THE PRESIDENT'S DAILY BRIEF 28 JULY 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993887
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 17
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: July 28, 1973

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The President's Daily Brief
28 July 1973
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Exempt from general
declassification schedule of E.O. 11652
exemption category 58(11,12),(3)
declassified only on approval of
the Director of Central Intelligence
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EYES ONLY FOR THE PRESIDENT
CENTRAL INTELLIGENCE AGENCY
WASHINGTON, D.C. 20505
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T!1
July 28, 1973
EYES ONLY FOR THE PRESIDENT
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THE PRESIDENT'S DAILY BRIEF
28 July 1973
PRINCIPAL DEVELOPMENTS
The Chinese have rescheduled several imminent visits
by foreign delegations, possibly in order to hold
important meetings in advance of the 10th party
congress. (Page 1)
A speech by Brezhnev has set the tone for the annual
Crimean gathering of Warsaw Pact leaders. (Page 2)
On Page 3 we discuss Sadat's speech following the
US veto at the UN.
Sana Government leaders complain that the Saudis are
trying to remove President Iryani. (Page 4)
Japan is preparing to provide $50 million in human-
itarian aid to South Vietnam on a bilateral basis.
(Page 5)
Fidel Castro showed continued hostility toward the
US in his Revolution Day speech, and denounced those
who speak of the "two imperialisms" of Moscow and
Washington. (Page 6)
Notes on the Soviet naval task force approaching
Cuba, continued unrest in the Greek Army, British
moves to protect the pound, Australia's wheat ex-
port estimates, and Colombia's plans to expropriate
a US company appear on Pages 7 and 8.
At Annex,
Peking
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CHINA
The Chinese have recently postponed a number of
visits by foreign delegations scheduled for late
this month or early in August, raising the possi-
bility that important meetings in advance of the
10th party congress may be imminent. No public
reference to the congress has yet appeared in
Chinese media, however, which suggests that Peking
is keeping its options open as to timing.
In fact, high-level meetings have been under way off
and on since late March. These meetings involved at
least a temporary settling of accounts from the Lin
Piao affair and plans for reinstatement to the party
central committee of some leaders ousted during the
Cultural Revolution.
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USSR
The third annual Crimean conference of Warsaw
Pact political leaders will probably begin on Monday
and last one or two days. Brezhnev set the tone on
some of this year's likely topics in a speech in
Kiev on Thursday.
Brezhnev spoke with considerable warmth about
detente with the West, particularly the US. He
avoided mention of any world trouble spots, attacks
on imperialism, or discussion of vigilance. Noting
that "some circles abroad" continue to try to foster
tension and increased military spending and that the
contest between socialism and capitalism goes on,
he concluded that the point is to keep the contest
out of the military sphere.
Brezhnev also devoted considerable attention
to the opportunities created by CSCE. His allies
undoubtedly were delighted that he took pains to
highlight the role of small states in an era of
detente to reassure them that their interests would
not be overridden by the big powers.
Although Brezhnev did not mention China
in his speech, the issue of relations with
Peking is almost certain to be discussed
at the summit. Romania, which is trying
to maintain balanced ties between the USSR
and China, will be on the griddle on this
account.
Ceausescu apparently calculates that
Brezhnev's commitment to detente will
mitigate the Soviet reaction to this first
participation in such a gathering by a
Warsaw Pact country.
Yesterday, Brezhnev arrived in the Crimea where
he met with French Foreign Minister Jobert. ,A num-
ber of Communist leaders are already in the USSR
and others are planning to arrive over the weekend.
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EGYPT
In a speech shortly after the US veto at the
UN, President Sadat charged that the US action
proves conclusively that Washington and Tel Aviv
are engaged in a campaign to force Egypt to sue ab-
jectly for peace. In contrast to earlier speeches,
however, Sadat spoke in measured tones, noting that
Egypt must not react "nervously or emotionally" but
must prepare for a struggle that could last genera-
tions. He also implicitly admitted that the US-
Soviet detente has halted Egyptian war plans.
While Sadat is not prepared to use the US
veto as the occasion to begin military
action, he apparently views it as having
blocked diplomatic progress. He did not
indicate that the veto would impede UN
Secretary General WaZdheim's planned visit
to the Middle East, but noted that Egypt's
diplomatic campaign, begun early this
year with Hafiz IsmaiZ's visits to the
US and Western Europe, ended with the
veto.
Sadat implied that at this point no
acceptable diplomatic path is open to
Egypt.
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YEMEN (SANA) - SAUDI ARABIA
complaints by the Yemeni
Minister of Interior to Ambassador Crawford that
the Saudis are trying to bring down the Iryani gov-
ernment and replace it with a "war cabinet" that
would take the offensive against Aden. The minister
charged that the Saudis are seeking to install Prime
Minister Hajri as president and remove other minis-
ters Jidda regards as untrustworthy because of al-
leged leftist inclinations.
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JAPAN-VIETNAM
Tokyo states that it will soon extend emergency
humanitarian aid to South Vietnam on a bilateral
basis. Japan probably will provide some $50 million
in grants and loans to help refugees. The Tanaka
government will delay payments until after September
28, when the extended Diet session ends and spending
approval will not be required. Earlier this year
Tokyo granted Saigon nearly $2 million for refugee
relief.
Despite South Vietnam's need for help in correct-
ing its adverse balance of payments, Tokyo is willing
to provide foreign exchange grants only in a multi-
lateral context, as it is doing in Laos and Cambodia.
It may consider a commodity import loan, however,
which could generate local currency for refugee pro-
grams as well as help finance imports.
Over the longer term, Japan will use multilateral
channels for large-scale development aid for South
Vietnam. Tokyo is awaiting the establishment of a
donors' consortium before deciding how much aid it
will provide.
Except for limited humanitarian aid, Japan's
economic assistance to North Vietnam remains con-
tingent on the establishment of diplomatic ties.
Negotiations began in Paris on Wednesday.
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CUBA
Fidel Castro showed unrelenting hostility toward the
US in his anniversary speech on July 26. By depict-
ing the US and Cuba as clear-cut adversaries, he
underscored his rejection of detente. He also showed
that he believes continued confrontation provides
the best means to capitalize on what he sees as an
anti-US trend in Latin America. His call for the
replacement of OAS by a new regionaZ body was a
sharp rebuff to Latin American leaders who have been
trying to reactivate Cuba's suspended membership in
the organization.
Castro's refusal to participate in Moscow's policy
of detente does not imply a deterioration in rela-
tions with the USSR. He had warm praise for Soviet
economic and military assistance and defended the
USSR against "certain leaders of. the third world"
who lump together the US and the USSR as "two im-
perialisms."
Castro spoke with an eye to the coming non-aligned
conference in AZgeria. He probably will attend and
attempt to orient the proceedings against the US.
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NOTES
USSR-Cuba: The small Soviet naval group ap-
proaching Cuba is expected to enter the Caribbean
tomorrow, Soviet Navy Day. The guided-missile
cruiser, destroyer, and tanker could be accompanied
by an F-class diesel attack submarine and possibly
by an E-II nuclear-powered cruise missile submarine--
types which have visited Cuba before.
Greece: Reports of unrest in the armed forces
continue as tomorrow's plebiscite approaches.
It seems likely, however,
that their concern is motivated by suspicion that
Papadopoulos, as president, will usurp their present
personal power. For his part, Papadopoulos gave no
hint of being intimidated during his nationwide
address yesterday, in which he warned that he would
deal harshly with any division in the country.
UK: London moved yesterday to relieve pressure
on the pound by making heavy purchases of sterling
and raising the minimum lending rate from 9 to 11.5
percent--an all-time high. Sterling advanced by
one percent following these actions. The boost in
the lending rate should help prevent overheating
the domestic economy later in the year. Britain's
GNP had been expected to rise by six percent--double
the country's normal rate--through the rest of 1973,
and strains on industrial capacity are already ap-
pearing.
Australia: Canberra expects to export eight
to nine million tons of wheat from next year's crop,
compared to about four million tons this year. Com-
mitments for 974 of 730.000 tons have already been
made to Japan
(continued)
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Colombia: President Pastrana has announced he
will seek legislation to expropriate without compen-
sation the holdings of the US-owned International
Mining Corporation. IMC-controlled properties ac-
count for about 70 percent of Colombia's gold output,
but their production has been dropping for the past
decade as a result of declining reserves. The Pres-
ident's move follows IMC's refusal of a government
proposal that the company relinquish 51-percent in-
terest in its operating gold mines in exchange for
a 49-percent share in a new joint venture. Company
management is divided; some regard the threat as a
ploy. The government, however, may find it impos-
sible to back down from its public pronouncements
in this pre-election period.
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CHINA
(continued)
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