THE PRESIDENT'S DAILY BRIEF 25 JULY 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007774
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: July 25, 1974

Declassified in Part --Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012200010022-7
The President's Daily Brief
July 25, 1974
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declassification schedule of E.O. 1 1652
exemption category 5B( 1)(2),(3)
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
July 25, 1974
PRINCIPAL DEVELOPMENTS
The cease-fire on Cyprus appears to be taking hold.
Turkey promised last night that its forces would not
attack UN troops guarding Nicosia's airport. New
Cypriot President derides has said he wants early
presidential and parliamentary elections; he said
it would be "unwise" for Archbishop Makarios to re-
turn now. The new Greek government has recognized
Makarios as the island's legal head of government.
(Page 1)
There is fresh speculation that General Secretary
Brezhnev will take on a government position to sup-
plement his leadership of the party, in particular,
Podgorny's chairmanship of the Supreme Soviet.
(Page 2)
President Sadat avoided unrealistic promises and
tried to impress on the Palestinians the necessity
for compromise when he elaborated on his concept
of Palestinian-Jordanian coordination on Tuesday.
(Page 3)
Bahrain wants to work out a new agreement that will
permit the US navy's Middle East Force to continue
to use facilities on the Persian Gulf island.
(Page 4)
(Page 5
Iraq
Syria
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(Page 6) 25X1
In Vietnam, Communist military forces have gained
additional territory in Military Region 1 and in the
delta, and are pressing attacks in the central high-
lands. (Page 7)
The newly appointed Japanese Finance Minister appar-
ently is thinking of relaxing Tokyo's tough anti-
inflation program. (Page 8)
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CYPRUS
The cease-fire on Cyprus appears to be taking
hold. Fighting stopped in Kyrenia yesterday; only
a few clashes were reported around outlying Turkish
Cypriot villages.
the Turks landed additional rein-
forcements and heavy equipment at Kyrenia yesterday.
Diplomatic pressure on Ankara has averted a
major clash between reinforced Turkish units and
UN troops for control of Nicosia airport. At the
UN Security Council meeting last night, Turkey's
ambassador announced his government's agreement
not to attack the UN force, now augmented by Brit-
ish troops and planes.
On the political front, newly-sworn Cypriot
President Clerides pledged continuity of constitu-
tional government as he tries to restore political
normality to the island. He said he wants to hold
presidential and parliamentary elections as soon
as possible. Clerides said it is up to the people
whether Archbishop Makarios returns, but that it
would be "unwise" for him to do so now.
Clerides' chances in an election against
Makarios would improve if, as party chief Papaian-
nou told a US diplomat yesterday, the Cypriot Com-
munists decide to support him. The situation is
complicated by the announcement in Athens yester-
day that the new Greek government recognizes
Makarios as the legal head of the Cyprus govern-
ment.
Prime Minister Karamanlis' "government of
national unity," despite its name, is essentially
a two-party, center-right coalition. His new
cabinet includes people with more talent for lead-
ership and more technical expertise than any of
the governments during the years of military rule.
The exclusion of the political left will become a
source of friction. Leftist leaders allegedly were
to meet yesterday to draft a plea to Karamanlis re-
questing him to reconsider their status as outsiders.
The left is planning to reopen one of its newspapers
today.
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USSR
The Soviet party Central Committee met briefly
yesterday to hear the customary report from General
Secretary Brezhnev and to prepare for the Supreme
Soviet session that begins today. Little is known
concerning the proceedings of the Central Committee
meeting. Its brevity, however, is one sign that few
major surprises are likely to come out of the meet-
ing itself or the Supreme Soviet session.
When the Supreme Soviet opens, Council of Minis-
ters members, including Premier Kosygin, will submit
pro forma resignations. A "new" Council to be an-
nounced tomorrow will probably include some shifts
at the ministerial level.
There is fresh speculation that Brezhnev may at
last be ready to try formally to consolidate his per-
sonal leadership. Since 1970, when he began playing
a more active role in Soviet foreign affairs, the
party boss has been somewhat embarrassed by his lack
of a high government or state position. His recep-
tion of visiting chiefs of state and his own visits
abroad have been encumbered by nagging problems of
protocol.
Khrushchev solved such problems by combining
the premiership with his position as party chief.
The Central Committee prohibited his successors from
combining these two positions, in an effort to avoid
the concentration of power achieved by Stalin and,
to a lesser degree, by Khrushchev. There is no such
ban, however, on combining the general secretaryship
with Podgorny's prestigious but relatively powerless
chairmanship of the Presidium of the Supreme Soviet,
and there is rumor that this is what Brezhnev may
try to do.
However tidily such a move might deal with pro-
tocol problems, it might also alarm Brezhnev's col-
leagues in the Politburo without achieving any sig-
nificant political gains for him personally. This
is one important factor arguing against such a move.
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FOR THE PRESIDENT ONLY
EGYPT
President Sadat elaborated on his concept of
Palestinian-Jordanian coordination in a speech on
Tuesday. He clearly avoided making unrealistic
promises and attempted to impress on those involved,
particularly the Palestinians, the necessity for
compromise.
Sadat took credit for gaining "international"
recognition of the Palestine Liberation Organiza-
tion as the "legitimate" representative of the Pal-
estinians, and even contended that King Husayn had
agreed to drop Jordan's reservations about the
legitimacy of the PLO's representative status. At
no point, however, did he use the now standard
Arab characterization of the PLO as the "sole legit-
imate" representative. He thus notified the Pales-
tinians that he intends to adhere to his accommoda-
tion with Husayn according Jordan the right to
represent Palestinians within the Kingdom of Jordan.
On the particularly delicate issue of who has
the right to negotiate for an Israeli withdrawal
from the West Bank, Sadat
asserted that
Jordan has agreed to hold the West Bank in trust--
as he says Egypt would do with Gaza--"until their
people determine their wishes." Sadat thereby
notified the Palestinians that they cannot expect
to negotiate for territory while their position is
not unified, but, at the same time, he committed
Husayn to follow through on his promise to allow
the Palestinians self-determination after an Is-
raeli withdrawal.
The Egyptian Foreign Ministry yesterday said
invitations have been sent to Syria, Jordan, and
a representative of the PLO to meet in Cairo on
Sunday to coordinate policy for the Geneva talks.
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FOR THE PRESIDENT ONLY
BAHRAIN-US
The Bahraini foreign minister told Ambassador
Twinam on Tuesday that his government has reversed
its decision to terminate the Bahrain-U$ stationing
agreement. Bahrain wants to work out a new. agree-
ment that will permit the US navy's Middle East
Forte to continue to use facilities on the Persian
Gulf island.
Bahrain would like to complete talks with the
US by the end of August, perhaps in order to give
the government a chance to promote the new arrange-
ments with the public before the sometimes obstrep-
erous National Assembly reconvenes in October. The
Bahraini government is anxious to refute charges
that the stationing agreement has undermined na-
tional sovereignty and has been of no significant
economic value. The Bahrainis reportedly want,
among other things, to raise the yearly rent to $3
million?five times what the US is now paying.
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IRAQ-USSR
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SYRIA
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T AIL ND
MR 1
CAMBODIA
Nba Trang
PHNOM PENH
Gulf of
Thailand
MR 4
Con
ej
Vung Tao
CAPITAL
SPECIAL
ZONE
MR 3
MR 2
South China Sea
SOUTH VIETNAM
0 25 50 75
Statute Miles
?556256 7-74 CIA
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FOR THE PRESIDENT ONLY
VIETNAM
The recent upsurge in fighting continues in
some parts of the country. Communist military forces
have gained control of additional territory and popu-
lation in southern Military Region 1 and in the south-
ern delta, and are pressing attacks in the central
highlands. The Communist intent in each area is the
same--to expand land holdings, eliminate the govern-
ment's military presence, and secure infiltration
corridors.
The Communists have used small units to hit
South Vietnamese military installations, interdict
key highways, and attack remote outposts. In many
cases, especially in the delta, these outposts have
been manned by local security forces who have proved
a poor match for the Communists. Presumably Saigon
will attempt to retake many of the positions that
have been abandoned.
In the central highlands, and to some extent in
the southern provinces of Military Region 1, North
Vietnamese main forces have done the fighting, but
infantry troops have been used sparingly. Heavy
artillery and mortar attacks have preceded ground
assaults, causing some South Vietnamese commanders
to speculate that the Communists have more ammuni-
tion to expend than government troops have. Much
of the government's poor showing has been the result
of a lack of coordination between ground, air and
artillery forces, and the unwillingness of South
Vietnamese commanders to defend remote positions
that are difficult to resupply and reinforce.
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NOTE
Japan: Newly appointed Finance Minister Ohira
apparently wants to relax his predecessor's tough
anti-inflation program. His most likely course of
action will be to ease the credit restraints that
resulted in a sharp decline in private investment
during the first half of this year. Ohira is more
concerned about the prolongation of Japan's economic
downturn than was his predecessor. He also wants
to secure the political support of the business com-
munity, and will tend to be more responsive to its
pressures than Fukuda. Inflation remains a serious
problem, however, and Ohira will be cautious about
instituting a pronounced policy change in the near
future.
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Top Secret
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