THE PRESIDENT'S DAILY BRIEF 10 OCTOBER 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007838
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: October 10, 1974

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The President's Daily Brief
October 10 1974
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Exempt from general
declassification schedule of E.O.- 11652
exemption category 5B( I
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
October 10, 1974
Table of Contents
Cyprus: The Turkish administration has decreed that
all businesses operating in Turkish areas must
register or face confiscation. (Page 1)
Syria: The Syrian side of the Golan Heights disen-
gagement zone is being repopulated. (Page 2)
Iran: The Shah has successfully concluded a two-
week trip to five Indian Ocean littoral states.
(Page 3)
Pakistan:
/ (Page 4)
Portugal: The Socialist Party is under pressure
from both its left wing and the Communists to
take more radical positions. (Page 5)
Notes: Saudi Arabia - US; Israel (Page 6)
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CYPRUS
The "Autonomous Cyprus Turkish Ad-
ministration" has decreed that all busi-
nesses operating in Turkish-controlled
areas must register with the government,
under penalty of confiscation. On the
other side, Greek Cypriot authorities
have said that those companies that
also operate in their sector will in-
vite closure and seizure if they follow
the Turks' orders.
US firms caught in the middle include Cyprus
Mines Corporation, which operates copper and iron
pyrite mines in Greek-held territory, while its
processing operations are located in Turkish areas,
and Mobil Oil, 60 percent of whose annual Cyprus
sales are generated by outlets in Greek-held areas
and 40 percent by those in the Turkish zone.
Numerous British firms also are affected,r
1
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SYRIA
/the northern section
of the Syrian side of the Golan Heights
disengagement zone is being repopulated.
Many of the villagers who evacuated the
area during the fighting a year ago have
returned to their homes and have begun
patchwork repairs.
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IRAN
The Shah Friday successfully con-
cluded a two-week trip to five far-flung
Indian Ocean littoral states: Singapore,
Indonesia, Australia, New Zealand, and
India. Remade clear his intention to
have an important voice in Indian Ocean
affairs and in general conveyed an im-
pression of a strong leader.
The Shah repeatedly broached three subjects--
big power competition in the Indian Ocean, area
security, and economic cooperation. He strongly
supported a longstanding Sri Lanka proposal that
the Indian Ocean be declared a "zone of peace."
In turn, the Shah received some pledges of support
for his own proposal that the UN declare the "Mid-
dle East" a nuclear-weapons-free zone.
For the most part, host governments responded
as the Shah hoped. Receptions were warm, trade and
cultural agreements were signed, and there were
general statements of support for closer economic
and security cooperation. Apparently no credit
agreements were signed, but follow-up discussions
on trade and aid projects could lead to some Ira-
nian loans.
, The Shah tried not to become embroiled in the
controversy over the presence of US and Soviet naval
forces in the Indian Ocean. He made clear, how-
ever, that he differs with those littoral states
that see the expansion of US facilities on Diego
Garcia as provocative and likely to lead to Soviet
countermeasures. He held to his view that US
activities balance the Soviet presence and are a
stabilizing influence.
Both the Shah and the Indians had good reasons
for not allowing their divergent views on Diego
Garcia to mar the Iranian ruler's visit. New
Delhi's cooperation is essential to the Shah's
scheme for closer cooperation among Indian Ocean
states. For its part, Mrs. Gandhi's government
is anxious to preserve the favorable terms on which
it obtains oil from Iran, the primary source of
India's oil imports.
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PAKISTAN
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PORTUGAL
The Portuguese Socialist Party is
under pressure both from its left wing
and from the Communist Party to adopt
more radical positions and to cooperate
more closely with the Communists.
The moderates have managed to retain control
of the party until now, but they may be losing
ground to more radical elements.
left-wing
radicals are seeking to. take over the leadership'
from Foreign Minister Mario Soares and to turn the
party into a Communist-dominated front organization'.
After withdrawing from the Communist-dominated
Portuguese Democratic Movement last August, the
Socialists shunned joint action with the Communists.
The pullout had been engineered by Socialist mod-
erates who feared that the Communists would over-
shadow the Socialists and eventually dominate any
alliance between the two parties. There has been
considerable sentiment within the Socialist Party
in favor of a broad coalition that would include
Communists, however, and on September 28 many
Socialists joined the Communists in manning road-
blocks set up to prevent a pro-Spinola rally.
5
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NOTES
Saudi Arabia - US: In recent weeks several
Saudi leaders have been voicing dissatisfaction with
what they consider a lack of US responsiveness to
Saudi defense needs. Prince Fahd raised the issue
again last Friday when he met US Ambassador Atkins
while both were visiting London. Fahd, who is min-
ister of interior and probable successor to King
Faysal, claimed that his officers are pressing for
a switch from the US to France as a source for mil-
itary equipment. According to Fahd it was a'
"crowning blow" to learn that US heavy tanks were
being made available to Israel but not to the Saudis
Ambassador Atkins believes that part of the military
pressure on Fahd results from the lavish treatment
recently accorded a group of Saudi officers visit-
ing Paris. Another probable factor is the large
sums paid by the French to Saudi middlemen--some
fronting for members of the royal family--with con-
nections in the Saudi defense establishment.
Israel: Activist proponents of permanent
Israeli retention of the Jordan River West Bank
yesterday made their strongest effort to force the
issue when hundreds of settlers and their support-
ers camped in at least three sites near Nabulus,
Jericho, and Ram Allah. Most were promptly evicted
and the remainder are expected to leave today.
Prime Minister Rabin issued a statement deploring
the illegal settlement attempts and reiterating
the government's position that no new Jewish set-
tlements would be permitted on the West Bank with-
out government authorization. A well-informed
source of the US embassy reported earlier this
week that the government had frozen all settlement
plans indefinitely.
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