THE PRESIDENT'S DAILY BRIEF 11 DECEMBER 1976

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006466920
• 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 11, 1976

Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400020001-1
The President's Daily Brief
December 11, 1976
2
-tfo73_sem,_e_4510
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400020001-1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400020001-1
Exempt from general
declassification schedule of E 0 11652
exemption category 5B( I
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400020001-1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400020001-1
FOR THE PRESIDENT ONLY
December 11, 1976
Table of Contents
Mexico:
USSR:
(Page 1)
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Rhodesia: Prime Minister Smith apparently still hopes to negoti-
ate with "moderate" nationalist leaders. (Page 3)
Notes: USSR-Somalia; Italy (Pages 4 and 5)
FOR THE PRESIDENT ONLY
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_
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MEXICO:
FOR THE PRESIDENT ONLY
1
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FOR THE PRESIDENT ONLY
*
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*
*
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--continued
2
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Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400020001-1
FOR THE PRESIDENT ONLY
RHODESIA: Prime Minis-
ter Smith apparently
still hopes to negoti-
ate a settlement with
"moderate" nationalist
leaders that would ex-
clude Robert Mugabe and
most of the Rhodesian
guerrillas.
*
25X1
Rhodesian officials believe a new
black party that will support a
"moderate" settlement will soon be
formed inside Rhodesia. They are
said to believe that Bishop Muzo-
rewa may be persuaded to join it
if he is given a prestigious posi-
tion. The officials hope that
Joshua Nkomo--now allied with Mu-
gabe in a "patriotic front"--and
perhaps Ndabaningi Sithole may
also be drawn into supporting such
a settlement, giving it the back-
ing of three of the four national-
ist factions represented at Geneva.
Nkomo and Muzorewa have been in
contact with representatives of
the Smith government in recent
months, but both nationalists re-
main highly suspicious of Smith's
motives, and there has been little
sign of agreement on settlement
terms. Nkomo, in particular,
fears that he will lose status
among Rhodesia's blacks if he
again negotiates unilaterally with
Smith, and he seems determined to
maintain his alliance with Mugabe.
* * *
3
--continued
FOR THE PRESIDENT ONLY
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i) TURKEY
CYB121
MEDITERRANEAN SEA
LEBAN.))
ISRA
\_--e4'Tak Aviv-Yafo
JORDAN
Cairo
Eilat
EGYPT
RED
SEA
SUDAN \
FR TERR OF THE
AFARS AND ISSAS
Dji
- ETHIOPIA
Addis Ababa
v *
KENYA
U.S S R.
SYRIA
6
IRAQ
Neutral Zonelaill'
SAUDI
*Riyadh
ARABIA
NORTH
YEMEN
K
SOUTH
YEMEN
SOMALIA
Mogadiscio
500 Miles
500 Kilometers
IR AN
BAHRAIN "
ID TAR
UNITED ARAB
EMIRATES
OMAN
INDIAN OCEAN
U. S. S. R.
AFGHANISTAN
PAKISTAN
620687 11-76
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Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400020001-1
FOR THE PRESIDENT ONLY
The two Soviet IL-38
naval aircraft sta-
tioned in southern So-
malia conducted recon-
naissance operations
on Thursday against a
US naval force in the
Indian Ocean.
Current negotiations
involving Italy's un-
ions, the government,
and industry are test-
ing the Communist
Party's ability to de-
liver labor cooperation
in reducing the coun-
try's soaring wage
costs.
NOTES
This is the first such use of
these antisubmarine aircraft by
the Soviets since they began send-
ing aircraft to Somalia in April
1975.
The US naval force was about 120
nautical miles off the southeast
coast of Somalia at the time of
the overflights.
The mission suggests that the So-
viets intend to use the IL-38s for
general reconnaissance in the In-
dian Ocean as well as for antisub-
marine activity. The IL-38s cur-
rently in Somalia arrived on No-
vember 22 25X1
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1
* * *
Prime Minister Andreotti's auster-
ity program--a series of tax in-
creases and public utility rate
hikes approved by parliament last
month--will not be very effective
unless labor costs are reduced
substantially.
During a month of negotiations,
the unions have shown a willing-
ness to reduce wage costs through
indirect means--such as limiting
absenteeism--but have resisted
proposals to attack the problem
directly through changes in the
country's wage escalator mechanism,
under which automatic quarterly
wage hikes are granted in response
to increases in the cost-of-living
index. The unions have termed the
4
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FOR THE PRESIDENT ONLY
escalator "untouchable," but the
government and potential foreign
creditors, such as the EC and IMF,
believe that a basic modification
of the escalator is essential.
Revision of the escalator appears
to depend mainly on whether the
Communists--who dominate the larg-
est of Italy's three major labor
confederations--can bring a major-
ity of the unions along on the is-
sue. The Communists argue that
the escalator should not be con-
sidered sacrosanct, but they have
had trouble selling even their own
unions on that position.
5
FOR THE PRESIDENT ONLY
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/
Top Secret
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