THE PRESIDENT'S DAILY BRIEF 15 JANUARY 1977

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006466949
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: January 15, 1977

Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400050004-1
The President's Daily Brief
,
January 15, 1977
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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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January 15, 1977
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Table of Contents
hodesia:
(Page 1)
Iraq: Iraq has called for an extraordinary OPEC ministerial
meeting to discuss oil pricing problems. (Page 2)
Panama:
(Page 3)
Notes: Iraq; USSR; Tunisia-Libya; Ecuador (Pages 5 and 6)
At Annex,
Palestine Libera-
tion Organization
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RHODESIA:
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IRAQ: Iraq has called
for an extraordinary
OPEC ministerial meet-
ing before the end of
the month to discuss
the oil pricing prob-
lem. Saudi Arabia and
the United Arab Emirates
would be excluded.
The Iraqis may not be
able to pull off an
OPEC meeting anytime
soon.
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Iraq--convinced that the Saudis
intend to flood the market with
oil, and that this can threaten
the new prices--has asked the
11 countries that supported the
10-percent price hike to discuss
prorating production in order to
maintain prices.
Iraq, Kuwait, and Iran face the
most severe market pressures be-
cause their crude is directly com-
petitive with Saudi oil. Kuwait
probably favors some form of co-
ordination with other OPEC states,
although not at the expense of a
wider split with Saudi Arabia.
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Gabon believes that only a heads-
of-state meeting can resolve the
problem. Venezuela is on record
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Even if a meeting is
held, the chances are
remote that the partic-
ipants could agree on
any formalized scheme
to allocate production
cutbacks.
PANAMA:
in favor of an extraordinary OPEC
meeting, but President Perez pre-
fers to work out a price compromise
with Saudi Arabia. Algeria and
some other light crude producers
favor taking a wait-and-see atti-
tude, and most members are hopeful
that a compromise with Saudi Arabia
can be worked out.
Iraq, which is putting on a strong
show of support for the price
hike, is likely to do some price
shaving to maintain exports no
matter what action OPEC takes.
Baghdad has historically chided
other producing states for not
following OPEC guidelines while
privately offering discounts to
attract new customers.
* * *
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* * *
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TURKEY
New
Dortyol
Syrian
Banias
Mediterranean ' SYRIA
Sea Horns
Tripoli
LEBANON
pipeline
pipeline
IRAQ
RUMAILA
FIELD
Al Fab
na al-Bakr
Khor'-al-Amara
\Persian
1Mb Oilfield
Oil pipeline
m Tanker terminal
620901 1 77
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Iraq opened a new pipe-
Zine through Turkey
last week, enabling it
to export oil from Med-
iterranean ports for
the first time since
closure of the pipeline
through Syria.
Tass announced yester-
day that Warsaw Pact
commander Viktor Kuli-
kov and his successor
as chief of the Soviet
General Staff Nikolay
Ogarkov have been pro-
moted from army gen-
erals to marshals of
the Soviet Union.
Tunisian officials seem
to be going through an-
other period of alarm
over what they view
as a threat from neigh-
boring Libya.
NOTES
This new line will allow Iraq to
export more than half of the pro-
duction from its northern fields
to the Mediterranean. Production
from these fields previously was
exported through Syria, but ship-
ments were halted last April after
a dispute with Damascus on prices
and transit fees. Exports sub-
sequently were resumed at a re-
duced level with the opening of
a pipeline connecting the northern
fields with the Persian Gulf.
Some Iraqi oil may now become com-
petitive with Saudi crude. Since
no previous prices have been set
for shipments from Turkish ports,
Iraq will have an opportunity to
lower prices without openly breach-
ing its support of the recent 10
percent OPEC price hike.
General Secretary Brezhnev and
Defense Minister Ustinov were
named marshals of the Soviet Union
last May and July respectively,
but promotions for Kulikov and
Ogarkov are the first for profes-
sional officers to this rank since
1968.
Ogarkov, unlike Kulikov, is said
to be on close terms with Defense
Minister Ustinov, and in the pro-
motion of both men to marshal of
the Soviet Union, Ogarkov appears
to be the chief gainer.
Early this week the Tunisian min-
ister of defense told US officials
that)
5
/Libyan President
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Ecuador's new foreign
minister apparently
intends to abandon the
orientation toward
third world countries
adopted by the two pre-
vious incumbents and
will concentrate on im-
proving regional and
hemisphere ties.
Qadhafi said at a secret meeting
on January 1 that he had decided
to unify Libya and Tunisia by any
means, including force.
The Libyan leader reportedly also
said that while in Moscow he had
obtained assurances that the USSR
would not object to the use of
Soviet arms in such an effort,
and that he believed he could
count on Algerian support.
We have no evidence that Qadhafi
is preparing for a military move
against Tunisia or has signifi-
cantly increased subversion against
his neighbors. While Tunisian con-
cerns over Libyan intentions are
genuine, it is possible that the
report was embellished in order to
persuade the US to provide more
visible support and to approve
additional military sales.
* * *
In his first major policy address
last week, Foreign Minister Jorge
Salvador made a special effort to
identify closely with his Latin
American neighbors and called for
improved relations with the US.
The speech was in marked contrast
to one delivered a year ago by
his predecessor, who assailed the
US Trade Act as coercive and dis-
criminatory.
This shift in emphasis implies
that Ecuador wants to participate
in the movement evident throughout
South America in recent months
toward closer cooperation on a
variety of economic and security
issues. Despite continuing prob-
lems with the US over the Trade
Act and Ecuadorean fishing rights,
Salvador obviously wants to get
off on the right foot with the
Carter administration.
* * *
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PALESTINIANS
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