THE PRESIDENT'S DAILY BRIEF 20 MARCH 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993775
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: March 20, 1973

Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A011500010070-2
The President's Daily Brief
20 March 1973
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Exempt from general
declassification schedule of E.O. 11652
exemption category 5B( I
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
LATE ITEM
Iraq-Kuwait: Early this morning Iraqi forces
stationed in disputed territory near Umm Qasr opened
fire on a recently established Kuwaiti border post
nearby. A general mobilization of Kuwaiti armed
forces has been ordered. Tanks and armored cars are
deployed along .a line six miles south of the Iraqi
frontier. The Kuwaiti Air Force has orders to shoot
down any intruding Iraqi aircraft. The Kuwait Na-
tional Assembly met in emergency session today and
gave the government carte blanche to defend Kuwaiti
"lives, territory, and interests." Ambassador
Stoltzfus does not believe there will be a serious
military escalation or that there is any danger at
the moment to US citizens in Kuwait.
FOR THE PRESIDENT ONLY
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THE PRESIDENT'S DAILY BRIEF
20 March 1973
PRINCIPAL DEVELOPMENTS
The dollar was strong in world markets yesterday
and continued so in Tokyo this morning. (Page 1)
Soviet grain traders are shopping in Australia and
Canada. (Page 2)
(Page 3)
Lon Non appears to be taking advantage of the state
of emergency in Cambodia to settle political scores.
(Page 4)
Soviet media have given upbeat treatment to Sec-
cretary Schultz' recent visit to Moscow. (Page 5)
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INTERNATIONAL MONETARY DEVELOPMENTS
The dollar was generally .strong in foreign cur-
rency exchanges yesterday in the first day of of
trading since 2 Marth., The Bank of Japan sold
some $50 million to keep the dollar's value from
rising too fast. The yen closed yesterday at about
a 16.3-percent appreciation from its old rate and
continued gradually to appreciate today. The Bundes-
bank--the only other bank to intervene--sold more
than $8 million worth of Belgian francs and a much
smaller amount of Swedish kroner to maintain the
new European currency band.
The bank's intervention reflects the sur7
prisinglyweak early showing of the mark
relative to other European currencies,
Some traders fear that Bonn may have sac-
rificed too much by its latest revalua-
tion.
The generally light activity yesterday in-
dicates that most traders are taking a
wait-and-see attitude. Those traders who
speculated in marks and other strong cur-
rencies may hold off repurchasing dollars
until they get a clearer picture of pay-
ments and psychological trends. Our pre-
liminary analysis of balance-of-payments
prospects in Japan and Western Europe in-
dicates such traders are wise, for it ap-
pears that pressures will build for fur-
ther appreciations of the mark and yen
and a depreciation of sterling.
The Swiss banking community reportedly is skep-
tical about prospects for the joint float and is
against Swiss participation. Bankers not only fear
that Switzerland would have to support the weaker
European currencies, but also argue that Switzer-
land should not diminish its neutrality or independ-
ence.
A national referendum approved Swiss as-
sociation with the EC in December, but
only with the proviso that the links
would not go beyond those of a free trade
zone.
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USSR
Soviet grain traders are shopping in,Australia
and Canada for grain to be delivered in the fiscal
year beginning in July 1973. The Australians are
receptive because they expect a large crop.. Canada
is reported to have sold some wheat in February for
delivery in the next fiscal year to the USSR:. So
far, the Soviets apparently have made no firm over-
tures to ps grain companies.
After last year's experiences, US traders
are wary of Soviet purchasing practices
and are reluctant to sign fixed-price
contracts again. It appears that the So-
viets can still get such contracts in
other countries, and with the price of
US hard red winter wheat almost double
that which the USSR paid last year, they
will try to fill part of their require-
ment elsewhere. It is likely, however,
that the Soviets will come back to the
US for purchases of feed grains, on which
prices have not risen spectacularly.
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CAMBODIA
Acting under the state of emergency declared
on Saturday, the government has further tightened
security measures, which now include a ban on all
public meetings. There are unconfirmed reports
that some newspaper editors and teacher and student
leaders have been arrested.
President Lon Nol appears to be relying on his
younger brother, Brigadier General Lon Non, to en-
force the emergency measures. Lon Non
the government had
toward opposition elements and
that it was time to rule with an "iron hand."
been too lenient
At the same time, Lon Non indicated that he
intended to exploit the present situation to further
his own political ends. He alleged that his long-
time political rival, Republican Party chief Sink
Matak, has-been behind recent antigovernment agita-
tion by students and teachers. Although Lon Non
said it, was impossible to arrest Matak because of
his close friendship with Lon Nol, he apparently
does intend to arrest Some of Matak's supporters.
Matak himself appears increasingly pessimistic
over ?his political future. Just before the recent
disturbances, he had not
heard directly from Lon Nol on the subject of his
becoming vice-president for some time. Matak was
doubtful about rejoining the government at this
juncture when--in his opinion--political, military,
and economic conditions are worse than at any time
since Sihanouk's ouster.
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NOTES
USSR-US: Soviet media have given upbeat treat-
ment to Secretary Shultz' recent visit to Moscow.
Pravda and Izvestia highlighted its significance,
quoting optimistic Western press reports concern-
ing prospects for economic cooperation. Prominent
play was also given to Shultz' remarks that his
meeting with Brezhnev took place in .a "spirit of
mutual understanding and goodwill" and "bore a
businesslike and constructive character." Not sur-
prisingly, the Soviet press has avoided mentioning
the Jewish emigration issue in connection with the
-visit.
North Korea - Scandinavia: Sweden, Denmark,
and Finland are expected to recognize North Korea
at the end of March, giving Pyongyang its long-
sought diplomatic presence in Western Europe. Nor-
way and Iceland may soon follow suit. This will
provide additional impetus to the "two Koreas"
concept, which Pyongyang has pushed and which Seoul
seems finally prepared to accept. Sweden's action
may raise questions about its remaining on the UN
supervisory commission or, as the South Koreans
fear, even call the continuation of the commission
itself into doubt.
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