THE PRESIDENT'S DAILY BRIEF 26 JULY 1972

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993431
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: July 26, 1972

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The President's Daily Brief
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26 July 1972
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Declassified in Part"- Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T06936A010900250001-9
Exempt from general
declassification schedule of E.O. 11652
exemption category 5B(1 )A2),(3)
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A010900250001-9
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A010900250001-9
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
26 July 1972
PRINCIPAL DEVELOPMENTS
South Vietnamese troops have moved into the citadel
in Quang Tri City. The Communists, meanwhile, ?are
preparing new positions north ?and west of the city.
(Page 1)
Lao
(Page 2)
The Soviets are conducting early phase launch tests
of a new or highly modified missile from the SS-11
area of Tyuratam. (Page 3).
.The Japanese Government is examining plans tom-
crease purchases from the US and to liberalize for-
eign access to Japanese markets. (Page 4)
Chile's President Allende has acknowledged important
economic difficulties and warned of future belt-
tightening. (Page 5)
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FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
VIETNAM
South Vietnamese paratroops moved into the
citadel in Quang Tri City yesterday, but recent
reporting indicates some fighting is continuing.
North Vietnamese artillery units that had been
near the provincial capital have shifted to the
north and west, and some are setting up new posi-
tions along the northern bank of the Cua Viet
River. Some Communist infantry units have also
pulled back to the west.
These withdrawals as well as recent enemy
troop reinforcements and resupply activi-
ties indicate the Communists will continue
to defend their remaining holdings in east-
ern Quang Tri Province.
Action elsewhere in the northern provinces re-
mains fairly heavy. Communist gunners fired more
than 1,300 artillery and mortar rounds at South Viet-
namese defensive positions south and west of Hue on
Monday and also shelled the citadel in Hue. The
South Vietnamese are continuing to push into north-
ern Binh Dinh Province and are now deploying at
least company-sized units in all three districts
that were taken by the Communists this spring.
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FOR THE PRESIDENT ONLY
LAOS
FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
USSR
A review of satellite photography of Tyuratam
shows that the Soviets are conducting early phase
launch tests of a new or highly modified missile from
the SS-11 area of the range. Missile debris from two
tests was seen about 3,000 feet downrange from an
SS-11 research and development silo facility.
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FOR THE PRESIDENT ONLY
JAPAN US
For several weeks the Tanaka government has
been examining plans to increase purchases from the
US and to liberalize foreign access to Japanese
markets in ?preparation for the bilateral trade ne-
gotiations that began yesterday. In addition to
proposals for large-scale purchases of American
grains and safeguarded enriched uranium, Tokyo is
considering increasing imports of US commerical air-
craft and military hardware, as well as expanding
import quotas on foodstuffs and computer products
and easing restrictions on foreign investment in
retail and wholesale outlets.
Conflicting bureaucratic and business inter-
ests, which in the past have often precluded sig-
nificant trade concessions, are still unresolved,
however. Some higher echelons of the Ministry of
International Trade and Industry, together with the
foreign and finance ministries, favor import lib-
eralization, but they face strong opposition from
middle-level bureaucrats who represent business and
agricultural interests.
Prime Minister Tanaka is clearly deter-
mined to redress Japan's growing trade
imbalance with the US. He is in a stronger
position than his predecessor to prod con-
cessions from the ministries and to weather
the political controversy that might fol-
low the imposition of liberalization pro-
grams.
Any new measures are not likely to have
a major impact on the trade balance this
year, however. Large-scale purchases now
could at most boost imports from the US
by only a few hundred million dollars
during the remainder of the year. Other
trade and investment measures being con-
sidered represent a continuation of
Tokyo's policy of gradually opening up
the domestic market, which will only be
felt over the long run.
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FOR THE PRESIDENT ONLY
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FOR THE PRESIDENT ONLY
CHILE
In a major speech Monday night, President
Allende admitted that loans and credits from the
Soviet Union and other countries were insufficient
to balance losses caused by the disruption of tra-
ditional economic patterns. As a partial remedy,
Allende presdribed a savings plan that would pro-
vide local investment funds and a soak-the-rich
pricing scheme. He also promised the workers a
larger share of goods and services, announced a
general wage boost to take effect in October, and
outlined a plan to give workers paid vacations in
Chile. Allende offered small businessmen and farm-
ers guarantees against expropriation but, lest some
take his optimistic tone too seriously, warned that
further belt-tightening would come.
The government's poor performance to date
and increasing economic pressures suggest
that implementing the new measures will
be difficult at best. In any event, more
stringent government controls on the econ-
omy and on the spending habits of consum-
ers seem certain. If the economy does not
improve, further attacks on the US and the
local oligarchy are likely.
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NOTE
Egypt:
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Top Secret
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