THE PRESIDENT'S DAILY BRIEF 12 NOVEMBER 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007866
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: November 12, 1974

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The President's Daily Brief
November 12, 1974
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Exempt from general
declassification schedule of ED. I 1652
exemption category, 5B( I
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
USSR:
November 12, 1974
Table of Contents
(Page 1)
OAS: Deadlock on Cuba sanctions. (Page 2)
China: Preparations well under way for National
People's Congress. (Page 3)
Greece: Recent ruling hurts Communists' chances
in coming election. (Page 5)
Western Europe: Rash of strikes adds to political
uncertainty in Italy, Spain, and France.
(Page 6)
EC - Arab States: Gradual progress toward closer
ties. (Page 7)
Notes: Egypt-Israel; Japan; UN (Page 8)
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USSR
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OAS
Expressions of frustration and bit-
terness dominated the OAS foreign minis-
ters meeting in Quito last night as par-
ticipants remained deadlocked over the
Cuba sanctions issue.
The foreign ministers canceled efforts to
achieve a compromise solution when it appeared the
attempt would be futile. Several small countries
and Brazil--the swing votes on the Cuba issue--
failed to move from their neutral positions.
Blame for the indecisive outcome is falling
on the US. The Venezuelan and Costa Rican ministers
have publicly criticized the absence of Secretary
Kissinger, and others are blaming US neutrality for
the divisiveness that has surfaced.
A final vote on the issue is scheduled for to-
day, when the foreign ministers vote on a resolu-
tion sponsored by Venezuela, Colombia, and Costa
Rica asking for the repeal of sanctions against
Cuba. Following its expected defeat, ?a final ses-
sion will be held to adjourn the conference formally.
Press reports from Quito indicate that Brazil,
fearing the breakup of the OAS, will propose another
meeting of foreign ministers for Panama City in
three months to give Latin American countries time
for new consultations.
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CHINA
Preparations are well under way for
convening a National People's Congress--
the first in a decade. This meeting,
which will be preceded by a plenum of
the party Central Committee, will con-
firm a number of ministerial appoint-
ments, some of which have been hanging
fire for years.
The anti-Confucius campaign, in low gear since
early summer, now seems likely to be phased out
completely. Significantly, the campaign began to
lag when Chou En-lai became seriously ill. This
is another sign that the Premier played a large
role in overseeing the movement.
Stress on Unity and Retrenchment
For some time now, editorials and central
directives have warned against factionalism, which
became increasingly acute last spring. The cen-
tral directives have also been putting great em-
phasis on the need to increase production, a theme
that is likely to be reiterated at the National
People's Congress.
Government and party administrators have been
concerned that political ferment could seriously
interfere with economic activity, and in fact
factionalism engendered by the anti-Confucius cam-
paign appears to have led to slowdowns and bottle-
necks in a number of areas. Emphasis on economic
factors suggests that considerable influence is
being wielded by Chou's long-time lieutenant, Li
Hsien-pien, who oversees economic and financial
affairs.
Perhaps the most significant indicator point-
ing to retrenchment is a statement, attributed to
Mao himself in a recent central directive,to the
effect that "eight years of Cultural Revolution is
enough." This is an unusually strong repudiation
of political ferment from the Chairman.
(continued)
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Rehabilitation
Meanwhile, the "rehabilitation" of officials
disgraced during the Cultural Revolution is contin-
uing, despite signs this process does not sit well
with "leftist" elements. Indeed, the single figure
whose position has improved most during the anti-
Confucius campaign is Teng Hsiao-ping, the very
personification of the "capitalist-roaders" who
were disgraced early in the Cultural Revolution.
Additional rehabilitees appeared at the National
Day celebrations on October 1, and some.of these
men, as well as others who reappeared earlier, are
likely to be assigned to important provincial and
central posts just before or after the National
People's Congress.
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GREECE
A recent Supreme Court ruling defin-
ing the difference between a political
party and a coalition will hurt the Com-
munists in the election on November 17.
Of the major political groups contending, only
the United Left (a grouping of two Communist parties
and a former Communist front group) is classified
as a "coalition" by the Court. This will make it
necessary for the Communists to get 30 percent of
the national vote in order to be eligible to bene-
fit from the second and third "distribution" of
parliamentary seats.
These distributions are an important feature
of Greece's proportional representation system for
parliamentary elections. Most observers believe
that the Communists will not win much more than 15
percent of the vote.
The Panhellenic Socialist Movement, led by
Andreas Papandreou, will profit from the Supreme
Court decision. The movement, classified as a
single party, will need only 17 percent of the
vote to be eligible for further distributions.
Papandreou has been trying to exploit anti-American
and anti-NATO sentiment and has been stressing the
theme of betrayal in Cyprus.
Although a Karamanlis victory seems assured,
the size of his victory and the showing made by
the left will in large measure determine how flex-
ible the new government will be on Cyprus, NATO,
and relations with the US.
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WESTERN EUROPE
The recent increase in strike ac-
tivity and the promise of more to come
have added to political uncertainties
in Italy, Spain, and France.
Two half-day, nationwide general strikes have
been held in Italy since the government fell on Oc-
tober 3, and a series of staggered walkouts have
been scheduled this week to back up labor's demands
for a costly benefits package and steep wage in-
creases linked to the cost-of-living index. Ef-
forts by Prime Minister Rumor's caretaker govern-
ment to mediate labor-management differences not
only have failed but have complicated the attempts
to form a new center-left coalition.
Rapidly rising unemployment, meanwhile, has
severely strained government funds earmarked for
unemployment compensation. The number of employees
on reduced workweeks, for example, has doubled
since April, and the Italian government may soon
have to tap emergency funds to keep up payments.
In Spain, strike activity is at a four-year
high, even though strikes are illegal. Last month
the government cracked down by arresting workers
in Madrid and Barcelona who were meeting in churches.
Last week workers were forcibly evicted by police
from a factory which is a principal overhaul facil-
ity for US Phantom aircraft based in Europe. Non-
communist labor groups are participating in the
strikes in competition with the Communist-dominated
Workers Commissions, which usually control strike
activity.
In France, the government appears to be rely-
ing on the pressure of public opinion to end the
wave of labor unrest. Prime Minister Chirac,
charging the unions with attempting to block Pres-
ident Giscard's anti-inflation program, has warned
that the strikes could even undermine French "na-
tional independence."
Although some moderate French labor unions
have shown a willingness to accept government con-
cessions, leftist organizations called yesterday
for tougher action in support of the month-old
postal strike. Plans were also laid over the week-
end for a nationwide work stoppage by government
employees on Wednesday. Staggered strikes by other
workers are set for throughout the week. The dis-
ruptions--with the exception of the postal strike--
remain primarily token, but may create doubts in
the public's mind about Giscard's ability to cope
with the situation.
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EC - ARAB STATES
During their recent meetings in
Cairo, representatives of the EC and
the Arab League discussed procedural
matters relating to the "Euro-Arab
dialogue" and agreed to hold the first
meeting of a general commission in
Paris, probably late this month. AZ-
though Arab oil--and the Nine's depen-
dence upon it--has apparently not
entered into the preliminary discus-
sions, it is the driving force behind
the West Europeans' desire for closer
ties to the Arab states.
The EC-Arab dialogue developed from a French
initiative early this year and is intended to pro-
vide a broad framework for relations. Thus far,
progress in organizing working groups and in com-
pleting other administrative preparations has been
slow.
The EC has proposed establishing working groups
on agriculture, industry, financial matters (to in-
clude recycling of oil dollars), culture, and tech-.
nology.. Despite reservations on the part of some
Arab leaders, the Arabs approved these and related
proposals at the Rabat summit. According to an EC
Commission official, the coming Paris meetings will
be restricted to procedural questions. Working
groups could be set up, hOwever, and draw up spe-
cific recommendations by spring.
An EC official has said privately that it is
clearly understood among the Nine that political
questions should be avoided during these talks with
the Arabs. The Arabs, however, have made it clear
they want to discuss matters related to a Middle
East peace settlement.
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NOTES
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Japan: Prime Minister Tanaka's principal crit-
ics within his own party, former finance minister
Fukuda and former deputy prime minister Miki, did
not try to weaken Tanaka's position yesterday when
the Prime Minister reshuffled his cabinet. Both
Miki's and Fukuda's factions have remained in the
cabinet. Tanaka reappointed his two chief allies,
Finance Minister Ohira and International Trade and
Industry Minister Nakasone, as well as Foreign Min-
ister Kimura. Tanaka named a man from his own fac-
tion as head of the Science and Technology Agency
and Atomic Energy Commission, replacing the former
director who had opposed ratification of the Nuclear
Non-Proliferation Treaty.
UN: African states at the UN are discussing
further moves in the wake of the Security Council
veto by the US, UK, and France last week that pre-
vented the expulsion of South Africa from the UN.
The Africans, with some support from other geographic
areas, intend to discuss the South African issue in
the General Assembly today; a resolution condemning
the US, UK, and France may be introduced. The Af-
ricans also plan to ask for Security Council discus-
sion of South-West Africa in December, when Australia,
which voted in favor of South Africa's expulsion,
will hold the Council presidency. There is little
else the Africans by themselves can do. Nevertheless,
the General Assembly president, basing his ruling on
statements condemning the vetoers and his "apprecia-
tion" of the situation, might suspend South Africa
for a limited period of time--perhaps several months--
from participation in the General Assembly.
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