THE PRESIDENT'S DAILY BRIEF 11 JANUARY 1967

• Document Type: FOIA
• Collection: President's Daily Brief 1961-1969
• Document Number (FOIA) /ESDN (CREST): 0005968726
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 6
• Document Creation Date: September 16, 2015
• Document Release Date: September 16, 2015
• Publication Date: January 11, 1967

Declassified in Part - Sanitized Copy Approved for Release 2015/07/24 : CIA-RDP79T00936A004900270001-4
The President's Daily Brief
-p-I'"Z7r7.elt-,,11 January 1967
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DAILY BRIEF
11 JANUARY 1967
1. South Vietnam
2. Soviet Union
Nguyen Huu Hanh, 42-year-old gov-
ernor of South Vietnam's national bank
and a top regime financial adviser, is
rapidly emerging as the enfant terrible
of our economic relations with Saigon.
Hanh, who has been considerably
less than cooperative on a number of
economic matters, now is demanding that
US counterpart funds be slotted solely
against military expenditures. Monday,
during a meeting with Ky and Hanh, Am-
bassador Porter explained again that we
were committed to counterpart support
of the civil side of the budget as well
as the military. .He made no headway
with Hanh and got little help from Ky.
Hanh also has been finding ways
to avoid making good on the recent
understanding that Saigon would hold
down its foreign exchange balance.
The leadership has fanned out across
the country to brief regional party
leaders on the regime's policies.
Such campaigns have occurred several
times in the past few years, but never
before on this scale. Since Brezhnev
kicked off the campaign a week ago, 19
of the highest civilian leaders and some
military, brass have spoken in more than
30 cities.
?What they are saying is being tightly
held, but we think they are transmitting
to the working level Moscow's concern
over events in China. Those attending
these briefings by top leaders are in turn
carrying the message to the grass roots.
Moscow may also be raising the bogey
of an increasingly hostile China to gen-
erate greater production effort on the
home front.
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3. Communist China The war of the posters goes on.
4. Indonesia
11 Jan 67
In some of those seen in Peking to-
day, the Red Guards denounced a third
major military figure, who had seemed
to be in good standing. Others displayed
?yesterday indicate that Premier Chou En-
lai--who is under fire himself--has
defended six of his proteges, all vice
premiers. Chou is said to have claimed
these men were making self-criticisms
and should be allowed to continue their
work.
Meanwhile, an official Peking edi-
torial today contained a sweeping state-
ment on the economic disorder created by
the cultural revolution, implying that
the problem is serious and affects the
whole nation.
Speaking for'Mao and his supporters,
it charged that the opposition had used
promises of higher pay and so forth to
induce factory workers to leave their
jobs, "resulting in the closing down of
some factories." This appears to be an
admission that local party officials
are using workers' organizations to battle
the Red Guards.
The Chinese press and radio have re-
ported strikes and absenteeism in at least
seven major cities.
Sukarno's long-.awaited statement on
his role in the-October 1965 coup--read
on the radio yesterday--was defiant rather
than abject. He asserted that congress
had no right to demand an accounting from
'him and claimed that, anyway, the whole
"affair" had been a "complete surprise" to
him.
This performance will not satisfy the
new regime, and will spur on those who want
to get rid of Sukarno in a hurry. Never-
theless, we expect Suharto to continue to
make haste very slowly.
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5. Yugoslavia
6. Bahamas
7. Iran
11 Jan 67
The Yugoslays are riled over what
they consider gross interference from
Moscow in their internal affairs.
It seems that back in December the
Soviets sent Belgrade a note expressing
concern that Tito's recent reorganiza-
tion ?of his party would reduce its over-
all authority. The note also accused
Belgrade of suppressing those who favored
a strong party--an obvious reference to
the sacking of Tito's heir-apparent
Rankovic in July.
This will revive bitter Yugoslav
memories of attempts by both Stalin and
Khrushchev to influence affairs in Yugo-
slavia. Tito will probably try to
smooth things over during his forthcoming
trip to Moscow--but is unlikely to change
his domestic policies or attend a Euro-
pean Communist meeting which the Soviets
would also like.
Yesterday's elections came off with-
out violence--but without a victory for
any party. However, the strangle hold of
the white-controlled party that has long
dominated the islands has been broken by?
the Negro majority, who see their gains
as a racial triumph.
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The governor-general now has the un-
enviable task of trying to form a coali-
tion government, and may have to give up
and call a new election. Foreign investors
who have basked in the Bahamas' lack of
taxes are understandably perturbed.
The Shah has finally done it. He
has bought some armored personnel car-
riers, antiaircraft guns, and other
hardware from the Soviets. The stuff
should start to appear in March; pay-
ment, in the form of agricultural and
manufactured items, will begin next year.
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8. Yemen
9. India
11 Jan 67
Yemeni royalists are again accusing
the Egyptians of using chemical weapons
in recent bombings. The Yemenis claim
about 200 persons died as a result of
one attack, with many others blistered
and blinded./2
The last confirmed use of gas bombs
by Egyptian bombers was in June 1965.
With elections just over a month
away, the ruling Congress Party's pros-
pects are weakening. The party, riddled
by dissension and without a leader any-
where near Nehru's class, will probably
end up with a reduced majority in the
national parliament and could lose con-
trol of several state governments. Such
reverses would increase pressure to dump
.Mrs.,Gandhi after the elections.
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Top Secret
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