THE PRESIDENT'S DAILY BRIEF 26 FEBRUARY 1976

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006015040
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: February 26, 1976

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The President's Daily Brief
February 26, 1976
OL' ecret
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Exempt from general
declassification schedule of E.O. 11652
exemption category 513(11.12),(3)
declassified only on approval of
the Director of Central Intelligence
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February 26, 1976
Table of Contents
Mexico:
(Page 1)
Thailand:
(Page 3)
France: Paris has decided to postpone devaluation
of the franc relative to other currencies in
the European joint float until fall. (Page 4)
Notes: UK-Rhodesia; Lebanon; Spanish Sahara
(Pages 5 and 6)
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1 l._/1%, I I _LI, I IN-L_:011_/.1_,L N _I_ I
MEXICO
(continued)
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THAILAND
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_
FRANCE
France has decided to postpone
devaluation of the franc relative to
other currencies in the European joint
boat until all
Paris apparently opted
for the se ay because West Germany has
refused to couple a revaluation of the
mark with a franc devaluation.
French inflation--running two to three times
the West German rate--has reduced the competitive-
ness of French exports. With economic recovery
getting under way, French current account balances
are likely to deteriorate by roughly $4 billion
this year. These factors, combined with a spill-
over from the recent run on the lira, have pushed
the franc toward the bottom of the European joint
float.
Having decided on the necessity of devaluation,
Paris had hoped to convince West Germany to revalue
the mark at the same time. At their meeting last
week, West German Chancellor Schmidt told French
President Giscard that for the present Germany would
not revalue. Giscard hopes to persuade Bonn to re-
value after the German elections in October.
Market pressures could still force Paris to
devalue unilaterally before fall. The run on the
franc in late January and early February cost Paris
about $2 billion in foreign exchange reserves. De?
terioration in France's trade position or continu-
ing problems with inflation could trigger further
speculative pressure within the next few months.
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NOTES
A special British envoy is currently in Rho-
desia to determine if Prime Minister Smith is pre-
pared to advance quickly toward majority rule.
Foreign Secretary Callaghan has sent a per-
sonal message to black nationalist leader Joshua
Nkomo to try to reassure him that London has no
intention of striking a deal with Smith that would
undermine the nationalists' position. There have
been some indications that London would be willing
to provide financial assistance to ease the tran-
sition to majority rule if a breakthrough were to
occur in the stalemated negotiations.
Lebanon's socialist leader Kamal Jumblatt,
reportedly has
a coalition cabinet. His
acceptance may clear the way for a new government.
The Christians, nevertheless, still are con-
cerned over the extent of leftist participation in
the government. The Christians are fearful of the
close alliance between the Palestinians and the
Lebanese far left and are worried that Syria will
relax its tough attitude toward both groups.
agreed to participate in
(continued)
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Spain's role as co-administrator of Spanish
Sahara under the tripartite agreement it concluded
with Morocco and Mauritania formally ends on Sat-
urday.
The legal status of the territory remains a
contentious issue, however, because, even though
Morocco has set up an extensive administrative appa-
ratus in the Sahara, Spain insists that transferring
administrative control does not resolve the question
of sovereignty. Algeria has pressured Madrid to
maintain its legal responsibility as the adminis-
tering state of a non-self governing territory.
Algiers continues to demand a referendum on self-
determination and wants the Sahara dispute discussed
in the UN.
The situation in Spanish Sahara has been calm
this week, although Polisario guerrillas reportedly
have harassed Moroccan forces in a few scattered
areas. Guerrilla activity may increase as the date
for the Moroccan-Mauritanian takeover approaches.
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