THE PRESIDENT'S DAILY BRIEF 27 DECEMBER 1975

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006014989
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: December 27, 1975

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The President's Daily Brief
December 27, 1975
g33,
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Exempt from general
declassification schedule of ED. 11652
exemption category 58(11,12),(3)
declassified only on approval of
the Director of Central Intelligence
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December 27, 1975
Table of Contents
Angola: The National Union reportedly has driven
the Popular Movement from the eastern terminus
of the Benguela railroad. (Page 1)
Lebanon: Beirut continues to be free of major fight-
but armed militiamen in the streets again
raise the risk of a new outburst. (Page 3)
Portugal: The extension of the wage freeze announced
by the cabinet on Wednesday will make workers
more susceptible to exploitation by the Commu-
nists. (Page 4)
Notes: USSR-Angola; Argentina; Syria-Jordan;
Romania-Yugoslavia (Pages 6 and 7)
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ANGOLA
Forces of the National Union have
driven the Popular Movement from the east-
ern terminus of the Benguela railroad at
Teixeira de Sousa/
Although capture of the town again gives the
National Union and National Front at least tempo-
rary control of the railway from Lobito to the Zair-
ian border, several sections of the line are inop-
erative and the railroad is unlikely to be reopened
in the foreseeable future. Popular Movement forces
have retreated some 60 miles from Teixeira de Sousa
toward their main base in eastern Angola at Henrique
de Carvalho.
A separate National Union column advancing on
Henrique de Carvalho from Luso remains stalled at
the Cassai River because a number of bridges have
been destroyed by the Popular Movement. One recent
report described Movement forces at Henrique de
Carvalho as demoralized and said they have asked
for armor and Cuban reinforcements from Luanda.
In west central Angola, a combined National
Union - National Front drive on Quibala has made no
appreciable progress in the past few days.
in the recent
fighting around Quibala the Popular Movement used
th-ee T-34 tanks and that one was destroyed./
In northern Angola, the Popular Movement's
drive along the coast toward the National Front's
headquarters at Ambriz, stalled until now by bridge
destruction and conditions brought about by the
rainy season, may soon pick up.
the Popular Movement has bridged the
Lifune River and established a token force on the
other side.
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_
LEBANON
Beirut continues to be free of
major fighting, but the reappearance
since Wednesday of large numbers of
armed militiamen on many of the city's
streets could precipitate another round
of heavy battles.
Government efforts to solidify the shaky truce
arranged on Wednesday after the heavy fighting at
Zahlah have made some headway. Leaders of the
warring Christian and Muslim factions reportedly
agreed to disengage their forces, set up joint ob-
servation posts in the vacated areas, and permit
Lebanese army units to supervise the cease-fire.
Syrian chief of staff Shihabi, who was in
Beirut last week to help mediate, told Ambassador
Murphy in Damascus on Wednesday that he saw no
early prospect for improvement in the Lebanese sit-
uation. The Syrian was particularly discouraged
as a result of his conversations with President
Franjiyah and Minister of Interior Shamun. Shihabi
added, however, that Damascus is keeping a line
open to Franjiyah in hopes of altering his position.
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_ _ . _
PORTUGAL
The extension of the wage freeze
announced by the Portuguese cabinet on
Wednesday is only an economic holding
action, but it will make workers more
susceptible to exploitation by the
Communists.
Labor contract negotiations were suspended
after the November 25 uprising was squashed, and
the cabinet has extended this through February.
The suspension effectively freezes wage rates,
pending development of better controls.
Wage controls are needed to help privately
owned and nationalized firms overcome serious fi-
nancial problems that stem in large part from the
earlier government policy of holding down prices
while permitting wage hikes and forbidding worker
dismissals.
Many people had expected the government to
introduce a stiffer wage policy and to allow
price increases, the
center-left Popular Democrats oppose such measures
because they would be too severe.
The sole Communist in the cabinet has been a
less vocal opponent than the Popular Democrats'
/ Both
parties are hesitant to share responsibility for
forcing hardships on the population, particularly
now that the cabinet has announced that a legisla-
tive election must be held by April 25, 1976.
Prime Minister Azevedo is aware that strict
austerity measures will be unpopular and could lead
to unrest that might threaten his government. In
a Christmas message to the nation, he tried to im-
press on the people, and especially on workers,
the severity of Portugal's economic difficulties.
He stressed that economic recovery depends on
solid agreement between the unions and the govern-
ment on a wage policy. Unless production in-
creases, he said, Portugal will face an economic
catastrophe.
(continued)
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His pleas may fall on deaf ears.
The Communists have had only mixed success with
strikes, but may believe that the wage freeze, rising
prices, and the growing scarcity of some consumer
goods will attract support to their cause.
One bright spot in the otherwise gloomy eco-
nomic scene was Finance Minister Zenha's announcement
on Tuesday that Portugal will be allowed to draw
some $85 million from the International Monetary
Fund. While the sum is roughly equivalent to only
a one-month payments deficit, it does give Lisbon
a little time to put its international payments in
order.
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NOTES
The Soviets have resumed their airlift to
Angola.
The Soviet destroyer and oil tanker are contin-
uing along the West African coast, probably en route
to Conakry. Yesterday they were off the coast of
Mauritania.
Argentine President Peron's position continues
to deteriorate, despite the government's victory
over leftist guerrillas earlier this week.
Pressure for armed forces intervention is grow-
ing, although top military leaders continue to be-
lieve the time is not yet ripe. The erosion of sup-
port for the Peronists, however, and the lack of
confidence in the ability of civilian politicians
to find solutions will almost certainly encourage
other military leaders to act. Some of them see a
direct take-over as the only way to avoid continuing
economic and political chaos.
Congressional demands for a change in the ex-
ecutive are certain to be stepped up in the weeks
ahead. The chances of a civilian political solu-
tion, however, are dwindling./
(continued)
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_
Jordan and Svria
Two visits this week, by Yugoslav Foreign Min-
ister Minic to Romania and by Romanian Foreign
Trade Minister Patan to Yugoslavia, should help to
end rumors that problems between Bucharest and Bel-
grade forced the cancellation of President Ceauses-
cu's trip to Yugoslavia in October.
The visits came on the heels of President Cea-
usescu's forceful reassertion on December 18 of
Romania's independent foreign policy. Ceausescu
underscored the similarities between Belgrade and
Bucharest on a variety of issues, including their
determination to resist Soviet claims to leader-
ship of the international communist movement.
Minic probably briefed the Romanians on his recent
trip to Moscow, where he discussed Soviet meddling
in Yugoslav internal affairs.
While in Belgrade, Patan signed a trade
agreement covering the period 1976-80 and a com-
modity trade protocol for the coming year.
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Top Secret
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