THE PRESIDENT'S DAILY BRIEF 29 JUNE 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993862
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: June 29, 1973

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Declassified in, Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00-936?A011600010076-5
'T. A
The President's Daily Brief
29 June 1973
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Exempt from general
declassification scheduk of E.O. 11652
exemption category 5811),(2).13)
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010076-5
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14: CIA-RDP79T00936A011600010076-5
FOR THE PRESIDENT ONLY
LATE ITEM
According to late press reports this morning,
West Germany has revalued the mark upward by 5.5
percent. The growing strength of the mark has been
creating problems both for the dollar and the Euro-
pean joint float. These problems are discussed on
page 1.
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
29 June 1973
,PRINCIPAL DEVELOPMENTS
The dollar remained under heavy pressure in Europe
yesterday, as traders continued to favor the mark.
The growing strength of the mark is also causing
problems for the European joint float. (Page 1)
The Soviets appear to be deactivating a number of
their SS-7 intercontinental ballistic missile launch-
ers at 17 operational "soft" sites. (Page 2)
The Japanese are worried that the US embargo on
soybean exports may lead to more permanent controls.
(Page 3)
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
INTERNATIONAL MONETARY DEVELOPMENTS
The dollar remained under heavy pressure in
Europe yesterday, as exchange traders continued to
favor the mark. The growing strength of the mark
is also creating problems for the European joint
float. European central banks have been forced to
intervene heavily to maintain the band.
The Bundesbank reportedly purchased some $400-
600 million in various European currencies yesterday.
Last week, the bank purchased nearly $400 million
in guilders to keep the Dutch currency within the
band. Other central banks sold smaller amounts of
marks; the French Central Bank sold marks for the
first time since the joint float was initiated.
The mark's strength is generating pressures
that could force some restructuring, or even the
breakup, of the band. Exchange rate changes may
be considered as an alternative to abandoning the
band, however.
There are strong rumors in Europe that the mark
will be revalued, despite a denial yesterday by West
German Finance Minister Schmidt. Many Germans, in-
cluding the economics minister, are not opposed to
revaluation, and believe it would help the govern-
ment's anti-inflation efforts.
If the mark is not revalued, the other members
of the joint float may consider devaluing their cur-
rencies relative to the mark. They fear that over
the long term, the appreciation of their currencies
would adversely affect their trade with the US and
other countries outside the joint float. These
countries probably are also unwilling to allow the
drain of marks from their treasuries to continue in-
definitely.
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USSR
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JAPAN
The US embargo on soybean exports on June 27
has led to an immediate increase in Japanese commod-
ity prices; soybean prices alone rose five percent.
Tokyo has closed its futures market for soybeans,
and one official said that the Japanese might be
forced to take unspecified emergency measures.
Although Japanese officials have attempted
to downplay for domestic audiences the sig-
nificance of the embargo, they clearly are
worried that the restriction will lead to
more permanent controls that could be ex-
tended to grains as well,
Japan depends on the US for about 90 per-
cent of its soybean supply and roughly
half of its total supply of corn, wheat,
and sorghum. The Japanese currently have
a two-month stock of soybeans and had con-
tracted for the remainder of their needs
for 1973. The embargo could invalidate
some of these contracts.
Tokyo already has argued that, as the
largest consumer of US agricultural ex-
ports, Japan should be given special con-
sideration in any future allocation of
commodities available for export.
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FOR THE PRESIDENT ONLY
NOTES
Argentina: The new Peronist government has
placed before Congress its bill to transfer foreign
investments to Argentine nationals. The bill does
not involve outright expropriation, but would re-
quire the sale of majority holdings to Argentines,
limit capital and profit remittances, and severely
restrict new foreign investment. Nearly all of the
estimated $3 billion total foreign investment, of
which about half is US, could be affected.
Egypt-Israel:
Morocco-Syria: Over 400 Moroccan infantry
troops are now in Syria,
More than 2,000 Moroc-
can Army personnel are scheduled to be sent to Syria.
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Top Secret
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