THE PRESIDENT'S DAILY BRIEF 17 DECEMBER 1969

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005977199
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: December 17, 1969

Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A007800150001-5
The President's Daily Brief
17 December 1969
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Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A007800150001-5
Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A007800150001-5
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
17 December 1969
PRINCIPAL DEVELOPMENTS
North Vietnamese
Panamanian strongman General Torrijos is back in
power. (Page 2)
The Soviet industrial growth rate is lagging. (Page 3)
Libya insists that all US forces be evacuated from
Wheelus Air Base well before the end of 1970. (Page 4)
Moscow is displeased with Japanese foreign policy on
several fronts. (Page 5)
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NORTH VIETNAM
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FOR THE PRESIDENT ONLY
PANAMA
Panamanian strongman General Torrijos has suc-
cessfully engineered a countercoup. Torrijos re-
turned to Panama late Monday night and was able to
rally supporters in the western provinces. Troops
loyal to Torrijos moved on National Guard headquar-
ters in Panama City and by yesterday afternoon they
had gained control of the city.
Colonels Silvera and Sanjur, leaders of the at-
tempt to overthrow Torrijos, have been arrested and
will be tried for subversion. The titular leaders
of the Provisional Junta Government, Pinilla and
Urrutia, who supported Torrijos' ouster, have been
detained but they have not been removed from office.
Changes in the Guard hierarchy and in the
government, are likely in the next few
weeks as Torrijos consolidates his posi-
tion. There are indications that some
members of the oligarchy, supported the
removal of Torrijos and the general may
take steps to exclude the traditional
oligarchy-dominated parties, from partici-
pation in the political. process.
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FOR THE PRESIDENT ONLY
USSR
Partial reports from yesterday's Supreme Soviet
session forecast a low rate of growth in industrial
production and a modest increase in defense spending
for 1970. State plan chairman Baibakov announced a
disappointing industrial growth rate of 7.0 percent
for 1969, the lowest since 1946. The small increase
of 6.3 percent Baibakov proposed for industrial pro-
duction in 1970 indicates little hope for improved
performance during this last year of the current
five-year plan period (1966-70).
Finance Minister Garbuzov said that defense
spending will be 17.9 billion rubles in 1970, an in-
crease of only one percent over the amount planned
for this year. This increase in defense expenditures
is the smallest since 1965, and the defense portion
of the total budget--12.4 percent--is the lowest in
many years.
Funds for military research and development
and the space program are not included in
the published defense budget. These pro-
grams are largely financed by the science
budget, which has not yet been announced.
The figures announced so far, however, are
consistent with intelligence estimates of
total Soviet spending for defense and space
programs in 1970 of about 22.2 billion
rubles, or the equivalent of about $66.5
billion if the programs were purchased in
the US. The small increment in defense
spending is also consistent with the mod-
erate image the Soviets are attempting to
project at the preliminary Strategic Arms
Limitation Talks.
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Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A007800150001-5
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FOR THE PRESIDENT ONLY
LIBYA
In the opening round of negotiations on the
status of Wheelus Air Base on Monday, Libya re-
jected a US proposal to phase withdrawal over a
one-year period. Junta leader Qaddafi asserted
that there was no justification whatever for a
continuing US presence in the country and demanded
that all US forces be evacuated well beforethe
end of 1970., The Libyan delegation also charged
the US with Using the)pase to train Israelis as
well as to engage in sabotage and ,smuggling.
The Libyans were successful. in obtain-
ing British agreement for a.speedy
withdrawal from UK bases by using a
Similar tough approach. We expect them
to be equally hardnosed in the next
round of talks with US negotiators on
Thursday.
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Declassified in Part - Sanitized Copy Approved for Release 2016/04/27 : CIA-RDP79T00936A007800150001-5
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FOR THE PRESIDENT ONLY
USSR-JAPAN
A stinging editorial in yesterday's Pravda de-
nounced the "American-Japanese deal" struck at the
recent talks between President Nixon and Premier
Sato as a "new military-political alliance" which
is "openly aggressive in nature." It also warned
against Japanese revanchism on the northern terri-
tories issue, and claimed that it "may lead to dan-
gerous aggravation of tension in the Far East."
The editorial was unsigned, which often
signifies that it originated at very high
party levels. It was prompted by next
week's Japanese election, the Okinawa
agreement, and Sato's announced willing-
ness to hold high-level talks with Peking.
In addition, Sato has made it clear that
his administration intends to intensify
its campaign to get back the northern ter-
ritories.
Moscow has been placed on the defensive by
the Okinawa agreement and Tokyo's agitation
on the northern territories. Japan's rep,-
ognition in the Okinawa accords of a legit-
imate US security and peace-keeping role in
Asia, as well as the planned renewal of the
US-Japanese .security treaty next year, un-
doubtedly provoked the charge of a "new
military-political, alliance,"
Sato's willingness to talk with Peking can.
only be regarded with.uneasiness'in.Moscow.
Russian unhappiness with Sato's present
course, however, is not likely to affect
Soviet efforts to encourage. economic,con-
tacts with Japan, and Moscow:will be care-
ful about going beyond words to show its
displeasure.
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FOR THE PRESIDENT ONLY
NOTE
Somalia: The government has requested the re-
call of the 60 Peace Corps volunteers stationed in
Somalia. Since the coup in October, the Supreme
Revolutionary Council has taken a number of steps to
limit the activities and movements of the foreign
diplomatic community, but US activities have been
more sharply restricted than those of other missions.
This latest move may reflect the growing influence
of junior officers on the Council who are believed
to be not only strongly nationalistic but also anti-
US.
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Top Secret
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