THE PRESIDENT'S DAILY BRIEF 11 NOVEMBER 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007865
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: November 11, 1974

Declassified in Part- Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
The President's Daily Brief
November 11, 1974
6
--Tor-Sty-get.,
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
Exempt from general
declassification schedule of E.O. 11652
exemption category, 58(1),(2),(3)
declassified ortIV on approval of
the Director of Central Intelligence
4
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
FOR THE PRESIDENT ONLY
November 11, 1974
Table of Contents
Japan: Tanaka's position precarious. (Pagel)
France:
Palestine Liberation Organization:
25X1
(Page 2) 25X1
(Page 4)
Israel: New economic measures. (Page 5)
USSR: Soviets speeding up construction of new rail-
road in Siberia. (Page 6)
Notes: Syria; France-PLO; Portugal-NATO; USSR-Cuba;
Argentina; Vietnam (Pages 7 and 8)
Annex:
25X1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15: CIA-RDP79T00936A012300010042-4
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
FOR THE PRESIDENT ONLY
JAPAN
In face of the rising political con-
troversy threatening his administration,
Prime Minister Tanaka told a press con-
ference today that he would not step down
before your visit takes place. Tanaka
also announced, as expected, that he will
shuffle his cabinet before then.
Voter dissatisfaction with Japan's rising in-
flation has eroded the Prime Minister's support.
Last month his position took a further turn for the
worse with the publication of charges that he has
benefited from questionable dealings in government
real estate.
In answer to these charges, Tanaka said today
that he regretted that his conduct had aroused pub-
lic suspicions, but insisted that he had "never vio-
lated the laws."
Calls for Tanaka's resignation have increased
since the release of the corruption charges,
Tanaka may try to maintain the current balance
of power within the cabinet as he makes his changes.
Early press reports suggest that he is likely to
reward his chief factional backers--Finance Minister
Ohira and International Trade and Industry Minister
Nakasone--with extended terms. The transfer earlier
today of chief cabinet secretary Nikaido, a trusted
adviser, to the sensitive post of secretary general
of the Liberal Democratic Party indicates Tanaka's
determination to maintain control of the party.
1
FOR THE PRESIDENT ONLY
25X1
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
FOR THE PRESIDENT ONLY
(continued)
2
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
FOR THE PRESIDENT ONLY
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
L OA I
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
FOR THE PRESIDENT ONLY
PALESTINE LIBERATION
ORGANIZATION
PLO Chairman Yasir
Arafat
In a separate interview published in the Cairo
newspaper Al-Ahram on Friday, Arafat spoke twice of
"disengagement" on the West Bank. Asked if he would
refuse a disengagement agreement offered to Jordan
by Israel, Arafat replied that the Palestinians are
prepared to give Egyptian War Minister Ismail a
"mandate"--presumably to negotiate such an agree-
ment--in his capacity as commander of all Arab mili-
tary forces. At another point, Arafat said the es-
tablishment of a Palestinian government in exile
must be put off until the benefits of a government
would outweigh its "burdens." He added that such
a government would be set up immediately, however,
if this became necessary as a condition for disen-
gagement and acquiring land.
With regard to a government in exile, Arafat
has said previously that such will be formed only
"when conditions are suitable." Among the obstacles
is disagreement within the PLO on how to divide re-
sponsibility in such a government, something Arafat
may have had in mind when he spoke of "burdens."
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15: CIA-RDP79T00936A012300010042-4
25X1
25X1
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
FOR THE PRESIDENT ONLY
ISRAEL
The Israeli cabinet yesterday an-
nounced a series of economic measures
highlighted by a 43 percent devaluation
of the pound. The new measures are the
latest in a series of steps designed to
reduce the country's staggering trade
deficit and preserve foreign exchange
reserves.
The measures include:
--an immediate devaluation of the pound from
4.2 to 6 per US dollar;
--a six month prohibition on imports of certain
luxury goods including autos;
--an increase in the foreign travel tax.
In addition to the trade measures, the cabinet
also announced steps designed to reduce domestic
purchasing power including:
--sharp increases in the price of petroleum
products;
--reduction of subsidies on many basic commod-
ities, which will substantially increase prices
of goods such as sugar and bread.
The Finance Ministry estimates that the new
measures will improve the trade balance by $700 mil-
lion a year. They will also cause an immediate in-
crease of 17 percent in the cost of living, with
inflation already running at an annual rate of al-
most 40 percent.
There will ?be some grumbling among the populace,
especially about the reduction of subsidies on bread
and sugar, and police have already had to contend
with violence in a slum district of Tel Aviv. This
economic program seems likely to receive generally
wide support, however, as a way to prevent further
deterioration in the economic situation.
5
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
Lut.ti'''itt1 [MOM. PA
,omrrt
?1, \
ORW
Ye.
4,4,711.2..
-
SWEDEN .
j:( I N.LP A N D
'..-.. -
1.. S 'N
-
, - - ' V:-" 4,
,
,..!, N
?., t,
. . EAsT'XIBERIA.V ..4441.4.AL4
SE4
.\\, ( 1
... ...,.1,...s t: A/
, ?,,,,,,, ,::,.. , I 1
f.): i! \ VIti LiENIVO
SEA
1 yjr ". le -*-- 4 7ene???,?: 1 ?
\ if . ?.N. -,z.........
, 44.
s.TaLutikf 4
SEA
NLACK
SEA
TURKEY
Tst Siberian
Oil Fields,
SPA
S
OKNOThlt
Offshore
yumen
Oil and Gas,'
Fields
..shays Grim./
MONGOLIA
VItehmstok
AFGHANISTAN
44444
PARISIAN
01,1A
PekM9 1,..?..,r1 1\ ,
41 .4%r
11-74
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
FOR THE PRESIDENT ONLY
USSR
Moscow is planning to accelerate con-
struction of the eastern portion of the
second Trans-Siberian railroad as part of
a general effort to speed up development
of Siberia.
The Soviets
are buying 700 US crawler tractors--worth $100 mil-
lion--specifically for use on the railroad project.
The 2,000-mile line was originally scheduled
to be finished by 1982. Advancing the completion
date would indicate that eastern Siberia and the
Soviet Far East will play an increasingly signifi-
cant role in the forthcoming 15-year plan. The new
route crosses a zone rich in fuel and mineral re-
sources.
The USSR will have to lean more heavily on east-
ern Siberian energy resources after 1980, when oil
reserves elsewhere will fall sport of Soviet needs.
The new railroad could be used in conjunction with
pipelines and rail spurs to tap the resources of
northern Siberia.
Continuing Soviet concern over the border prob-
lem with China is also a strong incentive to early
completion of the railroad. The new route is 100
to 500 miles north of the present line, which is
very close to the Chinese border. Both routes run
through territory that China claims was seized by
Russia through "unequal treaties" of the 19th cen-
tury.
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
25X1
25X1
25X11
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
FOR THE PRESIDENT ONLY
NOTES
France-PLO: At a meeting of the EC political
directors late last week, the French representative
announced that the secretary general of the Arab
League had asked that the Palestine Liberation Or-
ganization be given observer status at EC-Arab ne-
gotiations. The French, who favor granting the
Arab request, argued that the US would soon be deal-
ing with the PLO in some fashion. Only the Italian
representative supported the French proposals. The
others were negative or noncommittal. The EC polit-
ical directors agreed that the EC foreign ministers
should consider the issue at their meeting on Novem-
ber 18.
Portugal-NATO:
(continued)
7
25X1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15: CIA-RDP79T00936A012300010042-4
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
FOR THE PRESIDENT ONLY
USSR-Cuba: Two Soviet guided missile cruisers
that have been in Cuban waters since late September
have left the port of Cienfuegos and may be on their
way home. They have been moving southeasterly and
are probably bound for the Atlantic.
25X1
Argentina:
25X1
Vietnam: The Vietnamese Communists have re-
jecteT1-=-TOn's recent call to resume negotiations
in Paris. On Saturday, the deputy chief of the Viet
Cong military delegation in Saigon branded the offer
a "deceptive move" to confuse public opinion. He
repeated the Communist position that the Paris talks
cannot resume until President Thieu is removed and
the US ends its military assistance to South Vietnam.
8
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
FOR THE PRESIDENT ONLY
o
(continued)
Al
FOR THE PRESIDENT ONLY
25X1
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
A
N
N
E
X
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
FOR THE PRESIDENT ONLY
(continued)
A2
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
FOR THE PRESIDENT ONLY
A3
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012300010042-4