THE PRESIDENT'S DAILY BRIEF 17 JULY 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993877
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: July 17, 1973

Declassified in P'a.it - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A011700010004-3
The President's Daily Brief
17 July 1973
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Exempt from general
declassification uheduk of E.O. 11652
exemption category 5B(11125.132
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
17 July 1973
PRINCIPAL DEVELOPMENTS
Paris, already irritated by what it regards as US
collusion with the USSR on European issues, increas-
ingly sees Washington as failing to accept responsi-
bility for international monetary stability. (Page 2)
In South Vietnam, President Thieu reportedly has
ordered tight controls over next month's Senate
election campaign. (Page 3)
A nearly bloodless coup in Kabul apparently has re-
turned Prince Daud, who led Afghanistan from 1953
to 1963, to power. (Page 4)
Heavy rains and wind in some of the Soviet Union's
important winter grain areas have clouded prospects
for a record crop. (Page 8)
Japan has indicated it will help finance exploration
of the Yakutsk natural gas fields if the US will par-
ticipate too. In the Middle East,
recommended that Japan avoid alignment
with other oil importing countries. (Page 6)
In Iraq, President Bakr and strongman Saddam Tikriti
have taken steps to consolidate their positions and
may be signaling a desire for improved relations with
the West. (Page 7)
The North Vietnamese delegation to the Soviet Union
departed yesterday apparently all but empty-handed.
(Page 8)
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USSR
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FRANCE
Paris, already irritated by what it re-
gards as US collusion with the USSR on
European issues, increasingly sees Wash-
ington as failing to accept responsibility
for international monetary stability.
The French feel intensely their limited
influence and what they characterize as
European dependence on the US. Paris is
particularly concerned that US failure
to support the dollar could
--affect the competitiveness of French ex-
ports, hurting employment levels and gen-
eral growth;
--force a unilateral float of the mark
and thus set back development of a strong
European monetary union;
--cause an unraveling of world trade, a
breakdown of the monetary system, and
growth of protective trade measures; and,
--increase domestic inflationary pressures
in France.
The perceived threat to French interests
has Zed Paris to focus its attention on
trade matters, the only area in which it
feels it can exert strong pressure on the
US to support the dollar.
Economics and Finance Minister Giscard D'Estaing
has stated that although he will attend the ceremo-
nial opening of multilateral talks in Toyko this
fall, he will not participate in actual negotiations
as long as the present monetary disorder prevails.
The EC has taken the position that it will have to
take the monetary situation into account before im-
plementing any agreements reached in the trade talks
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SOUTH VIETNAM
President Thieu, moving to strengthen his hand
against his non-Communist opponents, reportedly has
ordered tight controls over next month's Senate
election campaign. Two of the four slates in the
contest are government-sponsored. The independence
of the other two is marginal, and Thieu intends to
make it difficult for their candidates to reach the
electorate effectively. He
fear these candidates may take anti-government
positions on the hustings and cut into the govern-
ment's anticipated majority.
The Senate is the only official body in
which the non-Communist opposition has
considerable strength. Since only half
the seats will be at stake next month, the
opposition will still have a voice, but it
is sure to be a minority.
Thieu is pushing for as large a majority
as possible, partly so that he can put
through certain constitutional amendments,
reportedly including abolition of the two-
term presidential limit that would require
him to give up his office in 1975.
The government also may be trying to improve
its position in the labor movement. Tran Quoc Buu,
who heads the country's main union, believes Thieu
is recruiting labor support through the Democracy
Party and eventually will create a new government
union.
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AFGHANISTAN
A nearly bloodless coup in Kabul apparently
has returned Prince Daud, brother-in-law of King
Zahir, to power. Army units took over the capital
early this morning, and some members of the royal
family are in custody.
The 64-year-old Daud, who holds the army rank
of lieutenant general, has proclaimed a republic
which is now functioning under martial law and pre-
sumably will continue to be controlled by the mili-
tary. In a radio broadcast this morning, he spoke
harshly of Zahir's ten-year "experiment in democracy"
and criticized the royal family for misusing its
powers which, Daud claimed, had paralyzed the na-
tion's economy. He announced that his government
would follow Afghanistan's traditional non-aligned
foreign policy.
Daud was prime minister and virtual dicta-
tor of Afghanistan from 1953 to 1963,
when he was removed by Zahir. Although
he turned to the USSR for large scale
economic and military assistance, he ap-
peared to be a strong nationalist.
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Heavy Rains Slow Grain Harvest
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USSR
Recent poor weather may cause substantial har-
vest losses in some important winter grain areas of
the USSR, clouding prospects for a record crop.
Heavy rains and winds apparently flattened
winter grain in large areas of the Ukraine, Belo-
russia, Moldavia, and the North Caucasus. Accord-
ing to a July 13 radio report from the Ukraine,
for example, 2 1/2 million hectares were flattened--
one third of the republic's winter grain area. As
a result, the harvest will by delayed considerably.
Flattened grain is difficult to harvest
without losses, and it retains much mois-
ture which could ultimately reduce its
quality. Moreover, delays in harvesting
the crop--which is already mature?could
cause it to overripen, spilling the grain
on the ground and leading to further
losses.
A succession of dry, sunny days could yet
save the situation.
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JAPAN-USSR
The Soviet Union
is seeking up to $150 million in foreign financing
for exploration of the Yakutsk natural gas fields.
The Soviets hope to have Japan and the US share
equally in the financing. Tokyo has indicated that
it will agree, provided the US does the same. A
Soviet delegation now in Japan will visit the US
soon to discuss the project, presumably with com-
panies that have signed a preliminary agreement in
Moscow.
The Soviets claim that proven reserves of
natural gas in the area total 300 billion
cubic meters, and they estimate potential
reserves at one trillion cubic meters.
Moscow estimates that the total project
will involve the investment of some $3
billion by the US and Japan. In order for
the project to be economically feasible,
it will first be necessary to establish
that a significant portion of the reserves
are recoverable. Japan has cautioned that
its provision of credit for exploration
does not imply a commitment for the devel-
opment of the fields.
While the Japanese want to cooperate with the
US in Yakutsk, they may not in the Middle East.
close cooperation with the US and the EC would be
viewed by Middle Eastern oil producers as collusion
directed against their interest and would be coun-
terproductive for Japan.
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IRAQ
President Bakr and strongman Saddam Tikriti
seem for the present to be working together and have
taken steps to consolidate their position. Bakr's
executive powers have been substantially increased,
and purges of the ruling Baath Party and the coun-
try's security forces are still going on.
The Bakr-Tikriti regime may be signaling a de-
sire for improved relations with the West. During
an interview with Western correspondents last week,
Tikriti said Iraq would like an early rapprochement
with the UK and, to a lesser extent, the US. Bagh-
dad also wants more Western participation in Iraq's
economic development and is particularly interested
in tapping Western oil technology.
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NOTE
North Vietnam - USSR: The North Vietnamese
delegation to the Soviet Union departed yesterday
apparently all but empty-handed. According to the
final communique, the only agreements concluded were
a provisional economic assistance pact and the can-
cellation of Hanoi's debts for previous economic aid.
By contrast, during the delegation's visit to Peking,
a formal aid pact was signed. Reflecting Soviet
interest in improving relations with the West, the
communique did not directly criticize the US and gen-
erally gave North Vietnam little in the way of moral
support. Moscow did not join Hanoi in demanding that
'Washington and Saigon abide by the cease-fire agree-
ments.
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