THE PRESIDENT'S DAILY BRIEF 1 JUNE 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007972
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: June 1, 1974

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The President's Daily Brief
June 1, 1974
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Exempt from general
declassification schedule of E.O. 11652
exemption category 513(1),(2),(3)
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
June 1,1974
PRINCIPAL DEVELOPMENTS
The Syrian-Israeli disengagement agreement has
strengthened the hand of Yasir Arafat, head of the
Palestine Liberation Organization. Arafat will now
push for approval of his relatively conciliatory
policies from the legislative body of the PLO,
which is scheduled to meet in Cairo today. (Page 1)
Libya
/ (Page 3)
The possibility of a confrontation between Greece
and Turkey over rights to the Aegean seabed appears
to have receded. Both countries have taken steps
to reduce tension. (Page 5)
Total trade between the US and USSR in 1974 is
likely to remain at last year's level, but the US
export surplus will probably be reduced by about
half. (Page 9)
? Notes on EC-US, West Germany, Jordan - South Africa
Rhodesia, and Somalia-USSR appear on Pages 9 and 10?
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FEDAYEEN
The signing of the Syrian-Israeli disengagement
agreement has significantly strengthened moderate
fedayeen leaders, including Palestine Liberation Or-
ganization Chairman Yasir Arafat. Arafat, whose
movement has depended heavily on Syrian good will
and arms, until now has been unable to move ahead
of Damascus in agreeing to participate in peace ne-
gotiations. With this restraint gone, Arafat will
now try to gain approval for his relatively concilia-
tory policies from the Palestine National Council--
the legislative body of the PLO--which is scheduled
to convene in Cairo today.
Arafat probably will receive at least reluctant
backing from the Syrian-supported fedayeen organiza-
tion, Saiqa, from most non-fedayeen Palestinian mem-
bers of the council, and probably also from represent-
atives of the Marxist-oriented Popular Democratic
Front for the Liberation of Palestine. Principal op-
position will come from members of radical fedayeen
organizations that are cooperating loosely as the
"Rejection Front." They include two members of the
PLO--the "Popular Front for the Liberation of Pales-
tine" and the "Arab Liberation Front"--and the inde-
pendent "Popular Front for the Liberation of Pales-
tine - General Command."
Essentially, the program the PLO leadershiP will
press at the Cairo meeting is likely to include.:
--Refusal to recognize formally or. establish
peace with Israel.
statement that the Palestinians must fight
to establish a "national authority" or "national
sovereignty" in all. liberated territory.
--Insistence that the PLO, as the sole legitimate
representative of the Palestinian people, control
such an authority.
--Refusal to accept Jordanian administration of
any future Palestinian entity.
--Willingness to accept some form of agreement
with any of several Arab states to ensure the
security of a Palestinian state.
--An understanding that, the PLO, under certain
conditions, will accept an invitation to par-
ticipate in the Geneva peace talks.
(continued)
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The call for the establishment of a "national
authority" is the closest Arafat has been able to
get toward gaining Palestinian acceptance of an
autonomous state made up only of the West Bank and
the Gaza Strip. Even moderate Palestinians are re-
luctant to imply by their acceptance of a "state"--
rather than an ambiguous "authority"--that they are
giving up the "fight against Zionism."
Radical groups may increase terrorist operations
both to disrupt the meeting in Cairo and to interfere
with further progress toward a settlement at Geneva.
Should they fail to realize their obstructionist ob-
jectives, the radicals will lose at least temporarily
some of their popularity among rank-and-file Pales-
tinians, particularly refugees, who will be inclined
to await more tangible gains from Geneva. Palestin-
ians will regard the Syrian-Israeli disengagement
agreement itself as evidence of the success of the
negotiating route.
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USSR-LIBYA
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ITALY
YUGO.
AL ANIA
BULGARIA
lstanbu
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mnos
GREECE
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EN
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*ANKARA
TURK EY
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Iskenderun
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MEDITERRANEAN
SYRIA
SEA
LEBANON
ISRA L
JORDAN
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555964 6-74
, ?,
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GREECE-TURKEY
The possibility of a confrontation between
Athens and Ankara over disputed rights to Aegean
seabeds appears to have receded. Athens yesterday
began to reduce tensions by announcing that it ac-
cepted as normal the scientific research activities
of a Turkish oil exploration ship sent by Ankara
into the eastern Aegean. Athens also said Greek
authorities had been notified in advance of Turkish
naval maneuvers. Prime Minister Ecevit has repeated
earlier assurances that Turkey has no hostile in-
tentions and believes in maintaining friendly rela-
tions with Greece.
The Turkish government had apparently concluded
that Athens, which had opposed a Turkishproposal to
negotiate the seabed issue, needed to be reminded
that Ankara is determined to pursue what it oprrpivps
to be its rights.
Athens' main interest-in recent weeks has been
to avoid any discussion of the issue with Ankara
that could be interpreted as negotiation.- The Greeks
evidently hoped to maintain this position at least
until the Law of the Sea Conference convenes later
this month in Caracas. Although Turkey's sending
of the ship to the "disputed area" was regarded by
Athens as "a serious matter," the Greek leadership
has indicated that seismological work in the Aegean
would not in itself precipitate .a military response
from Greek forces0
at
least some of its escort force is expected to pro-
ceed south to participate in a bilateral exercise
with US naval forces in the eastern Mediterranean
in the Gulf of Iskenderun.
(continued)
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A first-round clash appears to have been
avoided but the problem has not been resolved. A
long period of diplomatic wrangling, possibly ac-
companied by new threats and demonstrations of
military force, seems certain. The next contact
between the two parties now appears to be scheduled
for the NATO ministers' conference in Ottawa on
June 19.
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USSR
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CHINA
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NOTES
USSR-US: Total trade between the US and Soviet
Union-IN-TM is likely to remain at last year's
level, but the US export surplus will probably be
reduced by about half. Unless a bad harvest forces?
Moscow to buy more grain, US agricultural deliveries
apparently will be less than half the level in 1973.
On the other hand, US exports of machinery and equip-
ment are climbing rapidly and will probably reach
$300-400 million for the year. US sales to the USSR
will probably fall short of $1 billic7E7down from
the record $1.2 billion last year, but the US will
probably import more from the USSR this year than
ever before.
EC-US: Conclusion of the agreement between the
EC and the US on compensation for trade losses in-
curred when the community was enlarged will clear
the air for the US-EC consultations on economic mat-.
ters next week in Brussels. The length of time needed
to resolve this dispute is indicative of the difficul-
ties that will occur during the much broader multi-
lateral trade negotiations in Geneva. The fact that
the EC ultimately did not want to let the compensa-
tion argument drag on even longer, however, testifies
to real concern that obstruction of trade liberaliza-
tion efforts now would be dangerous to all parties
concerned.
West Germany:
(continued)
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Jordah ? South Africa ? Rhodesia:
Somalia?USSR:
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