74.
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The President's Daily Brief
29 December 1973
45
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Exempt from general
declassification schedule of ED. I 1652
exemption category 5B( I
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
December 29, 1973
PRINCIPAL DEVELOPMENTS
\Israel
Page
Prime Minister Meir's Labor Party is generally ex-
pected to stay in power after Israel's parliamentary
election on Monday. (Page 3)
The Soviets
(Page 4)
(Page 6)
Japan has approved a $1-million credit for North
Korea. (Page 7)
Japanese leaders are fanning out around the world in
search of fuel and good will. (Page 6)
lovak\
Czecho-
Cyprus. (Page 9)
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ARAB STATES - ISRAEL
There are additional indicators that fighting
could soon resume in the Middle East.
?(continued)
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At Geneva, ?Egyptian and Israeli military nego-
tiators concluded their second disengagement meeting
yesterday. The next meeting is set for January 2--
two days after the Israeli election, when the Is-
raelis may feel free to discuss substance, if Mrs.
Meir's government is returned to office. So far,
the two sides have concentrated on outlining their
respective ideas of the general principles that
should govern disengagement.
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FOR THE PRESIDENT ONLY
ISRAEL
Prime Minister Meir's ruling Labor Alignment
is generally expected to receive a sufficiently
large plurality in Monday's parliamentary election
to enable it to retain control of the government.
The US Embassy points out, however, that the out-
come of this election is more uncertain than any
other in Israeli history, largely because of the
recent war and its aftermath. Recent Israeli polls
indicate that large numbers of voters--40 percent
in one recent poll--are still undecided.
The Labor Alignment seems likely to lose some
of its 57 seats in the 120-member Knesset. The
losses are generally expected to be from five to
eight seats, with the Alignment's coalition partners
losing perhaps another three seats. While even a
loss totaling 11 of the coalition's 77 Knesset seats
would still allow Mrs. Meir to form a new government,
her margin would be dangerously small and the nego-
tiations to put together, a majority would be even
more protracted than usual.
The main challenge to Mrs. Meir's continued
rule comes from the rightist Likud--a three-party
alliance formed last summer--which has been gen-
erally hostile toward compromise with the Arabs.
The embassy believes that Likud may add six to
eight seats to the 31 it now has in the Knesset.
Although most observers believe Likud unlikely
to win enough seats to form the main core of a new
governing coalition replacing the Alignment, the
possibility exists that it could make a sufficiently
strong showing to press Mrs. Meir to take it into
a "national unity" government. This would seriously
reduce Israeli flexibility in negotiating a peace
settlement. If Likud does as well as some predict,
it could perhaps place Mrs. Meir in a minority posi-
tion by winning over the National Religious Party,
now the Alignment's major coalition partner, and by
inducing Defense Minister Dayan and his followers
to break away from Mrs. Meir,
3
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USSR
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4
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