THE PRESIDENT'S DAILY BRIEF 26 JUNE 1976

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006015147
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: June 26, 1976

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The President's Daily Brief
June 26, 1976
2
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Exempt from general
declassification sshedule of E.O. 11652
exemption category 5B( 0.12).(3)
declassified only on approval of
the Director of Central Intelligence
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June 26, 1976
Table of Contents
Lebanon: Christian militiamen pressed their assault yesterday on
two Palestinian refugee camps in Beirut for the fourth con-
secutive day. (Page 1)
The Libyans may be using their new role in Lebanon to rearm
the Palestinian and leftist militias. (Page 1)
Esypt
(Page 2)
Riartttgal: Army chief Ramalho Lanes is the clear favorite in the
presidential election scheduled to be held tomorrow. Prime
Minister Azevedo is reportedly improving. (Page 3)
Italy: =Political leaders are probing cautiously for signs ?of
party flexibility prior to the opening of negotiations on
a new government. (Page 4)
USSR-China:
(Page .5)
USSR-Angola:
(Page 6)
Poland: The government capitulated to the demands of striking
workers and yesterday withdrew food price increases proposed
the preceding day. (Page 7)
Notes: Mozambique-Rhodesia; Kenya (Page 8)
FOR THE PRESIDENT ONLY
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Beirut, Lebanon
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LEBANON: Christian mi-
litiamen pressed their
assault yesterday on
two Palestinian refugee
camps in Beirut--Tall
Zatar and Jisr al-
Basha--for the fourth
consecutive day.
We do have evidence
that the Libyans may
be using their new role
in Lebanon to rearm the
Palestinian and leftist
militias.
The fall of the camps would be the
Palestinians' first major defeat
at the hands of the Christians.
The Palestinians still control
most of west Beirut, however, and
would not necessarily be more will-
ing to engage in serious negotia-
tions.
Palestinian and leftist forces in
the western part of the city stepped
up retaliatory attacks yesterday
against two Christian residential
districts, action that threatens
to draw the Phalanges Party mili-
tia into the ground fighting.
A Libyan ship--presumably carrying
arms--was instructed to head for
Sidon on June 22 just after Libyan
Prime Minister Jallud had arranged
for the phased withdrawal of Syr-
ian forces from that southern bort.
Lgypt ana iraq are also cooperat-
ing in efforts to send arms to the
Palestinians through Sidon. One
shipment reportedly has already
arrived and another is due this
weekend.
Libya's suspicious activities and
the explosive situation in Beirut
will almost certainly preclude
any further deployment of the Arab
--continued
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EGYPT:
League peace-keeping force and
may upset what little progress
has been made toward implementing
Prime Minister Jallud's truce
agreement.
The first phase of the agreement
involving the exchange of prison-
ers and the withdrawal of Syrian
troops from Beirut is already well
behind schedule. The Syrians, more-
over, show no willingness to comply
fully with the second phase, which
calls for their further withdrawal
from Beirut and Sidon.
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--continued
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PORTUGAL: Portuguese
army chief Ramalho
Eanes is the clear fa-
vorite in the presiden-
tial election scheduled
to be held tomorrow.
Latest medical reports
on the condition of
Prime Minister Azevedo
describe him as improv-
ing.
General Eanes could be hurt by a
low voter turnout that would tend
to help the two leftist candidates--
former security chief Otelo de
Carvalho and Communist central
committee member Octavio Pato.
Eanes expects to pick up some of
Azevedo's support, but many of
the Prime Minister's backers and
lukewarm Eanes supporters may not
vote in the belief that the army
chief's victory is now assured.
Should Eanes fail to obtain a first
ballot majority, he will be forced
into a runoff with the candidate
who finishes in second place.
Azevedo was expected to wage the
most effective campaign against
Eanes, but his illness is likely
to knock him out of the running.
Carvalho has emerged as something
of a dark horse, often attracting
enthusiastic crowds twice as large
as those who turned out for Eanes.
Some public opinion polls report-
edly showed that he had overtaken
Azevedo even before the latter's
heart attack.
If a runoff is needed, it must be
held within 21 days. Even without
a runoff, Portuguese officials ex-
pect completion of the official
--continued
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ITALY: Political
leaders are probing
cautiously for signs
of party flexibility
prior to the opening
of negotiations on a
new government.
The Communist director-
ate said this week that
the party is ready to
assume responsibility
"in accordance with its
political weight."
vote count will require a week to
ten days. The president will be
sworn in eight days later. The
new government is unlikely to take
over until mid-July.
The Socialists are sticking to
their campaign position that any
new government must at least seek
Communist support in parliament. ,
According to one Socialist leader,
serious disunity may dissuade the
party from reentering the cabinet
in the immediate future but it
would probably support the forma-
tion of a Christian Democratic
minority government if agreement
can be reached on certain programs.
The Communists have been dropping
hints, however, that they would be
willing to enter into a formal con-
sultative relationship with a gov-
ernment in which they would hold
no cabinet posts. At the same
time, the Communists are saying
that their increased strength in
parliament entitles them to the
presidency of either the chamber
or the senate.
Possibly with the intention of in-
fluencing party positions as to
the next government, the Secretary
General of Italy's largest'labor
union, himself a Communist, has
urged that cost-of-living wage ad-
justments be applied only to earn-
ings below a fixed level. Any
offer to curb cost-of-living adjust-
ments in wages is a sharp break
--continued
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Several Christian Demo-
cratic leaders have
made clear that they
will aim for the re-
vival of their alliance
with the Socialists.
USSR-CHINA:
from previous trade union and Com-
munist policy. The remarks of the
labor official come as Italy's
trade unions are about to resume
their triennial wage negotiations.
The party directorate will meet 25X1
Wednesday, and the national coun-
cil--the party's chief delibera-
tive body--will gather on July 3.
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--continued
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USSR-ANGOLA:
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POLAND: Prime Minister
Jaroszewicz announced
yesterday afternoon the
withdrawal of the stiff
food price increases
that the government pro-
posed Thursday.
The regime caved in to the demands
of striking workers. The abrupt
cancellation of the price rises
suggests that public disturbances
were in fact more widespread and
serious than initial reporting in-
dicated.
The police reportedly have not yet
confronted the strikers. They are
undoubtedly under orders to play
it cool in order to avoid the over
reactions that led to the riots of
December 1970. Those riots toppled
the Gomulka regime and brought
Gierek to power. Even so, the suc-
cess of the workers in forcing the
government to back down could so
encourage them that they might make
it difficult for the Gierek leader-
ship to restore order.
Warsaw's efforts to regain public
confidence will almost certainly
include personnel shifts as Gierek
seeks to protect his position. He
must also make a major effort to
tighten social discipline without
again sending the workers into the
streets. Overall, the regime's
actions have made it even more dif-
ficult to solve pressing economic
problems.
--continued
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Lilongwo
Zambia
Southwest
Africa (Nami )
Mozambique
Channel
Botswana
Road
Railroad
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200 MILES
200 KILOMETERS
South Inca
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Mozambican troops are
acting more aggressively
against Rhodesian secu-
rity forces in response
to cross-border Rhode-
sian operations.
Kenyan
NOTES
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bicans attacked a camp on the north-
east Rhodesian border this week
with mortar and artillery fire.
Earlier this month, they fired mor-
tars and rockets across the south-
eastern Rhodesian border on three
occasions.
There is further evidence of guer-
rilla operations across the Zambian
border into northwestern Rhodesia.
In one incident the guer-
rillas tried to sabotage a Rhode-
sian air strip near the Zambian
border.
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,
Top Secret
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