THE PRESIDENT'S DAILY BRIEF 6 FEBRUARY 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007667
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: February 6, 1974

Declassified in Part - Sanitized Copy Approved for Release 2016/07/19 : CIA-RDP79T00936A012000010002-1
The President's Daily Brief
February 6, 1974
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Exempt from general
declassification schedule of E.O. 11652
exemption category 5B( I
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
February 6, 1974
PRINCIPAL DEVELOPMENTS
Bonn's hopes for making significant strides toward
EC unity have been set back by the French. (Page 1)
Prime Minister Heath's response to the miners' deci-
sion to go ahead with a national strike on Sunday
suggests that the government intends no further con-
cessions. (Page 2)
Jordan's King Husayn has returned home to find that
dissidence is spreading. (Page 3)
In China, the anti-Confucius campaign has moved
into a new phase. (Page 4)
The French are pursuing negotiations with Saudi
Arabia for oil. (Page 5)
Syria. (Page 6)
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A meeting of the Palestine Liberation Organization
will probably be postponed because of dissension
over the question of participating in the peace ne-
gotiations. (Page 7)
The Japanese Foreign Minister's attempt to line up
support within the ruling liberal Democratic Party
for an aviation agreement with China has sparked
political infighting. (Page 9)
Notes on the Philippines, Egypt, and Laos appear on
Page 10.
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WEST GERMANY - FRANCE - EC
West German hopes for making significant strides:
toward EC Unity while Bonn chairs the EC Council
this winter and spring have been set back by the
French decision to float the franc German Offi-
cials are particularly bitter over the French ac-
tion because it followed Bonn's offer to make some
$3 billion available to help France stay in the
European joint float
-
Some German officials suspect that the French.
had hoped West Germany would react with some hasty,
action that would have shifted the onus for the EC's
difficulties to Bonn. There is still some specula-
tion in Bonn, however, that Paris may make some
conciliatory gesture or even rejoin the float later
this year.
Bonn has not yet abandoned all hope of progress
in the EC during its chairmanship. Finance Minister
Schmidt, speaking in London last week, reaffirmed
West Germany's call for a. coordinated.European ef
fort to find a solution to the world energy and
monetary problems. Schmidt also indicated that the
remaining five members would continue the joint
float in the hope that others--meaning France--
would join.
Meanwhile, the US Embassy in Bonn believes that
the West Germans are taking a close look at their ,
foreign policy in light of recent setbacks suffered
by the EC, the hardening of Soviet and East European
attitudes toward the Federal Republic, and uncer-
tainties about the continued USmilitary presence
in Europe. There is a growing feeling in some quar-
ters that continued close ties with the US are of
first importance', while others advocate a more con-
ciliatory line toward the USSR and its allies.
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UNITED KINGDOM
Prime Minister Heath's response to the miners'
decision to go ahead with a national strike on Sun-
day suggests that the government intends no further
concessions. Heath accused the miners of an unwill-
ingness to compromise, and Secretary of State for
Employment Whitelaw commented that "no government
could have been more reasonable."
Because negotiations have failed and there is
no effective legislation to deal with the current
crisis, Heath may be forced to call an early elec-
tion. Although the miners may still refuse to re-
turn to work should the Tories win, Heath could im-
pose a wage-price freeze as the next stage of his
counterinflation program. He would probably try to
get parliamentary approval for sterner industrial
relations legislation.
Should the Trades Union Congress fulfill its
pledge of last month to throw the full support of
its 10 million members behind the miners, something
approaching economic chaos is likely to result'.
Strikes would add to the already mounting trade def-
icit, turn the economic growth rate downward, and
bring rising unemployment. Britain has been on a
three-day workweek since the beginning of the year,
and the government has threatened to cut back further
if a strike occurs. The miners' ban on overtime,
in effect for nearly three months, has reduced coal
production by roughly 30 percent. The government
now estimates that the power stations coal stocks
will carry the country only through March.
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FOR THE PRESIDENT ONLY
JORDAH
King Husayn returned to Amman from London last
night to negotiate with rebellious army elements,
whose demands appear to have hardened since trouble
erupted last weekend.
The small group of enlisted men who started the
trouble has gained adherents from among the lower
ranks of other units.
So far, one attempt to mollify the dissidents
has failed. A conciliatory message allegedly sent
from the King in London was circulated yesterday
morning, but most of the rebellious troops do not
believe it ?came from him.
The troops were disdainful of the claim in the
message that the government is doing its best to
lower the cost of living and to raise soldiers' pay.
The message postponed the decision on a prime demand,
suspension of debts owed by enlisted men. As a re-
sult, the dissidents insist they will henceforth
negotiate only with King Husayn.
Besides economic benefits, the troops are call-
ing for dismissal of the army and air force chiefs
of staff and the Prime Minister, whom they blame for
the high cost of living. They want the King's uncle,
Sharif Nasir, to be named army commander and prime
minister.2
So far, loyalty to the King is firm. There
has been no violence, and both Amman and Zarqa ap-
pear calm. Local media have not reported the trou-
ble, but public discussion of it is growing.
Security officials are concerned that the sit-
uation may be exploited by civilian dissidents in
the form of sympathy demonstrations in Amman. Secu-
rity forces probably could not be counted on to sup-
press such a demonstration with force.
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CHINA
The anti-Confucius campaign has intensified.
Peking apparently issued instructions late last
month making the campaign a priority task. The
propaganda media are devoting almost exclusive at-
tention to it, and Chinese residents are waiting in
line to buy newly published anti-Confucius material.
On February 2, an editorial in the official
party newspaper indicated that the campaign has Mao's
personal endorsement and called on "every leading
comrade" to take a stand. Terming the drive a "mass
political campaign," a "thoroughgoing revolution,"
and a "war," the editorial noted that the campaign
is linked with the "current class struggle."
The campaign has become the largest political
movement in China since the Cultural Revolution of
the mid-1960s, but its objectives appear to be more
limited. The February 2 editorial injected a note
of caution, warning cadre to "keep firmly to the
general orientation" of the struggle. Provincial
broadcasts have echoed this theme and have called
for discipline in carrying out the campaign. Many
Chinese and foreign observers have speculated that
the drive is aimed at someone in the current leader-
ship. The Cultural Revolution, by contrast, was an
attempt to shake up the entire Chinese party and
government apparatus.
The campaign has contributed to heightened po-
litical tensions. Policy debates, particularly in
the fields of culture and education, are being
waged in the media almost daily. Western music has
come under attack, and a Western film maker was de-
nounced for an unflattering portrayal of life in
China. Foreign diplomats in Peking have noted that
domestic political tensions are being reflected in
the increasingly standoffish behavior of Chinese
officials.
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FRANCE SAUDI ARABIA
The French are pursuing negotiations with Saudi
Arabia for oil, and hope to get 800 million tons
over 20 years with 200,000 barrels per day as an
average over the first three years. Imports would
rise sharply thereafter. The final price has not
been established. French officials are comparing
.the reported UK contract with Iran at $7 per barrel,
plus margin, to recent "small" Saudi offers to France
of about $11 per barrel.
According to the US Embassy in Paris, industrial
projects proposed by the French include construction
of oil tankers and petrochemical plants, and expan-
sion of the Jidda refinery. Water desalination proj-
ects, color TV systems, steel works, international
telephone hook-ups, and mineralogical research are
also being discussed. French inability to come up
with a unified industrial package is probably caus-
ing delays in the talks. Foreign Minister Jobert
reportedly is dismayed that French business is not
geared to provide such offers and that the Quai can-
not provide business with the necessary staff sup-
port.
Negotiations are being conducted under an in-
tergovernmental committee established during Jobert's
visit in late January. The French hope to reach
general agreements on oil purchases and on industrial
and technical assistance by late March. Paris be-
lieves it is essential to arrange deals now on a
government-to-government basis, because it feels
the Saudi regime will assume an increasingly impor-
tant position in oil marketing while the role of
the international companies will decline.
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SYRIA- RAQ-EGYPT
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FOR THE PRESIDENT ONLY
FEDAYEEN
A meeting of the legislative council of the
Palestine Liberation Organization (PLO), scheduled
for February 15, will probably be postponed indefi-
nitely. According to the
Syrian-controlled Saiqa fedayeen organization, a
council meeting at this time would only emphasize
the dissension over the question of participating
in the peace negotiations.
PLO chairman Arafat is meeting this week with
other fedayeen leaders in Damascus, after consulta-
tions with the leaders of Egypt, Libya, and Saudi
Arabia. Arafat almost certainly has been appealing
for their help--or at least noninterference--in his
efforts to forge a peace policy that other fedayeen
leaders can accept.
President Sadat has complicated Arafat's task
by insisting that the PLO reach an agreement with
King Husayn on Palestinian representation at the
peace talks. Although some Fatah moderates would
accept a limited working relationship with Husayn
for tactical purposes, the more radical, non-Fatah
PLO leaders would not. They are already criticizing
Arafat for his willingness to involve the Pales-
tinians in peace negotiations and his failure to
condemn the Egyptian-Israeli disengagement.
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Chinese Road Network in Northwest Laos
? Government-held location
? Communist-held location
?Chinese-built road 0 Miles 20
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