THE PRESIDENT'S DAILY BRIEF 27 JULY 1971

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005992773
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 7
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: July 27, 1971

Declassified in Part: Sanitized Copy Approved for Release 2016/06/14 : CIA-RbP79T00936A009700240001-4
The President's Daily Brief
27 July 1971
2 '2
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009700240001-4
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009700240001-4
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
27 July 1971
PRINCIPAL DEVELOPMENTS
A number of Japanese companies are reconsidering
their commercial relationships with Nationalist
China and South Korea. (Page 1)
On Page 2, we discuss Romanian leader Ceausescu's
attitude toward the meeting of the Council for Eco-
nomic Mutual Assistance that opens today in Bucha-
rest.
The US Consulate in Dacca has concluded that famine
is likely in East Pakistan before the end of the
year. (Page 3)
A major opium refinery in northwest Laos has been
deliberately burned in response to US pressures for
curbing the narcotics trade. (Page 4)
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009700240001-4
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009700240001-4
FOR THE PRESIDENT ONLY
JAPAN
Several major Japanese corporations have now de-
cided not to attend an. annual meeting of a National-
ist Chinese-- .Japanese committee established a num-
ber:of years ago to further trade. New Japan Steel
and Japan Airlines were the first to cancel out,
causing Taipei to revoke its invitations to other
firms in order to save face. Moreover, five of the
six Japanese_shipping firms serving Taiwan plan to
terminate their service,
Meanwhile, Toyota Motors is seeking to liquidate
its substantial involvement in South Korea, according
to sources of the US Embassy in Seoul.
Japanese firms are increasingly sensitive
about the wisdom of their involvement in
Taiwan and South Korea in view of what
they believe is an improving atmosphere
for commerce with Communist China. This
reaction stems in part from the fact that
one of the "Four Principles" governing
trade, set forth by Chou En-lai to Jap-
anese businessmen in April 1970, is a ban
on business with Japanese firms trading
with South Korea or Taiwan. For the near
term, Japanese firms are likely to be more
interested in reducing the visibility
rather than the substance of their trade
relationships with Taiwan and South Korea,
but over time a growing number of companies
will have to choose between the immediate
economic benefits of these relationships
and the prospect of a more lucrative main-
land market.
1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009700240001-4
Declassified in Part -Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009700240001-4
FOR THE PRESIDENT ONLY
ROMANIA -CEMA
Romanian leader Ceausescu will continue to oppose
Moscow,'s version of economic integration at the an-
nual session of the Council for Economic Mutual As-
sistance (CEMA) that opens today in Bucharest. Di-
vergent interests at the three-day meeting are likely
to generate some low-caliber fireworks, especially
between Romania and the Soviet Union, over the draft
program for developing socialist economic integration.
Ceausescu has reaffirmed his opposition to economic
iritegration in several recent speeches. Last Fri-
day, for example, he stated that "interdependence in
production must in no way infringe on national sov-
ereignty." He added that "the times of the policy
of domination and diktat are gone forever." Never-
theless, he may be forced to give a little at the
meeting and agree to some limited aspects of inte-
gration, perhaps as a sop to the Soviets.
2
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009700240001-4
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936.A009700240001-4
FOR THE PRESIDENT ONLY
EAST PAKISTAN
According to the US Consulate in Dacca, chances
Of famine are increasing. The most critical food
period will be the last two months of 1971 before
the large rice crop is harvested. A smaller crop,
due for harvesting in September, will provide some
temporary relief, but transport bottlenecks will pre-
vent much of this crop from reaching those areas
that need it-most.
The government has so far taken no significant
steps to speed the movement of foodgrains, ?and de-
liveries from the ports to the interior were at a
lower level in July than in June. In this situation,
the consulate concludes that the government will not
be able to move into the deficit areas all of the
estimated 1.4 million tons of foodgrain imports
needed through December and that starvation is likely
to begin in November.
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009700240001-4
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009700240001-4
FOR THE PRESIDENT ONLY
NOTE
Laos: A major opium refinery and transshipment
center innorthwest Laos has been deliberately de-
stroyed by fire as a response to US agitation for
curbing the traffic in narcotics. The fire appar-
ently was ordered by recently retired Lao Armed
Forces commander General Ouan Rathikoun in the hope
of conveying the impression that he has severed con-
nections with the opium trade. Destruction of the
facility will not significantly reduce the narcotics
output from the Thailand-Laos-Burma border area.
Some 26 other refineries are currently operating
there and more can be set up within a short period
of time.
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14": CIA-RDP79T00936A009700240001-4
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009700240001-4
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A009700240001-4