THE PRESIDENT'S DAILY BRIEF 5 AUGUST 1966

• Document Type: FOIA
• Collection: President's Daily Brief 1961-1969
• Document Number (FOIA) /ESDN (CREST): 0005968456
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 5
• Document Creation Date: September 16, 2015
• Document Release Date: September 16, 2015
• Publication Date: August 5, 1966

Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A004600310001-2
CENTRAL INTELLIGENCE AGENCY
THE PRESIDENT'S
DAILY BRIEF
5 AUGUST 1966
23
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DAILY BRIEF
5 AUGUST 1966
1. South Vietnam
2. North Vietnam
3. Communist China
4. Congo
The economic situation is encourag-
ing. The steady price rise kicked off
by the devaluation in June was broken
after about a month. The latest retail
price index for Saigon--for the week end-
ing 1 August--shows prices generally
steady or slightly lower than the previ-
ous week.
Labor is still a problem, however.
Pressure for substantial wage increases
is building up.
Public order continues to disinte-
grate in the northeast.
European missionaries are fleeing
before roistering Katangese soldiers.
There apparently is no immediate danger
to the very few Americans in the vicinity.
An indication of the government's
quandry was provided by the foreign min-
ister yesterday when he asked Ambassador
Godley "what should we do now?" For one
thing, the Congolese are being told they
had better not bank on our picking up the
chips if they force the Belgians out.
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5. Ghana
6. Kuwait
7. West Germany
Soviet Union
The military government that kicked
out Nkrumah in February inherited a vir-
tually empty treasury, crushing foreign
debts, and a political vacuum. The new
regime's austerity program may help some
but there is little prospect for major
improvement through the months ahead.
Some comfort may be taken, however, in
the fact there is almost no chance for
Nkrumah to get back in the saddle.
A serious threat to the British
pound may be shaping up. Kuwaiti banks,
which hold over $420 million in sterl-
ing, are considering shifting to another
Western hard currency over the next six
months. The Kuwaitis are concerned with
the possibility that the pound will be
devalued. If the Kuwaitis do start un-
loading pounds, it could well start a
run on sterling by other holders.
"No progress" was the report from
Wednesday's French-German talks on keep-
ing French troops in Germany. The Ger-
man foreign ministry shows no sense of
urgency despite Erhard's rather grandi-
ose we-want-the-French-to-stay pronounce-
ments during De Gaulle's visit last month.
Foreign Minister Shroeder's objective is
to keep his negotiations with the French
from moving faster than the talks be-
tween the rest of NATO and France on
the future mission of French forces in
Germany.
Soviet spacemen appear to be crank-
ing up for another moon shot. We do not
know just what they plan, but having been
upstaged by Surveyor, they may try for a
space spectacular--perhaps an orbit around
the moon and back to earth. If the launch
comes off, it probably will be between
24 and 25 August.
501
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