THE PRESIDENT'S DAILY BRIEF 5 SEPTEMBER 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993923
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: September 5, 1973

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The President's Daily Brief
5 September 1973
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Exempt from general
declassification schedule of EO. 11652
exemption category 513( 1),52),(3)
declassified only on approval of
the Director of Central Intelligence
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THE PRESIDENT'S DAILY BRIEF
5 September 1973
PRINCIPAL DEVELOPMENTS
Brezhnev told recently that the
present focus of Soviet-US trade should be on con-
cluding several modest deals. This is a shift from
past Soviet emphasis on the need for early agreement
on large, long-term ventures, and fits in better
with Western views of the prospect for US-Soviet
economic cooperation. (Page 1)
USSR
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(Page 4)
The Japanese have announced that their first two
communications satellites will be placed into orbit
by US rockets in 1976. Earlier they had hoped to
be able to use a space booster of Japanese design.
(Page 5)
There have been more clashes between government
forces and tribal insurgents in Baluchistan Prov-
ince. Pakistan's neighbors--Iran, Afghanistan,
and India--also have a stake in what happens there
and are keeping close watch on the unrest. (Page 6)
The transcript of Prime Minister Jallud's press
conference on September 2 shows that he did not
say Libya would refuse to sell oil for dollars as
reported in the Western press. (Page 3)
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last week, Brezhnev changed his tune some- 25X1
what in discussing prospects for Soviet-US trade.
He stressed that although big, long-term projects
grab newspaper headlines, primary attention should
be given at present to concluding several smaller
deals.
Brezhnev's emphasis on the importance of
smaller transactions is a shift from what
he and other top Soviet leaders have said
in the past. Earlier this year they went
to considerable lengths to underscore the
need for large deals of a long-term nature
as the most advantageous for both sides.
Brezhnev's remarks suggest that
the past few months have brought to the
Kremlin a view more in keeping with West-
ern assessments of the potential for US-
Soviet economic cooperation.
Brezhnev used the opportunity to praise Presi-
dent Nixon and lament Watergate. He voiced a sus-
picion that opponents of Soviet-US accommodation
are trying to exploit Watergate, and said he wanted
to build detente so firmly that it will not be an
issue in future US politics.
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USSR-EGYPT
(continued)
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LAOS
Prime Minister Souvanna Phouma, frustrated over
rightist resistance to the draft peace agreement, re-
portedly plans to submit his resignation at a cabinet
meeting today in order to "avoid a coup."
The threat may be a ploy to force the
rightists to accept the agreement. It
will worry the majority of Lao Army lead-
ers, who now appear ready to support the
Prime Minister even if he signs the pro-
tocol implementing the agreement without
obtaining additional concessions.
In case the rightists are considering any
"rash attempt" to prevent the signing of the proto-
col, however, Lao Army Commander in Chief General
Bounpone has ordered the transfer of several hun-
dred troops from the south to Vientiane, where they
will reinforce strategic points in and around the
city. Meanwhile, the Lao Communists continue to
complain about delays in signing the document. Dur-
ing a press conference yesterday, chief Communist
negotiator Phoumi Vongvichit blamed the rightists
and suggested that the US would be able to pressure
them into going along with Souvanna.
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JAPAN
The government has announced that Japan's first
two communications satellites will be placed into
orbit by US rockets launched from the US in 1976.
Earlier the Japanese had hoped to use a
space booster of Japanese design to launch
the satellites. This apparently has proven
beyond the capability of Tokyo's fledgling
space program, making it necessary to turn
to the US in order to avoid delay in meet-
ing increasing domestic communications re-
quirements. Nevertheless, the Japanese
say that work on their own rocket will
continue.
As for design and fabrication of the sat-
ellites themselves, the Japanese are just
beginning to develop the technology. US
firms will probably receive about half
the money spent ($30 to 50 million) to
build the first two.
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Insurgency Continues in Baluchistan
554573 9-73
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PAKISTAN
Clashes between tribal insurgents and the armed
forces continue in Baluchistan Province.
In large part, the current clashes are an
outgrowth of the continuing political
struggle between supporters of Prime Min-
ister Bhutto and the major opposition par-
ties, which have widespread appeal among
several of the important tribes in Baluchi-
stan. Attempts to reach an accommodation
between Bhutto and his opponents collapsed
in late July, and the three top opposition
leaders in the province were arrested on
15 August. They remain under detention.
The arrests have not Zed to any dramatic
increase in tribal unrest, but in some
areas a general deterioration in the secu-
rity situation is evident and tribal op-
position to the government appears to be
growing.
The army reportedly now has a division at full
strength, plus two independent brigades, in the prov-
ince, which has a population of 2.5 million. There
are also several thousand militia and paramilitary
troops operating in Baluchistan.
The government presumably has adequate
forces to maintain control. Increasingly
serious clashes with the insurgents are
probable, however, especially if no polit-
ical agreement between Bhutto and the op-
position is reached.
(continued)
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Potentially more serious are the inter-
national aspects of tribal unrest in
Baluchistan. The Shah, concerned with
a restless Baluchi minority in Iran and
fearful of further dismemberment of Paki-
stan, has sent several armed helicopters
to assist Bhutto in the anti-insurgency
effort. The Indians will be unhappy
about this because New Delhi is increas-
ingly worried that Iranian assistance to
Pakistan, though small-scale now, could
lead to a substantial transfer of Iranian
arms that might eventually be used against
India.
Meanwhile, the new government of Afghanistan,
with close ethnic ties to the Baluchis, chose to
protest strongly the recent arrests--a move that in-
creased existing suspicions in Islamabad regarding
Afghan intentions toward Pakistan's two frontier
provinces.
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NOTE
Libya: A review of the transcript of Prime
Minister Jallud's press conference on September 2
shows that Jallud did not say Libya would refuse
to sell oil for dollars as reported in the press.
He did say that Libya had suffered losses by hold-
ing some reserves in dollars, but added that the
solution to this problem should be worked out by
OPEC. Jallud made no mention whatever of a $6 per
barrel price for oil, and he specifically confirmed
that the price for Libyan oil remains $4.90. In the
past, Jallud has said that Libyan oil is "worth $6
per barrel," which may account for the erroneous
press reports.
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Top Secret
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