THE PRESIDENT'S DAILY BRIEF 28 JULY 1970

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005977591
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: July 28, 1970

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The President's Daily Brief
28 July 1970
49
Top Secret50"
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
28 July 1970
PRINCIPAL DEVELOPMENTS
Recent developments in Cambodia are discussed on Page
The rift between Thieu and Ky is widening. (Page 2)
The Israeli trade deficit has risen and Tel Aviv
will need substantial foreign help to avoid strong
austerity. (Page 3)
Castro's 26 July speech stressed economic measures
and reform suggesting more amenability to Soviet ad-
vice. (Page 4)
China's long-overdue National Peoples' Congress may
be imminent. (Page 5)
Satellite photography reveals Soviet airstrip complex
on South Yemeni island of Socotra. (Page 6)
Student problems in La Paz have stirred a political
crisis and may result in violent demonstrations.
(Page 7)
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Cambodia: Current Situation
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CAMBODIA
Enemy forces attacked and occupied the Chinese
Communist - built cement factory in Kampot Province
at Chakrei Ting, nine miles northeast of Kampot city
on Route 3, on 27 July. The? Communists also destroyed
two bridges in the area.
the Communists were becoming more active in Kampot
Province, following the withdrawal of South Vietnam-
ese troops.1
In the east, in Kompong Cham Province, the Com-
munists attacked a textile factory near Kompong Cham
city on 26 July. The factory, which was also a Chi-
nese aid project, is being defended by 100 government
troops.
The fighting at Kirirom in Kompong Speu Province
has dragged into its third week. Communist troops
strongly attacked a,battalion of government forces
in the center of the resort town yesterday. Late
press reports claim that heavy ground fire has pre-
vented helicopters from reaching the town and that
close ground fighting has ruled out air strikes. En-
emy units also continue to harass sections of Route
4 with sniping fire.
Meanwhile, in Prey Veng Province, a company-
sized Communist unit attacked the capital on 26-27
July, but apparently withdrew under government counter-
fire. Farther south, near the town of Kompong Trabek
on Route 1, rangers from the South Vietnamese task
force running clearing operations claim they killed
65 Communists and captured 19 on 26 July.
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SOUTH VIETNAM
The rift between Thieu and Ky is widening. In
recent days, Ky has publicly charged that some cabi-
net members are involved in major illegal currency
transactions. Ky has suggested that some of Thieu's
advisers have been bribed to betray the President.
Ky has condemned the whole national leadership as
billionaires living 'a life of ease and incapable of
providing the country with social justice. -
This broadside is the latest in a series
of aggressive statements which Ky began in
early June after he realized that the Presi-
dent would not let him have the major role
in managing operations in Cambodia. Ky has
a reputation for tactless utterances during
periods of disappointment and frustration,
but he has not had the tenacity to sustain
this kind of activity for very long. He
may hope that his current attention-getting
statements will aid him if he decides to be
a candidate for president in 1971.
Until Ky 's latest outburst, Thieu had not
responded publicly, but this time the Presi-
dent publicly described the 1967 election
with Ky as a "forced marriage," and in ef-
fect called Ky a liar. Thieu's sharp re-
action suggests that Ky has found a soft
spot.
Ky is also taking a "good riddance" line
toward US aid. He has indicated that South
Vietnam should welcome the removal of US
troops, since this will free South Vietnam
from political pressures originated by
"stupid" US pacifists. Ky has been more
outspoken than most South Vietnamese about
his irritation over Saigon's dependence on
the US. He may aim to appeal to anti-
American sentiment which has been surfacing
with increasing frequency in South Vietnam.
2
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ISRAEL
The Israeli trade deficit during the first six
months of 1970 totaled $338 million, compared with
$259 million in the same period of 1969. Imports
rose much faster than anticipated, while exports
fell short of Tel Aviv's goals. Mildly restrictive
economic policies adopted several months ago have
had no visible impact thus far on the deficit. In
addition, bond sales and gifts--while up from last
year--are lagging.
Even assuming that the trade imbalance is
curtailed sharply in the second half of
the year, Israel apparently will face a.
deficit of $200-250 million not covered b
Currently available loans.
With less than $450 mil-
lion in foreign exchange reserves, Tel Aviv
will need substantial additional foreign
financing if it is to avoid stringent aus-
terity measures.
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CUBA
In his traditional 26 July speech, Castro indi-
cated that government leaders who have been unable
to copeS with Cuba's complex economic problems will
be replaced. He also said that there will be changes
in the administration and the party. Castro enumer-
ated the economic setbacks Cuba has suffered and said
that it would be five years before improvements be-
come evident. As a major innovation, he is forming
a Bureau of Socialist Production to coordinate all
economic activity and to develop realistic plans for
the economy.
Although some personnel reshuffling will
probably occur, Castro is unlikely to sur-
render a significant amount of his own
power and presumably will continue to play
the major role in deciding Cuba's economic
path.
Moscow has in the past advised Castro to
put his economic house in order. His pre-
occupation in this speech with economic
matters and his stated willingness to adopt
measures to improve Cuba's plight suggest
that Castro now seems more amenable to
Soviet advice.
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COMMUNIST CHINA
Travelers from China report that a Peking "di-
rective" was broadcast in Canton on 23 July urging
residents to prepare for the "imminent" opening of
the long-delayed National Peoples' Congress.
The last National Peoples' Congress was
held in 1965; it is the civil government's
counterpart to the national party congress
which met last year. When it convenes, it
is expected to tie up important matters
left over from the Cultural Revolution,
including selection of a new chief of
state to replace the ousted Liu Shao-chi
and the formal restaffing of the various
government ministries and bureaus.
5
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Soviets Building Large Airstrip
Complex on Socotra Island
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USSR - SOUTH YEMEN - EGYPT - SUDAN
Recent satellite photography has, revealed a
large Soviet airstrip complex on. the South Yemeni
island of Socotra off the south cOast.of the Arabian
peninsula. The complex consists of three graded
earth airstrips, the longest of which is almost
10,000 feet. Support facilities are rudimentary at
this stage.. When last covered in low-resolution,
photography in December 1969, the.airfield on the
island appeared to be abandoned.
6
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BOLIVIA
Information Minister Bailey resigned yesterday,
charging that the Ovando government is making a
definitive break with the "revolutionary process."
The resignation apparently is an outgrowth of a
dispute within the government on the best course
to follow in resolving the conflict between rightist
and leftist student elements at the university.
President Ovando appears to be.involved
in some.effort'to resolve the crisis-through
a compromise-./
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NOTES
Peru-USSR: Moscow has resumed its airlift.to
Peru after a week's delay. Two AN-12s departed for
Lima on 25-July, followed by two AN-22s the next day.
The total number of giant AN-22s used thus far--
seven, including the one lost at sea--is three more
than originally planned for the airlift. The addi-
tional AN-22s are probably being used to make up some
of the time lost.
Arab States
8
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Top Secret
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