THE PRESIDENT'S DAILY BRIEF 25 AUGUST 1971

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005992823
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: August 25, 1971

Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800210001-6
The President's Daily Brief
25 August 1971
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THE PRESIDENT'S DAILY BRIEF
25 August 1971
PRINCIPAL DEVELOPMENTS
/Soviet Romania. (Page 1)
The Yugoslays are taking a tough stand regarding
upcoming talks between Tito and ?Brezhnev in Belgrade.
(Page 2)
Moscow apparently is seeking to exploit Tokyo's cur-
rent dissatisfaction with US policies on China and
economic matters. (Page 3)
(Page 4)
Foreign exchange markets remained calm yesterday
as efforts to find longer-term solutions to the
crisis continued. (Page 6)
India
Pakistan\
/ (Page 7)
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USSR-ROMANIA
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YUGOSLAVIA-USSR
The Yugoslays believe that, because the visit
of Brezhnev to Yugoslavia on 22-24 September is Mos-
cow-initiated, Belgrade has a tactical edge in seek-
ing important concessions. Tito's negotiating posi-
tion centers on a demand that any communique include
a renewal of the Soviet declarations of 1955 and 1956
guaranteeing Yugoslavia's sovereignty and the right-
of all Communist parties to pursue "different roads
to socialism." Belgrade is also demanding that Mos-
cow clamp down on the activities of Yugoslav emigres
in the USSR.
Tito's demands are likely to be more than
Moscow can accept, thus casting doubt on-
whether the visit will take place on sched-
ule. Tito, however, appears determined to
hold his ground. On 19 July Belgrade pub-
licly denied Soviet-inspired reports cir-
culating in Eastern Europe alleging the
formation by Romania, Yugoslavia, and Al-
bania of a pro-Chinese "axis" and accused
Moscow of dictating the foreign policy of
its allies. This accusation clearly indi-
cates Yugoslav willingness to fuel latent
anti-Soviet sentiment throughout the area.
Brezhnev probably wants to assess the new
Yugoslav governmental apparatus and to
make known his views on Belgrade's policies
before Tito's visit to the US in October.
He may also be seeking ways to weaken
Yugoslav-Romanian solidarity, to block
growing Chinese influence in the Balkans,
and to enlist Belgrade's support for new
peace initiatives.
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USSR-JAPAN
Soviet diplomats- have made a, number of: approaches
to the Japanese in the last several weeks to suggest
that- closet - Japan-USSR ties could 'counter improvements
in- US-China relations../
Soviet efforts to exploit Tokyo's dissatis-
faction with Washington's China policy and
recent US economic moves were predictable.
The Soviets may also be encouraging Sato
to accept a long-stand.na invitation to
visit the USSR.
In order to make meaningful headway with
the suspicious Japanese, Moscow will have
to do something more than just sympathize
with Japan's current frame of mind. It
could, for instance, offer some concessions
on fishing in waters around the Kurils.
The chief of the policy committee in Sato's
Liberal Democratic Party will be visiting
Moscow next week; his reception may give?
some additional clues about how seriously
Moscow intends to pursue better relations
with Japan.
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USSR
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4
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INTERNATIONAL ECONOMIC DEVELOPMENTS
Foreign exchange markets remained calm yester-
day as efforts to find longer-term solutions to the
crisis continued. (
European Community members may meet before
their Council session now ,scheduled for 13 Septem-
ber in another attempt to work out common exchange-
rate policies. Although some French officials have
been talking about a Brandt-Pompidou meeting, there
is reluctance.to go into a summit session unprepared;
a Benelux proposal for the Community finance minis-
ters to meet in early September, with the foreign
ministers also present, may be an acceptable alter-
native. German officials have commented that a
Community meeting would be preferable to bilateral
talks with the French and have said that their two
ministers could be available on 4 September.
At the special General Agreement on Tariffs
and Trade (GATT) Council meeting held to discuss
the ten-percent surcharge on imports into the US,
the European Community strongly denounced it and,
as expected, reserved the right to retaliate if
the surcharge is not removed. The Community also
called for establishing a working group to study
the US action and deliver a report before the end
of September.
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NOTE
India-Pakistan/
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Top Secret
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