THE PRESIDENT'S DAILY BRIEF 19 FEBRUARY 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007678
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: February 19, 1974

Declassified in Part- Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T009.'36A012000010013-9
The President's Daily Brief
February 19, 1974
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Exempt from general
declassification schedule of ED. 11652
exemption category 5B( I )t 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
'February 19 1974
PRINCIPAL DEVELOPMENTS
Israel's National Religious Party has resumed coali-
tion talks with Prime Minister Meir's Labor Align-
ment in an effort to resolve the question of who is
a Jew--the issue on which negotiations had stalled.
(Page 1)
South Vietnamese Government changes announced yes-
terday reflect President Thieu's desire to upgrade
Prime Minister Khiem's status and put greater momen-
tum behind economic policies. (Page 2)
The Soviets have closed an area in the Pacific Ocean
for extended-range tests of a new ICBM. (Page 3)
Despite efforts to negotiate bilateral agreements
with oil producers, France seems to be no better
off. with regard to.. assured oil supplies than other
major consumers. (Page 4)
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ISRAEL
The National Religious Party has resumed coali-
tion talks with Prime Minister Meir's Labor Alignment
in an effort to resolve the contentious issue of who
is a Jew--the question on which talks have so far
foundered. A majority of the National Religious
Party's negotiating team is said to be willing to ac-
cept a compromise giving a special ministerial commit-
tee a year to propose changes in the present law,
which would meanwhile remain in effect. The National
Religious Party is reportedly also demanding a commit-
ment that the government not conclude any agreement on
the future status of the West Bank; this issue, it be-
lieves, must be settled by new general elections. A
compromise should be easier to find on this point
than on the religious question.
The Independent Liberal Party, the third party
in the coalition Mrs. Meir is attempting to establish,
has not yet reacted to the new proposal, but it had
pressed for the status quo on the religious issue and
may balk at joining the cabinet under a compromise.
A coalition between the Alignment and the National
Religious Party, but without the Independent Liberal
Party, would still control 64 of the 120 Knesset
seats; the Liberal Party's four seats serve to give
Mrs. Meir a more comfortable margin. She could
achieve the same end by turning to the ultra-orthodox
Agudah Religious Front.
Mrs. Meir is adamantly opposed to calling for
new elections to break a deadlock--a process which
could take two or three months--and she reportedly
does not want to ask the President to renew her man-
date to form a coalition when it expires on February
20. There has been some speculation that she will
retire if she does not reach an agreement before the
deadline, but such a move is unlikely at this time.
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SOUTH VIETNAM
The government changes announced yesterday re-
flect President Thieu's desire to upgrade the status
of Prime Minister Khiem and put greater momentum be-
hind economic policies.
The most significant features of the changes are
the transfer of certain functions from the presi-
dent's office to that of the prime minister and the
appointment of two new deputy prime ministers to over-
see welfare and development activities. In naming
presidential aide Hoang Duc Nha as Minister of Public
Information, Thieu formalized Nha's authority in this
area and, at the same time, moved him under Khiem.
Khiem has been chagrined by Nha's freewheeling.
As deputy prime ministers, Thieu named Phan Quang
Dan, concurrently Minister of Social Welfare, and re-
tired General Tran Van Don, charged with "inspecting"
national development programs. Both Dan, a cabinet
holdover, and Don, a Lower House deputy and unofficial
presidential adviser, are activists. Thieu presumably
expects that they will bring stronger direction to
the economic ministries now headed by competent tech-
nicians and bureaucrats. A third deputy prime
minister, Nguyen Luu Vien, serves as Saigon's chief
negotiator in Paris.
The chief casualty of the cabinet reshuffle is
Pham Kim NgOc,. who was replaced as Commissioner of
Planning by Nguyen Tien Hung. Ngoc was retained last
October when other economic and financial officials
were changed. Thieu's unhappiness with economic policy
apparently centered on Ngoc, since those ministers
appointed in October.continue in the new Cabinet.
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'CP -?
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IC.pmgpatka
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\ _Impact closurearea
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.Pacific _.,--- Ocean
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Soviets to Conduct ExtendedtRange / I
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. ICBM Tests
1 ? _----,
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----
555285 2-74 CIA
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USSR
The Soviets have again closed an area in the
Pacific Ocean for extended-range tests of one of
their new ICBMs. Moscow announced yesterday that
an area of about 1,500 nautical miles southeast of
the Kamchatka Peninsula would be closed from today
until March 10. The move coincides with the reopen-
ing of the SALT talks in Geneva.
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P.
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FRANCE
Paris has moved aggressively in the last three
months to negotiate bilateral agreements with major
oil producers. Today, the prime ministers of France
and Libya are to sign an agreement guaranteeing oil
in return for the construction of nuclear plants to
furnish power for desalinization facilities, according
to press reports. On balance, however; the French
are no better off with regard to assured oil supplies
than other major oil importers. ?The short-term gains,
if any, will be largely political. Benefits in oil
and potential foreign exchange earnings from industrial
and military sales are far in the future and uncertain
at best.
Of its bilateral arrangements, the agreement
with Saudi Arabia is the most firm, and France should
begin receiving oil this year in return for construct-
ing a refinery. The multibillion dollar agreement
with Iran, however, involves considerable additional
negotiation. It now calls for Paris to build several
nuclear reactors in Iran. This could create problems,
since the French would probably need to use licensed
technology from the US or encounter a long delay while
they develop their own.
French deals with other Middle East governments
are also somewhat up in the air. There apparently
have been no new developments in discussions with
Kuwait concerning a swap of arms and industrial goods
for crude oil.
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err., 4,1
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NOTE
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Top Secret
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