THE PRESIDENT'S DAILY BRIEF 1 JUNE 1976

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006015124
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: June 1, 1976

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The President's Daily Brief
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June 1, 1976
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Exempt from general
declassification schedule of E.O. 11652
exemption category 5B(1),(2),(3)
declassified only on approval of
the Director of Central Intelligence
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June 1, 1976
Table of Contents
Lebanon: More Syrian armored units have moved into northern
Lebanon. (Page 1)
USSR-Syria-Iraq: Premier Kosygin began a trouble-shooting mis-
sion in Damascus today following a similar mission to Bagh-
dad. (Page 1)
Cuba - Latin America: Cuba's relations with a number of Latin
American countries have cooled because of Havana's involve-
ment in Angola. (Page 2)
At Annex we present an assessment of King Juan Carlos and Spain's
political and economic problems.
FOR THE PRESIDENT ONLY
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LEBANON: More Syrian
armored units--at least
a battalion, possibly a
brigade--have moved into
northern Lebanon.
USSR-SYRIA-IRAQ: Pre-
mier Kosy gin began a
hastily arranged trou-
ble-shooting mission in
Damascus today follow-
ing a similar mission
to Baghdad.
The Syrians moved after heavy at-
tacks by dissident Muslims on two
northern Christian villages had
sparked a severe Christian reac-
tion elsewhere in the country.
Christian forces, mostly those
controlled by Interior Minister
Camille Shamun, began shelling
isolated Muslim villages farther
south, mounting new attacks near
Zahlah in eastern Lebanon and
shelling nearly all Palestinian
refugee camps in Beirut.
The severity of the Christian re-
action seemed designed to force
president-elect Sarkis to request
increased Syrian military inter-
vention.
Lebanese radio reports this morning
say arrival of the Syrian forces
in the north resulted in an end to
the fighting around the two Chris-
tian villages. Fighting in Beirut
itself apparently tapered off last
night.
On Sunday, Sarkis in effect re-
jected a proposal by Arab League
Secretary General Riad for a gen-
eral Arab conference on Lebanon.
The reply is a further reflection
of the unwillingness of Sarkis and
Syria to allow other foreign par-
ties a central role in resolving
the crisis.
The USSR's problems with Syria in-
clude Damascus' failure to consult
fully with Moscow on Syrian policy
toward Lebanon, Syria's reported
request for debt rescheduling,
1
--continued
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CUBA - LATIN AMERICA:
Cuba's relations with
a number of Latin Amer-
ican countries
have cooled
because of Havana's in-
volvement in Angola.
Normal diplomatic ties
with those coun-
tries apparently will
be maintained, however.
friction between Syrian military
personnel and Soviet military ad-
visers, and Damascus' apparent un-
willingness to grant everything
the Soviets want in the way of ad-
ditional naval access to Syrian
ports.
Moscow also is disturbed about the
growing ties of Syria and Iraq to
the West, and the way each has
been treating its national commu-
nist.party. In addition, the So-
viets are displeased about the two
governments' failure to support So-
viet calls for reconvening the Mid-
dle East peace conference at Ge-
neva, and to denounce Egypt for its
abrogation of the Soviet-Egyptian
friendship treaty.
.Kosygin apparently did not achieve
full satisfaction in Baghdad. His
talks with the Iraqis were de-
scribed as "frank and cordial," a
good indication that not all prob-
lems were resolved.
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The controlled Panamanian press has25X1
published several articles critical
of Havana's role in Africa, and
General Torrijos and his military
colleagues have become uneasy about
Havana's intentions 25X1arding Pan-
ama. 25X1
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--continued
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While Mexican President Echeverria's
disillusionment with Havana's An-
gola policy has prompted him to
cool Mexico's relations with Cuba,
commercial ties and plans for tech-
nical cooperation between the two
countries have not been affected.
Cuban Deputy Prime Minister for
Foreign Affairs Rodriquez, during
his visit to Mexico last week, re-
fused to give any public assurances
about a Cuban withdrawal from Angola.
FOR THE PRESIDENT ONLY
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King Juan Carlos
King Juan Carlos has given high priority to
bringing democratic change to Spain/
Progress on Reform
On May 25 the Cortes passed the first bill in the
government reform package. This bill, which relaxes
restrictions on freedom of r ved
b an overwh
The key to the government's reform package is a
referendum on amending the constitution to create
a bicameral legislature with the lower house elected
directly and the senate largely elected and partly
--continued
Al
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appointed. The referendum will also open the way
for labor reform and make changes in the royal suc-
cession law. A new election law to expand suffrage
will be submitted to the Cortes by mid-July.
If the reforms are passed, the timetable laid out by
Arias last month calls for the referendum to be held
by October and a parliamentary election to follow in
early 1977.
In the government proposa
lower houses will be co-equal,
e upper an
Workers, employers, and government representatives
are now grouped in one labor organization, and its
top officials are government appointed. Rightists
are firmly entrenched in the official labor bureauc-
racy. The legislature must approve the proposed
referendum calling for an overhaul of this system
to allow for pluralistic trade unions.
Economic Problems
Production is sluggish, unemployment high, inflation
excessive, and the current trade account is in deep
deficit. Unemployment probably is about 8 percent.
Last November, with wages rising at an annual rate
of 25 to 30 percent and consumer prices increasing
by 15 to 20 percent, the government instituted wage
controls. This helped slow inflation to 14 percent
by early 1976 but also caused worker dissatisfaction
which enabled leftist agitators to organize numerous
strikes.
GNP, which declined in 1975, is showing signs of an
upturn. Industrial production began to recover in
the fourth quarter of 1975.
Stronger export growth is needed to relieve balance-
of-payments problems. The trade deficit nearly
doubled in 1974, largely because of the stiff rise
in oil prices.
--continued
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Top Secret
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