THE PRESIDENT'S DAILY BRIEF 21 OCTOBER 1972

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993584
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: October 21, 1972

Declassified inPari - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011200180001-3
The President's Daily Brief
21 October 1972
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Exempt from general
declassification schedule of E.O. 11652
exemption category 5B(1).(2).(3)
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
21 October 1972
PRINCIPAL DEVELOPMENTS
The North Koreans have been treating Seoul's declara-
tion of martial law cautiously, and are prepared to
continue the dialogue with the South. Within South
Korea, virtually no resistance to the decree has
been reported. (Page 1)
Some members of the Brandt government evidently are
considering a limited inter-German treaty which
would leave major issues unresolved. (Page 2)
Tokyo's newly announced trade and foreign investment
program is not likely to remove pressures for an-
other revaluation of the yen. (Page 4)
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KOREA
The North Koreans have been treating Seoul's
declaration of martial law with circumspection, in
sharp contrast to their propaganda immediately
following Seoul's declaration of "national emer-
gency" last December. They have avoided invective
and made no direct reference to President Pak Chong-
hui. A North Korean article published just after
Seoul's announcement on Tuesday confirmed Pyong-
yang's willingness to go ahead with the dialogue
with the South The Red Cross delegations will
meet in Pyongyang on 24 October as previously sched-
uled, according to a-joint announcement, and the
co-chairmen of the higher level coordinating commit-
tee will meet in Pyongyang on 2 November and in
Seoul on 30 November.
Pyongyang may feel that this approach
will enhance its position in the talks
by pointing up its adherence to the por-
tion of the joint communique of 4 July
calling for an end to harsh propaganda.
Pyongyang may have had some advance
warning of Seoul's action.
South Korean Red
Cross official was instructed to provide
his North Korean'counterpart with prior
notification along with assurances that
the talks would not be affected. Such
an action would explain the South
Koreans' confidence that their decree
would not disrupt the talks.
Within South Korea, virtually no resistance
to the new decree has been reported. The regime
has begun to ease restrictions on public assembly
and the functioning of universities.1
/ the presence of
military equipment and armed personnel in the
capital and major cities is being kept to a mini-
mum. The political opposition and the press re-
main under tight restrictions, but no arrests
have been reported.
The government is feeling its way gin-
gerly and will maintain tight security
until the process of amending the con-
stitution is completed toward the end
of the year. The amendments--designed
to perpetuate Pak's rule--will be an-
nounced on 27 October and Seoul has
already begun to leak the details, pre-
sumably to cushion their impact.
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WEST GERMANY - EAST GERMANY
With the Bahr-Kohl negotiations on a gen-
eral inter-German political treaty still
stalemated, at least some members of the
Brandt government evidently are consider-
ing a more limited treaty, leaving some
major issues unresolved.)
Early this week West German State Secretary
Frank discussed with Allied ambassadors the possibil-/
ity of an agreement that would be limited to practi-
cal improvements in inter-German relations such as
aligning judicial processes and increasing trade.
He suggested that Bonn would signify that such a
treaty warrants its approval of East Germany's entry
to the UN. Another member of the Foreign Office,
while downplaying Frank's remarks, admitted that the
idea of a limited treaty had been discussed.
With West German elections now less than
a month away, the issue is a source of
sharp contention within Chancellor Brandt's
coalition. Many Social Democratic Party
leaders would be tempted by the idea of a
non-political" treaty which could be
billed as another success in Brandt's for-
eign policy. The more cautious Free Demo-
crats, on the other hand, might not go
along; Interior Minister Genscher told
Ambassador Hillenbrand on Wednesday that
he tended to prefer no treaty at all be-
fore the elections.
A limited treaty followed by admission of
both Germanies to the UN would deprive
Bonn of most of its leverage in seeking
Pankow's acceptance of the concepts of a
single German nation and no final peace
treaty. Pankow would still seek an ex-
change of ambassadors with Bonn, however.
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USSR - NORTH VIETNAM
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JAPAN
The government has finally announced its new
program to reduce international pressure for re-
-valuation of the yen. It calls for easing certain
import quotas and tariffs, and simplification of
import procedures. It also cuts restrictions on
foreign investment in Japan and makes it easier for
Japanese to invest abroad. In addition, limits
will be set for the export of certain items.
These limited measures are not likely to
remove pressures on Japan for revaluation.
Even if much stronger measures were taken,
it would be years before the Japanese could
pare down their enormous trade surplus to
levels acceptable to Japan's trade part-
ners.
In fact, the program has been-publicly de-
scribed by officials Of the Ministry of Finance as
a "token step."(
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NOTES
Chile: New strikes yesterday prolonged the
standoff between the Allende government and its
opponents. Armed leftist groups appear to be get-
ting increasingly impatient to take on their adver-
saries in the streets, but the military's broad
role limitsthat possibility. The government's
tactic of playing for time while taking selected
economic reprisals and further extending the re-
sponsibilities of the armed services is still work-
ing to President Allende's advantage. A joint state-
ment by the opposition parties assailing his ac.,
tiOns suggests that their next tactic may be to ini-
tiate formal charges in Congress that he is violating
the constitution. A ruling by the comptroller-gen-
eral that an order for government control of all
radiObroadcasting had been unconstitutional will
support such an approach.
? India-Pakistan: Technical agreement apparently
? has been reached on a slight modification of the
1949 cease-fire line in Kashmir, and the two govern-
ments are expected to announce their approval in a
few days. Once troop positions are adjusted in
? Kashmir, military, forces of both sides are to be
withdrawn from territory farther south seized dur-
ing the war last December. Completion of this with-
drawal would remove the major obstacle to a second
meeting between President Bhutto and Prime Minister
Gandhi to negotiate on the two outstanding problems:
Pakistan's nonrecognition of Bangladesh and India's
retention of 91,000 Pakistani prisoners.
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Top Secret
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