THE PRESIDENT'S DAILY BRIEF 25 FEBRUARY 1976

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006015039
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: February 25, 1976

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The President's Daily Brief
February 25, 1976
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Exempt from general
declasufication schedule of E.O. 11652
exemption category, 58( l),(2)(3I
declassified only on approval of
the Director of Central Intelligence
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February 25, 1976
Table of Contents
USSR: General Secretary Brezhnev gave an impressive
performance in delivering his report to the So-
viet party congress yesterday. (Page 1)
Thailand:
Egypt-USSR: The two governments may have reached
an informal understanding that could resolve,
at least temporarily, the problem of Cairo's
debt for economic and military assistance.
(Page 6)
Egypt - USSR - Western Europe: Cairo continues ef-
forts to reduce its dependence on the Soviets
for the maintenance of front-line combat equip-
ment. (Page 7)
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USSR
General Secretary Brezhnev gave an
impressive performance in delivering his
five-hour report to the Soviet party con-
gress yesterday. His stamina, enuncia-
tion, and aura of command seemed better
than at any time during the past two
years, according to our embassy.
Brezhnev devoted unusual attention to foreign
policy. He stressed continuity and said that
detente has been successful and will be maintained.
The Soviet leader characterized this policy, de-
spite its problems, as the leading trend in world
affairs. He was realistic, however, and underscored
Soviet concern over the difficulties detente has
encountered in the West.
On China, Brezhnev was abrupt and tough. He
even omitted standard Soviet references to eventual
rapprochement in implying that all concessions must
come from Peking.
Brezhnev gave considerable emphasis to "prole-
tarian internationalism," a phrase that connotes
Soviet leadership of the Communist world. This
clearly was meant as a retort to the French, Ital-
ian, and other parties that have been making in-
creasing efforts to emphasize their "independence"
of Moscow. Brezhnev stated unequivocally that
there can be no compromise on views that contra-
dict communist ideology.
In his discussion of domestic affairs, Brezh-
nev reasserted past policies, gloried in his lead-
ership's successes, and defended traditional ideo-
logical positions. He focused particular attention
on the Central Committee meeting of May 1972 which
approved former president Nixon's visit to Moscow,
despite the war in Vietnam. Brezhnev hinted that
there was opposition at this "turning point" and
boasted of his correct decision.
(continued)
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Brezhnev's review of economic performance and
plans hit the same themes as outlined to the USSR
Supreme Soviet in December. He was disappointed in
last year's results in the agricultural and consumer
sectors but promised to do better during this five-
year plan period. Brezhnev referred to the 15-year
plan and the new constitution he had once promised
for the Congress, saying that work on these items
had not been completed.
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THAILAND
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(
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EGYPT-USSR
Egypt and the USSR may have reached
an informal understanding last December
that could resolve., at least temporarily,
the problem of Cairol's debt for economic
and military assistance.
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The Egyptians do not acknowledge their own
agreement, but the understanding apparently has
been incorporated into the 1976 Soviet-Egyptian
trade protocol which assumes an Egyptian surplus of
about $140 million. This would continue the arrange-
ment on debt retirement that has been employed since
1973.
High cotton prices in 1974 gave the Egyptians
a trade surplus with the USSR that permitted re-
tirement of $165 million of their debt. Last year,
Cairo sold most of its cotton crop to the USSR and
Eastern Europe, creating the probability of a siz-
able trade surplus again.
Cairo undoubtedly hopes to buy time with these
repayment terms. As long as the Western cotton
market remains weak and the USSR is willing to buy
large amounts of Egyptian cotton, repayments would
not constitute a serious economic burden for Egypt.
Soviet officials still consider the debt ques-
tion unresolved and see it as a source of pressure
on Cairo. As Western armaments are gradually in-
tegrated into the Egyptian military and Western
export markets recover from the current recession,
Egypt's bargaining position will improve. When
that time comes, Cairo may balk at meeting annual
debt repayments to the Soviet Union.
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EGYPT - USSR - WESTERN EUROPE
Cairo is continuing to try to reduce
its dependence on the Soviets for main-
taining front-line combat equipment.
President Sadat told our ambassador last week
that Egypt has signed a contract with Rolls Royce
of Britain to overhaul MIG-17 and MIG-21 aircraft
engines. The work is to be carried out in Egypt.
The move to sign the engine overhaul contract with
Rolls Royce undoubtably was prompted by Moscow's
decision last month to stop servicing the engines.
Last year the Egyptians were seeking Italian
and British electronics equipment to equip or mod-
ernize many of their fighters and naval craft.
As a result of the changeover from Soviet arms
to a mix of Communist and Western equipment, the
short-term outlook for Egypt's military is one of
reduced effectiveness. The cutback in Soviet arms
deliveries already has impaired Egypt's military
readiness. Moreover, substantial deliveries of
many types of West European arms are still a long
way off.
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Top Secret
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