THE PRESIDENT'S DAILY BRIEF 2 DECEMBER 1976

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006466912
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: December 2, 1976

Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
..-
The President's Daily Brief
\/
December 2, 1976
2
Top Sec', e2k5X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
Exempt from general
declassification schedule of E 0 11652
exemption utegory 5B(I ).(2),(3)
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
FOR THE PRESIDENT ONLY
December 2, 1976
Table of Contents
OPEC: Both the Shah of Iran and the President of Venezuela dur-
ing the past two weeks have indicated that they are prepared
to accept an OPEC price increase of less than 15 percent.
This shift will allow an accommodatior! with Saudi Arabia and
force other price hard-liners to cooperate. (Page 1)
Mexico: President Lopez Portillo devoted most of his inaugural
address to economic policy, outlining measures designed to
restore the confidence of both private business and the pub-
lic in the government. (Page 1)
Libya-USSR: President Qadhafi will visit the USSR in early Decem-
ber, reportedly to seek new military and economic agreements.
(Page 2)
Notes: Rhodesia;
(Pages 4 and 5) 25X1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
FOR THE PRESIDENT ONLY
OPEC: Both the Shah of
Iran and the President
of Venezuela during the
past two weeks have in-
dicated that they are
prepared to accept an
OPEC price increase of
less than 15 percent.
MEXICO: President Lopez
Portillo devoted most of
his inaugural address to
economic policy, outlin-
ing measures designed to
restore the confidence
of both private business
and the public in the
government.
This shift should allow an accom-
modation with Saudi Arabia and rule
out a price hike of more than 10
percent. At least 9 of the 13 OPEC
members now have indicated that
they expect the price increase to
be about 10 percent, and a major-
ity may be willing to support a
smaller increase. Without the
support of Iran and Venezuela at25xl
the OPEC conference later this
month, the other price hard-
liners--Iraq, Libya, and Nigeria--
will be forced to go along.
'
25X15X1
President Perez announced in an
exchange of speeches with Italian
President Leone in Rome on Novem-
ber 18 that an OPEC price hike of
10 percent "would already be dan-
gerous." Leone implied that Perez
had given him assurances that Ven-
ezuela would support only a minimal
oil price rise.
The moderate and businesslike tone
of the speech indicated that Lopez
Portillo plans an orderly shift
away from the expansionary fiscal
policies of former president Eche-
verria.
--continued
1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
FOR THE PRESIDENT ONLY
LIBYA-USSR: President
Qadhafi will visit the
USSR in early December,
reportedly to seek new
military and economic
agreements.
Lopez Portillo said that continued
economic disorder might cause do-
mestic strife that could require
the use of force. He said that in
order to regain control of the
situation a period of austerity
will be necessary. He promised to
cut government spending, reduce
the heavy public sector deficit,
control imports, and attack infla-
tion.
The new President stated that he
viewed land distribution as the
wrong way to solve the urgent
rural problem because peasants
cannot produce efficiently on
small parcels of land. Lopez Por-
tillo will be under pressure to
reverse the expropriations of land
ordered by his predecessor. He
most likely could not revoke the
orders without risking a peasant
uprising.
The new cabinet is composed of
close associates of Lopez Portillo
with strong administrative records
rather than well-known political
figures, suggesting that he will
aim for administrative efficiency.
The Soviets would probably be
willing to provide Libya with
some additional military equip-
ment on a cash basis, although
the Libyans have no real need for
more hardware. Deliveries are
still pending on about one third
of the estimated $730 million in
arms agreements concluded in 1974.
Qadhafi is clearly interested in
Soviet technical assistance for
economic development projects and
may ask for a substantial increase
in Soviet economic technicians.
--continued
2
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
FOR THE PRESIDENT ONLY
Rumors circulating in Tripoli that
Libya and the USSR will sign a
friendship treaty during Qadhafi's
visit are probably unfounded. Al-
though Qadhafi has recently been
moving toward warmer ties with
Moscow, he remains deeply sus-
picious of the Soviets and is un-
likely to commit himself to the
tangible and symbolic ties that
a friendship treaty implies. He
has consistently refused to grant
the Soviets base rights in Libya
or even permission for naval
visits(
The USSR would no doubt be wary
of concluding a treaty with Libya.
An alliance with Tripoli would not
improve Soviet stature among the
Arab states, but it would cause
deep concern in Egypt. Moreover,
the Soviets know Qadhafi's erratic
nature and they would be hesitant,
after the embarrassment of Egypt's
abrogation early this year of its
friendship treaty, to run the high
risk of having another treaty an-
nulled.
--continued
3
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
FOR THE PRESIDENT ONLY
A Zimbabwe Peoples'
Army delegation arrives
in Geneva today to join
in the talks on Rhodesia.
25X1
25X1
NOTES
The organization announced earlier
that its delegation would be an
independent group at the conference,
but the delegates have now stated
that they will "strengthen" Robert
Mugabe's group, the militant fact25xl
of the Zimbabwe African National
Union.
The presence of the
military leaders--who take a hard
line toward settlement terms--is
likely to further complicate efforts
to reach an agreement.
* * *
25X1 25X1
25X1
25X1
25X1
,
--continued
4
FOR THE PRESIDENT ONLY
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
FOR THE PRESIDENT ONLY
25X1
25X1
5
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00024A000400010002-1