THE PRESIDENT'S DAILY BRIEF 6 DECEMBER 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007615
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: December 6, 1973

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The President's Daily Brief
6 December 1973
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Exempt from general
declassification schedule of E.O. 11652
exemption category 580
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S. DAILY BRIEF
6 December 1973
PRINCIPAL DEVELOPMENTS
Angered by the stalemate at Kilometer 101, the Egyp-
tians are voicing new doubt with respect to US will-
ingness to exert pressure on Israel. Al Ahram has
taken the line that responsibility for the impasse
must be fixed before Secretary Kissinger visits
Cairo again. The:military front is tense but rela-
tively quiet. (Page 1)
In Argentina, President Peron is ordering strong
measures to protect foreign companies and their
personnel from terrorists.. In addition, he and his
wife approved the organization of
paramilitary groups for action against leftists.
(Page 3)
The economic outlook for Chile calls for cautious
optimism as the junta continues to move to rebuild
the economy. Many of its programs, however, have
been particularly hard on low-income groups, and
there may be increased unrest if pressures on labor
and other consumers do not ease during the next six
months. (Page 4)
Peru
(Page 5)
In Canada, there is growing criticism of attempts
by Prime Minister Trudeau's minority government to
deal with the oil shortage. The opposition intends
to introduce a no-confidence motion next week.
(Page 6)
North Korean naval patrols continue along and below
the Northern Limit Line, but early this morning a
South Korean resupply ferry arrived at one of the
islands without incident. Yesterday's session of the
North-South Coordinating Committee was businesslike.
(Page 7)
?
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ARAB STATES - ISRAEL
Cairo's Al Ahram sounded a warning note yester-
day about expectations for Secretary Kissinger's
visit. In a commentary summarized and disseminated
by the Middle East News Agency, the paper called
into question the extent of US willingness to pres-
sure Israel. It also challenged US definitions of
a "reasonable peace," and the .return of "almost"
all occupied territory. It described a "complex"
formula for Jerusalem as incompatible with Security
Council resolutions.
The paper appeared to be interpreting the stale-
mate at Kilometer 101 as a failure by the Secretary
to follow through on pledges made during his first
visit to Cairo. It asserted that responsibility for
the breakdown must be fixed before he returns.
Meanwhile, the Egyptians have told the UNEF com-
mander, General Siilasvuo, that Cairo has not yet
decided whether to resume the talks at Kilometer 101.
On the military front,
Cairo
claims that one aircraft was downed, but Tl Aviv
denies losing any. UN observers in the Ismailia
area reported seeing SAMs fired at approximately
the time of the incident but were unable to deter-
mine whether any aircraft had been hit.
According to press reports
from Tel Aviv, Israel has over the past few days
denied correspondents permission to visit the cease-
fire line.
The Egyptians too have taken additional meas-
ures reflecting the high level of tension. Over
the past week, Cairo has put off visits by military
delegations from Pakistan and Tanzanial
(continued)
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Analysis of Egyptian claims to have ten Egyp-
tian-made Zafir missiles housed in silos and manned
by Egyptian crews
indicates that the claims are not valid.,
and such technology is currently be-
yond Egyptian capabilities. In the early 1960s,
West German technicians helped the Egyptians' at-
tempts to develop two single-stage liquid-fueled
ballistic missiles, but neither of these ever be-
came operational. There is no information avail-
able to substantiate the Egyptians' claim that
French technicians have been working on the "Zafir"
missile recently.
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ARGENTINA
President Peron is ordering strong measures
to protect foreign companies and their personnel
from terrorists,.
Peron mobilized national police after a left-
wing Peronist group threatened to kill employees
of the Ford Motor Company unless $4 million were
handed over. After the assassination of a Ford
executive in Cordoba last month, the company or-
dered all of its US personnel to leave the country.
When Ford threatened to close down operations in
Argentina, Peron told company officials from the US
he was setting up ? a council at the cabinet level to
coordinate the campaign against terrorism. A Ford
spokesman reportedly said last night that Ford now
plans to bring its people back eventually.
In addition, privately organized paramilitary
groups have already moved against the Peoples Rev-
olutionary Army and leftist elements within the
Peronist Youth These
counterterrorist groups, consisting largely of re-
tired military personnel, .ave Peron's
approval and to take orders from his wife.
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CHILE
The economic outlook calls for cautious opti-
mism as the junta continues to move to rebuild the
economy.
Some policy conflicts have surfaced within the
government, but these appear to be over tactics and
timing rather than basic policy. For instance,
there have been disagreements over how to carry out
negotiations on compensating the nationalized cop-
per companies. There is no disagreement, however,
that compensation should be paid and that the mines
should stay nationalized.
Another developing area of conflict is over
the degree of austerity to be imposed on the popu-
lace generally and the specific measures to ease
the impact on the poor. So far, the government's .
programs--together with an inflation rate that may
well exceed 750 percent for the year--have been
particularly hard on low-income groups. The middle
class has also been hit hard.
No organized resistance to the junta or its
policies has yet developed; those leftist agita-
tors who are still free seem thoroughly intimidated.
Nonetheless, there is a risk of growing unrest and
spontaneous strikes if the pressures on labor and
other consumers do not ease during the next six
months.
FOR THE PRESIDENT ONLY
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PERU
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FOR THE PRESIDENT ONLY
CANADA
The main opposition party, the Progressive Con-
servative, will introduce a motion of no-confidence
in Prime Minister Trude4u's minority government next
Monday on the energy issue. The government is under
attack for its plans to lift petroleum price ceilings
in February and for its failure to consult with pro-
vincial governments before announcing an export tax
on crude oil. There is also resentment because of
inadequate consultation on the projected Toronto-
Montreal pipeline, and growing criticism of the gov-
ernment's optimistic estimates with regard to petro-
leum shortfalls.
Recent opinion polls apparently have strength-
ened the belief of Progressive Conservatives that a
trend against the Liberals is setting in. The oppo-
sition may not actually be aiming at early elections,
however. Rather, it probably wants to keep pressure
on Trudeau's informal coalition until February, when
a new parliamentary session will require the govern-
ment to outline its legislative priorities. More
serious motions of no-confidence can be expected at
that time.
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NOTE
Korea: Full details of yesterday's North-South
Coordinating Committee meeting are not yet available,
but the talks apparently were businesslike. Pyongyang
expressed satisfaction with Yi Hu-rak's removal as
Seoul's chief negotiator and implied that it now has
a more positive attitude toward the talks. North
Korean naval patrols continue along and below the
Northern Limit Line, but early this morning a South
Korean resupply ferry arrived at one of the islands
without incident.
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Top Secret
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