THE PRESIDENT'S DAILY BRIEF 11 AUGUST 1971

Document Type: 
Document Number (FOIA) /ESDN (CREST): 
0005992799
Release Decision: 
RIPPUB
Original Classification: 
T
Document Page Count: 
7
Document Creation Date: 
August 14, 2016
Document Release Date: 
August 24, 2016
Sequence Number: 
Case Number: 
Publication Date: 
August 11, 1971
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Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800090001-0 The President's Daily Brief 11 August 1971 ( 50X1 Declassified Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800090001-0 Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800090001-0 FOR THE PRESIDENT ONLY THE PRESIDENT'S DAILY BRIEF 11 August 1971: PRINCIPAL DEVELOPMENTS On Page 1 we discuss Pravda's unusually balanced ar- ticle yesterday concerning US China policy. The Chinese have established a new large military area some 125 miles from the Soviet and Mongolian borders. (Page 2) The Chilean Communist Party is shifting toward a harder line on compensating the nationalized US cop- per companies. (Page 3) FOR THE PRESIDENT ONLY Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800090001-0 Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800090001-0 FOR THE PRESIDENT ONLY USSR-US-CHINA Yesterday's lengthy Pravda article on US China policy balanced standard Soviet expressions of suspicion of US motives with an admission that "progressive" and liberal American circles had long advocated initia- tives toward China. The author, Georgy Arbatov--who directs the USA Institute of the Academy of Sciences-- warned against "unscrupulous diplomatic maneuvers" which could upset delicate dialogues between the US and the USSR and he asserted that there are grounds for believing that US policy will remain as "obsti- nate" as before. In an attempt to come to grips with the origins of Washington's current China policy, Arbatov speculated that desire for domestic political gain, for distract- ing attention from pressing domestic problems, and for delaying an end to the Vietnam war all were fac- tors. In addition, he took note of the political dif- ferences and uncertainties between Peking and Washing- ton, commenting that these will become more evident as Sino-American relations evolve toward a stage of political decisions. He concluded that actions, not words, toward the USSR and world problems will ul- timately explain the changes in US policy and will point the way to what will eventually emerge from the struggle between the various forces and motives shaping US policy toward China. The rather low-keyed weighing of pros and cons in Pravda's article seems intended to put the recent steps in China-US relations in long-range perspective and to assure the Soviet reader that there is no rea- son yet to be overly concerned. Arbatov's article indicates that, while Moscow is suspicious of "anti- Soviet" aspects of these developments, it believes that Peking and Washington will confront a good many problems to be resolved and that final judgment can be reserved. 1 FOR THE PRESIDENT ONLY Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800090001-0 Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800090001-0 Chinese Improving Defenses Near Northern Border ORE 4Y1',11 Yellow Sea East Chula Seo 551 753 8-71 ciA a Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800090001-0 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800090001-0 FOR THE PRESIDENT ONLY COMMUNIST CHINA Recent satellite photography shows that the Chinese have established a large military area near Po-ko-tu, approximately 125 nm. from the Soviet and Mongolian borders. Currently over. 100 barracks and about 75 artillery and AAA pieces are scattered along a 32-mile stretch of the Man-chou-li/Harbin railroad, one of the two rail links between the So- viet Union and China, and construction is continuing. This is the latest example of China's slow but steady efforts to establish defensive areas within 200 miles of its Soviet and Mongolian borders. The facilities usually consist of caves, trenches, vehicle revet- ments, artillery and AAA positions, and some permanent buildings. Positions are generally placed to defend transportation routes. FOR THE PRESIDENT ONLY Declassified in Part - Sanitized Copy Approved for Release 2016/07/19: CIA-RDP79T00936A009800090001-0 Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800090001-0 FOR THE PRESIDENT ONLY CHILE The Communist Party is moving closer, to accept- ing the Socialist position that recently nationalized major US copper companies should not receive compen- sation Communist 50X1 leaders are said to have? decided to recommend that Allende make large deductions for "excessive profits" of Anaconda and Kennecott on their Chilean invest- ments. Only $15 million would then remain to be paid on what the party leaders estimate to be a book value of $536 million in the three large nationalized mines. Until now, the Communists had been backing Allende 's reluctance to threaten Chile 's international economic standing with a fiat refusal to compensate the US companies. Allende 's Socialist colleagues believe that a confrontation with the US would mobilize mass support for the President and enable him to move faster toward "socialization." FOR THE PRESIDENT ONLY Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800090001-0 Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800090001-0 Top Secret Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A009800090001-0