THE PRESIDENT'S DAILY BRIEF 19 DECEMBER 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007897
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: December 19, 1974

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The President's Daily Brief
December 19, 1974
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Exempt from general
declassification schedule of E.O. 11652
exemption category 58(1),525,(3)
declassified only on approval of
the Director of Central Intelligence
avvai
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FOI-? 7-11F PRES.101',/\'7' ON
December 19, 1974
Table of Contents
Egypt-Israel:
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(Page 1) 25X1
Cyprus: 'lakarios seeks to consolidate his position
within the Greek Cypriot community before re-
suming intercommunal talks. (Page 2)
USSR: Soviet defense spending in 1975 is likely to
be 4 to 5 percent higher than last year.
(Page 3)
USSR-US: ]Aoscow puts its position firmly on the
public record prior to final action by Con-
gress on the trade bill_ (Page 4)
Mexico: Mexico is expanding an east coast port
into a major petroleum export center. (Page 5)
Notes: USSR; USSR-France; USSR-China; Koreas-UN;
Cuba (Pages 6 and 7)
FOR 7IIL PRES./DT:VI. ONLY
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EGYPT?ISRAEL
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CYPRUS
President Makarios is moving to con-
solidate his position within the Greek
Cypriot community before resuming inter-
communal talks. According to the US em-
bassy in Nicosia, he is trying to avoid
either provoking his opponents on the
far right or unduly arousing the expec-
tations of his supporters.
Since his return to the island on December 7,
the archbishop has solicited the views of former
acting president Clerides and other Greek Cypriot
leaders on the composition of a new government and
on negotiating strategy for talks with the Turkish
Cypriots. Clerides believes Makarios is inclined
toward a government of national unity comprised of
individuals representing all political interests.
The cabinet ministers, however, would not serve as
official representatives of any group or be respon-
sible to them. Such an arrangement would permit
Makarios to choose only those individuals who place
their loyalty to him above their links to their
respective political parties.
Clerides reportedly is trying to persuade
Makarios to select a cabinet consisting chiefly of
technicians and civil servants in order to deal
more effectively with the many practical problems
confronting the Greek Cypriot sector. Clerides
has suggested to Makarios that such a cabinet
could be assisted by a separate "advisory board,"
composed of the leaders of all political groups,
which could counsel the archbishop on the negoti-
ations with the Turkish Cypriots,
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USSR
Actual Soviet defense spending in
1975--including that for space and for
military research and developments--is
likely to be 4 to 5 percent higher than
last year. This contrasts with publicly
announced-budget figures, which show a
continuing decline in defense spending
during the coming year.
We estimate that Soviet defense spending has
risen more rapidly during the past two years than
during any equivalent time in the past. The chief
reasons for this are the USSR's effort .to modernize
its strategic missile force, the continued deploy-
ment of new sea-based ballistic missile systems,
and the increased expenditures for new tactical
aircraft. Our ?estimate, based on calculations of
the cost of observed changes in military and space
programs and forces, is independent of the announced
Soviet defense figure.
The publicly announced figure serves chiefly
as a political and propaganda device, both inter-
nationally and domestically. Claims of declining
defense spending for the past two years, although
contradicting trends in observed programs, are in
keeping with the image the Soviets are attempting
to project with their policy of detente.
The announced figure--the only public defense
statistic given each year by the USSR--has little
usefulness as an indicator of either the level or
-trend in Soviet defense spending. For example,
funds for military research and development--a major
category of expenditure--are not included in the
defense budget but are buried under the science
sector of the state budget.
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USSR-US
A strongly worded Soviet condem-
nation yesterday of efforts to Zink So-
viet-US economic relations with Soviet
concessions cn emigration apparently
was intended to get Moscow's position
firmly on the public record prior to
final action by Congress on the trade
bill,
The Soviets evidently calculate that a last-
minute reaffirmation of their position will not
jeopardize passage of the bill. In the meantime,
they have laid out a public position that will en-
able them to claim they did not renege on a promise
if emigration rates do not come up to expectations.
The authoritative statement, broadcast by Tass,
cited "leading circles in the USSR" as flatly re-
jecting any attempts at interference in Soviet
internal affairs In addition to the emigration
issue, Moscow criticized those who were seeking
economic information of a purely domestic nature.
This is probably a reference to Soviet reluctance
to exchange data on agricultural crops and trade.
To underscore its message, Tass also carried,
in English and Russian, a letter on the emigration
question from Foreign Minister Gromyko to Secretary
Kissinger, dated October 26, In the letter, Gromyko
denied that any agreement exists on numbers of emi-
grants, and reiterated the position that the number
of people who wish to emigrate from the USSR is de-
clining.
Soviet leaders may have felt that the state-
ments were necessary to counter any suspicions in
the USSR or elsewhere that the Kremlin had shown
weakness in dealing with Washington on this issue.
Such a show of sensitivity is reminiscent of an
attack on "outside interference" that Brezhnev
made at a dinner for Treasury Secretary Simon on
the eve of the compromise announcement last Octo-
ber.
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FOR 7111': PRESIDIA-I
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Mexico New Oil Regions
Potential Oil Region
557005 12-74 CIA
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FOR THE PRESIDENT ONLY
MEXICO
Pemex, the Mexican state oil monop-
oly, is expanding the east coast port of
Coatzacoalcos into a major petroleum ex-
port center. This appears to confirm
Mexico's intention to proceed with large-
scale development of the Chiapas-Tabasco
oil fields. If so, oil exports could
reach 300,000 barrels per day by the end
of 1975.
In addition to increasing oil storage capacity
and constructing new piers, a pipeline already is
being built to connect Coatzacoalcos With the
Minatitlan refinery. A bifurcated line is also
being built to connect the Chiapas-Tabasco oil
fields to Coatzacoalcos and the Pacific port of
Salina Cruz. Pemex is installing loading buoys
off both ports to service very large tankers.
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USSR:
NOTES
USSR-France: The French-Soviet agreement
signed duringparty chief Brezhnev's visit to Paris
calls for France to provide up to $2.5 billion in
long-term credits for Soviet purchases of French
capital goods.
USSR-China: The proposed list of commodities
to be exchanged under the 1975 Sino-Soviet trade
agreement indicates no significant change in the
size or composition of trade over that of the past
three years. The Chinese want to buy more trucks
and cranes and three additional 200-MW electrical
generators next year. Aircraft and spare parts im-
ports will be roughly the same. The ruble value of
trade this year will be about 210 million rubles,
worth $277 million at the current exchange rate.
(continued)
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Koreas-UN: The General Assembly's decision
Tuesday calling for the Security Council "in due
course" to examine the UN role in Korea is a set-
back to North Korean hopes of marshaling Third
World support against the US. military presence in
South Korea. The North Koreans,. however, made ef-
fective use of the months of backstage diplomatic
preparation and the week or so of committee debate
on the issue to call attention to the dual charac-
ter of US/UN forces in'Korea./
Cuba: Cuba has-been slowly working its way
back Tr= the Latin American regional group at the
UN. Its most recent move. is to bid for the Latin
American seat vacated by Venezuela on the committee
for decolonization. Over the objections of some
members of the group, General Assembly President
Bouteflika seems likely to appoint Cuba to the seat.
Cuba would probably take advantage of a seat on
this committee to push its efforts to inscribe the
"colonial case of Puerto Rico" on the decoloniza-
tion agenda.
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