US embassy reports that a gov-
ernment reorganization is being considered
as a possible way out of the crisis.
The restructured regime would be headed
by an 11-man directorate drawn from the
Council.
The Socialist leadership, meanwhile, has shown
no serious weakening of its resolve to continue the
struggle to oust the Prime Minister. At the same
time, however, the concern of party leader Soares
that he may be unable to retain full control of
party membership may be borne out. The US embassy
reports learning that four renegade Socialists from
the party's extreme left have agreed to join the
government Goncalves is still trying to form.
West European socialist leaders plan to meet
in Stockholm in August to devise means to support
the Portuguese Socialist Party. West Germany's
former chancellor Brandt, Austrian Chancellor
Kreisky and Swedish Prime Minister Palme plan to
take advantage of the presence of European leaders
at Helsinki to organize the Stockholm meeting.
If all those who have been invited attend, the
meeting should bring together the socialist heads
of government of Norway, Sweden, Denmark, Finland,
the Netherlands, West Germany, Austria and the UK.
The French Socialist leader, Francois Mitterrand,
and the two Italian Socialist leaders, Pietro Nenni
and Guiseppe Saragat, will probably be invited.
Portuguese party chief Soares expects either to
attend himself or to send another leading party of-
ficial.
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THAILAND-PHILIPPINESSEATO
Thai Prime Minister Khukrit Pramot
has stated that Thailand does not wish
to disband the Southeast Asian Treaty
Or anization.
IKhukrit said
SEATO was important to Bangkok since it
would symbolize Thailand's only Zink
with the US once US forces are withdrawn.
A Thai foreign ministry official told a US of-
ficial that while Khukrit wants the treaty to re-
main in effect, he would be willing to study sug-
gestions that SEATO headquarters, now in Bangkok,
either be disbanded or converted into an economic
development organization. Khukrit reportedly wants
to delay making a decision on these recommendations,
however, until he has had a chance to learn the
views of other member nations.
The future of SEATO is likely to be high on
the agenda when Thai Foreign Minister Chatchai
travels to New Zealand and Australia early next
month. The Australians have already indicated
their desire to do away with the formal organiza-
tion while keeping the treaty in force.
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SVALBARD
Equidistant line
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NOTES
Disagreement over national boundaries in the
Barents Sea and administrative problems on Svalbard
continue to strain relations between Norway and the
Soviet Union.
The Soviet community on Svalbard--currently
numbering about 2,000--is pressing Norway for "ad-
ministrative reforms." While the Norwegians admit
that some revision may be necessary, they are con-
cerned that the reforms would infringe on their sov-
ereignty over the area. The continuing friction is
making the Norwegians edgy.
Soviet
(continued)
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The third round.. of the.Cyprus intercommunal
talks, previously scheduled.for.today, has been
postponed because of UN Secretary.General Waldheim's
preoccupation with Middle East developments.
No new date has been set, but the talks will
probably resume shortly in Vienna. The EC Nine
meanwhile have made a demarche to Greek Cypriot and
Turkish Cypriot leaders, as well as to.. Athens and
Ankara, urging that no side take_any action to-dis-
rupt the negotiations. The EC is specifically_wor-
ried about Turkish Cypriot leader Denktash's threat
to expel five Greek Cypriots from the north for
every Turkish Cypriot prevented from leaving the
south. Denktash now hints that his plan might be
postponed, at least until after the next round of
talks is held.
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Top Secret
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