THE PRESIDENT'S DAILY BRIEF 16 MAY 1970

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005977458
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: May 16, 1970

? Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A008300140001-0
The President's Daily Brief
16*May 1970
47
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
16 May 1970
PRINCIPAL DEVELOPMENTS
Israel
(Page 1)
Economic reform in South Vietnam seems as far away
as ever. (Page 2)
(Page 3)
Communist troops consolidate their gains in north-
eastern Cambodia. (Page' 4)
The USSR is pushing for at least token aid from its
European allies in its dispute with China. (Page 5)
The Lebanese Government is badly shaken by the sus-
pected presence of Syrian troops in southern Lebanon.
(Page 6)
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ISRAEL
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SOUTH VIETNAM
Sensitive messages from the US Embassy in Sai-
gon indicate that President Thieu and his economic
ministers have tried to sound forthcoming about
plans for urgently needed economic reforms to fight
inflation and increase revenues. It seems likely,
however, that they see the political costs of some
of the needed measures as almost prohibitive; they
may not have spoken frankly to US officials about
their anxieties.
Saigon policy makers claim they are ready to
increase domestic tax collection very substantially
to prepare the way for further US economic aid.
They have based much of their planning on getting
special decree powers for President Thieu to in-
crease taxes and on keeping the unpopular austerity
taxes on the books. Now, however, South Vietnamese
officials believe that the austerity taxes are
likely to lapse soon because of opposition in the
National Assembly. These officials are also begin-
ning to waver about pressing for special decree
powers, the keystone of their entire program, pre-
sumably because any request for such powers is
likely to encounter very rough sledding in the
assembly.
Thieu is well aware that the present wave
of dissent, which is based on a variety
of grievances, began in the days following
his sudden announcement last fall of new
austerity taxes. He almost certainly an-
ticipates that serious efforts to enforce
new taxation would alienate each affected
population group and would compound the
discontent already existing in the mili-
tary establishments the bureaucracy, and
other salaried groups.
The feeling that it is politically impos-
sible to take necessary economic measures
has probably contributed significantly to
the general discouragement that appears
to be deepening among many of Thieu's top
aides. If Thieu does not take such meas-
ures, however, the economy is probably in
for deep trouble.
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SOUTH VIETNAM - CAMBODIA
Stations serving.the main political headquar-
ters of COSVWand a number of military and opera-
tional subordinates are congregating in an area
about 25 miles north of the Tay Ninh Province bor-
der--a good bit beyond the 21.7-mile limit set for
US forces./ 50X1
_ / Furthermore,
the North Vietnamese 7th Division headquarters moved
into a position just to the south of this new base,
suggesting that elements of the division could have
a security mission for these COSVN elements.
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Cambodia: Current Situation
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CAMBODIA
The Communists are driving the governments out
of the northeastern provinces. The capital of Stung
Treng Province apparently fell yesterday before a
sharp attack by about 2,000 Communist troops sup-
ported by mortar and rocket fire.(
Additional enemy attacks against the iso-
lated government positions in the northeast
are almost a certainty, and it is probably
only a matter of time before the govern-
ment's presence there is eliminated. The
current Communist drive probably is de-
signed to ensure the maintenance of already
existing supply routes from Laos and to
open up other routes farther inland.
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USSR - EASTERN EUROPE - COMMUNIST CHINA
The USSR seems to be placing increased stress
.on spelling out the "internationalist" responsibility
of its allies to support Moscow in its conflict with
China. An editorial in the Soviet Defense Ministry
journal Red Star on 14 May is the most recent of a
series oT-graares playing up the alleged determina-
tion of Warsaw Pact states to rebuff aggression "any-
where," a tenet implicitly incorporated into the
treaty signed and. published
last week.
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LEBANON
The government is embroiled in a dispute over
the movement of armed commandos from Syria into
Lebanese territory. The cabinet disagrees on how
many Syrian troops are involved, and President Hilu
and a majority
of the cabinet maintain that there are large numbers
of regular Syrian Army troops in Lebanon.
Interior Minister Jumblatt and fedayeen spokes-
men, however, claim that the incursion is a normal
rotation of guerrillas into the area and that there
are no. Syrian troops present. /
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Laos
CHINA
OATH
BURMA
V I ETNA'Al
THAILAND
at'L
Tf)%
Communist-controlled territory
Contested territory
VIETNAM
Limit of area claimed under
Communist and Neutralist
control, June 1962
THAILAND
CAMBODIA
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NOTES
Laos: Enemy forces are continuing their war of
nerves against Saravane. Two rockets landed within
the provincial capital early on 15 May, but there
were no casualties or damage. An unspecified number
of Communist troops are reported to be within two
miles of the town, but no fighting has developed.
In the north, the situation remains quiet. Two gov-
ernment irregular battalions are being transferred
from Long Tieng to the southern military region to
help maintain the government's control of the east-
ern edge of the Bolovens Plateau,
Iran: Over the past year or so, the Iranian
Government has solicited terms for a surface-to-air
missile system from various ?foreign manufacturers
and governments. This week an Iranian official ex-
pressed his government's desire to receive a US pro-
posal on the Hawk missile system prior to making a
final decision. The Iranians had made earlier ap-
proaches regarding this system, but found it too ex-
pensive. Nevertheless, they would probably prefer
the Hawk because of its compatability with their US-
supplied air defense system.
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