THE PRESIDENT'S DAILY BRIEF 30 JULY 1976

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006015177
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 19
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: July 30, 1976

imom0 *MEOW IMMO aiNCJI Y==-1 1===.1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
The President's Daily Brief
July 30, 1976
2
-------kr-0-p-Se644.4.2 5X 1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
Exempt from general
declassification schedule of E.O. 11652
exemption category.513f I
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
.4 -
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
11 VA 111E rrcriaLuLiv viv 1_, .1
July 30, 1976
Table of Contents
Lebanon: Syrian Foreign Minister Khaddam and Palestine Libera- 25X1
tion Organization representative Qaddumi signed the Syrian-
Palestinian accord in Damascus last night. (Page 1)
USSR:[_/
USSR:
25X1
(Page 3)
Greece-Turkey: The Turkish seismic research ship entered the Ae-
gean yesterday accompanied by a naval escort, according to
a Turkish radio broadcast. (Page 4)
Kenya-Uganda
is little change in the Kenya-Uganda dispute.
Despite a flurry of diplomatic activity, there
(Page 5)
Japan: Speculation is now settling on Yasuhiro Nakasone, secre-
tary general of the Liberal Democratic Party, as the next
major political figure to be implicated in the Lockheed af-
fair. (Page 7)
Italy: Prime Minister Andreotti's new cabinet will be sworn in
today. Italy has increased its foreign currency reserves
since last month's general elections. (Page 8)
Notes: China; Poland; USSR-Nigeria; Cuba (Pages 10, 11, and 12)
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
25X1
25X1
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
A Palestinian Refugee Camp
Syrian Blockade
-- Syrian Line of Advance
o Christian Town
Ian Contro led
Nahr al-Bar
Tripo?li
Zagharta
Abdah
CONTESTED
;."1:,',ITL.A`R I\ kA
...F. 1
Arab League
Security Force
Juniyak.,'
fih
B E I 11,,,Ust
Mar Eltaazx
"
Sabra Shatila4 ajtsta;1B
31araajsinhaall '
A ayti
Szawfa
redpmitna
Tul te?
Arab League
Security Force
Syrian
Controlled
Lefiis Awn'
Palesiinian Airfield-
Nabab pIi
.Ntari,Uyun
rt! Khiyarry
Gola
Heigh s
MILES 20
0 KILOMETERS 20
620183 7-76 CIA
r Declassified in Part - Sanitized Copy Approved for Release 2016/07/19: CIA-RDP79T00936A013500010037-7
_ _J
-
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
Pt/A 1 ni ricrolliGIV I lily L1
LEBANON: Syrian For-
eign Minister Khaddam
and Palestine Libera-
tion Organization rep-
resentative Qaddumi
signed the Syrian-Pal-
estinian accord last
night, according to Da-
mascus Radio.
The accord calls for a cease-fire
within 10 days, adherence to the
Cairo agreement regulating Pales-
tinian activities in Lebanon, and
the opening of roundtable negotia-
tions among the Lebanese under
president-elect Sarkis.
PLO chairman Yasir Arafat, accorc25X1
ing to an Egyptian news service,
said that he had not yet approved
the document. The provision for
restricting Palestinian activity
in Lebanon presumably is a bone of
contention between Arafat and the
Syrians
25X1
25X1
The agreement, as announced, con-
tains no provision for Syrian with-
drawal from Lebanon, but the Syr-
ians may have assured Qaddumi that
they would withdraw from Sawfar on
the Beirut-Damascus highway.
Syria has promised several times
previously to withdraw from Sawfar
and has failed to follow through.
Damascus may now calculate that it
can afford this concession in the
expectation that Christian forces
advancing from the north could
gain control of the area. 25X1
25X1
25X1
25X1
25
X1
1
FOR THE PRESIDENT ONLY
--continued
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
ar L=0 ir __s L.?
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
Li I .1.11?, VA 1V 1.?s
25X1
Fighting in Lebanon ap-
pears to have picked
up somewhat yesterday.
USSR:)
25X1
In Beirut, Christian forces re-
newed attacks on the Muslim dis-
trict of Nabaa after a lull of
several days, and leftist and Pal-
estinian forces launched an attack
into a Christian district of the
capital.
Syria has reportedly urged that
the evacuation of wounded from
Tall Zatar--which has been repeat-
edly postponed--be allowed to pro-
ceed. Lebanese Interior Minister
Shamun announced yesterday that he
had agreed to the evacuation and
would arrange details in a series
of meetings today.
25X1
25X1
25X1
25X1
2
--continued
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
200Miles_
0 200Kilorneters.
620191' 8.76
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19: CIA-RDP79T00936A013500010037-7
L
-) 1.===.1-
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
(IA .111E, ricLoiLiLiv I ui vt.. /
25X1
25X1
25X1
USSR:
25X1
25X1
25X1
25X1
3
--continued
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
25X1
25X1
_01
L.- J
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
1' l V .1 J. .L I V.L.-# kJ A L., I. ? 1.1
GREECE-TURKEY: The
Turkish seismic research
ship Sismik I entered
the Aegean yesterday
accompanied by a naval
escort, according to a
Turkish radio broadcast.
A senior Turkish Foreign Ministry
official informed the US embassy
that the ship will spend about 10
days surveying in and around Turk-
ish territorial waters before en-
tering international waters, where
it will operate until August 20.
The extended stay of the Sismik I
in Turkish waters still gives the
two sides an opportunity to try
again to devise a compromise for-
mula to secure safe passage of the
ship through contested waters.
Although both governments seem
anxious to avoid a confrontation,
they appear equally determined to
avoid any moves that could weaken
their claims in the Aegean or leave
them vulnerable to attacks by do-
mestic political opponents.
Tensions are likely to increase if
there are no new talks or if they
fail and the Sismik sails into dis-
puted waters with a naval escort.
The Greeks have indicated that the
nature of the ship's activities
will influence their reaction.
--continued
4
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
L
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
l LI A _IV Li L., A A.." LIA VA V.I.V LJ A
The Greeks have responded
initially to the Sismik's
appearance in the Aegean
by calling off the talks
on Aegean air space
rights set to begin this
week in Paris and by
stepping up efforts to
monitor its movements.
KENYA-UGANDA-UK: De-
spite a flurry of medi-
ation efforts and dip-
lomatic activity, there
has been little change
in the Kenya-Uganda
dispute since earlier
in the week.
According to the US defense attache
in Athens, all of Greece's subma-
rines put out to sea yesterday and
there are press reports that some
units of the Greek navy are en
route to patrol near the Greek is-
lands off the Turkish coast. Greek
aircraft also are following the
Sismik's movements.
There are no indications that
Greek military units--beyond those
placed on alert last week--have
been placed in an increased state
of readiness.
25X1
OAU Secretary General Eteki held
discussions with Kenyatta and
other Kenyan officials yesterday.
It is uncertain whether he will be
--continued
5
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
25X1
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
L/ 1V .1 Ii Li L. _IV Li kJ I L.'Lii V I f 2 V J-i A
Amin continues his own
diplomatic initiatives
with the Islamic states,
presumably to seek re-
lief from Uganda's eco-
nomic plight. A Ugan-
dan mission visited
Sudan and Libya this
week/
going on to Kampala. Amin's re-
newed criticism yesterday of Nai-
robi's complicity in the Israeli
rescue operation would appear to
limit any Kenyan receptivity to
mediation at this time.
Amin so far appears not to have
taken any major retaliatory steps
against the 200 to 300 Britons
still in Uganda following London's
diplomatic break this week. The
Ugandan leader has declared, how-
ever, that he is no longer obliged
to compensate several thousand
British Asians who lost property
when he expelled them from Uganda
in 1972.
25X1
25X1
6
FOR THE PRESIDENT ONLY
--continued
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
25X1
25X1
25X1
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
JAPAN: Speculation is
now settling on Yasuhiro
Nakasone, secretary
general of the Liberal
Democratic Party, as
the next major politi-
cal figure to be impli-
cated in the Lockheed
affair.
Nakasone has been linked to the
scandal since it erupted in Feb-
ruary, partly because he occupied
a key position in the former Ta-
naka government. A major Japa-
nese daily reported yesterday that
Nakasone's name was listed in the
Lockheed-related data previously
received by Japanese prosecutors
from Washington.
The prospect of Nakasone's involve-
ment presents Prime Minister Miki
with a problem that is potentially
more serious than Tanaka's arrest.
Nakasone was appointed to a key
party post by Miki and is also
Miki 's single major political ally.
Even if Nakasone is not named by
the prosecutors, suspicion will
build both within and outside the
party that a partial cover up is
under way. Nakasone's arrest, on
the other hand, would generate
strong--perhaps overwhelming--pres-
sures for Miki's resignation.
So far, Miki has not committed
himself as to whether he would re-
sign if one of his party officers
or cabinet members were implicated.
He is publicly building a case for
remaining in office by closely as-
sociating himself with the need
for thorough party reform.
--continued
7
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
25X1
25X1
25X1
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
IAA L./ .4_ .1-I I ? LI J. V A. .I. V 1.4
25X1
25X1
ITALY: Italy's prime
minister - designate
Andreotti's cabinet
list--presented yester-
day--suggests an at-
tempt to create a fresh
image.
Italy has increased its
foreign currency re-
serves by $1,120 mil-
lion through lira sales
since last month's gen-
eral elections.
The new Christian Democratic mi-
nority government contains several
new faces and some technicians.
In a departure from tradition, no
former prime ministers except An-
dreotti himself are included.
President Leone will swear in the
government today, and it will face
its first confidence vote next
Wednesday in the Senate, followed
by one in the Chamber of Deputies
the following week. Communist ab-
stention will be needed for it to
survive.
The inflows also have enabled It-
aly to repay all of the $500 mil-
lion drawn on its swap facility
with the Federal Reserve Bank of
New York. The exchange market in-
tervention accompanying the reserve
increases has kept the lira, which
closed at 835.3 to the dollar yes-
terday, remarkably stable since
the elections.
In addition to the election out-
come and the normal influx of sum-
mer tourists, several other fac-
tors have contributed to the lira's
recent strength. The import de-
posit scheme, which requires a 50
percent non-interest-bearing de-
posit on most foreign purchases,
has been a useful instrument for
absorbing liquidity and stabiliz-
ing the exchange rate. High in-
terest rates also have helped.
--continued
8
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA---IDP79T00936A013500010037-7
_ _
The lira still faces an uncertain
future. The composition of the
new government and the rate of in-
flation will have an important in-
fluence on the lira's prospects.
--continued
9
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
Quemoy
(Chin-men)
oPrates Reef
r
0 50 Miles
0 50 Kilometers
620131 7-76
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19: CIA-RDP79T00936A01350001_0037-7
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
No significant Chinese
military exercise activ-
ity has been detected
at the southern en-
trance of the Taiwan
Strait since July 24
when air, ground, and
naval forces conducted
large-scale joint maneu-
vers near Tung-shan and
Nan-ao islands.
A top Polish party of-
ficial told the US am-
bassador on Wednesday
that Warsaw will not
raise meat prices this
year.
NOTES
Bad weather over the
days probably caused
temporary stand-down
past several
at least a
in activity.
several transport and
bomber aircraft that had partici-
pated in the exercises returned,
or were preparing to return, to
their home bases early this morn-
ing. Naval, ground, and some air
forces remain concentrated in the
exercise area.
25X1
The military maneuvers have clearly
heightened concern on Taiwan, but
the Nationalists have not placed
any of their forces in a signifi-
cantly higher state of readiness.
The latest postponement of the
badly needed price increases shows
the regime's irresolution and its
fear of the Polish consumer since
the June riots. The party offi-
cial admitted that this decision
will involve considerable costs to
the economy. He said that meat ex-
ports, an important source of hard
currency, have been cut. He added
that Poland will have to import
approximately 100 thousand tons of
meat before the end of the year,
including some from China.
The official indicated that Poland
expects to import considerable
quantities of wheat from the USSR
and "some" from the US. The USSR
normally ships 1 to 2 million tons
of grain to Poland each year, but
last August Moscow suspended ship-
ments because of its own poor har-
vest.
10
--continued
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
Soviet Union
Nigeria
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
11
--continued
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
J. .1-.1 .4.-11. ? v
A substantial share of
Cuba's trade with non-
Communist countries has
gone to US subsidiaries
since the partial lift-
ing of the US embargo
in August 1975.
In the past 10 months, foreign
subsidiaries of US companies have
been awarded sales contracts by
Havana totaling $293 million--the
equivalent of one fifth of Cuba's
estimated non-Communist imports in
1975.
Most of the business has been gar-
nered by US subsidiaries in Canada,
Argentina, and Western Europe.
Purchases from Cuba by US subsid-
iaries thus far have amounted to
only about $2 million worth of to-
bacco and molasses.
12
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013500010037-7