THE PRESIDENT'S DAILY BRIEF 11 DECEMBER 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007891
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: December 11, 1974

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The President's Daily Brief
December 11, 1974
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Exempt from general
declassification schedule of E.O. I 1652
exemption category 5B(1).(2).(3)
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
EC
Summit:
December
Table of Contents
11, 1974
to his meet-
solidarity.
President Giscard will come
with you backed by new European
1)
USSR
ings
(Page
(Page
2)
Arab Tanker Fleet: An Arab shipping company is
searching the secondhand market for 100,000-
to 300,000-ton-class tankers. (Page 3)
Iraq-Kurds-Iran: Heavy snowfall has blanketed most
of the Kurdish area on the Iraq-Iran border.
(Page 4)
Notes: North Vietnam - China - US; China-USSR-US
(Page 5)
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EC SUMMIT
French President Giscard will come to
his meetings with you this weekend backed
by more community solidarity than seemed
possible a few weeks ago as a result of
the EC summit that concluded in Paris
last night,
--Doubts about Britain's continued membership
in the EC have been eased, although not elim-
inated.
--The Nine have stated publicly their interest
in the French-backed conference of oil produc-
ers, consumers, and developing states.
--The emphasis of the Nine on the dangers of
economic depression may be intended to bolster
a plea for remedial action by the US.
The Anglo-French debate in Paris included a
sharp exchange between Prime Minister Wilson and
Giscard that will impress their domestic audiences,
but the summit acceded to Britain's demand for a
?fairer share in contributions to the EC budget.
The EC Commission has been instructed, in effect,
to meet the UK request for a budget formula linked
to each member's gross national product, an outcome
foreseen by British officials.
France did not announce any intention to join
the US-sponsored International Energy Agency, and
Giscard has left any possible move in this direc-
tion for his meetings with you. France's partners
supported a consumer-producer conference in return
for Paris accepting preliminary consultations among
the industrialized oil usei.s. The Nine will appar-
ently now try to concert energy policies within the
EC.
Summit discussions of Europe's economic prob-
lems reflected growing concern over rising levels
of unemployment. Chancellor Schmidt demanded com-
mon action in Europe to meet recession and infla-
tion. The Nine are now apparently thinking in terms
of "complementary" measures for surplus and deficit
countries.
The principal institutional innovation of the
summit was to agree to hold three regular heads of
government "councils" a year in place of less fre-
quent and over-publicized summit sessions.
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USSR
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ARAB TANKER FLEET
The Arab Maritime Petroleum Trans-
portation Company, organized two years
ago by the Arab oil producers to own and
operate tankers, is now searching the
secondhand market for three tankers in
the 100,000 to 300,000 ton class for de-
livery next year.
The world economic slowdown and high oil prices
have lowered demand and idled many tankers, and
secondhand vessels can be acquired on very advan-
tageous terms. The Arab tanker company had pre-
viously been interested only in new tankers and had
committed about $500 million for five very large
crude carriers--over 175,000 dead-weight tons--and
six smaller ones.
Last month in Bahrain, the Arabs organized a
shipbuilding and repair company to complement the
tanker company. This company will finance a $200-
million shipbuilding and repair facility in Bahrain
able to handle the largest tankers currently in op-
eration. A similar facility is being planned for
Malta. In addition, an inter-Arab merchant marine
academy to be located in Egypt was also authorized
last month.
By 1980, the Arabs plan to control about 20
million tons in the tanker market. The tanker com-
pany has plans to spend $2 billion over the next
five years to acquire a 10-million-ton fleet, while
independent national efforts among the Arab nations
will add another 10 million tons.
Control of 20 million tons by 1980 still would
give the Arabs only a 5-percent share of the total
estimated world tanker fleet. This fleet would be
capable of carrying 2 million barrels a day between
the Persian Gulf and Rotterdam in 1980, compared to
oil production estimates ranging between 15 and 25
million barrels a day.
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IRAQ-KURDS-IRAN
Heavy snowfall has blanketed most of
the Kurdish area on the Iraq-Iran border,
and Iraqi attacks on the Kurdish rebels
now probably will be limited to artillery
bombardments and air strikes when weather
permits.
Iran is also continuing to provide sanctuary
for Kurdish refugees. An estimated 120,000 persons
have fled to Iran as of late November; about 95
percent of these are women, children, and elderly
noncombatants. The Iranians have made a conscien-
tious effort to deal with dietary, water supply,
and sanitation problems in the camps. Since Sep-
tember, Tehran has been constructing winter quar-
ters to replace the original tent camps.
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NOTES
North Vietnam - China - US: The North Vietnam-
ese and Chinese are reacting to the movement of the
US carrier Enterprise and four destroyers off the
Vietnamese coast. An intercepted message shows
that a North Vietnamese air defense division in
Quang Tri Province in northern South Vietnam was
ordered yesterday to be alert for possible US air
strikes.
China-USSR-US: The Chinese have thus far main-
tained an outward appearance of calm in reacting to
the Vladivostok summit and the new US-Soviet under-
standing limiting strategic arms. China's press
has mentioned the meeting only once, and has not
yet reported the arms agreement. The Chinese lead-
ers, of course, remain acutely sensitive to such
key developments in US-Soviet relations. They see
no point in advertising this, however, and Chinese
spokesmen are assuming an air of nonchalance in
the results of the summit.
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,Top Secret
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