THE PRESIDENT'S DAILY BRIEF 6 FEBRUARY 1973
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Collection:
Document Number (FOIA) /ESDN (CREST):
0005993735
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RIPPUB
Original Classification:
T
Document Page Count:
13
Document Creation Date:
August 14, 2016
Document Release Date:
August 24, 2016
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Publication Date:
February 6, 1973
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The President's Daily Brief
6 February 1973
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010031-5
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Exempt from general
declassification schedule of E.O. 11652
exemption category 5B(1),(2),(3)
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
6 February 1973
PRINCIPAL DEVELOPMENTS
Fighting in South Vietnam remains ata low level,
but we have several reports of Communist military
plans relating to the negotiations between Saigon
and the PRG and to the arrival of the international
observer teams in some areas. (Page 1)
In Laos, Communist forces continue to press govern-
ment positions in several key areas, and the of
could complicate the cease-fire negotiations.
The Chinese meanwhile continue their road-building
effort in the northwest, but have somewhat reduced
their military strength there. (Page 2)
Communist insurgents in Cambodia plan to continue
fighting rather than accede to Sihanouk's call for
a military stand-down. They fear he may meet with
Dr. Kissinger in Hanoi. (Page 4)
International financial strains have intensified
pressures on Japan to revalue the yen. (Page 5)
?President Sadat is purging Egypt's only legal p
litical organization. (Page 6)
Panama
(Page 7)
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SOUTH VIETNAM
Military action throughout most of South Viet-
nam remained slight as ?the three-day holiday ended.
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the Communists regard the two months after the cease?
-
fire as a period to rest and to refit main forces.
The Viet Cong are telling their cadre that action
thereafter will depend in great part on the outcome
of negotiations between Saigon and the Provisional
Revolutionary Government which began yesterday in
Paris. Should Saigon refuse PRG demands, fighting
would resume, but no particular timing has been men-
tioned.
A few reports continue' to mention Communist
plans for intensified military action in some areas
to expand Communist holdings just before the inter-
national observer teams arrive.
Most of these so far appear to refer only
to small-scale actions by local forces.
1
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LAOS
F.
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CHINA
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MILES
CAMBODIA
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FOR THE PRESIDENT ONLY
LAOS
In the remote northwest, the morale of govern-
.ment troops has apparently collapsed following the
loss of the base at Nam Yu,. The irregular units
have withdrawn to the west in disarray and only two
of the nine irregular battalions are likely to be
of any use in the foreseeable future. The govern-
ment is attempting to organize a defense of Ban
Houei Sai and the few other villages in 'Houa Khong.
Province still in government hands.
In central Laos, by yesterday at least one
North VietnameSe battalion had crossed the Se
Sangsoy River toward Muong Phalane. Other Commu-
nist units are probing government defenses near
Thakhek. Government units So far have turned back
the enemy thrusts with the help of air support,
but intercepts suggest that the main enemy effort
is yet to come.
Farther south, the Communists have not yet fol-
lowed up their dispersal of several irregular units
near Saravane. Some small enemy units have already
slipped behind the irregulars, however, to rocket
Khong Sedone to the west and occupy a village only
five miles from the town.
The Communist offensive could seriously
complicate the ongoing cease-fire negoti-
ations. The deteriorating situation in
Houa Khong Province is a blow to Vien-
tiane, even though the remote area is not
of vital interest to most government lead-
ers.
If the Communists continue their offen-
sive in the south or secure a foothold
in the Mekong Valley by taking Thakhek,
military leaders and southern rightists
will react strongly. They will press
Prime Minister Souvanna Phouma to hold
out for a cease-fire providing for a re-
groupment of forces along lines existing
at the time of the 1962 Geneva accords.
This would guarantee the government con-
trol over much of the area now being con-
tested in the south. The Communists,
however, have consistently demanded an
in-place cease-fire that reflects current
military holdings.
(continued)
2
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? Chinese-built road
Road
Trail
Chinese Roadbuilding in Northwest Laos
B UR M A
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554085 2-73 CIA
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Meanwhile, the Chinese continue their road-
building effort in the northwest. The latest ac-
tivity includes 14
miles of intermittent clearing and grading south-
west from Muong Sing, and construction from Nam
Tha toward Vieng Pou Kha. As in the past, the
road building follows moves by the Pathet Lao'to
clear government forces.
3
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FOR THE PRESIDENT ONLY
CAMBODIA
In a message sent to regional commands on 2
February, the standing committee of the Khmer in-
surgents' central party committee stated that its
position is "definitely to fight and attack on the
battlefield" and "not to agree to negotiate and ac-
cept a diplomatic solution." The intercept also
averred that in taking this position "we are not
isolating ourselves and we have the strength to
continue fighting-.-both militarily and politically."
In addition, the message expressed serious
concern over the possibility that Dr. Kissinger
might meet with Sihanouk when Visiting Hanoi, The
insurgents said they hoped to be able to block such
a meeting, and if they failed, would try to main-
tain their own control anyway. While noting that
"Sihanouk's position has been independent of ours,"
the message added that he "still has some redeem-
able qualities and we are continuing to obstruct
and influence him."
These statements represent a sharp rebuff
to Sihanouk, who last Wednesday publicly
proposed in Hanoi that the insurgents
reciprocate Phnom Penh's military stand-
down. The Khmer Communists' unyielding
stance indicates that they have not been
swayed by Sihanouk's claim of full back-
ing in this matter from Hanoi as well as
Peking. Thus an early end to the con-
flict in Cambodia may hinge largely on
North Vietnam's willingness and ability
to bring the insurgents into line.
4
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JAPAN
The current international financial uncertainty
has greatly intensified pressures on Japan to re-
value the yen. On Saturday the Bank of Japan pur-
chased $240 million to maintain the yen within its
"Smithsonian band.", Although relatively little in-
tervention was required yesterday, the situation
could flare up again.
Last weekend the
Governor of the Bank of Japan publicly warned that
yen revaluation could not be ruled out. if the trade
account is not brought more nearly into balance.
Despite these pressures, opposition to a cur-
rency change remains strong in some quarters. The
powerful Ministry of International Trade and Indus-
try apparently still objects to such a move and has
been pushing for alternative steps to cut the trade
surplus. It speaks for the many small- and medium-
sized Japanese firms that would be most seriously
hurt by a currency change. (The Ministry of Finance
generally accepted the idea of a revaluation sev-
eral months ago, realizing that trade measures under
consideration would not greatly reduce the surplus.)
Japanese industry leaders also oppose a
further yen revaluation.
5
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FOR THE PRESIDENT ONLY
EGYPT
President Sadat has expelled 75 persons from
Egypt's only legal political organization, the Arab
Socialist Union. Most are journalists, many of
them leftist-oriented and implicated in or sympa-
thetic to student protests. The ASU disciplinary
board is studying other cases, and further expul-
sions may occur.
The purge presumably is intended to put
substance into Sadat's warning of 31 Janu-
ary against "deviationism." It seems
likely that the president particularly
wishes the country's restive students--
who returned quietly to classes on Satur-
day--to note his readiness to act against
dissenters. His move may also indicate
continuing suspicion of elements within
the ASU who supported the challenge to
his authority in 1971.
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PANAMA
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Top Secret
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