NATIONAL INTELLIGENCE DAILY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A031300040002-8
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 15, 2016
• Document Release Date: April 30, 2004
• Sequence Number: 2
• Publication Date: April 5, 1979
• Content Type: REPORT

Director of
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Intelligence
25
National Intelligence Daily
Thursday
5 April 1979
Top Secret
State Dept. review completed
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Saudi Arabia: RoZe at Baghdad Conference .
Iran: Oil Exports . . . . . . . . . . . . . . 5
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Overnight Reports . . . . . . . . . . . . . . . . . 15
The Overnight Reports, printed on yellow paper as the
final section of the DaiZy, will often contain materials
that update the Situation Reports and Briefs and Comments.
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SAUDI ARABIA: Role at Baghdad Conference
In a discussion with US officials Tuesday, Saudi
Foreign Minister Prince Saud said his country will break
diplomatic relations with Egypt within the next 10 months
in line with the resolutions of the recent Arab Foreign
Ministers' conference in Baghdad. He also indicated
that Saudi Arabia is unlikely to make new aid commitments
to Egypt, although it would fulfill existing economic
assistance programs. Saud insisted that Saudi Arabia
had achieved the best result possible from the meeting
and had prevented the radicals from realising their more
extreme demands, includin attacks on US interests.
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Pressure tactics used by Arab hardliners at Baghdad
forced the Saudis to choose between supporting tough
sanctions against Egypt or seeing the conference end in
another split in Arab ranks. The Saudi leadership clearly
preferred moving closer to the radical camp than to Arab
disunity, which would have brought attacks on Saudi
Arabia for its stand. 25X1
The Saudis view the potential threat of radicalized
Palestinians and subversion by Syrian or Iraqi Baathists
as more immediate and real dangers to Saudi Arabia's
security than strained ties with Cairo or Washington.
The Saudis, moreover, believe the Egyptian-Israeli treaty
is a mistake. As a result, at each point of decision
since President Sadat's trip to Jerusalem in 1977, they
have opted to maintain pace with the Arab consensus. 25X1
As a result, their political options have been restricted
gradually as the consensus has shifted toward policies
espoused by the more radical Arab overnments.
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IRAN: Oil Exports
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I Iran has 25X1
not exported any oz since the end o March. ter
Ayatollah Khomeini's Revolutionary Council apparently
rejected the crude oil prices proposed for the second
quarter by the National Iranian Oil Company, the Japanese
withdrew their tankers from the queue at the Kharg Island
exporting facility.
Iranian deliveries under contracts negotiated be-
fore the meeting of the Organization of Petroleum Export-
ing Countries last week were to begin in the second
quarter at prices consistent with the price decided upon
by OPEC. Following the OPEC meeting, the Iranian dele-
gation--which included members of the National Iranian
Oil Company--announced that Iran's price would include a
$1.20 per barrel surcharge. Even with the surcharge,
Iran's prices would be $3 to $4 less than Iran received
under spot deals during March. The Revolutionary Council
apparently thinks the price is not high enough.
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OVERNIGHT REPORTS
(The items in the Overnight Reports section have not
been coordinated within the intelligence community.
They are prepared overnight by the office of Current
Operations with analyst comment where possible from the
production offices of NFAC.)
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The US Embassy in Beijing reports early today that
crowds were beginning to gather in Tiananmen Square.
Several hundred people gathered in front of Democracy
Wall to condemn the arrest of the leader of the Chinese
human rights movement and several of his followers.
One speaker challenged security officials to arrest him
and another warned that should the "gang of four" ever 25X1
return to power, the spirit of 5 April and its goals of
"liberating thought" and establishing "a basic level of
democracy" would die. A number of posters were a arent
despite public security regulations banning them.
Canada-Argentina
The US Embassy in Ottawa notes that the Toronto
Globe yesterday reported that a Canadian company has of-
fered to negotiate its first total nuclear energy package
as part of a stepped-up effort to sell Argentina a sec-
ond CANDU heavy water nuclear reactor. The package,
worth more than $1.5 billion, would give Argentina all
the resources necessary to develop eventually its own
nuclear energy program based on hegvv er reactors and
domestic natural uranium for fuel.
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Italy
The US Embassy in Rome reports that top-ranking of-
ficials of the Italian Ministry of Defense have voiced
their concern that US-Italian arms cooperation is
likely to become an issue in the coming elections. The
lack of progress in the implementation of a memorandum
of understanding and the absence to date of any tangible
.benefits to Italy are already subjects of criticism in
the Italian press and may be detrimental to the pro-NATO
political elements in Italy.
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