THE PRESIDENT'S DAILY BRIEF 2 OCTOBER 1971

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005992895
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 5
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: October 2, 1971

Declassified in Part - Sanitized Copy Approved for Release 2016/07/18 : CIA-RDP79T00936A010000020001-3
The President's Daily Brief
2 October 1971
Declassified in Part - Sanitized Copy Approved for Release 2016/07/18 : CIA-RDP79T00936A010000020001-3
Declassified in Part - Sanitized Copy Approved for Release 2016/07/18 : CIA-RDP79T00936A010000020001-3
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
2 October 1971
PRINCIPAL DEVELOPMENTS
Japanese business interests have begun pressing Sato
to revalue the yen to help therd.secure :export, con-
tracts, and some are ready to Countenance-his early
resignation. (Page 1)
Podgorny arrives in Hanoi tomorrow in an apparent
attempt to impress the North Vietnamese with the
reliability of Moscow's support. (Page 2)
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/18 : CIA-RDP79T00936A010000020001-3
:3? Declassified in Part - Sanitized Copy Approved for Release 2016/07/18: CIA-RDP79T00936A010000020001-3
FOR THE PRESIDENT ONLY
JAPAN
Financial and industrial interests have begun
pressing Sato to revalue the yen soon at ..a fixed
parity rate in order to ease their difficulties in
concluding export contracts. The Japan Committee
for Economic Development--an influential group of
major industrialists--has called on him to prepare
to make necessary concessions to the US as well as
to exert pressure on Washington to remove the import
surcharge.
In a similar vein, four top businessmen told
US Embassy officials Wednesday that they felt it
was necessary to improve relations with the US and
to remedy the sluggishness of the Japanese economy
even if it meant concessions on the part of Japan
and Sato's early resignation.
The erosion of Sato's support in the in-
dustrial community increases the chances
that he may be forced to retire within
the next few months.
1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/18 : CIA-RDP79T00936A010000020001-3
Declassified in Part - Sanitized Copy Approved for Release 2016/07/18 : CIA-RDP79T00936A010000020001-3
FOR THE PRESIDENT ONLY
NOTES
USSR - North Vietnam: President Podgorny will
arrive in Hanoi tomorrow with senior officials from
the party and military, the Foreign Ministry, and
both aid andrtrade,departments-4 Moscow's purpose
appears to.be to impress the North Vietnamese with
the reliability of Soviet support. The Russians
had hoped to exploit the strain in Sino-Vietnamese
relations caused by President Nixon's coming trip
to Peking, but the recent visit to Hanoi-by a.high-
level Chinese delegation will make Podgorny's task
more difficult. Podgorny's visit'may also be'the
occasion for the signing of the 1972 Soviet aid
agreement with North Vietnam and for the commission-
ing of a hydroelectric power plant 100 miles north-
west of Hanoi--Moscow's largest aid project in the
country.
UK-Malta: British-negotiators were struck by
the tough attitude of.the Maltese during the.bi-
lateral talks early this Week on a new defense.
agreement. These. .discussions from the? tenta-
tive:agreement reached in mid-September between
Heath-and Mintoff settinga general framework for
the detailed negotiations.? Financial considerations
were not discussed directly, 'but almost every topic
raised by Malta's delegation had a money, angle
Malta wants higher wage' scales for British-employed
Maltese' laborers and assurances that there will be
no layoffs at any UK bases on_the island. London
and its'contributing NATO partners could find the
bill for anew agreement considerably more than
their tentative cash and aid offer of around $24
million plus bilateral aith
Egypt:, Our' analysisof the economic plans
Sadat announced in his mid-September speech points:
to some chance ,of' speeding economic. growth with in-
creased foreign investment,- but also to several
striking problems. Investments are-to be channeled
into "free zones" through a semi-autonomous finan-
cial institution in an effort to overcome'Egypt's
generally poor financial reputation, but the ability
of Egyptian managers to.. function outside the con-
ventional bureaucracy remains to be tested. In
addition, opposition to Sadat., already latent be-
cause of:his-dealings with the US, could build
around emotional fears of "foreign capitalistic
exploitation."
2
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/18 : CIA-RDP79T00936A010000020001-3
Declassified in Part - Sanitized Copy Approved for Release 2016/07/18 : CIA-RDP79T00936A010000020001-3
)
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/07/18 : CIA-RDP79T00936A010000020001-3