THE PRESIDENT'S DAILY BRIEF 29 AUGUST 1971

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005992831
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 6
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: August 29, 1971

Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800250001-2
The President's Daily Brief
Top Secret
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PDB CABLE - SUNDAY - 29 August 1971
INTERNATIONAL ECONOMIC DEVELOPMENTS: Some Japanese
qlaim that the yen was held to a five
percent change in parity yesterday because of the
participation of the Bank of Japan. Others insist that
the Bank will avoid intervening unless the exchange rate
changes more than 7-7.5 percent from parity.
Much of the sting of the decision to float was
eased for the Japanese business community by the government's
defense of parity during the past two weeks, which enabled
banks and exporters to sell dollars to the Bank of Japan
and thereby reduce their losses after the float. Timing
of the float may also have been responsive to the nearly
total absence of new import and export business resulting
from the uncertainty about the exchange rate. The Jap-
anese vice minister of finance for international affairs
has stated that the float may persist for "at least one
year" if no early decisions are reached on multilateral
parity adjustments.
The addition of the yen to the roster of floating
currencies increases the volatility of the exbhange
markets, but it also increases the hesitancy of traders to
engage in large deals. In the aftermath of the decision
to let the yen float, the British have moved to fore-
stall further speculative inflows of dollars from abroad
against the stronger pound. Following a national holiday
on Monday, British banks will not be allowed to pay
interest on any increase in sterling accounts held by
FOR THE PRESIDENT ONLY
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foreigners. Non-residents also will be prohibited from
acquiring additional holdings of British government
securities.
a
FOR THE PRESIDENT ONLY
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LAOS
Lao Communist leader Souphanouvong has responded
negatively to the message Prime Minister Souvanna sent
to him on 18 August, which reaffirmed Souvanna's desire
a
to begin peace talks. Souphanouvong's reply published
today by the Pathet Lao news agency stated that Souvanna's
proposal to discuss a cease-fire and a bombing halt in
northeast Laos--particularly in the Plaine des Jarres
region--is "unrealistic" and a "crafty maneuver" aimed
at serving the military schemes of the US and "the reac-
tionaries."
The message reiterated the Communist contention that
an immediate cease-fire and bombing halt thoughout the
country is the most effective way to reestablish peace.
The Communist have also rejected Souvanna's more
recent proposal for a neutralization of the Plaine,
which he mentioned in a press interview on 26 August.
The next day the Lao Communist representative in
Vientiane, Soth Pethrasy, told journalists that
Souphanovoung's position is that the Plaine cannot
be neutralized until allied bombing of Communist
troops and the Ho Chi Minh trail is halted. Soth
also turned dowm Souvanna's proposal that the Pathet
Lao participate in next years National Assembly
elections.
3
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FOR ? THE ..PRir.-'.:SIDENT ONLY
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SOUTH VIETNAM
The Lower House elections are proceeding so far
with only a few minor disturbances at the polling places.
Early reports indicate that the voter turnout is moderately
heavy.
FOR THE PRESIDENT ONLY
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Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800250001-2
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Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800250001-2