THE PRESIDENT'S DAILY BRIEF 25 JANUARY 1975

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007925
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: January 25, 1975

Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79-160936A612400010043-2
The President's Daily Brief
January 25, 1975
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Exempt from general
declassification schedule of E.O. 11652
exemption category, 513( I
declassified only on approval of
the Director of Central Intelligence
47-"-? w's
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FOR THE PRESIDENT ONLY
January 25, 1975
Table of Contents
Cambodia: A second Mekong River convoy began the
60-mile run upriver to Phnom Penh today.
(Page 1)
UK-CSCE: The British are now advocating compromises
at the European security conference in Geneva.
(Page 2)
Venezuela: The government may retaliate against
the US if provisions of the Trade Reform Act
discriminate against Venezuelan interests.
(Page 3)
Notes: Vietnam; Bahrain; Japan (Pages 4 and 5)
FOR THE PRESIDENT ONLY
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Cambodia: Lower Mekong
Oudong
7th Division
Pochentong A irpo
PHNOM
PENH
3rd Division
Prey Veng
Prek T
15
Heavy pre ure
.(cr
Gover ment positions
Neak Luong Navy Base
30
Heavy con a trations
of Communist
Takeo
Miles
10
SOUTH VIETNAM
557203 1-75 CIA
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FOR THE PRESIDENT ONLY
CAMBODIA
A second Mekong River convoy began
the 60-mile run upriver to Phnom Penh
today. Its size and makeup will make
it more vulnerable than the previous
one to communist attack.
The convoy consists of two tankers, two am-
munition barges, and a large Cambodian navy escort.
At the last minute, two coastal steamers carrying
rice refused to leave. The convoy will be protected
by shield barges.
In terms of who controls what along the lower
Mekong, the situation remains unchanged. Government
troops still hold several recently established beach-
heads south of Neak Luong--including one at a river
narrows. Insurgent forces hold most of the river-
banks along the lower reaches, however, and are
keeping heavy pressure on government riverside posi-
tions north of Neak Luong. They have directed heavy
fire against navy vessels trying to provide support
to these positions.
In the Phnom Penh area, combat has picked up
considerably in the past few days. Elements of the
Cambodian army's 3rd Division have fought several
sharp engagements with insurgent units near Route 4
west of Phnom Penh, and the army's battered 7th
Division on the city's northwestern defenses is
again under pressure. Pochentong airport continues
to be the target of sporadic rocket attacks, and
shellings against the military fuel depot on Route
5 north of the city have destroyed some stocks.
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FOR THE PRESIDENT ONLY
-CSCE
The British, who have been reluc-
tant to offer concessions to the East
at the European security conference in
Geneva, now advocate compromise. They
have also suggested that the pace of
work be accelerated in order to wind
up the negotiating stage of the con-
ference around the end of March.
Delegates from EC countries speculate that the
British may be seeking to lay the groundwork for a
successful visit by Prime Minister Wilson to Moscow
next month. The British suggestion would be welcome
in Moscow. The Soviets want the negotiations to be
over this spring so that a summit finale to the con-
ference can be held this summer. Some of the Nine,
particularly the West Germans, oppose the setting
of a specific date.
Foreign Secretary Callaghan has said he wishes
to discuss the security conference when he meets
with Secretary Kissinger next week. He will prob-
ably solicit US views on the new British proposals,
which also include:
--A proposal that NATO signal the Soviets that
the West is willing to drop one of its demands
concerning military-related "confidence-building
measures."
--A suggestion that the West offer a compromise
on the issue of follow-on machinery to the con-
ference; the British favor a regular meeting of
senior officials to review the general East-
West situation, with the first meeting to take
place a year after the conference ends.
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FOR THE PRESIDENT ONLY
VENEZUELA
The Venezuelan 'government may be
planning to retaliate against the US
if provisions of the Trade Reform Act
discriminate against Venezuelan inter-
ests.
Vene-
zuela's plan would involve a significant increase
in the royalties foreign oil companies are required
to pay, as well as a cut in overall petroleum pro-
duction by 14 percent, rather than the 10 percent
announced earlier this week as a conservation meas-
ure. Income taxes Venezuela levies on the companies
might also be raised above the new rate announced
this week.
The possibility that Venezuela is planning re-
taliation came to light as the OPEC countries met
in Algiers yesterday. Caracas planned to play an
active role at the meeting in discussing the trade
act's implications for OPEC.
Venezuela hopes all the oil-producing coun-
tries will take a strong position on the act. Al-
though a projected world oil surplus in late spring
would dampen the effect of a Venezuelan cutback,
Caracas apparently is prepared to implement its
plan unilaterally if necessary.
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FOR THE PRESIDENT ONLY
NOTES
North Vietnam's 316th Division, or at least
part of it, may be moving to South Vietnam from its
normal area of operations in Nghe An Province of
North Vietnam.
Personal messages sent by members of the di-
vision suggest this. One came from Quang Binh
Province, the southernmost province in North Viet-
nam; another indicated that its sender was "en
route to South Vietnam." The division's communica-
tions pattern has changed slightly; there have been
no intra-division communications noted since Janu-
ary 18, and the division headquarters has not been
observed communicating with its military region
since January 20. This evidence is far from con-
clusive, but if the 316th Division does move into
South Vietnam it would be the first North Vietnam-
ese division to do so since the cease-fire agree-
ment.
Bahrain is demanding formal reassurance that
the US will not use facilities on the Persian Gulf
island for hostile military action against any Arab
state.
The Bahraini foreign minister has assured the
US ambassador that the government has no intention
of submitting the Middle East force stationing
agreement to the National Assembly for approval,
but that a scheduled debate could bring a "sense
of the assembly" motion criticizing the stationing
agreement. The foreign minister also insisted that
the government needs to be able to demonstrate that
the US presence brings tangible benefits. This,
he said, would require that the annual rent for the
lease agreement be increased to $4 million, a six-
fold rise over the amount agreed to in the accord
of 1971.
(continued)
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FOR THE PRESIDENT ONLY
Japanese unemployment unexpectedly rose about
one third in December and further increases are
likely over the next few months.
The 1 million unemployed are still only about
2 percent of the labor force, but the number is up
from 700,000 in November and is the highest figure
in about 20 years. Most of the unemployment in-
crease has occurred in manufacturing, where pro-
ducers appear to have given up on a quick upturn
in sales and are trying to reduce record inventor-
ies by temporary closings or work force reductions.
A record number of bankruptcies and unemployment
benefit applications point to rather serious strains
on the system, and Tokyo is under increasingly heavy
pressure to ease its anti-inflationary policies to
boost demand and production. Industrial output
levels are nearly 15 percent below the levels a year
earlier, and producers' stocks of unsold goods are
still on the rise. Further production cuts have
been announced for the next several months in many
industries.
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_?
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Top Secret
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