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The President's Daily Brief
26 October 1973
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Exempt from general
declauification schedule of E.O. 11652
exemption category 5E(l),(2)0)
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
26 October 1973
PRINCIPAL DEVELOPMENTS
The Middle East cease-fire is largely being observed.
Seventy Soviet troops arrived in Cairo yesterday,
ready to reinforce the UN observers on the scene,
but were rejected by Secretary General Waldheim.
A Soviet ship, probably carrying nuclear weapons,
arrived at its destination--most likely Alexandria--
on October 24. (Page 1)
Some 13,000 men are on the infiltration trail from
North Vietnam to the area of South Vietnam super-
vised by COSVN and to the central highlands. Yes-
terday, government forces lost a battalion-sized
unit in the highlands near Pleiku. (Page 3)
Common Market members are moving closer to French
positions on the draft declaration of Atlantic prin-
ciples. (Page 4)
(Page 5)
Greece's Prime Minister Markezinis is encouraging
politicians of all stripes to participate in the
coming elections. (Page 6)
There are notes on: Nigeria's break in relations
with Israel, Chinese wheat purchases, Soviet tenders
for a large amount of US soybean meal, the formation
of a Latin American Energy Organization, Japanese
aid to Cuba, and Argentinian pressure on US firms
to trade with Cuba. (Pages 7 and 8)
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Suez Canal Zone
Damietta
Mediterranean Sea
ort Said
.Al Mansurah
Mansura
antatah
AsT Salihiyah
SIN4M
Abu Suwayr
Is mal Ii a
ers Me4
Great
Bitter
Lake
:Jabal al
'Jufrah
:Att ?
.Hulwan
EGYPT
Al Hafair
Ayn Sukhnah
?
? Gulf ?
of
Suez
O Kilometers 20
O Statute miles
O Nautical Miles
554797 10-73 CIA
o- se
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ARAB STATES - ISRAEL
Both fronts were relatively quiet yesterday.
Most forces appeared to be under orders to observe
the cease-fire.
Egyptian 3rd Army remains cut off on the east bank,
but there are no indications that it is about to
surrender.
At the UN, the Security Council approved a
resolution by eight nonaligned nations authorizing
a new UN Emergency Force. Last evening Secretary
General Waldheim announced he was transferring more
than 900 men from UN forces on Cyprus to the Middle
East as an "interim measure."
These developments have probably reduced--at
least for the present--the threat of unilateral So-
viet action. The Communists, however, clearly in-
tend to play a more active role in Middle East
peacekeeping than heretofore.
During the Security Council debate, Soviet Am-
bassador Malik indicated that he expected troops
from Communist and nonaligned countries to partici-
pate in the new peacekeeping force. Seventy Soviet
soldiers arrived in Cairo yesterday, ready to join
the UN observers on the scene; Secretary General
Waldheim denied them permission to do so.
The initial TASS report on Secretary Kissinger's
press conference yesterday is positive, and gives
no hint of US concern about Soviet intentions. TASS
stresses the Secretary's remarks regarding joint
Soviet-US actions to resolve the crisis and quotes
his references to the "most promising" possibilities
for peace in the Middle East. There has been no
public Soviet reaction to the announcement that US
forces are on alert.
However, part of the Soviet naval force near
Crete--a missile frigate, four destroyers, and two
amphibious ships--began moving south toward the
combat area after US forces were alerted on October
25. The ships are now holding 80 to 100 nautical
miles north of the Egyptian coast.
(continued)
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Beirut
The Syrian Front
Zahlah.
Mediterranean
Damascusl
Mezzah
Damascus
Damascus I
International
Syria Mari Ruhayyif
Tiberias
\
aniAN r 1967 Cease-Fire
ljne
r/t/i r Jasim
)7HTS?'
Khalkhalat
Shaykh
Miskin
Nazareth
' 10 20 Al Mafraq
Kilometers
10
Miles
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The Soviets are probably anticipating the ar-
rival of US ships in the eastern Mediterranean.
When the carriers Roosevelt and Kennedy join the
Independence in the eastern Mediterranean, the US
will have from 25 to 30 ships in the area.
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VIETNAM
Recent North Vietnamese intercepts provide the
first indications of large-scale infiltration to
central and southern South Vietnam. According to
a message of October 22, the "general plan" calls
for 13,000 troops to pass through southern Laos
starting in November on their way to COSVN and
South Vietnam's central highlands.
More than three North Vietnamese battalions
overran a battalion-sized government unit just 12
miles southwest of Pleiku City in the central
highlands yesterday. The Communists employed heavy
artillery and five T-54 tanks in the assault. Gov-
ernment losses are said to be heavy.
South Vietnamese troops in this area have been
engaged in a large operation to retake the Plei
Djerang Ranger Camp, which was lost to the Commu-
nists on September 22. Major General Toan, com-
mander of Military Region 2, has reacted to this
latest enemy attack by recalling a recently reas-
signed regiment from Binh Dinh back to Pleiku Prov-
ince. More heavy fighting is likely in this area.
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EC-US
During early stages of the negotiations on a
declaration of Atlantic principles, the other Euro-
peans tended to attribute reluctance to accept US
positions to French obstinacy. Now, as is evident
from reactions to the latest round of US-EC consulta-
tions last week, the Nine are presenting a more united
front, defending a number of French positions as com-
mon to the Nine.
All apparently agree that the US-EC declaration
should not, try to deal with the entire range of the
relationship. They oppose any explicit affirmation
of the interdependence of monetary, trade, defense,
and political questions. While insistent that any
joint declaration reflect Europe's separate identity,
the Nine apparently also agree that the EC cannot be
committed to more definite actions than the current
development of the community's authority would allow.
Concerning detente, a Luxembourg official has
told the US Embassy that close cooperation between
the EC and the US might not be "realistic" in the
light of close US-Soviet relations. Ambassador Rums-
feld has reported that a high-ranking French Foreign
Ministry official was emphatic earlier this week in
rejecting US arguments for NATO solidarity in the
face of the Soviet supply operations in the Middle
East.
The EC political directors will meet next to
work on the US-EC declaration in Copenhagen on Novem-
ber 12 and 13.
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EC-MONETARY
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GREECE
Prime Minister Markezinis is trying to demon-
strate that his government is legitimate and will
lead eventually to a stable parliamentary democracy.
Toward this end he is seeking the participation of
former political leaders and even the extreme left
in elections that may be held late this year.
In a recent interview, in Le Monde, Markezinis
issued an invitation to the extreme left to partici-
pate providing it renounce any attempt to overthrow
the existing order. Markezinis thinks that the left-
ists wish to participate in the elections under some
thin disguise like the old United Democratic Left
and wants to encourage this.
In the same interview the Prime Minister said
he favored legalization of the Greek Communist Party.
This is little more than a ploy, since any move to
legalize the Communists would run into solid opposi-
tion from the military.
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NOTES
Nigeria-Israel: Nigeria became the tenth African
country to break relations with Israel since the Mid-
dle East war began. Because Gowon is currently head
of the OAU, his decision may cause the 14 remaining
holdouts in black Africa to follow suit, thus virtu-
ally ending Israel's presence in Africa.
China: Peking recently signed agreements to
buy wheat from Canada and Australia during 1974-76.
Canada will deliver up to 6 million tons and Australia
as much as 4.7 million tons. The two deals are worth
$2.1 billion at current prices. China's, grain imports
are expected to average about 6.5 million tons annu-
ally between 1974 and 1976, about half of which appar-
ently will be supplied by Canada and Australia. The
bulk of the remainder seems likely to come from the
US.
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USSR-US:
Moscow wishes to
buy 1 to 2 million tons of soybean meal during the
current crop year at about $180 per ton (including
shipping costs). Negotiations are to begin today
in Moscow. If a deal is concluded, it will substan-
tially increase US exports of soybean meal over the
next 12 months. Prices have gone down somewhat since
October. 1, when US export controls on soybean prod-
ucts were lifted. News of such a large sale would
send prices spiraling upward again.
Latin America - Oil: Representatives from most
Latin American countries, including Cuba, will meet
in Lima next week to discuss creation of a Latin
American Energy Organization. The new group will
be 'concerned with financing energy development,
overseeing resource conservation, facilitating trade
in 'Latin American oil among member countries, and
building tankers to transport it. The organization
is billed as apolitical, but some participants view
it as a means of strengthening Latin America's po-
sition in dealing with US economic interests. Im-
porters of oil among the. group probably will seek
Ways to get around the recent price increases by
Venezuela and Ecuador, the major oil-exporting.na-
tions in 'Latin America.
(continued)
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Japan-Cuba: The Japanese Government has decided
to permit its Export-Import Bank to grant credits to
Cuba. The terms, seven percent interest over five
years, are comparable to Japanese commercial credits
previously given to Cuba. The Japanese hope to ex-
pand exports to Cuba, thus reducing their bilateral
trade deficit, which last year amounted to $94 mil-
lion, mostly because of large purchases of sugar.
The level of credits will be restricted and they
will have only a marginal impact on Cuba's economy,
but the official loans, plus associated technical
assistance, will be regarded in Havana as a definite
political plus.
Argentina: The government is increasing its
pressures on US subsidiaries to trade with Cuba.
The process began when Argentina extended a $200-
million-a-year line of credit in August to finance
exports to Cuba--primarily manufactured goods and
transportation equipment. Subsidiaries of Ford,
General Motors, Chrysler, and Goodyear are among the
major producers of such equipment. The US Embassy
has learned that the Argentines are drafting legis-
lation that sets progressively larger export quotas
for passenger cars--quotas that would require US
firms to export to Cuba or face restrictions on
sales in Argentina.
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