THE PRESIDENT'S DAILY BRIEF 3 MAY 1976

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006015098
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: May 3, 1976

Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
The President's Daily Brief
May 3, 1976
2
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
Exempt from general
declassification schedule of E.O. 11652
exemption category 513(11,12),(3)
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
May 3, 1976
Table of Contents
Lebanon: Political leaders continue their search for a way to
break the deadlock between supporters of the two leading
presidential hopefuls. (Page 1)
China: Moderate and leftist leaders appeared in Peking for
May Day festivities in what appeared to be a calculated
show of unity. (Page 1)
West Germany:
Notes: China; Panama; Rhodesia (Pages 4 and 5)
At Annex, we discuss the UN Conference on Trade and Development
that opens in Nairobi, Kenya, on May 5.
25X1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
LEBANON: Political
leaders continued their
search over the weekend
for a way to break the
deadlock between sup-
porters of presidential
hopefuls Ilyas Sarkis
and Raymond Edde before
parliament meets on
Saturday to select a
successor to President
Fran jiyah.
CHINA: All of the ac-
tive, Peking-based Pol-
itburo members except
Chairman Mao appeared
in the capital for May
Day festivities.
The speaker of parliament is mov-
ing to sound out Christian and
Muslim leaders--including Edde's
major backer, leftist leader Kamal
Jumblatt--on a compromise candi-
date. A number of deputies report-
edly will travel to Damascus today
or tomorrow to discuss the presi-
dential succession with Syrian
leaders, who favor Sarkis.
Numerous cease-fire violations,
meanwhile, continued over the week-
end in Beirut, where Christian and
Muslim militias exchanged small
arms, artillery, and rocket fire.
The fighting was particularly se-
vere in the capital's port area,
where Muslim leftists reportedly
launched an attack on Christian
positions.
Radio Peking listed them in their
usual order of rank, indicating no
change in the hierarchy.
In keeping with the practice on
May Day in previous years, the
leadership broke into small groups
to attend celebrations in Peking's
parks. The groups were composed
of a careful mix of moderate and
leftist leaders in what appeared
to be a show of unity in the wake
of the ouster of Teng Hsiao-ping.
This was the first time that lead-
ing moderates Chu Te, Yeh Chien-
ying, and Li Hsien-nien--all staunch
supporters of Teng--had appeared
with leftists in the leadership
since Teng's fall. The three mod-
erates had appeared individually,
however, on previous occasions.
1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
_ _ _ _
WEST GERMANY:
25X1
2
25X1
25X1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
L_
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
_ _
25X1
3
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
25X1
, Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
L
,
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
The Chinese are expand-
ing the Wu-chai missile
test center, the second
largest in the country.
Panama is maintaining
a hard public Zine on
alleged violations of
its territorial waters
by US fishing boats.
NOTES
The new construction there was
first seen in satellite photogra-
phy last fall. Photography in
April confirms that the Chinese
are building a large launch site
and a control facility. If the
present pace of construction con-
tinues, the new facilities should
be complete in about a year.
The new facilities are generally
similar to those built at Shuang-
cheng-tzu in the late 1960s. China
may be planning to expand and per-
haps accelerate development of
large, liquid-propelled missiles.
The most likely candidate is the
CSS-X-4, which the Chinese are de-
veloping as an ICBM and space-
launch vehicle.
The Torrijos government has offi-
cially demanded payment of $100,000
in fines for each of the two US
vessels charged with violations
and now anchored in Canal Zone
water Privately, it says it
would be willing instead to issue
"extraordinary licenses" to the
two boats--for $100,000 each.
This, of course, would be a legal
gimmick designed to get around
the US legislation that calls for
sanctions against countries that
fine US fishing boats.
Even with a new negotiating round
on the canal treaty beginning this
week, Panama appears prepared to
seize the two vessels when they
leave the jurisdiction of the Ca-
nal Zone.
4
--continued
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
/VAX 1 11 L.1A_ A VA-/LIALL.i.L V A A..1
Rhodesia announced this
weekend that military
reservists who have
completed their term
of service will be re-
called to duty for an
indefinite period.
The government also is
considering extending
the term of service for
white youths by six
months.
These measures, when fully imple-
mented, will heavily tax the Rhode-
sian economy by withdrawing civil-
ians from the country's work force
for prolonged periods.
Mobilization will probably be fol-
lowed by new Rhodesian offensive
operations against insurgents along
the border with Mozambique. An of-
fensive might appear for a while to
have succeeded in reducing guerrilla
activity
5
25X1
25X1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
I Lily 1 1 11_, f N 1 I
UN CONFERENCE ON TRADE AND DEVELOPMENT
The atmosphere generated at the 4th Conference
on Trade and Development--which opens in Nairobi,
Kenya, on May 5--will be more important than any
specific decisions the conference may reach.
The meeting is the latest in the dialogue be-
tween industrialized and developing states. This
dialogue began in 1964 with the creation of UNCTAD
and accelerated after the OPEC oil embargo of 1973-
74. Frustration with the outcome at UNCTAD could
be reflected in a tougher Zine by developing coun-
tries in subsequent economic and political negotia-
tions.
The cornerstone of developing country policy
at the Nairobi meeting and the most contentious is-
sue between developing and industrialized states
will be the proposal to create an integrated com-
modity program. This program calls for a common
fund of $3 billion--which would come primarily from
industrialized states--to help support prices for
18 different raw materials. The program also
calls for an expansion of existing mechanisms that
provide compensation to developing nations when
their earnings from exports of raw materials de-
cline.
With the exception of the Netherlands and the
Scandinavian countries, all industrialized coun-
tries oppose the program as formulated, but most
concede the need to respond to the demands of de-
veloping countries for more stable export prices.
Other Issues
The developing countries may accuse the indus-
trialized states of failing to make good on commit-
ments for special treatment of developing states in
the multilateral trade negotiations. The latter want
the special tariff privileges now available to them
expanded and made permanent.
In the realm of monetary reform, the developing
countries will press for increases in lending from
multilateral institutions. They want a direct link
between aid levels and increases in IMF special draw-
ing rights.
--continued
Al
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19.: CIA-RDP79T00936A013300010029-8
Developing states demand a binding international
code on transfer of technology. The industrialized
states, for their part, largely agree on the need to
improve the access of developing countries to new
technology, but most will accept only a non-binding
code.
Differences among Developing Countries
Most developing states recognize that unity in
economic negotiations remains their major bargaining
strength, and they will go to considerable lengths
to maintain it. Inevitably, however, differences do
exist--primarily between Africans and Latin Ameri-
cans. These have to do chiefly with which products
should be covered by the integrated commodities pro-
gram and with the preferred access some developing
states now enjoy in developed country markets.
Another divisive issue at Nairobi among devel-
oping countries could be that of debt problems if
proposals should surface for a broad debt morato-
rium. Credit-worthy Latin American states are afraid
that being lumped together with poorer states could
damage their ability to borrow internationally. Al-
most all industrialized states reject a debt morato-
rium, but some would agree to a conference on debt
problems with a limited agenda.
Industrialized States
The industrialized states have largely been
reacting to policies advocated by the developing coun-
tries rather than forging their own program. Conse-
quently, they have had less success in creating even
the appearance of a common policy. Most governments
are caught between political recognition of the need
to continue a dialogue with the developing states
and unwillingness to agree to potentially expensive
open-ended programs.
The EC has yet to reconcile financially conserva-
tive German and liberal Dutch policy prescriptions.
Conflicts within the Japanese government will make it
impossible for Tokyo to do anything but line up with
the more conservative countries. Any Japanese conces-
sions will be aimed at improving Tokyo's relations
with major suppliers of raw materials but will avoid
Japanese involvement in broad commodity agreements.
--continued
A2
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
_
USSR
Soviet policy will continue to reflect both pub-
lic support for the third world's striving for eco-
nomic independence and private contempt for initiatives
not bearing Moscow's stamp. Soviet media take the
line that Moscow backs efforts by developing coun-
tries to defend their natural resources from preda-
tory Western multinational corporations.
Moscow is embarrassed that the developing states
now lump some communist states with the other indus-
trialized states when they divide the world into rich
and poor countries.
China
Peking will probably regard UNCTAD as another
forum in which to blame the superpowers for the eco-
nomic ills of the third world. China will be wary of
any mechanism or agreement that would require signif-
icant financial contributions or imply surrender of
Peking's right to pursue its own interests in world
markets.
Effect of Nairobi on CIEC
A conference that avoids a major row between de-
veloping and industrialized states will reinforce dis-
cussions in Paris at the Conference on International
Economic Cooperation./
/ CIEC is the
only existing forum for talks between oil producers
and importers.
A3
25X1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8
,
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A013300010029-8