THE PRESIDENT'S DAILY BRIEF 16 NOVEMBER 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993987
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: November 16, 1973

Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800040002-1
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The President's Daily Brief
,
70November 1973
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Exempt from general
declassification schedule of E.O. 11652
exemption category 5B( 11,121,(3)
declassified only on approval of
the Director of Central Intelligence
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THE PRESIDENT'S DAILY BRIEF
16 November 1973
PRINCIPAL DEVELOPMENTS
Israel and Egypt began to implement the six-point
agreement yesterday. The transfer of 26 wounded Is-
raelis and over 400 Egyptians marked the first step
in the prisoner exchange, and UN troops assumed con-
trol of Israeli checkpoints on the road to Suez city.
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An E-II class nuclear-powered cruise missile submarine
is on patrol about 500 to 600 nautical miles off the
US west coast. It is testing US anti-submarine de-
fenses and may also attempt to intercept and trail
US ships. The timing of the patrol suggests it may
originally have been part of the Soviet Navy's wide-
spread reconnaissance effort during the Middle East
war. (Page 4)
Brazil's strong effort to peddle its militarye
ment abroad(
/ (Page 6)
Notes on Japan's balance-of-payments deficit
appear on Page 7.
At Annex, we examine the Pompidou government's in-
creased assertiveness in European affairs and what
seems to be behind it.
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ARAB STATES - ISRAEL
The Israelis and Egyptians began implementing the
six-point agreement yesterday. The transfer of 26
wounded Israelis and over 400 Egyptians marked the
first step in the prisoner exchange. Attempts to
work out an exchange of prisoners between Syria and
Israel, however, have made no progress. Thus far the
Syrians have taken a very tough line, insisting that
the POW issue be linked to a final Middle East settle-
ment. They clearly feel in a much stronger position
than Egypt on this question, and presumably will hold
out for significant Israeli concessions before agree-
ing to exchange POWs.
The United Nations Emergency Force assumed con-
trol yesterday of Israeli checkpoints at Kilometers
101 and 119, and supply trucks were on their way to
Suez city. An International Red Cross spokesman has
announced that the evacuation of more than a thousand
sick and wounded Egyptian civilians from Suez city
will begin today.
US diplomats in Cairo report that the implementa-
tion of the six-point agreement has changed the mood
there from frustration to cautious optimism. Sadat's
popularity is high, and he apparently is under no
great domestic pressure to modify his tactics. These
have distressed Libyan President Qadhafi, however.
In a message to Sadat yesterday, Qadhafi bitterly
condemned the cease-fire, protesting that the war
should have continued "even if it developed into hand-
to-hand fighting."
All fronts were relatively quiet yesterday, with
only minor incidents reported. At the UN, further
progress was made in assembling a peacekeeping force.
The Emergency Force now has about 2,200 troops in the
Middle East, and enough pledges to bring the total
close to the 7,000-man goal. UNEF still lacks, how-
ever, adequate logistic support.
(continued)
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FRANCE
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USSR
An E-II class nuclear-powered cruise missile
submarine is operating about 500-600 nautical miles
off the US west coast. It apparently left Soviet
waters in mid-October, proceeding to a position
some 600 miles west of the state of Washington.
From there it has moved slowly south, and was sighted
on November 11 about 500 miles west of San Francisco.
If the E-II continues south, it could be in the main
shipping lane when the US aircraft carrier Kitty
Hawk sails from San Diego to Hawaii in late November,
and may exercise against it.
The Soviet Pacific Fleet has 14 E-II class sub-
marines. Each is equipped with eight launch tubes
for an, anti-ship cruise missile with a range just
short of 200 nautical miles. Pacific Fleet E-II
submarines operated east of Hawaii in 1967 and 1970.
They also deployed to the Indian Ocean during the
1971 Indo-Pakistan war and to the South China Sea
after the mining of Haiphong.
The timing of the current patrol suggests it
may have been part of the widespread reconnaissance
effort of the Soviet Navy during the Middle East
war. The E-II is testing US anti-submarine defenses,
and may also attempt to intercept and trail major
US ships such as the Kitty Hawk. There is no sign
that the E-II will operate in conjunction with either
of the Y-class ballistic missile submarines patrol-
ling,off the West Coast.
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Soviet Naval Forces in the Indian Ocean
554909 11-73 CIA
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USSR - INDIAN OCEAN
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BRAZIL
The government is making a serious bid to sell
made-in-Brazil military equipment abroad.
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In this concerted effort, Brazil is motivated
by several factors. Brazilians realize that their
overall economic expansion drive stands a better
chance of succeeding if they can offer new kinds of
exports to diverse foreign markets. Eager to polish
their country's image as an emerging power, they seek
to display Brazilian know-how and to demonstrate that
they are more than self-sufficient in this, as in
other areas.
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NOTES
Japan: Tokyo's balance-of-payments deficit
last month was almost $1 billion. Overall imports
were 77 percent higher than a year ago, and imports
from the US grew even faster. As a result, the
Japanese trade surplus with the US for the month
fell to $60 million, compared to $360 million in
October 1972.
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France:
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FRANCE
In recent weeks, the French, led by President
Pompidou, have become increasingly assertive in Euro-
pean affairs and have been exploiting West European
feelings about being left out of important develop-
ments. Part of this new activity grows out of a de-
sire to move closer to their EC partners, part from
the usual French striving after greater glory, and
part from the government's, and especially Pompidou's,
difficulties at home.
In talking about European unity last month,
Pompidou declared that the Middle East crisis had
shown how "dangerous" it was to allow the US and the
USSR to operate unchecked. What was needed, he said,
was for the Europeans to seize a greater role in
world affairs. To do this, it would be necessary to
harmonize EC policies at the summit and to develop
a common approach to economic and financial problems.
This week Foreign Minister Jobert provided vari-
ations on the same theme. ?He accused the US and the
USSR of establishing a "veritable condominium" that
had reduced the EC to impotence, and of "brutally
brushing aside" Western Europe in the search for a
Middle East settlement. He urged quick action on
European unity to offset this "humiliation."
Behind the bombast lies a genuine French desire
to forge stronger links in Western Europe, especially
if it can be done on French terms. When the EC met
two weeks ago to cope with the tightening oil squeeze,
the French, who oppose sharing schemes, offered as-
surances that Arab producers would turn a blind eye
toward filling Dutch needs, and persuaded the EC to
issue a pro-Arab statement.
By reiterating French dissatisfaction with
super-power actions and by taking an emphatic line
in EC councils, Paris was in part hoping to distract
domestic critics of France's impotence abroad. In
this, the government has been at least partly suc-
cessful. One of its severest critics, Jean Lecanuet,
quickly praised Pompidou's European initiative.
(continued)
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Furthermore, Pompidou's call for EC discussions
on economic matters came against a background of eco-
nomic woes and political sniping. A sharp rise in
the cost of living--and the likelihood of even steeper
increases in the coming months--has deepened the al-
ready acute concern over inflation, now running at
an annual rate of 10 percent. French labor and busi-
ness suspect the government wants to exploit the EC
meetings to justify stronger controls in France.
Last week, labor leaders made clear that wage
controls would be met with a general strike. Price
controls imposed early this month have already pro-
voked a strike that has emptied many stores of fresh
fruit and vegetables and shut down many service in-
dustries.
Members of the governing coalition--including
Gaullist leaders--have also expressed dissatisfaction
with Pompidou's leadership. Die-hards have never ac-
cepted him as a true Gaullist.
the President can no longer
rely on Gaullist support in the assembly; leading
Gaullists have recently opposed Pompidou in public
for the first time.
Many Gaullists are also sensitive to Pompidou's
hints that he might want Finance Minister Giscard
d'Estaing, not a Gaullist at all, as his successor.
They have publicly indicated their opposition to
Giscard's becoming president and are assailing his
management of the economy.
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