THE PRESIDENT'S DAILY BRIEF 26 JUNE 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993859
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: June 26, 1973

ft
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
?
The President's Daily Brief
26 June 1973
L5
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
, 1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
Exempt from general
declassification schedule of E.O. 11652
exemption category 5B( I 1,12).(3)
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14: CIA-RDP79T00936A011600010073-8
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
26 June 1973
PRINCIPAL DEVELOPMENTS
Greek
(Page 1)
Romania appears to be building ten Chinese-designed
gunboats, which will be the country's first non-
Warsaw Pact arms. (Page 2)
Brussels is urging NATO to revamp the procedural
system for the MBFR talks so that smaller countries
will have a larger role. (Page 3)
On Thursday, EC finance ministers will renew their
efforts to find some common ground on how to promote
monetary union and fight inflation. (Page 4)
Notes on the USSR and Iceland appear on Page 5.
FOR THE PRESIDENT ONLY
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
225X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14: CIA-RDP79T00936A011600010073-8
FOR THE PRESIDENT ONLY
GREECE
1
FOR THE PRESIDENT ONLY
25X1
25X1
25X1
t)cyi
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
Romania Buildina Chinese -Desianed Gunboats
USSR
mania
? r ??. &.? 1;
?
?.?,.\...s, BUCHAREST
- ,r ( '?,
,,?/\:?A.-er (
_ , i:?, .Constanta
\
--,,,, )
'...%".?:-.......-11.". Mangalia
BLACK
SEA
I?f Bulgaria
Length
Displacement
Propulsion
Maximum speed
Armament
Shanghai-Class Gunboat
128 feet
155 tons (full load)
4 diesel engines
32 knots
437-mm antiaircraft guns
425-mm antiaircraft guns
1 75-mm recoilless rifle
depth charges and mines
.11wse
554443 6-73 CIA
^n.
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
25X1
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
FOR THE PRESIDENT ONLY
ROMANIA-CHINA
what ap-
pear to be ten Chinese-designed motor gunboats being
built at Romania's Mangalia shipyard. Construction
of the gunboats began about a year ago. They will
be Romania's first non-Warsaw Pact arms since World
War II.
The gunboats probably are being built with
Chinese assistance. The program is an im-
portant step in Bucharest's drive to diver-
sify its sources of arms and to build up
its domestic armaments industry. Romania
is also engaged in a joint project with
Yugoslavia to build fighter aircraft and
possibly submarines.
The gunboats may be part of a $300-million
package of credit assistance that Peking
granted Romania in late 1970. Highs-level
Sino-Romanian military exchanges have be-
come commonplace since the Soviet-Zed oc-
cupation of Czechoslovakia five years ago.
The Romanian chief of staff, General Ion
Gheorghe, is currently visiting Peking.
President Ceausescu may have been trying
to head off Soviet reaction to the gunboat
project in a speech on May 30 when he said
Romania intended to continue getting most
of its arms from the USSR. Moscow will
nevertheless almost certainly express its
displeasure, even though the gunboats will
not greatly improve the Romanian Navy's ex-
tremely limited capabilities.
2
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
FOR THE PRESIDENT ONLY
BELGIUM-MBFR
Belgian officials are urging the North Atlantic
Council to consider revamping the procedural system
for the MBFR talks. They would like to broaden the
negotiating format from a four-country "emissary
system"--the US, a West European, the USSR, and an
East European--to a regular schedule of full-scale
plenary meetings. Another proposal would limit the
decision-making mandate of the ad hoc group of West-
ern representatives in Vienna, requiring that its
work be subjected to frequent review by the national
governments concerned as well as by the North Atlan-
tic Council.
The Belgian effort stems from Brussels'
dissatisfaction with the small role it
played in the MBFR preparatory phase and
its fear that a reduction of US forces in
Europe will affect Belgian security. The
Belgian proposals--which, if adopted,
would slow the tempo of negotiations and
give smaller countries greater control
over the formulation of Western negotiat-
ing positions--are designed to contain
domestic pressures and justify the coun-
try's participation to skeptical defense
officials.
The UK and West Germany will probably be
willing to adopt certain compromises in
order to allay the fears of their allies.
Although the Belgians have gone furthest
in dramatizing their concerns--having
broken ranks with the others on several
occasions--other small allies would like
to see more plenary meetings. Most al-
lies probably will eventually settle for
a combination of more regular plenary
sessions in which positions could be pre-
sented and agreements recorded, supple-
mented by working committees and emissary
meetings where much of the negotiating
would be done.
3
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
- , 3
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
FOR THE PRESIDENT ONLY
EUROPEAN COMMUNITIES
Member governments remain sharply divided
on how to move toward monetary union and
against inflation. EC finance ministers
will renew their efforts to find common
ground when they meet on Thursday, but
seem unlikely to reach a consensus for
community action.
The Commission has proposed that member coun-
tries allocate 20 percent of their monetary reserves
to a common pool to help maintain the narrow Euro-
pean currency band. The French favor the pooling
of reserves, but are unwilling to give EC institu-
tions the supranational authority necessary to make
the pool a part of an effective monetary union.
The Germans oppose further steps toward union with-
out vesting the EC with this authority and providing
for the harmonization of monetary and fiscal policies.
The Commission is again urging strong action
to stem inflationary pressures, which are being
aggravated by the community's rapid economic ex-
pansion. The measures proposed by the Commission
last January, however, have been largely ignored
by all member countries.
Except for proposed tariff measures, anti-
inflationary policy tools remain under the
control of member governments, and mone-
tary and fiscal action will be taken only
when domestic political climates are
favorable. On the tariff measures, the
French probably will oppose the German
recommendation for unilateral external
tariff reductions, which they view as
prejudicial to the upcoming GATT negotia-
tions.
4
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14: CIA-RDP79T00936A011600010073-8
FOR THE PRESIDENT ONLY
NOTES
USSR:
the Soviets have launched their fourth D-class
submarine at Severodvinsk on the White Sea. Two
other D-class units are now fitting out there, and
earlier this month the first D-class returned to
the shipyard after a shakedown cruise. The first
D-class launching at Komsomolsk in the Far East is
expected soon. The D-class is designed to carry
12 ballistic missiles with a range of 4,300
nautical miles.
Iceland: The government yesterday formally
invoked Article VII of the 1951 defense agreement
with the US. Under this provision NATO is to review
the continuing need for the Keflavik base, but if a
new accord is not reached in six months, either the
US or Iceland can give a 12-month termination notice.
Iceland's willingness to participate in meaningful
negotiations still depends on resolving its dispute
with the UK and West Germany over fishing limits.
5
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011600010073-8