THE PRESIDENT'S DAILY BRIEF 7 SEPTEMBER 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993925
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: September 7, 1973

Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
The President's Daily Brief
7 September 1973
4 5
Top Secret 25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
Declassified
-
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011-700040007-7
Exempt from general
declassification schedule of EO. 11652
exemption category 5E00203)
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
Declassified in Part- Sanitized Copy Approved for Release 2016/06/14: CIA-RDP79T00936A011700040007-7
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
7 September 1973
PRINCIPAL DEVELOPMENTS
In Cambodia, Kompong Cham remains under strong Com-
munist pressure, with the insurgents attacking gov-
ernment lines from three directions. (Page 1)
Pressure on sterling eased yesterday after the Brit-
ish Government announced it would guarantee Common-
wealth countries that hold sterling reserves against
exchange losses. The sterling rally helped the dol-
lar make up most of the week's losses against West
European currencies. (Page 2)
Italian police confiscated two SA-7 surface-to-air
missiles from fedayeen operatives arrested near Rome
who reportedly were planning a missile attack on an
Israeli El Al airliner. (Page 3)
In Chile, after a lull of several days, anti-govern-
ment protests are on the increase again. (Page 4)
The Bonn government will consider next week its po-
sition on NATO burden-sharing and bilateral negotia-
tions for a new two-year agreement to offset the
costs of stationing US forces in West Germany.
(Page 5)
There are signs that the informal agreement reached
last March among Japanese opposition parties to
bring down the ruling Liberal Democrats is founder-
ing. (Page 5)
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14: CIA-RDP79T00936A011700040007-7
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
K-enpong Thom
tog gynit
Kratie
CAMBODIA
Commun t attac s
'ege co
PHNOM PEN
I teric
Prey Veng
Chamb k ak Luong
Svay
Rieng
7'1:012 Clang
VINH RA CH GIA
0
554586 9-73 CIA
119 ?
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
FOR THE PRESIDENT ONLY
CAMBODIA
Kompong Cham remains under strong Communist pres-
sure. As the battle for the city enters its third
week, the insurgents are attacking government lines
from three directions. Only a few insurgents managed
to infiltrate the center of the city on September 5,
but not all of them have yet been rooted out.
Government paratroops have set up a new defen-
sive line across the southern section of the city
to prevent further infiltration in that area. Other
government forces moving along Route 7 toward Kompong
Cham made slight headway yesterday, while two para-
troop battalions at the airfield northwest of Kompong
Cham are making their way back to the city to help
shore up its defenses. In the meantime, 300 addi-
tional reinforcements have arrived by helicopter
from Phnom Penh.
There are now between 5,500 and 6,000
troops defending Kompong Cham. Insurgent
forces are estimated at between 4,000 and
5,000 troops.
Yesterday, the Khmer Communists again attacked
Route 5 and stopped all traffic on the road about
35 miles northwest of Phnom Penh. A clearing opera-
tion apparently is underway. Route 4 is still
closed 15 miles southwest of the capital.
Overland access between Phnom Penh and
the port of Kompong Som has been blocked
.since August 26.
1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
5
PERCENT CHANGE SINCE 2 JANUARY 1973
IN THE VALUE OF THE US DOLLAR RELATIVE
TO SELECTED FOREIGN CURRENCIES
11
_5 1_11111?/? ? 010
INIIIM?11111NE 014** BRITISH POUND -
.0?15
**IA.*
.inississ as ?11.1114111.1w
-10
? a a glib
va?
-15 ?
-20 ?
-25 ?
.011. MI= .1
? ?? ? ?
JAPANESE YEN
????????
? FRENCH FRANC ??
00 ??
?00
? ??????
? ?
? ?
GERMAN MARK ??
?
_30 1 1 I I 1 i I I I I I 1 I 1 I III i III I
19 23 30 6 13 20?27 4 11 18 25 1 8
MAR APR MAY, JUN
554584 9-73 CIA
15 22 29 6 13 20 27 3 10 17 24 31 6
JUL ? AUG SEPT
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
FOR THE PRESIDENT ONLY
INTERNATIONAL MONETARY DEVELOPMENTS
Pressure on sterling eased yesterday after the
British Government announced it would guarantee Com-
monwealth countries that hold sterling reserves
against exchange losses. The pound fell yesterday
morning to $2.38--its lowest point since early Feb-
ruary--before recovering to close at $2.42.
Factors in the sterling drop are:
--the announcement earlier this week of a sub-
stantial second-quarter trade deficit;
--expectation that August trade figures will
show a further deterioration;
--money market concern over London's commitment
to an expansionary fiscal policy; and
--labor difficulties.
Sterling sellers converted their holdings into
West European currencies, and these currencies gained
relative to the dollar. The sterling rally late
yesterday, however, helped the dollar make up most
of the week's losses against West European curren-
cies.
2
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
FOR THE PRESIDENT ONLY
FEDAYEEN
Italian police confiscated two SA-7 (Strela)
surface-to-air missiles from fedayeen operatives
arrested near Rome on September 5. Italian inves-
tigators have said that the five Arabs arrested had
planned a missile attack on an Israeli El Al air-
liner that day--the anniversary of the Munich mas-
sacre.
The Soviet-manufactured SA-7 is a hand-
held weapon fired from the shoulder and
could be directed against low-flying air-
craft in the take-off or landing stage
within a two-nautical-mile range. The
missile is capable of being fitted with
an infrared homing device. If the feda-
yeen have an assured source of supply of
SA-7s, their capability to attack mili-
tary and civilian aircraft will be signif-
icantly enhanced, and such a hit-and-run
operation will involve less risk of cap-
ture than in-flight hijackings.
At this time it is not known how the Arabs
arrested in Rome acquired their StreZas or
how many are available to the fedayeen.
It is unlikely that the Soviet Union has
supplied them directly. Egypt, Syria,
and Iraq possess the rockets in their ar-
senals; however, these countries have been
reluctant in the past to equi eda e
with sophisticated wea onr
3
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
FOR THE PRESIDENT ONLY
CHILE
After a lull of several days, anti-government
protests are rising again. Another series of short
strikes has been called by assorted professional
and commercial groups. The opposition Christian
Democrats are again talking of launching impeach-
ment proceedings against members of the President's
cabinet. The lengthy truckers' strike seems as far
as ever from settlement.
President Allende does seem to have headed off
one dispute with the navy; he got his coalition
leaders publicly to deny that they had accused the
navy of subversive activity against the government.
Still unresolved, however, is the navy's attempt to
strip Socialist leader Altamirano of his congres-
sional immunity and charge him with inciting mutiny
in naval ranks.
Army and air force leaders, meanwhile, are
acting with unaccustomed unanimity in their efforts
to avoid being manipulated by either pro- or anti-
government elements. They are concentrating on
joint raids against illegal arms caches held by
extremists both of the left and the right.
4
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
FOR THE PRESIDENT ONLY
NOTES
West Germany: The Bonn government will consider
on Monday the German position on NATO burden-sharing
and the imminent bilateral negotiations on a new two-
year agreement to offset the costs of stationing US
forces in West Germany. Finance Minister Schmidt
confirmed to Senator Mondale earlier this week that
Bonn's package will fall short of US expectations
and will offer no significant increases in the key
elements of the current agreement. In addition,
West German officials are taking the position that
the US should not expect Bonn to make other contribu-
tions--beyond the offset package--to the burden-
sharing effort, since other alliance members are un-
likely to agree to any meaningful contributions.
Japan: There are signs that the informal agree-
ment reached last March among the opposition parties
to bring down the ruling Liberal Democrats is found-
ering. On a national level, the moderate Komeito
and the Socialists are increasingly criticizing Com-
munist policies as extremist. In two key cities,
Tokyo and Kyoto, opposition party alliances with
the Communists have recently been broken. In the
months ahead the Communists will likely be as much
of a target for criticism as the Liberal Democrats,
and this will benefit Premier Tanaka's party in next
year's elections to the Upper House. The Komeito
and Socialists apparently began to reassess their
alliance with the Communists after the stunning
Liberal Democratic electoral upset in Tokyo last
July. They apparently concluded that the general
election last year had created a misleading impres-
sion of Communist strength.
5
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
25X1
Declassified in Part- Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7
'
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011700040007-7