THE PRESIDENT'S DAILY BRIEF 16 FEBRUARY 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007676
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: February 16, 1974

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The President's Daily Brief
February 16, 1974
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THE PRESIDENT'S DAILY BRIEF
February 16, 1974
PRINCIPAL DEVELOPMENTS
European leaders are assessing the effects of
France's isolated position and of Germany's strong
stand on EC relations, in the aftermath of the Wash-
ington energy conference. (Page 1)
The South Vietnamese cabinet, with the exception
of Prime Minister Khiem, resigned today at Presi-
dent Thieu's request. The shake-up apparently is
part of a wider effort by Thieu to restructure the
government. (Page 2)
South Korea reportedly is reinforcing some of the
islands it occupies just south of the Northern
Limit Line. (Page 3)
(Page 4)
Tension apparently continues in the Jordanian Army
in the wake of last week's mutiny. (Page 5)
No fighting has taken place along the border be-
tween Iran and Iraq since last Monday, but the sit-
uation in the area remains volatile. (Page 6)
The Economic Commission of the Organization of Pe-
troleum Exporting Countries is studying the ramifi-
cations of recent oil price increases to determine
whether prices should be changed on April 1.
(Page 7)
Saudi Arabia has accepted a $30 million subscrip-
tion to the Eurodollar loan being made to France.
(Page 7)
Notes on USSR-Libya,
and French plans for marketing fighter
aircratt appear on Pages 7 and 8.
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EC
In the aftermath of the Washington energy confer-
ence, European leaders are assessing the effects of
France's isolated position and of Germany's strong
stand on EC relations. Anxieties about the effect of
the conference on European relations with oil producers
and less-developed countries have faded, at least
temporarily.
The West Germans, already shaken by the French
decision to leave the joint float, are angry. Work-
ing-level Foreign Ministry officials say that Bonn's
patience with Paris has worn thin and that Bonn will
no longer tolerate a French veto on matters relating
to European integration or to Europe's relations with
the US.
Foreign Minister Scheel and Finance Minister
Schmidt have openly criticized Paris for transforming
the energy, problem into a contentious political issue.
Belgian Foreign Minister Van Elslande minced few
words when he warned that France's "obstinate refusal
to make reasonable compromises" is the real threat to
European unity.
Some European officials have compared the current
EC trouble with that in the mid-1960s when France with-
drew from active EC participation for several months.
France will probably not do this now, however, because
it is looking forward to assuming the chairmanship of
the EC Council for six months, beginning in July.
France is already preparing for the next meeting
of EC foreign ministers, at which it will press for ap-
proval of a plan for wide-ranging cooperation between
the EC and Arab states.
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SOUTH VIETflAM
The South Vietnamese cabinet, with the exception
of Prime Minister Khiem, resigned today at President
Thieu's request.
Thieu asked those resigning to remain in a care-
taker capacity until a new cabinet is formed. Some
of the senior ministers reportedly will be named to
posts in the new cabinet.
The shake-up apparently is part of a wider effort
by Thieu to restructure the government. In reorgan-
izing the cabinet, Thieu hopes to strengthen the
prime minister's office and streamline the handling
of pressing economic problems.
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Taerlanp.mon
TAECWONG
00
Hadu.
mon
SOCIVONG- 0
Northern
Limit Line
YONPTONG
SEOUL
CHINA
NORTH
KOREA
Korea Bay
ryongyang
South Korean 9
boat sunk
,
Soch'ong-do
Northern Limit Line
cs.r
?Seoul
Yellow Sea
Sea of Japan
DEMARCATION LINE
SOUTH
KOREA
25 so 75
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KOREAS
Seoul may be reinforcing some of the islands it
occupies just south of the Northern Limit Line. ROK
ships are reported bringing construction equipment
into the islands to support a defense buildup which
Seoul hopes to complete over the next several months.
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Pyongyang has not protested the reinforcement,
but it continues to accuse Seoul of carrying out pro-
vocative activity in the vicinity of the islands.
North Korea made its latest charges on February 15 in
connection with the sinking of a South Korean fishing
boat northwest of the Northern Limit Line. Pyongyang
claimed the ROK craft had carried out a "hostile act
of espionage" and stated that North Korean vessels
had taken "proper self-defense measures."
Despite this strong wording, Pyongyang may try
to play down the immediate incident. It has reportedly
released a second fishing vessel captured in the en-
counter and has agreed to return the surviving crew
member of the sunken vessel.
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USSR
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JORDAN
Tension reportedly continues to run high in the
Jordanian Army in the wake of last week's mutiny.
an investigation
into the Causes of the mutiny is now in full sing,
and about 100 enlisted men--mostly senior non-com-
missioned officers--have been arrested. Junior offi-
cers and enlisted men are apprehensive.
Unless King Husayn takes more positive steps
than he has thus far to deal with the grievances that
sparked the insurrection, he could be faced with
worse trouble. Husayn reportedly intends to make
personal appearances at more army Units, to wipe
out the debts of enlisted men as well as officers,.
and to establish a special royal secretariat to han-
dle army complaints.
Thus far,, however, the King has not admitted
that the unpopularity of army chief of staff Bin
Shakir and Prime Minister Rifai is amonq the main
rall'ses of linaerina unrest./
The mutineers believe the government would not
have taken any action to control food prices or pre-
vent shortages if they had not acted. The troops
have not yet even been officially notified of the
promised pay raise, although it has been announced
over Radio Amman..r
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IRAN-IRAQ
? No fighting has taken place along the border be-
tween Iran and Iraq since last Monday, but the situa-
tion in the area remains volatile.
During the fighting last weekend, Iranian troops
moved several miles inside Iraq and there is no sign
that they have withdrawn. Each side is unsure of the
intentions of the other, and a minor incident could
bring on another clash.
In private talks with US Embassy officers, the
Shah and other Iranian officials have tried to play
down last week's fighting. The Shah has also let it
be known that he will allow the Iraqi ambassador-des-
ignate to present his credentials today.
At the UN, the Security Council has adjourned
until February 20, after meeting last night to hear
Iraq and Iran trade charges of aggression.
Council members are expected to search for a
compromise that can dissuade Iraq from insisting on
full debate. ?The smaller states on the Council, in
particular, seem anxious to avoid having to take
sides in the clash between the two oil producers.
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NOTES
Oil: The Economic Commission of the Organiza-
tion of Petroleum Exporting Countries, based in
Vienna, is studying the ramifications of recent oil
price increases to determine whether prices should
be changed on April 1. Most commission members are
trying to counter Saudi Arabia's claims that prices
are already too high; some members are even toying
with the idea of another price hike. The commission
is also deliberating a long-term oil pricing policy
based on the price of energy substitutes--a concept
pushed by the Shah. The commission's recommendations
will be considered when the organization's executive
board convenes in March.
Saudi Arabia - France: Saudi Arabia has accepted
a $30 million subscription to the recent $1.5 billion
Eurodollar loan being made to Paris. The loan, which
nine major international banks are arranging, will be
used to help defray the increased balance of payments
cost of the oil France imports.
(continued)
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France - Western Europe: Avions Marcel Dassault
Company has proposed that France, Belgium, the Neth-
erlands., and Australia jointly build a "Mirage F.,1
International" aircraft, according to the French
press. The proposal reportedly has the financial
backing of the French Government and is apparently
part of France's efforts to Capture the European
market for fighter aircraft during the second half
of the '1970s.. The F-1 International--or Super Mirage--
is the planned export model of the Mirage F-1, an
aircraft just now entering France's inventory. Its
speed and altitude capabilities would be greater
than the but it will probably not be operational
before 1976.
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