THE PRESIDENT'S DAILY BRIEF 2 NOVEMBER 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007858
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: November 2, 1974

Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010035-2
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The President's Daily Brief
November 2, 1974
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Exempt from general
declassification schedule of E.O. 11652
exemption category, 5B(1),(2).(3)
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010035-2
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15: CIA-RDP79T00936A012300010035-2
FOR THE PRESIDENT ONLY
November 2, 1974
Table of Contents
Arab States: The "war fund" established at Rabat
largely formalizes financial backing for Egypt,
Syria, Jordan, and the PLO for the next four
years. (Page 1)
Jordan:
(Page 2)
Egypt: Egyptian military equipment has been seen
moving ?into the vicinity of Ismailia in the
?northern sector of the Suez Canal. (Page 4)
USSR: Soviet domestic media are making a concerted
effort to assure the public that the results
of the US elections will not cast a shadow over
US-Soviet relations. (Page 5)
United Kingdom: The British government is completing
its defense review and plans to begin consulta-
tions with Washington and Bonn soon. (Page 6)
South Vietnam: Saigon was quiet during National Day
celebrations yesterday. (Page 7)
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ARAB STATES
The annuql "war fund" of $2.35 bil-
lion established at the Rabat summit for
Egypt, Syria, Jordan, and the Palestine
Liberation Organization largely formalizes
financial backing for them for the next
four years.
Aid will be divided between cash, which will
be made available immediately, and project aid.
The latter will be provided under a system that
will define the extent of donor control over ex-
penditure of aid.
The $1 billion to be provided each year to
Egypt approximates the annual payments made to
Cairo by Oil-producing Arab states in recent years...
The Rabat agreement, however, provides in one pack-
age the long-term financial security that Egypt
had been seeking since the October war.
The new subsidy will assure a minimum level
of essential civilian imports. The extent to
which it will permit accelerated economic growth
will depend on the allocation of project aid be-
tween military and economic undertakings. The
availability of this assistance to Cairo could
prompt Moscow to press more strongly for Egypt's
repayment of part of its debt for military pur-
chases now totaling $1.3 billion.
Syria also is to receive $1 billion annually,
an amount that about equals Arab assistance during
the past year. If the USSR continues to sell Da-
mascus arms on credit, Syria can channel a sizable
portion of the new Arab commitment to economic
projects and thus further assist the country's
gradually improving financial situation.
While the allocations to Egypt and Syria con-
tinue past levels of Arab aid to those countries,
the sum set aside for Jordan is a substantial in-
crease. The $300 million to be provided annually
is 40 percent more than the Arab states provided
Amman last year.
The Rabat conference allocated $50 million to
the PLO in recognition of its new status as a con-
frontation state. The PLO is not lacking for funds,
but it spends lavishly on its leaders.
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JORDAN
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FOR THE PRESIDENT ONLY
EGYPT
naval officers have
seen Egyptian military equipment moving
into the vicinity of Ismailia in the north-
ern sector of the Suez Canal over the past
three days. This may represent a buildup
of Egyptian forces in anticipation of hos-
tilities or it may be related to extensive
exercise activity that has been under way
in Egypt for over a week. At this time,
however, neither Egypt's intention nor the
scale of these force movements is clear.
Yesterday, US naval officers saw as many as 80
tanks, most of them covered with camouflage netting,
on the outskirts of Ismailia, the first time they
had seen tanks there in six months.
On Wednesday and Thursday, at least one and
perhaps two convoys of 40 vehicles, most pulling
artillery, were seen on separate occasions on the
road from Cairo to Ismailia.
US military and embassy personnel in Egypt
have also reported tightened nighttime security
measures between Cairo and Ismailia. US personnel
are stopped at each control point, and sometimes
?have been denied permission to travel in the area
at night.
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USSR
Soviet domestic media are making a
concerted effort to assure the public
that the results of the US elections
will not cast a shadow over US-Soviet
Soviet commentators, aware of predictions that
the Democratic Party will register substantial gains,
are reporting that the campaign is dominated by eco-
nomic problems and that foreign policy issues, par-
ticularly those relating to detente, are of minor
importance. They are also pointing out that off-year
election losses by the party in the White House are
typical in US politics.
The Soviets are coupling their discussion of US
politics with a buildup of the forthcoming summit near
Vladivostok. A Tass item in Thursday's Pravda re-
ported your statement at a press conference that Sec-
retary Kissinger had had "very constructive" talks with
Brezhnev. Tass also reported that, in referring to
the Vladivostok summit, you said the US hopes each
step will mean further progress toward an agreement
on strategic weapons.
In a broadcast on October 29, Soviet listeners
were told that there is "immense American interest"
in the news of the summit and "increasing support"
for detente by the US public.
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UNITED KINGDOM
The British government is complet-
ing its defense review and plans to '
begin consultations with Washington,
Bonn, and eventually NATO after appro-
priate cabinet committees make their
decisions on Monday.
British officials anticipate that talks could
begin in Washington by mid-November. The British
delegation probably will be led by Sir John Hunt,
British cabinet secretary.
The British expect that the discussions with
NATO, to be held after the consultations with the
US and West Germany, will last two to three months.
Some reductions in the British Army on the Rhine
are likely.
A Ministry of Defense official has commented
to the US embassy that the defense review is "not
coming out too badly." The defense staff has been
advocating defense cuts of around $1 billion. If'
such cuts are spaced over a period of years, they
are expected to have only a minimal effect on force
effectiveness and procurement programs.
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SOUTH VIETNAM
Saigon was quiet during National
Day celebrations yesterday. Catholic
dissidents postponed a planned march
on the presidential palaces while Bud-
dhist leaders celebrated with speeches
and seminars in their pagodas. The
Buddhists called for continued street
demonstrations and for the President's
resignation. Small demonstrations were
conducted in some northern province
towns.
President Thieu, in his National Day address,
blamed much of the recent agitation on the commun-
ists and accused protest groups of actively support-
ing them. He claimed the actions of the protesters
would only encourage the enemy to step up the fight-
ing.
Alluding to next year's presidential election,
Thieu said it was not important who was president,
but he maintained that the country must remain in
the hands of nationalist elements who would fight
the communists. Although some Western press ac-
counts have interpreted his remarks to mean that he
is considering resignation, Thieu has used this
ploy in the past to show that his interest is the
country's welfare rather than his own.
Thieu coupled his speech with a government
press release quoting your recent letter affirming
continuing US support for South Vietnam. Thieu no
doubt hopes the letter will help lessen concern
that the US intends eventually to abandon South Viet-
nam. He also hopes the letter will serve to rein-
force his claims that he retains the full confidence
of the US and that it will help dispel rumors of
secret US support for the dissidents.
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Top Secret
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