THE PRESIDENT'S DAILY BRIEF 16 SEPTEMBER 1976

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006466847
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: September 16, 1976

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The President's Daily Brief
September 16, 1976
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Exempt from general
declassification schedule of E 0 11652
exemption category 58(1),(2).(3)
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
September 16, 1976
Table of Contents
Lebanon: Syria apparently has thrown its support privately be-
hind the Arab League proposal for a tripartite meeting of
Yasir Arafat, Lebanese president-elect Sarkis, and Syrian
Prime Minister Khulayfawi. (Page 2)
Panama: The Torrijos regime is reportedly planning to turn con-
tinuing domestic protests over price increases against the
US Canal Zone. (Page 3)
USSR: 1
_I
South Africa - Rhodesia: Rhodesian air force personnel continue
to receive training in South Africa despite recent indica-
tions that Pretoria was seeking to reduce the level of its
military assistance to Salisbury. (Page 4)
Notes: Japan; Sweden; Brazil-Japan (Pages 6 and 7)
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EGYPT-ISRAEL:
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Israeli Defense Minister
Peres told press sources on Sep-
tember 1 that the Egyptians had
withdrawn three battalions in late
August.
This withdrawal marks the first
appreciable change in the Egyp-
tian infantry presence in the
limited armaments zone since May
31, when Cairo withdrew three or
four infantry battalions.
Egyptian Minister of War Gamasy
told US officials in Cairo last
Monday that a UN team had recently
counted nine Egyptian battalions
on the east bank. Gamasy insisted
that there were only eight--as
provided by the Sinai II agree-
ment--and that the discrepancy
probably arose from the fact that
the Egyptians had reorganized
their military structure since
the October 1973 war. Gamasy nev-
ertheless agreed to take up the
issue with local commanders later
in the week, adding that he
thought it important that Egypt
abide strictly by the provisions
of the agreement.
* * *
--continued
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LEBANON: Syria appar-
ently has thrown its
support privately be-
hind the Arab League
proposal for a tripar-
tite meeting of Yasir
Arafat, Lebanese presi-
dent-elect Sarkis, and
Syrian Prime Minister
Khulayfawi.
Damascus also
has agreed to encourage Christian
leaders to approve Sarkis' par-
ticipation.
The proposed meeting, which would
concentrate primarily on trying
to resolve differences between
Syria and the Palestinians as a
first step toward an overall po-
litical settlement, is unlikely
to take place before this weekend
and could quite possibly be de-
layed until after Sarkis assumes
office on September 23.
President Franjiyah finally re-
shuffled the Lebanese cabinet in
an effort to improve the position
of conservative Christians before
he turns over the government to
Sarkis. Franjiyah did not dis-
miss Prime Minister Karami, as he
planned to do, probably because of
Syrian pressure, but he did strip
the Muslim Prime Minister of his
defense and finance portfolios.
Franjiyah awarded the defense post
to his militant colleague Camille
Shamun, who already holds the in-
terior and foreign affairs portfo-
lios.
In a separate decree, Franjiyah
appointed Shamun acting prime min-
ister during Karami's absence in
Cairo. It is unclear whether
Franjiyah is trying to lay the
groundwork for Shamun to declare
himself acting president, as many
Lebanese officials have predicted
he would. The move was clearly
intended as a personal slight
against the Prime Minister, with
whom Franjiyah has long been at
odds, and to make it difficult for
Karami to attend future negotia-
tions outside Lebanon.
--continued
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PANAMA: The Torrijos
regime is reportedly
planning to turn con-
tinuing domestic pro-
tests over price in-
creases into demands
against the US Canal
Zone.
USSR: /
/
Franjiyah's tampering with the
cabinet so close to the end of
his term is, for the most part,
academic, but it will make it
more difficult for Sarkis to deal
with Shamun in the immediate post-
inauguration period, when the cur-
rent cabinet is expected to stay
on.
* * *
Violent, student-incited protests
and looting occurred last Friday
and again on Monday. Students,
workers, and other groups mustered
several thousand people-for peace-
ful demonstrations Tuesday, but
violence erupted again yesterday.
The government has banned further
demonstrations and temporarily
closed all high schools.
Torrijos is worried that suppres-
sion of the students by the Guard
could provide antigovernment radi-
cals with martyrs, although thus
far there have been no confirmed
deaths.
If Torrijos does try to make the
US a scapegoat, we believe he
will tell the Guard to allow only
limited incursions into the Zone.
* * *
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--continuer'
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*
SOUTH AFRICA - RHODESIA:
Rhodesian air force
personnel are contin-
uing to receive train-
ing in South Africa de-
spite recent indica-
tions that Pretoria
was seeking to reduce
the level of its mili-
tary assistance to
Salisbury.
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*
*
Last month South Africa withdrew
from Rhodesia helicopter pilots
and crews that were supporting
counterinsurgency operations
against the Rhodesian black nation-
alists.
The air force programs, under way
for several years, include the
training of Rhodesian pilots and
crews on South African Mirage
fighters, C-160 transports, and
Alouette helicopters. South Af-
rica also permits Rhodesian in-
structors to use South African fa-
cilities and jet trainers to con-
duct basic courses for Rhodesian
personnel. Rhodesia has at least
33 personnel training on Mirages
and C-160 transports.
--continued
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Rhodesia does not have the air-
craft in its inventory, although
the Smith government may hope to
acquire them, perhaps from South
Africa. The Vorster government
is unlikely to let Salisbury have
them and we have no evidence that
Rhodesia is negotiating for their
purchase from any other country.
* * *
--continued
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In Japan, the new slate
of cabinet and Liberal
Democratic Party offi-
cers still reflects a
balance of power
weighted against Prime
Minister Miki.
US relations with Swe-
den are not likely to
change significantly if
the opposition should
win the election on
September 19 and 20,
although a non-social-
ist government probably
would take pains to
avoid unnecessary fric-
tion with the US.
NOTES
Deputy Prime Minister Fukuda and
Finance Minister Ohira--Miki's
leading rivals--retained their
portfolios. The new Foreign Min-
ister, Zentaro Kosaka, previously
served in that position in the
early 1960s and is a staunch friend
of the US.
The most important change was the
removal of Miki's only major ally,
party Secretary General Nakasone.
His replacement by a member of
Ohira's faction will enable the
Prime Minister's rivals to circum-
scribe further his freedom of ac-
tion.
The new cabinet generally reflects
the party's desire to install of-
ficials untainted by the Lockheed
affair; only two members of the
Tanaka faction--the party's
largest--are included. With the
question of Miki's own tenure in
office to be resolved next month,
the new cabinet may well be short-
lived and is unlikely to effect
any significant shifts in Tokyo's
foreign or domestic policies.
* * *
Parliament now is divided equally
between socialists and Communists
on the one hand and non-socialists
on the other. Prime Minister 01 of
Palme heads a minority Social Demo-
cratic government and relies on the
support of the Communist deputies
to block challenges by the non-
socialist opposition parties.
--continued
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)
Brazilian President
Geisel, now visiting
Japan, will probably
sign agreements on in-
vestment projects that
would more than double
the value of Japanese
investment in Brazil.
The Social Democrats, in govern-
ment almost continuously for 44
years, have suffered declining
popularity in recent years. The
latest polls show the Social Demo-
crats and the Communists winning
a combined 47 percent of the votes
and the opposition parties 51 per-
cent.
* * *
Brazil ranks second to the US as
an area of Japanese overseas in-
vestment. In the past five years
Japanese investment there has in-
creased from $125 million to $1.3
billion--over 10 percent of all
Japanese overseas investment.
Geisel also hopes to purchase a
broad range of Japanese industrial
technology as a move toward accel-
erating industrialization and de-
creasing Brazil's dependence on
imports.
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,
Top Secret
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