THE PRESIDENT'S DAILY BRIEF 7 NOVEMBER 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007862
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: November 7, 1974

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The President's Daily Brief
November 7, 1974
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Exempt from general
declassification schedule of E.O. 11652
exemption category 511(
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
November 7, 1974
Table of Contents
France - Arab States: France is continuing to court
the Arabs on several fronts. (Page 1)
West Germany - Saudi Arabia: Bonn is trying to at-
tract Saudi investment in West German industry.
(Page 3)
Palestinians: A large majority of West Bank resi-
dents see the PLO as the only effective Pales- 25X1
tinian representative of their cause. (Page 4)
South Yemen -Egypt - USSR:
(Page 6)
USSR-Iraq: The Soviet defense minister will visit
Iraq late this year. (Page 7)
USSR7
/(Page 8)
Spain-US: The Spanish want a new accord defining
US-Spanish defense relationships. (Page 10)
Notes: Argentina; Portugal; Spain; USSR (Page 11)
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FRANCE - ARAB STATES
France is continuing to court the
Arabs on several fronts, while at the
same time stressing the dangers of
continued high oil prices and counsel-
ing moderation on the Palestinian issue.
The US embassy in Paris believes the French are
inclined to recognize a Palestinian government in
exile if one should be formed. A senior French of--
ficial has told a US embassy officer that France's
major problem in granting recognition would be ju-
ridical. Paris has never given initial recognition
to a government that does not control any territory,
although it has continued to recognize governments
that have lost their territory.
The US embassy believes, despite the official's
denial, that Quai officers responsible. for Middle
East affairs probably assume not only that the for-
mation of a Palestinian government may be imminent
but also that French interests would be. served by
discreet encouragement of such a move and by immedi-
ate recognition.
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The embassy also suspects that France is attempt-
ing to use the recognition question to further its
efforts to obtain cooperation agreements with the
Arab states. The French are pressing strongly to
gain assured oil supplies at acceptable prices and
substantial French participation in Arab industrial
and military development. Looked at another way,
French involvement with the Arabs is so. pronounced
that Paris probably would feel impelled to recognize
a Palestinian government just to preserve the. status
quo in its relations with the Arabs.
The French have taken other steps to please the
Arabs. Paris voted to allow the PLO observer status
during the UN General Assembly debate on the Pales-
tinian issue, and Foreign Minister Sauvagnargues
maintained an uncompromising stand during his visit
to Israel last week, after meeting with Yasir Arafat
in Beirut.
Paris also believes
its continued position outside US-sponsored energy
groups will gain it favor with the Arab oil producers.
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At the same time, France is making some efforts
to influence the Arabs and Palestinians to take more
moderate stands.
The French have also made sev-
eral representations to the Arab oil producers stress-
ing deep concern over the dangers. that lie ahead if
the burden of oil price rises is not alleviated.
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WEST GERMANY - SAUDI ARABIA
Bonn's economic minister and
representatives of major West German
industries are in Saudi Arabia trying
to attract Saudi investment in West
German industry.
The West Germans apparently have in mind a deal
similar to the one they concluded in July. with Iran;
that agreement included a $60-million purchase of
Krupp stock. West German officials calculate that
active participation by oil producers in West German
industry may lessen the likelihood of future oil
cutoffs. Saudi Arabia now supplies 23 percent of
Bonn's oil imports. In addition, German industrial-
ists are interested in attracting investment because
tight money and lower profits have made money scarce
for expansion.
Over recent months, the Saudis have shown in-
terest in increasing their long-term holdings; they
would presumably find investment possibilities in
West Germany particularly attractive because of the
strength of its industry and of the Deutschemark.
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PALESTINIANS
The US consul general in Jerusalem
reports that a large majority of residents
of the Israeli-occupied West Bank identify
with the Palestine Liberation Organization
as the only effective Palestinian represent-
ative of their cause. The Israelis claim
that a majority of West Bankers do not sup-
port the PLO, but are afraid to speak out
for fear of retaliation.
A large body of West Bank intelleetuals profes-
sionals, and students reportedly go beyond a sense of
identification and give active political support to
the PLO, and some West Bankers keep in touch with
the PLO leadership in Beirut. Few, however, take
part in the subversive activities of the fedayeen
organizations.
The smaller number of West Bankers who oppose
the PLO are mostly businessmen. They are critical
of t4 radical political and economic views ?of most
PLO leaders, and fear that a return of the PLO to
the West Bank would bring violence affecting their
interests. These are the people who are afraid to
voice their opposition, both out of fear of retribu-
tion and in awareness that they are a minority.
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West Bank residents remain divided on the ques-
tion of who should govern the area in the event the
Israelis agree to a territorial compromise. Although
most West Bankers support the PLO as the Palestinians'
bargaining agent in international forums, fewer would
like to see it assume exclusive control over an in-
dependent Palestinian state.
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Many traditional leaders on the West Bank, for
example, join the PLO in its demand for an autonomous
Palestinian entity free of ties to Israel or Jordan.
These traditional figures are, nevertheless, eager to
protect their own positions and would prefer a coali-
tion government made up of PLO and non-PLO Palestin-
ians.
The Israelis are increasingly apprehensive that
pro-PLO sentiment on the West Bank will grow quickly
in the wake of the concessions made to Yasir Arafat
by the Arab heads of state at their recent meeting in
Rabat. Tel Aviv is particularly concerned that this
pro-PLO feeling will be translated into terrorist
activity in the occupied territories.
Israeli military authorities early this week
deported four prominent West Bankers charged with of-
fenses ranging from signing a petition supporting the
PLO to membership in the illegal Palestine National
Front, Tel Aviv obviously hopes this action, together
with hints that Israel might reconsider its policy
of allowing limited commercial contacts with Jordan's
East Bank, will inhibit West Bankers from offering
public expressions of support for the PLO.
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SOUTH YEMEN ? EGYPT ? USSR
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USSR-IRAQ
Soviet Defense Minister Grechko will
visit Iraq late this year
Preceding him
in Baghdad will be the chief of staff of
the Soviet army.
This will be Grechko's second visit to Iraq
this year. The main purpose may be to talk about
Iraq's requests for more military aid from the So-
viet Union, but the visit may also reflect Moscow's
concern over Iraq's movement toward nonalignment
and away from dependence on the USSR.
Despite signs that Baghdad is trying to diver-
sify its sources of military equipment, the USSR
remains Iraq's main arms supplier. Last,year, Moscow
provided $335 million in military assistance, in-
cluding TU-22 supersonic medium bombers, SU-20
fighter bombers, and a guided-missile boat. This
year, Iraq has received 23 MIG-23 fighters, the
first delivered to any country other than Syria.
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USSR:
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SPAIN-US
The Spanish say they want a new de-
fense relationship with the Us.
At the opening round of negotiations to renew
the US-Spanish cooperation agreement, they stopped
short of asking for a mutual defense treaty, but
said they want joint military planning and the co-
ordination of Spain's defense with that of the US
and NATO.
? The Spaniards are trying to exploit a bilateral
declaration of principles governing US-Spanish rela-
tions that was signed in July to parallel a? NATO
declaration. They argue that the declaration went
beyond provisions of the agreement governing the use
of defense facilities in Spain and signaled a stronger
US commitment to grant Spain equal treatment in the
defense field with NATO.
Another round of talks is to take place in Wash-
ington early next month. On the agenda.. for. that
meeting are the nature of the defenserelationship
and the coordination of Spain's role with the West-
emn defense system
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NOTES
Argentina: President Maria Estela Peron de-
clared a nationwide state of siege yesterday in the
face of growing terrorist violence. The declara-
tion includes suspension of habeas corpus and free-
dom of assembly and leaves few legal restrictions
on governmental power. The declaration is fully
supported by members of the military high command,
suggesting that the armed forces, which have gener-
ally let the police handle anti-insurgency, now in-
tend to participate more fully. '
Portugal: Political violence spread to the
northern industrial town of Oporto yesterday when
leftists set fire to the local office of the moder-
ately conservative Social Democratic Center Party.
That party's.headquarters in Lisbon was sacked Mon-
day night. Press accounts indicate the government
has condemned the incident in Lisbon and is trying
to arrest the leftist ringleaders.
Spain: Rumors are sweeping Madrid that Prime?
Minister Arias is resigning. Sources close to the
Prime Minister's office have told the US embassy
that they consider a resignation most unlikely, but
they hesitate to commit themselves to a flat denial.
The persistence and detail of these rumors suggest
they come frdm the far right. This group is opposed
to Arias' modest liberalization program and may feel
that further pressure on Franco is necessary follow-
ing Arias' statements last week that the departure of
two of his ministers would not mean an end to his
liberalization program.
USSR: An unmanned Soviet space probe, Luna 23,
landed on the moon early yesterday morning. The
spacecraft is expected to collect a small soil sample
and return to earth, with recovery in the USSR early
next week.
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have attempted at least four missions of this sort
since mid-1969. Only Luna 16 in September 1970 and
Luna 20 in February 1972 were successful; both stayed
for about 24 hours and returned to earth with less
than a pound of soil.
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