THE PRESIDENT'S DAILY BRIEF 7 FEBRUARY 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993736
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: February 7, 1973

Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A011500010032-4
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The President's Daily Brief
7 February 1973
45
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Exempt from general
declassification schedule of EO. 11652
exemption category 51311),121.(31
declassified only on approval of
the Director of Central Intelligence
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Declassified in Part - Sanitized Copy Approved for Release 2016/07/19: CIA-RDP79T00936A011500010032-4
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
7 February 1973
PRINCIPAL DEVELOPMENTS
In most areas of South Vietnam Communist units re-
main under orders to restrict their activity to
countering government efforts to resume control of
Communist-held territory. (Page 1)
(Page 2)
Lao
(Page 3)
The run on the dollar intensified yesterday morning;
although the dollar rallied in the afternoon, cur-
rency markets remain unsettled. (Page 4)
In Chile, President Allende has acted to assist the
candidacies of the extremists and to ease the feud-
ing within the government coalition. (Page 5)'
Argentina's military government is bringing criminal
charges against leading Peronist candidates in an
effort to throw them off their stride in the election
campaign. (Page 6)
The Cambodian Government continues to flounder in
trying to begin a dialogue with the Communists.
(Page 7)
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
SOUTH VIETNAM
Some Communist main forces are moving to im-
prove their defensive posture. In Binh Dinh Prov-
ince, for example, elements of a North Vietnamese
division as well as a field headquarters of the
Viet Cong command for the coastal region have
shifted to positions near the Tam Quan District
capital. These moves could provide a better de-
fense for Sa Huynh village and a 15-mile stretch
of Route 1--both seized during cease-fire attacks.
The Communists still substantially con-
trol the three northern districts of
Binh Dinh Province and the area of con-
centration to the south along Route 1 as
well. Traditionally, this province has
been a Communist stronghold.
Intercepts show that main force units in most
areas are under orders to restrict their activities
to countering government attempts to intrude on
Communist-held territory. In Quang Tri Province,
for example, North Vietnamese troops have been
ordered to fire on government troops should they
?try to reoccupy the Communist salient south of the
Thach Han River. Similarly, enemy troops in the
central highlands are to strike back only if the
South Vietnamese try to reopen Route 14. In the
delta's Dinh Tuong Province, a North Vietnamese
regiment has been ordered to eliminate a govern-
ment outpost inside Communist territory, either by
persuading its occupants to leave or by attacking
the position. '
It is in such grey areas, where both
sides have a presence and some influence,
that continued fighting is most likely
to occur.
local forces will do the bulk of
the fighting for the Communists in such
actions.
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FOR THE PRESIDENT ONLY
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SOUTH VIETNAM
Recently Thieu has begun to talk publicly
about the possibility of early general
elections with Communist participation.
This could be intended only to throw a
scare into the anti-Communist political
parties im them toward 'reater
unit
2
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FOR THE PRESIDENT ONLY
LAOS
Communist military pressure on Lao Government
forces continues. In the south, increasingly heavy
shelling and ground probes of government positions
near Paksong are under way and the Communists have
attacked irregular units around Saravane. Inter-
cepted messages indicate Communist awareness of de-
sertions and low morale among the irregulars Sharp
fighting continues near Muong Phalane in the central
panhandle.
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
INTERNATIONAL MONETARY DEVELOPMENTS
The run on thedollar intensified yesterday
morning as traders apparently decided that the new
West German capital controls would be inadequate to
stem dollar inflows. Although the dollar rallied
in the afternoon, currency markets remain unsettled.
West German intentions remain a key to market
performance. The Bundesbank will hold a special
council session today, and it probably will focus
on actions to be taken if massive dollar inflows
continue. Since last Thursday, the Bundesbank has
bought some $2.5 billion--$1.5 billion of it yes-
terday--in an effort to maintain the mark within
the Smithsonian range.
The Japanese market--which opened after the
European markets had closed--came under renewed
pressure as well. Despite a further tightening of
exchange controls, traders apparently stepped up
sales of dollar export contracts, and the Bank of
Japan intervened heavily in the market to keep the
yen within its Smithsonian band. The bank pur-
chased about $250 million during the trading ses-
sion.
The gold price continues to rise as a result of
the currency crisis. It reached over $69 an ounce
yesterday before profit-taking pushed it back slightly.
The all-time record price of $70 came last summer
during the last significant upheaval in currency mar-
kets.
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
CHILE
Just when it appeared that feuding among Presi-
dent Allende's coalition partners would hurt their
chances in the congressional elections on 4 March,
Allende has acted to restore momentum. Within the
ruling Popular Unity coalition, extremists have been
publicly, arguing that Allende and the moderates have
failed to push "real" revolution. He sought to pla-
cate this group at a rally yesterday, reviving ear-
lier pledges to replace the constitution and bicam-
eral legislature and to impose additional soak-the-
rich taxes on the wealthy.
None of this is new, but Allende's reiter-
ation of such radical aspects of his orig-
inal program lends his prestige to the
candidacies of the extremists.
At the same time, Allende has moved to defuse
a potentially serious problem--a backlash against
his coalition from popular worries over a food
shortage. He has entrusted to the more pragmatic
elements within the government--Communists and mil-
itary officers-the task Of distributing the gov-
ernment's relatively large stocks of food during
the period before the election. The chief of the
new dispersing system, Air Force General Bachelet,
has assured the people that ample food is available
for the coming winter and that distribution will be
equitable.
Bachelet's announcement constitutes a
clear-cut retreat by the administration
from the blatantly discriminatory scheme
offered last month. It will help to ease
popular apprehensions and--if it works--
may help Popular Unity candidates to get
elected.
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FOR THE PRESIDENT ONLY
ARGENTINA
Argentina's military government is bringing
criminal charges against presidential candidate
Campora and other Peronists on the grounds that
their campaign statements have amounted to incite-
ment to violence.
despite the seriousness of the charge,
court action is expected.
lenient
The military apparently intends this to
be a mild chastisement designed to throw
the Peronists off their stride in the
election campaign.
With elections scheduled for 11 March and
a run-off expected in April, the Peronists
are clearly in the lead but appear short
of a majority. Their major issue is the
failure of seven years of military rule,
and their inflammatory rhetoric is de-
signed chiefly to attract the large youth
vote. The Peronists may be able to turn
the government's action to their advantage
by representing it as a gesture from weak-
ness in the face of an impending Peronist
victory.
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FOR THE PRESIDENT ONLY
NOTES
Cambodia: The Cambodian Government continues
to flounder in trying to begin a dialogue with the
Communists.
Dominican Republic: The Balaguer government
claims to have found evidence implicating Juan Bosch,
head of the opposition Dominican Revolutionary Party,
and other political leaders with the small-scale
guerrilla invasion of 4 February. It has announced
plans to take legal action against them shortly.
The government has already arrested some PRD activ-
ists but has been unable to locate Bosch. The small
invading force meanwhile has been surrounded, and it
seems only a matter of time before it will be elim-
inated.
Uganda: The Sudanese Ambassador in Kampala has
reported that President Amin is convinced another ef-
fort to topple his government will be conducted from
Tanzania. Amin may try to head off such a move by
striking militarily against the dissidents while they
are still in Tanzania. This report has not been con-
firmed, and it is just possible that Amin is feeding
rumors of threats posed by guerrillas to keep his
own army too busy to plot against him.
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Top Secret
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