THE PRESIDENT'S DAILY BRIEF 17 MARCH 1971

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005992533
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: March 17, 1971

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The President's Daily Brief
17 March 1971
--T,07?srri4e4OL(1
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FOR THE PRESIDENT ONLY.
THE PRESIDENT'S DAILY BRIEF
17 March 1971_
PRINCIPAL DEVELOPMENTS
The easing of.Sino7Soviet tensions since the late
1960s, has led to a gradual improvement in economic
relations. (Page 1)
Turkey's chief of staff is taking steps to purge
dissidents from the armed forces in the hope of'de
fusing a "potentially explosive" situation. (Page 2)
Allende is charging that there is a conspiracy to
frustrate the Chilean revolution; his government has
also taken over the operation of two large copper
_mines. (Page 3)
Rumors of impending government change in Argentina
are widespread following the rioting in Cordoba.
(Page'4)
West German - Czech talks are expected to begin at
the end of March. (Page 4)
The government of Ceylon has declared a full state
of emergency in the belief that it is the real tar-
get of recent anti-US violence. (Page 4)
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2,100
Million
US$
1,800
1,500
1,200
900
600
300
0
Estimated Sino-Soviet Trade, 1956-Present
r------'*"
1
I
,
1
_.., ,
.3.._
.
li. ---
A................
.
0
II
It
?
0
1955 '57 '59 '61 '63 '65 '67 ' '69 '70* '71**
Target
'Preliminary figure
??Trade generally falls below projected taiget
551155 3-71 CIA
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USSR - COMMUNIST CHINA
There has been a recent improvement in Sino-
Soviet economic relations.)
Sino-Soviet trade plummeted to a Low level
of around $55 million in 1969 from a peak
of about $2 billion in 1959. In 1970
trade was even lower, according to Soviet
officials. The two countries signed a
new trade agreement last November, how-
ever, and
the volume of trade this year will
twice the levels of 1969 and 1970.
be
The relative easing of the intense hostil-
ity created by the Cultural Revolution and
by border fighting of the late 1960s has
enabled Moscow and Peking to move toward
a resumption of some of the economic con-
tacts disrupted during that period. The
extremely low levels of trade over the
past few years have been economically dis-
advantageous to both countries. As long
as both sides fail to resolve their funda-
mental political differences and view each
other as potential military antagonists,
however, trade is likely to remain far
short of the levels of the early 1960s.
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TURKEY
General Tagmac, the chief of the Turkish General
Staff, is apprehensive 'over what he regards as a
"potentially explosive atmosphere pervading the mili-
tary ranks," In
an apparent effort to purge the armed forces of sus-
pected dissident elements, Tagmac yesterday "forcibly
retired" five general officers. Also being summarily
dismissed are eight or nine colonels and a "larger
number" of middle- and junior-grade officers.
It is not surprising, in view of prevailing
conditions and the sentiment within the
armed forces for a complete military take-
over, that such a purge is being conducted.
Although the purge increases the danger
that some threatened group may attempt a
coup in desperation, the widespread mili-
tary alert should make it easier for the
armed forces to quash any such attempt out-
side the chain of command.
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CHILE
President Allende has charged that an "interna-
tional and internal conspiracy" exists to frustrate
the Chilean revolution. Speaking at a meeting of
his own Socialist Party on Sunday, Allende cited,
among other things, an alleged sales maneuver de-
signed to drive down copper prices on the world mar-
ket as evidence that such a plot exists.
Allende and his backers are prone to blame
the US and opposition elements within the
country for its economic problems, and we
expect more such charges as the municipal
elections of 4 April draw nearer.
The Allende government announced yesterday that
it has taken over the operation of two large copper
mines in which Chile has a majority interest of 51
percent and the US-owned Anaconda Copper Company 49
percent. The grounds cited for the government's in-
tervention were production irregularities.
Production in the mines has fallen below
projected levels this year. Labor unrest
and inefficiency probably are the cause
of the production shortfall, but the gov-
ernment has chosen to blame the US copper
companies.
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NOTES
Argentina: Rumors of a government crisis, in-
cluding the imminent resignation of President Leving-
ston,,are widespread in the wake of Monday's rioting
in Cordoba, which resulted in two deaths before be-
ing brought under control.- The rumors appear to
have?been sparked by high-level military meetings
even though Levingston appeared to. be speaking for
the.junta of commanders in chief yesterday in order7
ing the arrest of top Cordoba labor leaders and in
taking control over major provincial unions. Even
if antigovernment activity is defused by these tough
measures and by the resignation of the unpopular
governor of Cordoba, changes in the:government-and
a reappraisal of Levingston's political and economic
policies seem likely.
West Germany - Czechoslovakia: Bonn now ex-
pects that political talks with.: the Czechs will be-
gin about 30 March in Prague and-will proceed at a
slow Dace. until May or June.
if
the Czechs persist, throughout this opening round,
in their demand that west Germany declare the 1938
Munich agreement invalid from the start, Bonn will
not permit the-Prague talks to moVe,to a more in-
tensive phase. An equally important factor in the
cautious West German approach to the talks is Bonn's
reluctance to enter full-fledged negotiations with
the Czechs until sone'break occurs in the domesti-
cally controversial Berlin talks.
Ceylon: Prime Minister Bandaranaike, clearly
worried by the growth of a self-styled "Che Guevarist"
movement, has declared a full state of emergency on:
the island. On Monday she confided to Charge Peter-
sen that she believed the recent attack on the US
Embassy, and subsequent threats she and others had
received, were part of a plan to bring the govern-
ment down.. Yesterday the local press reported that
an attempt to kidnap a cabinet minister had been
foiled by the police.
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