THE PRESIDENT'S DAILY BRIEF 25 AUGUST 1966

• Document Type: FOIA
• Collection: President's Daily Brief 1961-1969
• Document Number (FOIA) /ESDN (CREST): 0005968490
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 4
• Document Creation Date: September 16, 2015
• Document Release Date: September 16, 2015
• Publication Date: August 25, 1966

Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A004600480001-4
CENTRAL INTELLIGENCE AGENCY
THE PRESIDENT'S
DAILY BRIEF
25 AUGUST 1966
23
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DAILY BRIEF
25 AUGUST 1963
1. Communist China
2. Communist China
3. Indonesia
Mao clearly has lost confidence in
the high-level brass of the party and
is bypassing it as he plunges ahead to-
ward new "revolutionary" excesses.
Carrying out a function that nor-
mally would be handled by the regular
party machinery, wild-eyed mobs of teen-
agers, the "Red Guards," are rampaging
through the streets of major Chinese
cities on witch hunts for all vestiges
of the old society--and for real or
imaginary enemies of Mao.
Peking's trade is turning more and
more toward the free world as the Chinese,
largely through their own efforts, become
increasingly isolated from fellow Commu-
nist states.
This trend was first noted in 1965
when about 70 percent of China's total
trade-43.7 billion--was with non-Commu-
nist countries. Now, Japan has replaced
the Soviet Union as China's leading trade
partner,and business with the industrial
nations of Western Europe is up sharply.
Grain accounts for a good share of Pe-
king's imports from the West but there
is a significant growth in imports of
machinery and complete industrial plants.
Another strong plea for US economic
assistance was made yesterday by two of
Suharto's top advisers.
The two generals told Ambassador
Green that Suharto is determined to get
Indonesia out of its fiscal mess and
that a basic economic stabilization pro-
gram--"a real austerity program"--will
be drawn up during the next week.
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A004600480001-4
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4. Soviet ?Union ?A top-level Soviet official may be
planning a trip to Chile.
5. West Germany
6. Canada
We do not know who might go al-
though President Podgorny would be a
likely candidate. Nor do we know who
took the initiative, Moscow or Santiago.
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Any visit by 50X1
a senior Soviet would include further
efforts to woo Chilean President Frei
away from ties with the US.
Erhard today appointed replacements
for two of the three generals who ten-
dered their resignations.
While this move is intended to make
it clear that the military establishment
is run by civilians in postwar Germany,
the chancellor is by no means out of the
woods--there are rumors that six more
generals plan to resign,and the cry for
Defense Minister Von Hassel's head is
mounting.
A nationwide railway strike is sched-
uled for tomorrow,and parliament will go
into an emergency session on Monday to
find some way out.
An increase in freight rates to help
the railways meet the cost of settlement
is one likely proposal. The wheathar-
vest is in full swing now and the strike
will create a crisis as it disrupts ship-
ments to grain -elevators. Shipments to
the Soviet Union and other large-volume
.buyers' alsb will be affected.
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Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A004600480001-4
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TOP SECRET
TOP SECRET
Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A004600480001-4