THE PRESIDENT'S DAILY BRIEF 14 JANUARY 1977

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006466948
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: January 14, 1977

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The President's Daily Brief
January 14, 1977
2
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2.xi
To ,
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Exempt from general
declassification schedule of E 0 I 1652
exemption category 5B( I
declassified only on approval of
the Director of Central Intelligence
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January 14, 1977
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Table of Contents
Japan:
(Page 1)
Rho esia: Many whites are growing pessimistic about the possi-
bility of a peaceful settlement and are making contingency
plans to leave the country. (Page 2)
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Notes: USSR (explosions); France - Saudi Arabia; 25X1
Arab States; Belgium-Libya; Nationalist China - China; Cuba-
Mexico; Israel-Somalia (Pages 3, 4, 5, 6, and 7)
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JAPAN:
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1
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RHODESIA: Many whites
are growing pessimistic
about the possibility
of a peaceful settle-
ment and are making con-
tingency plans to leave
the country.
Despite these signs of
discontent, Smith's po-
sition does not appear
threatened.
One reason is economic. Some
whites had hoped that Prime Min-
ister Smith's acceptance of the
principle of majority rule would
result in the lifting of economic
sanctions and the acceptance of
Rhodesia as a member of the inter-
national community.
The increasing strain of military
call-ups is another, perhaps more
important, reason for growing un-
happiness in the white community.
Many businesses are now feeling a
real pinch in the draft call-ups
among skilled workers. The draft
is now reaching almost all men of
service age, and reservists believe
that the length of their military
tours will increase as the fighting
intensifies.
Many white males believe that black
rule is inevitable and question the
wisdom of continuing to fight.
White civilians have been shocked
by the large number of wounded
whites in the hospitals and are
beginning to believe that the cost
of the war is too high.
The white community has no alter-
native but to support the Prime
Minister, and the growing uneasi-
ness has been at least partially
offset by the recent success of
Rhodesian army cross-border raids
into Mozambique.
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Soviets
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3
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France is about to sign
a new three-year agree-
ment with Saudi Arabia
that will allow two
French oil companies
to purchase directly
33 percent more Saudi
crude than under their
previous agreement.
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The formal pact is likely to be
signed during President Giscard's
visit to Saudi Arabia later this
month. Saudi Arabia is now
France's largest source of crude
oil, providing more than one-third
of French requirements.
Although the announcement of the
new agreement after the price di-
vision among OPEC states at Doha
is merely coincidental, the in-
creased access to Saudi oil should
slightly reduce the average price
increase that France will sustain.
4
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The foreign ministers
of five oil-rich Arab
States have pledged
nearly $2.8 billion
over the next two dears
to the states confront-
ing Israel.
Belgian officials have
told the US embassy
that they will advise
their government to in-
struct two Belgian
firms to attempt to re-
negotiate--and scale
down--a preliminary
agreement the firms
have signed to provide
Libya with an arms pro-
duction complex.
Each year, Egypt and Syria are to
get $570 million apiece, Jordan
$200 million, and the Palestine
Liberation Organization $28 mil-
lion.
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The announced annual payments--by
Saudi Arabia, Kuwait, Qatar, Bah-
rain, and the United Arab Emir-
ates--are roughly equal to those
paid in 1975 under pledges made
at the Rabat summit of the previ-
ous year. The confrontation states
thought those payments would con-
tinue indefinitely, but the donor
states made only one round of pa?5X1
ments of the Rabat subsidy.
The Belgian cabinet will discuss
the arms deal today, but is un-
likely to reach a decision on it
for some time.
The Belgian officials have re-
quested US views on the proposed
deal, but one Foreign Ministry
official said Brussels would not
welcome "arm-twisting." The offi-
cial said that the US should not
regard the demarche as a formal
request for US views, but the US
reaction--or lack of reaction--
will be a major factor in the
government's decision.
--continued
5
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620894 1 77
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Nationalist China last
Saturday night sent
fighters to the vicin-
ity of Quemoy Island
to reconnoiter two Chi-
nese communist naval
ships passing near the
southern end of the
Taiwan Strait.
Cuba
Mexico
Nationalist fighters frequently
patrol in this area, but it is un-
usual for them to fly near the
mainland coast at night. The Na-
tionalists may have been reacting
to increased Chinese naval activ-
ity in the area. Since January 4,
more than a dozen Chinese naval
ships have been active near the
Strait.
The communists are also sensitive
to military activities in or near
the Taiwan Strait. On January 7,
China sent several MIG-19s over
the Strait in reaction to Nation-
alist fighters patrolling in the
area.
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Israel
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Somalia
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7
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Top Secret
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