THE PRESIDENT'S DAILY BRIEF 20 OCTOBER 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993962
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: October 20, 1973

Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
The President's Daily Brief
20 October 1973
4.15
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020065-0
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
Exempt from general
declassification uhedule of E.O. 11652
exemption category 5B(1),(2).(3)
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
Declassified in 'Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
20 October 1973
PRINCIPAL DEVELOPMENTS
The reinforced Israeli task force on the west bank of
the canal made large gains yesterday before it met
stiffening resistance late in the day. Both sides
describe the fighting as intense, and Egypt has pulled
some forces back from the east bank to counter the
threat. Fighting was also heavy on the Syrian front
yesterday, but there was no important change. The
Soviet resupply effort, meanwhile, reached a new high
yesterday. (Page 1)
A new rail line being built northeast of Peking will
increase Chinese ability to respond to Soviet military
threats. (Page 2)
Phnom Penh now seems assured of basic rice supplies
until US deliveries begin in December. (Page 3)
Prince Sihanouk's prospects for securing Cambodia's
seat in the UN are improving. (Page 4)
Chile's economic recovery plans are taking shape.
(Page 5)
Latin American foreign ministers plan to meet next
month to develop an agenda for talks with Secretary
Kissinger early next year. (Page 6)
Notes on Japan's shrinking trade surplus, Chinese
interest in US oil technology, and West German -
Soviet contracts for uranium enrichment appear on
Page 7,
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
. .
Suez Canal Zone
Mediterranean Sea
s : p
? MarIZIkt7 ?? .
?
11'
M'Ariyah
Al 'Mapzilah.---
Port Said
.A Mansurah
AI Mansurah
rirCs S'aiihiyah
?? Ismailia
? ? Abu Sawayr ?
cs
17;linic
D?eyersoir i4,?".0?r
ta k forces Great_ .4>
t
Bitter e?
Fay! Lake
Israeli
drives stalatareet
Ayn Sukhnah
? Gulf
of
Suez
O Kilometers 20
O SMiute miles ? 20
O Nautical Miles
554754 10-73 CIA
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
Declassified in -Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
FOR THE PRESIDENT ONLY
ARAB STATES - ISRAEL
The reinforced Israeli task force on the west
bank of the canal made large gains yesterday before
it met stiffening resistance late in the day. Both
sides describe the fighting as intense, and Egypt
pulled back some forces from the east bank in an ef-
fort to counter the attacks. The Israelis claim they
have destroyed ten SAM sites on the west bank.
The Israeli force on the west bank now consists
of over 300 tanks, as well as mechanized infantry and
paratrooper units. It launched attacks in three di-
rections yesterday. One column moved north toward
Ismailia, a second pushed to the southwest edge of
the Great Bitter Lake, and the third column attacked
southwest toward the Cairo-Suez highway and railroad
in an attempt to block the movement of Egyptian sup-
plies to the front. By late evening, however, an
Israeli military spokesman said the drives south to-
ward Suez City and southwest were both stalled.
Fighting was also heavy yesterday on the Syrian
front. The Jordanian brigade and Iraqi units appar-
ently made some gains along the southern edge of the
Israeli salient, but the Israelis are believed to
have won some territory at the center of the salient.
The Soviet airlift reached a new high yesterday,
both in terms of numbers of flights and the tonnage
delivered.
Six Soviet ships, including two combatants--
guided missile destroyers--passed through the Bospho-
rus yesterday. This brings the total number of Soviet
surface combatants in the Mediterranean to 29.
1
FOR THE PRESIDENT ONLY
25X1
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
New Rail Construction in China
MONGOLIA
Saynshand
PEKING ...-
CHINA .'"'?'`'
1/ REGIONCh ',------'7"--
'ih-feng
0.".? ,...,,f.
fo
0 0 , ,
, _ ,,,, ?.;
..1.-'.
Ch'eng-te ,
eking
MILIT
Chang
ch'u
e1/4.j
U IY27-_
?
e,
,Komsomol sk
414
^..."
Khabarovsk, ? '
, ? "
Al ? 'f/
rf +.
-.4', IF
/1(
/
?
V a t os t k
? Railroad under construction
? Defensive area
554750 10-73 CIA
Cq
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T009-3-6A017800020005-0
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
FOR THE PRESIDENT ONLY
CHINA
A new rail line now under construction northeast
of Peking will increase Chinese ability to respond to
military threats from the Soviet Union.
about 30
miles of new rail line construction extending north-
west from the city of Cheng-te. Some 30 miles of
preliminary work also appear from Chih-feng toward
the west. The two cities apparently will be linked.
The new rail line will provide some local eco-
nomic benefits, but the pace and location of the
construction suggest that its primary function will
be rapid deployment of troops to the southern portion
of the Shen-yang military region. Since May, elements
of three of China's 15 railway engineer divisions
have been moved from other areas of China to work on
the line.
During the past two years the Chinese have been
building defensive positions along the major road and
rail lines from the Soviet and Mongolian borders.
None has been observed, however, in the Chih-feng
?area where several roads from the north converge and
offer access to Peking. A breakthrough at Chih-feng
by Soviet forces could isolate Chinese forces sta-
tioned in the Shen-yang region.
Elements of China's 24th Army moved south of
Cheng-te in late 1971. The new rail line will per-
mit deployment of these and other Chinese forces in
the Peking military region against such a threat.
2
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
FOR THE PRESIDENT ONLY
CAMBODIA
South Vietnam has agreed to supply 5,000 tons
of rice to Cambodia, beginning with 1,800 tons today
and a similar amount on Monday. These two deliveries
amount to about one week's supply. Phnom Penh had
been down to about six or seven days.
The US Embassy reports that firm contracts for
additional rice deliveries now amount to 33,900 tons:
Thailand (12,500 tons); South Korea (20,000 tons);
and South Vietnam (1,400 tons). Regular delivery of
the Thai rice is planned to begin next week, and
South Korean shipments are tentatively scheduled to
commence on November 2. These contracts represent
some two months' supply at current consumption rates.
Phnom Penh now seems assured of basic rice sup-
plies until US PL-480 deliveries begin in December--
provided there are no hitches in shipping plans. Ne-
gotiations for 5,000 tons from Japan and a second al-
lotment of 12,500 tons from Thailand have not yet been
finally worked out. If these are also forthcoming,
Cambodia may even be able to build up a small reserve
cushion.
3
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20: CIA-RDP79T00936A011800020005-0
FOR THE PRESIDENT ONLY
UN-CAMBODIA
Prince Sihanouk's prospects are improving in
the UN. The most recent estimates show that the
nonaligned states and China will have sufficient
votes to seat Sihanouk's delegation, provided Soviet
support continues.
A working group of the Asian states supporting
the Lon Nol government (Thailand, Philippines, Singa-
pore, Indonesia, Japan, and New Zealand) believes
that the pro-Sihanouk resolution now has a 15-vote
margin of victory. The group is considering a move
to have the Cambodian issue declared an "important
question," which would require Sihanouk's supporters
to muster a two-thirds vote to seat his delegation.
It is unlikely, however, that the General Assembly
president will so rule.
General Assembly debate on seating the Sihanouk
delegation has not yet been scheduled, but the work-
ing group hopes to delay it until late in the session
in order to allow maximum opportunities for lobbying.
4
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20: CIA-RDP79T00936A011800020005-0
FOR THE PRESIDENT ONLY
CHILE
The military junta apparently has settled on
its plans for economic recovery and the restoration
of foreign investor confidence.
The program is designed to promote a market
economy, decentralize public enterprises, and reduce
the government's role in the economy. It will not
be generally popular, and the effects will be felt
by all economic sectors. The US Embassy reports that
civilian advisers to the military regime are opti-
mistic that economic dislocations can be overcome
but admit that it will take some years before mean-
ingful results will be apparent to the general pub-
lic. Meanwhile, the inflationary trend will continue,
and this year's rate could go as high as 600 percent.
In an effort to stimulate agricultural recovery,
the government has decreed massive price increases
on many basic commodities. In order to reduce the
impact on lower income groups, it has decided on new
wage policies that will mainly benefit these groups.
The rationale for maintaining the incomes of the
poor is, in part, to gain support among those who
have been the main source of leftist strength.
In an effort to renew investor confidence,
Economy Minister Fernando Leniz has announced that
the junta plans to return to private ownership as
many as 200 small firms illegally seized by the Al-
lende government. Leniz stated, however, that the
returns would be accompanied by agreements reserving
some rights to the state in order to safeguard "gen-
eral interests."
5
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
Q
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
FOR THE PRESIDENT ONLY
LATIN AMERICA - US
Colombian Foreign Minister Vasquez has invited
his Latin American counterparts, excluding Cuba's
Raul Roa, to meet in Bogota on November 14-16 to ex-
change views on relations with the US. The immediate
purpose of the meeting, as Vasquez sees it, is to
formulate an agenda for talks with Secretary Kissinger
early next year. Vasquez also hopes that the meeting
will lead eventually to the development of a purely.
Latin American consultative mechanism outside of the
OAS.
A number of foreign ministers have already indi-
cated they will attend, and the meeting seems certain
to take place. The delegates will face a monumental
task in putting aside their own national interests
and agreeing upon a common approach to Latin American
problems.
6
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20: CIA-RDP79T00936A011800020005-0
FOR THE PRESIDENT ONLY
NOTES
Japan: The trade surplus is continuing to shrink.
In September, imports were about 60 percent higher than
last September, but exports were up only about 25 per-
cent. Japan's trade surplus with the US is declining
at a particularly rapid rate. So far this year, im-
ports from the US have grown by almost 60 percent,
while exports have increased by only 7 percent. The
trade surplus with the US for the first three quarters
of 1973 has been reduced to less than half of that of
the same period last year.
China-US: Three US equipment firms have been in-
vited?E7THITa for follow-up discussions about sales
of oil recovery technology and drill bits, Several
other US oil firms have been invited to attend the
Canton Fair. Peking's purchases of oilfield equip-
ment in the past have been restricted largely to
Romania and Japan. Recent currency revaluations,
however, have made US goods more competitive.
USSR - West Germany: Three West German utilities
have signed uranium enrichment service contra --
valued at $44 million--with the Soviet Union,
7
FOR THE PRESIDENT ONLY
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
25X1
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0
Top Secret
Declassified in Part - Sanitized Copy Approved for Release 2016/06/20 : CIA-RDP79T00936A011800020005-0