THE PRESIDENT'S DAILY BRIEF 10 JUNE 1972

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993347
• 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 10, 1972

Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A010800090001-8
The President's Daily Brief
10 June 1972
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THE PRESIDENT'S DAILY BRIEF
10 June 1972
PRINCIPAL DEVELOPMENTS
On Page 1 we discuss the coming high-level Soviet
visit to Hanoi.
The North Vietnamese are making heavy use of trucks
as an alternative to rail transport from China. In
South Vietnam, we note little change in the military
situation. (Page 2)
Signs point to a deterioration in the pound sterling
after its strong showing last year. (Page 3)
Recent actions by Peru against US interests have
interrupted the two-year-old trend toward better re-
lations. (Page 4)
Israeli air and naval maneuvers are keeping Arab
nervousness at a high pitch. (Page 5)
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USSR - NORTH VIETNAM
The North Vietnamese have confirmed
that Soviet President Podgorny will
head a delegation to Hanoi for a four-day visit be-
ginning 12 June.
Soviet leaders have a busy schedule this
month and there may be some slippage in
the timetable. Nonetheless, a high-level
Soviet visit to North Vietnam should take
place soon.
It will not be an easy encounter. The
North Vietnamese are clearly in need of
Moscow's reassurance after the US-Soviet
summit. We expect the Soviets to try to
comply, but in ways that will not unduly
disturb the US or dissipate the atmos-
phere generated at the summit. One,such
way--if Hanoi were willing?would be a
joint request to the Chinese for coopera-
tion in getting Soviet supplies to North
Vietnam. At the same time, however, the
Soviets will reiterate the view that ne-
gotiations offer the North Vietnamese as
many advantages as fighting.
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Heavy Truck Traffic Between Lang Son and Hanoi
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VIETNAM
The North Vietnamese appear to be organizing
an alternative to rail transport from China. US
pilots report that on the night of 7 June they
sighted an average of eight to ten southbound trucks
per mile along the 90-mile stretch of Route lA be-
tween Lang Son and Hanoi. They also observed heavy
traffic on parts of Route 13, which connects with
Route 187 from the Chinese border.
There has been little change in the military-
situation in South Vietnam. Although South Vietnam-
ese airborne troops linked up with An Loc's defend-
ers on 8 June, Route 13 is still blocked farther
south. Enemy artillery is continuing to fire both
on the town and on a fire support base to the south.
In the central highlands, South Vietnamese defenders
are continuing to press outward from Kontum City,
and government forces south of the city have been
augmented for another attempt to open the Kontum
Pass.
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UNITED KINGDOM
Britain's balance-of-payments surplus on cur-
rent account declined sharply. from $629 million in
the fourth quarter of last year to $78 million in
the first three months of this year. The decline
is attributable to a poor trade showing and reduced
income from insurance, shipping, and other services.
This, together with a gloomy economic forecast by
a prestigious private research institute, portends
a steady deterioration of the pound sterling after
its strong showing last year.
A weakened pound is particularly unwelcome
now because of the substantial foreign
exchange costs that will come with entry
into the European Community next year.
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PERU
Recent actions by Peru are causing new strains
in Peruvian-US relations. Late last month the Peru-
vian Government took the final legal steps expropri-
ating the International Petroleum Company without
compensation. Secret negotiations that could have
resolved the three-year-old impasse with the US
collapsed after press leaks aroused Peruvian na-
tionalist sensitivities. Moreover, Peruvian courts
have recently ruled against two other US businesses
in cases involving millions of dollars in back tax
claims. On the international scene, Peru's inten-
tion shortly to re-establish relations with Cuba is
motivated in part by the desire to show independence
of the US.
These actions interrupt the trend toward
improved relations which had been develop-
ing since US emergency assistance after
the earthquake two years ago. One reason
for this is pent-up Peruvian resentment
over US efforts to secure compensation for
the oil company. The Peruvians see the
US as penalizing them by seeking to pre-
vent multilateral lending institutions
from meeting Peruvian requests.
Another factor is Peru's growing confidence
that it has access to alternative sources
of financing for its economic development.
Peru has promises of credits from Japan,
West Germany, France, Spain, and the So-
viet Union. A high-level Soviet delega-
tion arrived in Peru last week to discuss
economic and technical cooperation in the
mining and petroleum fields. In addition,
recent oil strikes in the Amazon lowlands
may ultimately provide a major source of
funds.
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NOTES
Israel - Arab States: Arab fears of retalia-
tion for the Lod airport massacre are being fed by
Israeli air and naval maneuvers. Frequent Israeli
flights over Lebanon are continuing almost daily.
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/Arab news sources
have reported the presence of ships--presumably Is-
raeli fast patrol boats--off the southern coast of
Lebanon.
Egypt - West Germany: Cairo restored diplomatic
relations with Bonn on 8 June. Egypt undoubtedly
hopes to benefit economically from this move and
already has a West German promise of some $50 mil-
lion for its Gulf of Suez - Mediterranean pipeline.
Cairo may also be making a gesture of independence
from the Soviet Union.
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Top Secret
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