THE PRESIDENT'S DAILY BRIEF 25 JANUARY 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007656
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: January 25, 1974

Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
\ecTT
The President's Daily Brief
January 25, 1974
3
__Tor5rrLtatt25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
Exempt from general
declassification schedule of E.O. 11652
exemption category 58(1),(4(3)
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
? 1. NJ AL A 'FL 1 l/a..1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
THE PRESIDENT'S DAILY BRIEF:
January 254 1974
PRINCIPAL DEVELOPMENTS
Implementation 'of the Egyptian-Israeli disengagement
agreement-will formally begin today.. (Page 1)
The communique. marking the end of Egyptian Foreign
Minister Fahmits visit to the Soviet Union called
the disengagement agreement a positive step, but
indicated that fundamental questions still remain
to be settled at Geneva. (Page 3)
Communist gunners shelled Phnom Penh yesterday,.
causing numerous civilian casualties and minor
damage. (Page 4)
The dollar weakened slightly in major European cen-
ters yesterday but still remains above last week's
levels against most European currencies. (Page 5)
? Notes on the USSR
warning to US firms
\Chinese
Page 6.
on business
ventures
in
a Soviet
Romania,
FOR THE PRESIDENT ONLY
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
Egyptian Front
O_ :Nauioai jti
55513 1-74 CIA
32
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22: CIA-RDP79T00936A011900010046-5
-a- ? J. ..1?- S.., .1. 'VA.-,
EGYPT-ISRAEL
-
EGYPT-ISRAEL
Implementation of the Egyptian-Israeli disengage-
ment agreement will formally begin today.
The Israelis have been moving military equipment
off the west bank of the Suez Canal for several days,
but final agreement on the details and the timing of
implementation was reached only yesterday. The Egyp-
tian and Israeli chiefs of staff met at Kilometer 101
to complete the detailed implementation agreement,
which was worked out by military negotiating teams
in a week-long series of meetings. Evacuation will
begin from the southernmost portion of the west bank
salient, according to Israeli sources, and disengage-
ment is to be completed within 40 days.
The Egyptian military leadership is now disturbed
that disclosure of the full scope of disengagement
will bring an adverse reaction from military command-
ers who have thus far been briefed on the agreement
only in general terms. The US Interests Section in
Cairo notes that civilian officials may also be ex-
pecting too much from the agreement, but there is no
indication that President Sadat will have unmanage-
able domestic problems on his hands as a result.
Israeli military officials, in the meantime, re-
cently expressed concern about Egypt's good faith in
carr in out its end of the bar ain.
Egyptians have been building five new surface-to-air
missile sites on the east bank of the canal in the
Second Army area. Under the terms of the disengage-
ment agreement, no missiles or permanent, fixed in-
stallations for missile sites will be permitted in
this area when disengagement has taken effect.
The Israeli military has been concerned that the
construction of the missile sites, which they claim
has continued since the disengagement agreement was
signed on January 18, may foreshadow a repetition of
the 1970 situation, when the Egyptians violated the
August cease-fire agreement by moving missile sites
to forward positions near the Suez Canal.
1
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
25X1
20A1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22: CIA-RDP79T00936A011900010046-5
/ NI I UI N L /
2
FOR THE PRESIDENT ONLY
25X1
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
25X1
TV-1 T1 1'777P-, T1 T1 71,077"\TA TPT" X7
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
EGYPT-USSR
The communique marking the end of Egyptian For-
eign Minister Fahmi's visit to the Soviet Union
called the disengagement agreement a positive step,
but indicated that fundamental questions still remain
to be settled at Geneva. Moscow's preoccupation with
getting the talks back-to the Geneva forum was also
evident in an earlier statement on Fahmi's talks with
Brezhnev and Podgorny.
The communique pointedly refers to the necessity
for closer coordination between Cairo and Moscow,
indicating that the Egyptians felt constrained to
make some gesture to meet Soviet objections to their
exclusion from the disengagement talks. There is a
specific reference to coordination at all levels in
Geneva. This probably means that the Soviets intend
to play a more obtrusive role in Geneva than hereto-
fore. The Egyptians, who rejected Soviet participa-
tion in the deliberations of the military committee
at Geneva, apparently gave some ground, at least to
the extent of agreeing to keep the Soviets abreast
of developments in any future bilateral talks. It
is doubtful, however, that Fahmi committed Egypt to
giving the Soviets a role that would allow interfer-
ence with the smooth progress of negotiations. In
fact, the communique tries to calm possible US appre-
hension by stating that closer Egyptian-Soviet coordi-
nation will not "inflict damage on anyone."
The statement gives some prominence to the
Palestine question by stating that Palestinian rep-
resentatives should be accorded equal participation
in Geneva in the "nearest future." The Soviets have
been taking the line with the fractious fedayeen
that the Palestinians eventually would be represented
at Geneva. President Sadat has been telling Arab
leaders in recent days that the Palestine question
would now be moved near the top of the Geneva agenda.
The communique makes no reference to future
Soviet military aid to Egypt, despite the fact that
Fahmi made a strong pitch to Gromyko for such assist-
ance. Fahmi indicated Cairo is concerned over what
it regards as Soviet foot-dragging on re-equipping
its forces. Moscow, which has been upset over its
seeming lack of leverage in Cairo and at Egyptian pro-
clivity to deal with the US at its expense, may be
doing little to reassure the Egyptians on this point.
3
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
Phnom Penh
Governme
clearing
operations
Government defenses
ncreased Communist
555139 1-74 CIA
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22: CIA-RDP79T00936A011900010046-5
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
A. AL ,4
CAMBODIA
Military action is centered in the Phnom Penh
region. Communist gunners yesterday used captured
105-mm. howitzers to shell the capital, causing
numerous civilian casualties and minor damage.
Such attacks are expected to continue. An in-
tercepted message of January 23 called for Communist
gunners to fire 50 to 100 rounds into the city "in
the next two or three days" and for lighter shellings
"on the following days."
Northwest of the capital, Cambodian Army units
have seized the initiative from the Khmer Communists
and are now mopping up north of the city's airport.
With the easing of the threat in the northwest,
the government is moving some units from that sector
to strengthen defenses south of Phnom Penh. Govern-
ment combat strength in the south will soon be over
8,000 troops--almost double the estimated Communist
strength.
Activity on the southern front has been limited
to relatively small-scale engagements along the Prek
Thnaot River battle line. Although the Communists
have had difficulty deciding where to direct their
major effort, they have still been able to push gov-
ernment forces north of the river in several areas.
4
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
?
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22: CIA-RDP79T00936A011900010046-5
.a. -A-
INTERNATIONAL MONETARY DEVELOPMENTS
The dollar weakened somewhat in major European
centers yesterday but still remains above last week's
levels against most European currencies, especially.
the French franc and lira. Sterling, aided by an
easing of Eurodollar rates, closed at its highest
level relative to the dollar since January 14. The
price of gold reached $141 an ounce on the London
market.
The French franc's improvement against the dol-
lar was aided by central bank dollar sales of $40
million. The Bank of France has sold approximately
$330 million since its decision to float the franc
last weekend. At the same time, the franc has been
depreciating relative to most other European cur-
rencies.
The remnants of the European joint float came
under some pressure yesterday as the Norwegian crown
reached the top of the band and the Danish crown,
Belgian franc, and Dutch guilder sank to the bottom.
In Tokyo the dollar opened fractionally lower
today, with no apparent intervention by the central
bank. The Bank of Japan sold about $70 million yes-
terday to maintain the exchange rate at 300 yen to
the dollar.
5
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
1,L l./1 If I-, I
NOTES
USSR:
USSR: Soviet officials have warned US firms
seeking to expand trade with Bloc countries that
business ventures in Romania could jeopardize the
firms' trade relations with the USSR. Moscow appar-
ently does not want Romania to appear to be benefit-
ing economically from an independent foreign policy
because of the possible impact on other East European
states.
China - South Vietnam:
FOR THE PRESIDENT ONLY
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/06/22 : CIA-RDP79T00936A011900010046-5