THE PRESIDENT'S DAILY BRIEF 31 JANUARY 1972

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993111
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: January 31, 1972

Declassified in Part :Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP/9T00936A010300270001-3
The President's Daily Brief
31 January 1972
47
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
31 January 1972
PRINCIPAL DEVELOPMENTS
In Laos, action around Long Tieng was light this
weekend. (Page. 1)
Japanese leaders are publicly pressing for govern-
ment-level talks with Peking but they re-
main cautious about prospects for normalizing rela-
tions. (Page 2)
Pakistan's break with the Commonwealth is not likely
to halt the trend toward recognition of Bangladesh.
(Page 3)
The latest round of talks on Malta made some prog-
ress but several important issues remain. (Page 4)
Peking has extended $65 million in economic aid to
Chile, the largest single credit Chile has obtained
to date from a Communist country. (Page 5)
FOR THE PRESIDENT ONLY
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LONG TIENG AREA
FrOCGovernment-held location
?Communist-held location
A Highpoint
? I 0 5
1 Miles
itan Na
,P?
MAT
Phou Se
\DES-r
eluong Pot JARR
Wha Tam Bleung
Sam Tho
.Phou Pha Sai
Khang Khfib
NVA probing attacks
ong Tieng
ha Khao
Pha Dorf?
I Ban
Phone
Muong
ha--"
552486 1-72 CIA
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FOR THE PRESIDENT ONLY
LAOS
Action around Long Tieng was light this week-
end. Four of the eight irregular battalions that
came to the relief of Long Tieng from Savannakhet
are scheduled to return to south Laos today for rest
and reorganization. These? troops suffered 25 per-
cent casualties during the retaking of Skyline Ridge
and their effectiveness and morale have declined.
A recent intercept from a North Vietnamese unit
near the Plaine des Jarres indicates that the fight-
ing is also having an effect on the enemy. Accord-
ing to the message, some Communist troops are afraid
of the possibility of saturation bombing and do not
want to go into combat. The intercept also mentioned
logistical difficulties, including a lack of spare
parts and explosives.
Even though the North Vietnamese are being
heavily attacked from the air, there is
no evidence that morale or logistical prob-
lems are of such scope that they would pre-
vent the Communists from launching a heavy,
coordinated attack after their preparations
are completed.
1
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FOR THE PRESIDENT ONLY
JAPAN - COMMUNIST CHINA
Prime Minister Sato and Foreign Minister Fukuda
have told the Diet that they want to establish normal
relations with Communist China. Both called for talks
with Peking at the government level. Sato acknowl-
edged Japan's close ties with Taipei, but noted that
Communist China has been admitted to the TAi and that
Tokyo's talks with Peking should be on the basis of
"realization that China is one." Fukuda, who is a
leading contender to succeed Sato, did not mention
Taiwan.
Furthermore, while
most leaders of the ruling Liberal Democratic Party
have concluded that diplomatic ties must be estab-
lished with Peking, they are still uncertain about
the pace at which Japan should proceed.
Fukuda's caution stems in large part from
Peking's aversion to Sato personally and
from indications that China is unwilling
to come to terms with Japan as long as
Sato is Prime Minister.
Despite considerable reservations in Tokyo, at
least one press report claims that the Japanese have
already sounded out the French about arranging am-
bassadorial talks with the Chinese. During his visit
to Tokyo in mid-January, Foreign Minister Schumann
is said to have offered his good offices.
2
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FOR THE PRESIDENT ONLY
PAKISTAN-COMMONWEALTH
Pakistan said yesterday that it is cutting its
ties with the Commonwealth as a result of today's
recognition of Bangladesh by Australia and New Zea-
land and Britain's apparent intention to announce
recognition on 4 February.
Commonwealth withdrawal is most likely
welcomed by the Pakistanis, most of whom
have long questioned the organization's
value, and who are resentful of the aloof
attitude of Britain and the major Common-
wealth countries during the war with In-
dia. The action is not likely to have
much impact on the trend toward recogni-
tion by other states, however.
Besides Australia and New Zealand, the
only Commonwealth countries which thus
far have recognized Bangladesh are India,
Barbados, and Cyprus. Cypriot recogni-
tion last,week Zed the Pakistanis to
break relations with Nicosia, as they
have done with most countries taking this
step. Bhutto has indicated, however,
that he cannot afford to sever ties with
"major powers" such as the USSR and he
may have opted to withdraw from the com-
monwealth in preference to breaking rela-
?
tions with the more powerful members of
the group. Bhutto told a press confer-
? ence yesterday ?that he is prepared to
continue bilateral relations with Britain.
Pakistan's need for economic assistance,
moreover, may shape its reaction to rec-
ognition moves by the other lctrger states
both within the Commonwealth and in West-
ern Europe--most of whom have supplied
economic aid to Pakistan in the past.
Although the UK has been advocating agree-
ment on a common date for recogntiion of
Bangladesh by the European Community coun-
tries, several states including France
and Italy have not committed themselves.
3
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FOR THE PRESIDENT ONLY
MALTA UK-NATO
The latest round of talks which ended Saturday
made some progress, but several important issues re-
main. On the chief financial question--the annual
"rent" to be paid to Malta--Prime Minister Mintoff
appears tentatively to have accepted the final Al-
lied offer of $36.4 million annually--provided that
he gets his demand for at least some immediate cash.
The North Atlantic Council will discuss this formula
today.
The major bilateral Malta-UK issue--the terms
for British-employed local labor--is still unsettled.
Working-level discussions will continue in Valletta
this week on this and other aspects of a new defense
agreement in preparation for the next ministerial
meeting in Rome on 7 February.
In the meantime, the withdrawal of UK forces
from Malta is continuing. British officials note
that they will soon begin dismantling heavy equip-
ment, including radar facilities, a step which will
be difficult and costly to reverse. Nevertheless,
London believes it must continue the withdrawal as
a means of pressuring Mintoff to come to terms.
4
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FOR THE PRESIDENT ONLY
NOTE
Chile-China-USSR: Peking has extended $65
million in economic aid to Chile, the largest single
credit Chile has obtained to date from a Communist
country. Moscow extended $50 million in foreign
exchange to Santiago late last year. Foreign Min-
ister Almeyda has implied that the Chinese assistance
is in the,form of hard currency on a short-term
basis--just what Chile needs most. Moscow's aid
carried similar terms. China's action comes almost
immediately after the arrival of a high-level Soviet
economic delegation in Santiago, which implies that
Peking is interested in competing with Moscow for
influence in Chile. The composition of the Soviet
delegation suggests that Moscow is undertaking a
thorough examination of the Chilean economy. Thus
far, the $90 million in outstanding Soviet economic
credits to Chile have been used mostly for preliminary
survey work.
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Top Secret
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