THE PRESIDENT'S DAILY BRIEF 20 JULY 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993880
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: July 20, 1973

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The President's Daily Brief
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20 July 1973
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Exempt from general
declassification scheduk of E.O. I 1652
exemption category 513(1),(2),(3)
declassified only on approval of
the Director of Central Intelligence
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Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 ? CIA-RDP79T00936A011700010007-0
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CENTRAL INTELLIGENCE AGENCY
WASHJNGTON, D.C. -20505
July 20, 1973
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. EYES ONLY FOR THE PRESIDENT '
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THE PRESIDENT'S DAILY BRIEF
20 July 1973
PRINCIPAL DEVELOPMENTS
The Laotian Communists are showing new interest in
moving ahead on a political settlement. (Page 1)
In Cambodia, Prime Minister In Tam is again threat-
ening to quit and there is some new evidence of mil-
itary concern over President Lon Nol's leadership.
(Page 2)
As the Libyans' "march on Cairo" proceeds, Sadat
plans to allow the pro-unity demonstrators to cross
the border but hopes to contain most of them well
short of his capital. (Page 3)
On Page 4 we comment on the latest international
monetary developments.
New Italian Prime Minister Rumor seems off to a good
start, and has several months before his government's
cohesion will be tested on sensitive domestic issues.
(Page 5)
As China's Party Congress approaches, two programs
of the Cultural Revolution period remain a source of
contention. (Page 6)
Soviet
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Cuba, (Page 7) 25X1
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LAOS
The senior Lao Communist negotiatior, Phoumi
Vongvichit, said yesterday that he had been author-
ized to make concessions on political aspects of a
settlement if Vientiane would change its positions
on certain military points. He also indicated a
willingness to scale down demands to station large
Communist security forces near Vientiane and Luang
Prabang--an issue that has been a major sticking
point.
Suggesting that a final agreement need not
await resolution of the Cambodian problem, Phoumi
added that a Laos settlement might "set an example
for other Indochinese countries."
If Souvanna believes he now has the best
agreement the government can reasonably
expect, he probably is prepared to brave
criticism from the right and instruct
Pheng to sign a final agreement.
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CAMBODIA
Prime Minister In Tam, who earlier this week
had indicated that he would stay on the job despite
his continuing exclusion from military affairs, is
again threatening to quit. /
In Tam's latest flip-flop evidently stems
from his recent difficulties in trying to
make a few cabinet changes. The Prime
Minister has been unable to remove several
ministers who represent Lon Nol's Socio-
Republican Party and replace them with
more competent and responsive individuals.
Meanwhile, there is more evidence of military
concern over Lon Nol's leadership.
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Mediterranean
ripoli
GREECE '0
v
TURKEY
Sea
(SYRIA
LEBANON
Al Bay,da-------,Darnah ISRA E(17
Bengazi ? Tobruk
-1
JORDAN
)
LIBYA
NIGER
CHAD
Matruh Ceil
,Arexandria,,
Cairo
EGyPT..
SUDAN
554481 7-73
14,
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EGYPT-LIBYA
The thousands-strong Libyan "march on Cairo"
is proceeding, and advance segments are scheduled
to arrive at the Egyptian border today. The
marchers, who departed in a holiday spirit, seemed
insensitive to the implications of their mass move
into another sovereign state. Qadhafi, reportedly
still in Benghazi, has yet to give his public bless-
ing to the procession.
Sadat still seems determined to halt the march
before it reaches Cairo.
Sadat reportedly will
allow a token group of Libyans to proceed to Cairo,
and hopes that the bulk of the demonstrators will
soon return home after experiencing shortages of
food and water at Mersa Matruh.
Despite the Egyptian restraint, the strong,
long-standing animosity between Libyans
and Egyptians could easily lead to a clash
at some point in the course of the march.
The Libyans' attitude could quickly become
more antagonistic if Qadhafi urges them
to accept no restraints in pressing for
unity.
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INTERNATIONAL MONETARY DEVELOPMENTS
Official confirmation that the US has in-
tervened in support of the dollar and the
announcement of Washington's Phase IV eco-
nomic policy have had little immediate im-
pact abroad. Traders, aware that so far
the intervention by both US and European
central banks has been small, evidently
discount promises of further support.
Yesterday the dollar rose and the price of gold
fell sharply, but only late in the day following ap-
parently unfounded rumors that the French and German
central banks had sold gold from their monetary re-
serves. Gold fell by more than $5 an ounce in Lon-
don and closed at $114.25, the lowest since May 30.
The mark has again moved to the top of the Euro-
pean joint float band.
This raises the possibility that specula-
tors will try to 15ush the mark out of the
band or bring about another revaluation.
Bonnie tightening controls on foreign
investment in German securities in the
hope of impeding foreigners wishing to
acquire marks for speculation. Past
controls, however, have done little to
slow the mark's climb,
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ITALY
Prime Minister Mariano Rumor is benefiting
from the momentum of his rapid formation
of a new government, to be installed today,
and from the absence of an acceptable al-
ternative to his center-left formula.
All four coalition partners warmly received his
initial address to parliament, and labor leaders have
given qualified approval to Rumor's government. The
Communists state that the coalition is a step forward
from Andreotti's centrist government, but maintain
that it is still an inadequate response to national
needs.
Rumor has made an anti-inflation program his
first priority, and prospects for it are encouraging.
The ministries of treasury, finance, and budget are
manned by experienced and politically influential
officials.
Government cohesion will not be tested
until this fall, when coalition partners
will face sensitive domestic issues on
Which they have major differences.
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CHINA
As the Tenth Party Congress approaches, Chinese media
indicate that two programs of the Cultural Revolution
period remain a source of contention. One is the
participation of ordinary workers in official bodies;
the other is the May 7 schools for remolding the
ideology of veteran cadres.
Both issues are symptomatic of the continued compe-
tition for power between moderate and extremist
factions. The same fissure will complicate the
solution of such key questions as the division of
power within the politburo, the succession question,
economic priorities, and the political role of the
military.
The date of the congress has still not been disclosed.
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NOTE
USSR?Cuba:
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Top Secret
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