THE PRESIDENT'S DAILY BRIEF 22 FEBRUARY 1975

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006014728
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: February 22, 1975

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The President's Daily Brief
February 22, 1975
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Exempt from general
declassification sched6le of E.O. 11652
exemption category 5B( I
declassified only on approval of
the Director of Central Intelligence
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February 22, 1975
Table of Contents
USSR-US: A Soviet ship may have fired at a US de-
stroyer in the Indian Ocean on February 21.
(Page 1)
Israel-Egypt: Tel Aviv reportedly is not wedded to
an Egyptian declaration of non-belligerency as
part of a second stage agreement on the Sinai.
(Page 2)
Ethiopia: The military still is confident of winning
the war in Eritrea, and heavy fighting continues.
(Page 4)
Portugal: The Armed Forces Movement's General As-
sembly has approved ,a seven-point program to
formalize the military's role in governing the
country. (Page 5)
Cyprus-UN: Secretary General Waldheim is hopeful
that further internationalization of the Cyprus
issue can be avoided. (Page 7)
Arab States: Arab League representatives will al-
most certainly discuss at their meeting in
Cairo on Sunday participation of banks with
Jewish interests in Arab investment operations.
(Page 9)
Note: South Korea (Page 10)
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r
/IL
SOCOTRA'?4
,1
SOCOTRA
Southern Yemen)
MILES 25
Area of incident c"-N
557354 2-75
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USSR-US
A Soviet naval ship may have fired
at a US destroyer escort in the western
Indian Ocean yesterday. If confirmed,
it would be the first Soviet firing
against a US ship in a number of years
and the first real breach in the Soviet-US
Incidents at Sea Agreement signed in May
1972.
The USS Joseph Hewes was engaged in routine
surveillance of Soviet ships anchored off Socotra
Island when smoke and a water splash were seen about
a mile to the west of the ship. The sighting was
followed by the sound of an explosion. US personnel
believe a medium-sized projectile was fired by a
Soviet ship, although no gun flash was observed.
Guns on a Soviet Petya I destroyer escort, located
about four miles to the east of the Hewes, were ob-
served trained on the US ship.
A US helicopter, reconnoitering and dropping
sonobuoys on the far side of the Petya, was ordered
to return to the Hewes following the explosion.
The Petya's guns reportedly followed the helicopter
as it passed by, which would be a breach of the In-
cidents at Sea Agreement in itself.
The US ship immediately moved out of range of
the Soviet guns, but is remaining in the area until
tomorrow as originally planned. The Hewes has been
ordered to continue surveillance, but to discontinue
the helicopter operations and to take no action that
the Soviets could construe as "harassing, threaten-
ing, or provocative."
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ISRAEL?EGYPT
Tel Aviv may not be wedded to its
demand that Egypt make a written declara-
tion of non-belligerency as part of d
second-stage agreement on the Sinai.
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ETHIOPIA
SAUDI ARABIA
RED SEA
Khartoum
ERITREA
Massawa
Asmara,
SUDAN
N.
YEMEN
S.
YEMEN
:F.' T. A,?1.
Djibouti
"".
GULF OF A DEN
Berbera
SOMALIA
*Addis
Ababa
Lake Rudolf
UGANDA KENYA.,
557353 2-75
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ETHIOPIA
The military still appears confident
that it can defeat the Eritrean insurgents,
and heavy fighting is continuing.
Government forces yesterday used artillery and
aircraft to attack a village near Asmara suspected
of being held by the Eritrean insurgents. The ar-
tillery fire came from a tract adjacent to a US
communications facility, forcing the evacuation of
US personnel to the compound of the consulate gen-
eral in Asmara. Heavy fighting was also reported
some 50 miles northwest of Asmara, as well as near
the Red Sea port of Massawa.
this week that he is confident of success,
but concerned about the continuing indiscipline in
the armed forces, defections in the air force and
navy, and the war's high cost.
Our embassy reports that the ruling military
council's propaganda, media manipulation, and na-
tional unity demonstrations have attracted support
for a no-compromise policy on Eritrea. This support
may wane, however, as the war's cost becomes ap-
parent to the country's educated urban population.
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PORTUGAL
The Armed Forces Movement's 200-
member General Assembly has approved
a seven-point program to formalize the
military's role in governing the coun-
try. Reliable sources have told US
embassy officials that the plan, ap-
proved last Monday, is being discussed
with the military rank and file and
with political party leaders.
The program provides that:
--The Movement will continue to guide Portu-
gal's political process indefinitely.
--The recently announced economic plan cannot
be made more conservative, only more "progres-
sive."
--The campaign for constituent assembly elec-
tions will not begin on March 3 unless the
political parties have agreed to minimum
standards for their platform set by the Move-
ment.
--Presidential candidates must be approved
by the Movement.
--The future constitution will be based on
the program that the Armed Forces Movement
published shortly after the coup last April.
--The new constitution will grant full legis-
lative powers to the Council of State, now a
rubber-stamp body. The Council will be con-
trolled by the military, and the Movement
will participate in selecting the civilians
that compose one third of the Council.
--The Movement will choose the minister of
defense and economy after a constitutional
government is elected.
Although they have repeatedly insisted that
they do not intend to install a military dictator-
ship, Movement officers have been impatient with the
(continued)
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bickering among political parties and believe they
must keep a firm hand on Portugal's progress. They
fear that an inexperienced civilian government might
destroy the changes they have already instituted,
or that continuing dissension might precipitate a
return to a right-wing system.
The program is certain to provoke opposition
from Portugal's civilian leaders, although even mod-
erate politicians recognize that the Movement must
play some role in preserving security and guarantee-
ing basic civil liberties. Moderates will resist,
however, those parts of the program that they regard
as an overly active intervention by the military in
political affairs.
Both Socialist and Popular Democratic leaders
were critical of the new "legislative" powers given
to the seven-man military junta earlier this month.
Since then, Movement members, including Prime Minis-
ter Goncalves, have retaliated by attacking those--
notably Socialist Party leader Soares--who have
warned against the possibility of a "civil war" and
of divisiveness within the Movement.
Yesterday, Soares abruptly canceled a trip to
Bonn; he may have decided he needs to concentrate
on his party's response to the Assembly's program.
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CYPRUS-UN
UN Secretary General Waldheim has
returned from a trip to the eastern
Mediterranean hopeful that further in-
ternationalization of the Cyprus issue
can be avoided and the intercommunal
talks between Greek and Turkish Cypriots
renewed.
In his conversation with the Greek Prime Min-
ister, Waldheim detected a note of desperation in
Karamanlis insistence on the need for some forward
movement to help strengthen his hand in dealing with
restiveness in Athens. .Waldheim told Ambassador
Scali that Karamanlis believed that if progress is
not made on the Cyprus issue within a reasonable
time, he is in danger of losing control to right-
wing elements in the military.
Karamanlis indicated he was willing to become.
personally. involved in efforts to negotiate
settlement, if he could get a statement clarifying
the Turkish position.and presumably showing. some
flexibility, on three crucial elements:
--An agreement on a federal state.
--The number of Turkish Cypriot zones.
--The percentage of the island to be included
in a Turkish sector.
The Turks have not formally presented their
position on these issues, but have made it clear
that they will accept only one zone--a biregional
state--with a weak central government; in essence,
a loose confederation of two autonomous states.
Waldheim found the Turks anxious to get on with
the negotiations that were suspended when the Greek
side brought the matter to the Security Council.
The Turks turned down the Greek suggestion that the
talks be transferred from Nicosia to New York ,Jit
were receptive to Vienna as an alternative site.
(continued)
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Turkish Foreign Minister Esenbel confirmed this
to US Ambassador Macomber, noting that he was de-
lighted with the prospect of shifting the talks from
Nicosia and the overshadowing presence of Archbishop
Makarios. The Turks, however, gave neither Waldheim
nor the US ambassador any indication that they were
prepared to make any new moves to break the impasse
in the talks.
Sentiment in the Security Council appears to
be running against any further broadening of the
Cyprus talks. Waldheim reportedly told Karamanlis
not to expect much from the Council beyond a,con-
demnation of the, Turkish Cypriot declaration of an
independent federated state and a call for the con-
tinuation of the intercommunal talks. The possi-.
bility of a Security Council mission to Cyprus,
probably to be made up from among the non-permanent
members, is also being discussed.
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ARAB STATES
Representatives of the Arab League
meeting in Cairo on Sunday will almost
certainly take up the question of whether
banks with Jewish interests should par-
ticipate in Arab investment operations.
The growing importance of Arab financ
stitutions and arbitrary and discri ory Arab
practices against some banks caused consterna-
tion within the international nancial community.
The problem--for Arab circles as well--is which in-
stitutions will be subject to Arab boycott and which
will not.
the boycott problem threatens the wide ties
throughout world financial centers. Arab
League officials share this view and insist that
the thrust of the boycott be directed toward banks
supporting Israel economically, regardless of na-
tionality or religious associations. Nevertheless,
the Kuwait International Investment Company report-
edly has withdrawn from a bond issue involving
Lazard Freres of Paris, even though this institution
is not on the League's boycott list.
The Cairo meeting may well develop into a
struggle between hardliners, who seek a broad and
sweeping exclusion of all banks judged to be sup-
porters of Zionism, and moderates, led by the Leb-
anese and Egyptians, who seek softer, individual
interpretations of the boycott rules. The meeting
is not likely to lead to any clear-cut resolution
of the problem.
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NOTE
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Top Secret
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