THE PRESIDENT'S DAILY BRIEF 17 OCTOBER 1970

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005977746
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 7
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: October 17, 1970

Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A008800170001-2
The President's Daily Brief
17 October 1970
Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A008800170001-2
Declassified in Part - Sanitized Copy Approved for Release 2016/04/27: CIA-RDP79T00936A008800170001-2
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
17 October 1970
PRINCIPAL DEVELOPMENTS
Panama's fiscal problems are likely to be .a major
topic of discussion during President-Lakas' visit
,to Washington. (Page 1)
Soviets
1 50X1
(Page 2)
The Soviet Union has joined the International Civil
Aviation Organization but Moscow is not expected to
endorse the US proposal for a multilateral boycott
of air services against countries harboring hijackers
engaged in international blackmail. (Page 3)
Egypt (Page 4)
The British/
/ (Page 4)
Singapore
FOR THE PRESIDENT ONLY
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Witym,
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FOR THE PRESIDENT ONLY
PANAMA
Panamanian officials have informed Ambassador
Sayre. that the government expects to run a deficit
of $56 million next year. They have indicated an
urgent need for $40 million by the first part of
1971. The.governMent-says itis no longer sanguine
about raising additional. ,money from private inter-
national sources and is even'beginning-to worry about
refinancing existing short-term private debts. Of-
ficials also are skeptical about, the ability of in-
ternational lending organizations to respond to their
needs quickly enough to be of assistance.
The Panamanians:appear to be counting on:
the US to prevent the impending fiscal
crisis. President Lakas is 'likely to raise
this'issue.when he meets with President
Nixon on 25 October. Lakas also is ex-
pected to.outline his-.country's..hopes for.
revisions in the canal treaties.
The high level of government spending is
largely the result of a Panamanian commit-
ment to sustain an economic growth rate
of between 7 and 8 percent despite the
sluggish increase in domestic private in-
vestment. A substantial decline in the
growth rate could create conditions seri-
ous enough to imperil the present govern-
ment. If initial approaches to the US are
unproductive, strongman General Torrijos
may well threaten to seek assistance from
socialist states, despite the likelihood
that such an approach would frighten do-
mestic and foreign investors and aggravate
his political difficulties.
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A008800170001-2
Witym,
Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A008800170001-2
FOR THE PRESIDENT ONLY
PANAMA
Panamanian officials have informed Ambassador
Sayre. that the government expects to run a deficit
of $56 million next year. They have indicated an
urgent need for $40 million by the first part of
1971. The.governMent-says itis no longer sanguine
about raising additional. ,money from private inter-
national sources and is even'beginning-to worry about
refinancing existing short-term private debts. Of-
ficials also are skeptical about, the ability of in-
ternational lending organizations to respond to their
needs quickly enough to be of assistance.
The Panamanians:appear to be counting on:
the US to prevent the impending fiscal
crisis. President Lakas is 'likely to raise
this'issue.when he meets with President
Nixon on 25 October. Lakas also is ex-
pected to.outline his-.country's..hopes for.
revisions in the canal treaties.
The high level of government spending is
largely the result of a Panamanian commit-
ment to sustain an economic growth rate
of between 7 and 8 percent despite the
sluggish increase in domestic private in-
vestment. A substantial decline in the
growth rate could create conditions seri-
ous enough to imperil the present govern-
ment. If initial approaches to the US are
unproductive, strongman General Torrijos
may well threaten to seek assistance from
socialist states, despite the likelihood
that such an approach would frighten do-
mestic and foreign investors and aggravate
his political difficulties.
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A008800170001-2
?is ?
Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A008800170001-2
FOR THE PRESIDENT ONLY
INTERNATIONAL AVIATION
The USSR joined the International Civil Avia-
tion Organization (ICAO) Thursday, ending its long
holdout as the only major air transport nation with-
out membership. On the same day the ICAO legal com-
mittee completed work on a draft convention that
would require adhering states to extradite or pros-
ecute hijackers. The draft will now be considered
by a diplomatic conference at The Hague in early
December.
The US-proposed air transport sanctions conven-
tion, which would apply a multilateral boycott of
air services against any nation harboring hijackers
engaged in international blackmail, is still under
consideration by the ICAO. Chances of approval at
the current session do not appear favorable.
Membership in ICAO will allow the Soviets
to participate in multilateral decisions
relating to the wave of hijackings. So-
viet reluctance to antagonize Arab views
may, however, serve as a partial brake
on their cooperation.
3
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A008800170001-2
Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A008800170001-2
FOR THE PRESIDENT ONLY
NOTES
Egypt?USSR/
4
FOR THE PRESIDENT ONLY
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Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A008800170001-2
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A008800170001-2