THE PRESIDENT'S DAILY BRIEF 2 AUGUST 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007781
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: August 2, 1974

Declassified in FG1 - Sanitized Copy Approved for Release 2016/07/15 : EIA-R6F'79T00936A012200010029-0
The President's Daily Brief.
. 1
(s.0
August 2, 1974
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Exempt from general
declassification schedule of E.O. 11652
exemption category 5B(I
declassified only on approval of
the Director of Central Intelligence
t, 4
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
August 2, 1974
PRINCIPAL DEVELOPMENTS 25X1
Egyptian-Israeli disen-
gagement lines shows that both sides are continu-
ing to comply with the disengagement agreement.
(Page 1)
Egypt
/ (Page 2)
Israel
The Soviets have sent a number of military trans-
port aircraft to Syria and Iraq over the past few
days. (Page 3)
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Greek Prime Minister Karamanlis is moving rapidly
to consolidate his control. Rumors of impending
transfers of top army leaders produced some unrest
among the military yesterday. (Page 4)
On Cyprus, fighting continued yesterday around
Lapithos, near the northern coast. Life in the
capital is gradually returning to normal. (Page 6)
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Japan
China
(Page 6)
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Amintore Fanfani, leader of the Italian Christian
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Democratic Party, has given Ambassador Volpe an
appraisal of likely developments in Italy over the
next few
months. (Page 7)
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France
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A note on
pears on Page 9.
(Page 8)
the USSR ap-
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FOR THE PRESIDENT ONLY
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.11 ort Sal.
Mediterranean Sea
Port Port Fuad
Line A
Line 13
Line C
ntarah
UNEF
area
\Deversoir.
Fhid.
Egypt
tile
'tier
Lake
Suez.k
Eastern line of Egyptian/forces
"A" Eastern line of limited Egyptian forces \
Western line of limited Israeli forces \
Western line of Israeli forces
United Nations Emergency Force
buffer area
5.56312 8-74 CIA
20 Statute miles
20 Kilometers
Line A
Line 8
Line C
Gulf
&
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EGYPT-ISRAEL-DISENGAGEMENT
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Egyptian-Israeli disen-
gagement lines both 25X1
sides are continuing to comply with the disengage-
ment agreement.
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FOR THE PRESIDENT ONLY
EGYPT-ISRAEL
Both Egypt and Israel have recently cited the
possibility of new fighting in the future0
that the steps
the Israelis have taken are intended to reassure the
public that the Israeli military will not be caught
napping. Tel Aviv must also wish to bolster the
mission of Foreign Minister Allon in Washington.
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USSR - MIDDLE EAST
Over the past few days, the Soviets have sent
a number of military transport aircraft to Syria and
Iraq. Ten AN-12s, each of which can carry ten to
twelve tons of cargo, have arrived in Damascus since
July 27. Five military IL-28 passenger aircraft and
two AN-10 transports have flown to Baghdad over the
same period. These flights to Baghdad could have
carried some 600 passengers; they may have returned
Iraqi personnel home from training with the MIG-23
and other weapons systems in the USSR. We do not
yet have evidence on the cargoes to Syria.
? There were also four Soviet military transport
flights to Egypt from July 16 to 26 after a hiatus
of three months. These may have carried spare parts
sorely needed for the Egyptian military.
3
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FOR THE PRESIDENT ONLY
GREECE
Prime Minister Karamanlis is moving rapidly
to consolidate his control. Yesterday the govern-
ment restored the 1952 constitution, except for
portions involving the monarchy. Reverting to the
constitution enhances the authority of the new gov-
ernment over matters the army has controlled since
1967, including the power to appoint, promote, and
transfer military personnel.
Rumors of impending transfers of top army lead-
ers produced some unrest within the military yes-
terday. The press reported "difficulties" among
officers at the armed forces headquarters just out-
side Athens, and increased security measures were
taken at Karamanlis' headquarters in the city.
Karamanlis, for his part, reportedly is under
growing pressure from his ministers to move swiftly
against the military leaders. He may be persuaded
that the time is ripe in the wake of Ioannidis'
Cyprus caper. Discredited though it may be, how-
ever, the military remains the most powerful force
in the country. Karamanlis will have to proceed
cautiously in order to prevent countermoves by
key army leaders.
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BULGARIA
ALBANIA
*Ankara
CYPRUS
LEBANON
"MBA L
Territory controlled
by Turkish forces
Kyreni a
? Famagusta
Akrotiri
Limassol
Larnaca
CYPRUS
UK Sovereign base area
10 20
MILES
556311 8-74
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FOR THE PRESIDENT ONLY
CYPRUS
Fighting continued yesterday around Lapithos,
near the northern coast. UN sources reported heavy
artillery and mortar fire west of the town, and
added that the Turks were advancing south toward
Agridhaki.
Life in the capital is araduallv returning to
normal, htroops
from both sides were moving freely about their posi-
tions yesterday without serious incident. Businesses
and government offices were open, and the Greek press
resumed publication.
The Turks, meanwhile, continue to bolster their
forces on the island. According to a UN observer,
15 Turkish ships, eight of them landing craft, were
off Kyrenia early yesterday.
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CHINA-JAPAN
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ITALY
During a recent talk with Ambassador Volpe,
Christian Democrat leader Amintore Fanfani said he
expects the government's austerity program to be
passed by parliament within the next two weeks. He
added, however, that anew government crisis is
likely after the August holidays.
In Fanfani's view, the crisis will be triggered
by the increase in unemployment that will result
from implementation of the austerity program. He
said the program might cause the loss of as many as
750,000 jobs. This would prompt labor to press
strongly for the Socialists to quit the coalition.
One of the other coalition parties has already
warned it will take fresh stock of the political
situation in September. At that time, the unions
also plan to examine the effects of the austerity
measures. If events bear out Fanfani's prediction
on unemployment, opposition from labor will stiffen.
Fanfani assured Volpe that his party is not
about to enter into governmental collaboration with
the Communists. The Christian Democrats, at their
recent National Council meeting, formally opposed
such collaboration, and the Communists themselves
are not yet ready to make the jump into a government
coalition. For the present, at least, the Communists
prefer to apply more gradual pressure for a stronger
role in national decision-making, an approach that
has already done much to increase acceptance of the
Communist Party as a legitimate organization.
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FOR THE PRESIDENT ONLY
FRANCE
that
President Giscard's defense study will include a
review of the nuclear force. Officials in the
French Ministry of Defense and the French Atomic
Energy Commission remain concerned that, for eco-
nomic reasons, Giscard may decide to delay the nu-
clear program.
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NOTE
USSR:
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Top Secret
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