THE PRESIDENT'S DAILY BRIEF 10 JULY 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007760
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: July 10, 1974

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The President's Daily Brief
July 10, 1974
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Exempt from general
declassification schedule of E.O. 11652
exemption category 5B( 1),(2),(3)
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
July 10, 1934
PRINCIPAL DEVELOPMENTS
The Portuguese Prime Minister's resignation yester-
day indicates that the struggle for influence within
the leadership is far from over. (Page 2)
A successful Cambodian army campaign northwest of
Phnom Penh has strengthened the government's argu-
ment that a communist military victory is not pos-
sible and that negotiations are the only way to
end the fighting. (Page 3)
Moscow has made one of its sharpest attacks yet
against the establishment of West Germany's Federal 25X1
Environmental Office in West Berlin. (Page 4)
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Soviets
(Page 5)
Notes on the USSR and Chile appear on Page 5.
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EGYPT-ISRAEL
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PORTUGAL
The resignations yesterday of Prime Minister
Palma Carlos and four other centrist ministers show
'that the struggle for influence in the Portuguese
leadership is far from over.
The resignation of Palma Carlos, in particular,
implies a setback for President Spinola. Spinola
is said to have been trying to force obstructionist
leftists out of the cabinet and thereby keep the
Prime Minister in office.
One of the ministers who resigned ascribed the
resignations to the refusal of the Council of State,
the supreme administrative body, to grant the Prime
Minister greater freedom and power to govern the
country. all or most of ?the
vacancies in the cabinet will be filled by military
officers. Spinola may feel he can thus sidestep
some of the problems that led to the resignations.
Spinola may also hope that the Socialists and Com-
munists may not want to continue in a cabinet that
is largely military.
The US embassy in Lisbon reported yesterday
that the military alert in effect over the weekend
has been canceled and that the city is calm.
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CAMBODIA: Phnom Penh Area
47-97V1
42 L
Relieved by Government
June 16
Lovek Base
Oudong
K gong Luong k ?MEKONG
Recaptured by k
Government
\) t
-,,
PH OM
PENH(?)
Prey Venq!-Z
556167 7-74 CIA
0 5
? Miles
Neak
Luong
? fr.-/
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CAMBODIA
A successful CaMbodian army campaign northwest
of Phnom Penh has strengthened the government's argu-
ment that a communist military victory is not pos-
sible and that negotiations' are the only way to end
the fighting.
After three weeks of sharp _engagements, advance
government units yesterday entered Oudong without
opposition. Once the former royal capital is se-
cured,.the army will have regained a significant por-
tion Of its previous holdings in the area. The Com-
munists overran the town in mid-March and touted
their victory, as a high point in their dry season
campaign.
The Khmer communists made a major effort to
stem government.advances on the northwest fron-Land
by late June had committed between 5,000 and 7,000
troops to the fighting. Steady battlefield casual-
ties and supply shortages caused by the present gOv-
ernment.campaign compounded long-standing insurgent.
command problems, however, and communist units around
Oudong now appear in 'disarray. -
It remains .to be seen how soon such a government
success will have a political impact. Prince Sihanouk
yesterday rejected the government's latest peace ini-
tiative.
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USSR - WEST GERMANY
Izvestia on July 7 printed one of Moscow's
sharpest attacks yet against the establishment of
a West German Federal Environmental Office in West
Berlin. A signed commentary asserted that the of-
fice will violate the ."letter and spirit" of the
Quadripartite Agreement on Berlin and warned that
West Berliners will suffer the consequences if Bonn
does not desist..
Until now, Moscow has handled the Schmidt, gov-
ernment with considerable caution while trying to
establish some rapport. At the same time, the So-
viets have been seeking assurances from the West
that the office will not become a wedge in a West
German effort to establish closer ties with West
Berlin.
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SU-19 Fencer A at Voronezh
Characteristics
Length 68 feet
Wing span 58.feet extended
34 feet swept
1435 knots
930 nm
Speed
Radius
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k k
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NOTES
USSR:
Chile: Santiago and the Anaconda Company ap-
pear to be near final agreement on compensation for
copper mines nationalized by the Allende government.
The junta has approved an arrangement worked out
with Anaconda negotiators last month. A settlement
with Kennecott Copper Corporation, whose mine was
also nationalized, seems further off, but talks are
continuing. A new round is scheduled to begin on
July 22 in Santiago.
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