THE PRESIDENT'S DAILY BRIEF 8 FEBRUARY 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993737
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 14
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: February 8, 1973

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Declassified in Part - Sanitized Copy Approved for Release 2016/06/14 : CIA-RDP79T00936A011500010033-3
The President's Daily Brief
8 February 1973
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Exempt from general
declassification schedule of E.O. 11652
exemption category SB( 11,(2),(3)
declassified only on approval of
the Director of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
8 February 1973
PRINCIPAL DEVELOPMENTS
The North Vietnamese are still sending supplies to
South Vietnam, where the fighting is generally
light. (Page 1)
Cambodian President Lon Nol is planning to come to
the US and is trying to en-
tice Sink Matak into taking the vice-presidency
in preparation for his departure. Meanwhile, the
Khmer Communists may have launched their "February
offensive." (Page 2)
We discuss the run on the dollar on Page 4.
The Soviet Union may be interested in association
with the General Agreement on Tariffs and Trade.
(Page 5)
Uruguayan military officers are threatening to
force President Bordaberry from office. (Page 6)
The Soviets seem to have begun building another
aircraft carrier. (Page 7)
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DEMILITARIZED ZONE
MILES 25
SOUTH
VIETNAM
441
u rst stronghold
AIGON
a Nang
amang Ngai
Enemy
landing zone
S uynh
MR 1
Kontum
Binh
Dinh
Pleiku
554096 2 73 CIA
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VIETNAM
The North Vietnamese are continuing to move
supplies to South Vietnam, some of it by sea. An
intercept of 6 February disclosed that logistics
units in the Vinh area had dispatched at least 50
tons of explosives and ammunition to South Vietnam--
the first such shipment noted since the cease-fire.
Traffic levels are also high in southern Laos, with
the heaviest truck traffic near a North Vietnam -
Laos border crossing point where sensors recorded
150 southbound movements on 5 and 6 February.
intercepted North Vietnamese communi-
cations indicate heavy truck activity farther south,
some of it possibly involving supply shipments to
the central highlands. In addition, a Communist
convoy of 75 loaded trucks was spotted moving south
in Tay Ninh Province just south of the Cambodian
border.
The Communists have recently delivered some
supplies by sea to enemy-controlled territory in
north-central South Vietnam.
phowed large stacks of supplies on a beach
in southern Quang Ngai Province, with a small cargo
vessel, possibly a North Vietnamese infiltration
trawler, standing by a few miles offshore.
The Communists destroyed a South Vietnam-
ese coastal radar site south of this
point a few days earlier, and they have
expanded their control along the coast
in this area, apparently in anticipation
of further seaborne shipments.
The level of military activity remains low
in most areas of South Vietnam, but some increase
in fighting has occurred in the north. The heavi-
est activity took place in Quang Ngai Province,
where government troops attempting to retake Sa
Huynh report progress. In Quang Tri Province, the
Communists have increased their shellings of South
Vietnamese paratroops trying to clear a North Viet-
namese stronghold along the Thach Han River.
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CAMBODIA
President Lon Nol will leave soon for the United
States
Lon Nol hopes to secure Sink
Matak's appointment as vice-president, so that Matak
can hold the reins of power during his absence.
Lon Nol has been trying to persuade Matak
to accept the vice-presidency since last
March, when Matak quit the government
after a serious political falling out with
Lon Nol. Matak has steadfastly rejected
all of Lon Nol's appeals, primarily be-
cause of doubts that he would have any
real authority.
Matak, however, may now be tempted to re-
join the government by the prospect of
serving--if only temporarily?in Lon NoZ's
place. At the same time, Lon Nol evidently
believes that, despite their differences,
he can still trust Matak to protect his
political interests.
Matak's acceptance of the vice-presidency
presumably would not only bring a measure
of administrative efficiency, but would
boost the spirits of the isolated and de-
moralized opposition and perhaps promote
political unity in Phnom Penh. Moreover,
Lon NoZ's departure on medical leave could
cause the government to be more active in
seeking a political dialogue with the
Khmer insurgents.
Yesterday the North Vietnamese released a joint
communique drafted during exiled Prince Sihanouk's
visit to Hanoi. It sheds little light on prospects
for a cease-fire in Cambodia and in fact gingerly
sidesteps the gulf between Sihanouk's proposal on
31 January of a de facto end to the fighting, and
the Khmer Communists' determination to fight on. The
North Vietnamese took the opportunity once again,
however, strongly to endorse Sihanouk as the only
legal head of the Cambodian state.
(continued)
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p VINII RA CH CIA
554095 2-73 CIA
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FOR THE PRESIDENT ONLY
The "February offensive" recently referred to
in some Khmer Communist messages may be getting
under way. Since 6 February insurgents have been
probing government positions east of the Mekong and
along the river itself. They have also rocketed the
isolated city of Svay Rieng and unsuccessfully at-
tacked its outer defenses. One intercept indicates
that the insurgents also intend attacks in southern
Kandal Province, near the border with South Vietnam,
in what may be an attempt to obstruct Mekong River
traffic, choking off a vital supply route to Phnom
Penh. The defenses around the capital are to be
harassed by artillery.
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FOR THE PRESIDENT ONLY
INTERNATIONAL MONETARY DEVELOPMENTS
Foreign currency markets generally were quiet
yesterday as traders awaited the outcome of what
turned out to be an unproductive special meeting of
the Bundesbank. Nevertheless, the dollar closed
weaker against most major currencies. The dollar's
continued problems were partly attributable to a
statement by a Bonn official that West Germany is
prepared to consider the introduction of a two-tier
foreign exchange system to defend the mark. The
Foreign Ministry issued a quick denial, but the re-
mark was enough to weaken the dollar. It closed at
its floor against the mark and the Dutch guilder in
the major European markets.
Foreign banks have spent roughly $4 bil-
lion in dollar interventions in the past
week. Last summer, worldwide dollar in-
terventions in the wake of the pound float
amounted to over $6 billion. The recent
West German interventions of over $2.5
billion, however, already approximate
those of last year.
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USSR-GATT
At a meeting last week of members of the Gen-
eral Agreement on Tariffs and Trade, the Polish
delegate asked if a way could be found for non-mem-
bers who have a significant role in international
trade to take part in GATT's next round. He also
suggested that the absence of a major agricultural
importer might handicap negotiations on farm prod-
ucts.
The Pole presumably was putting out a
feeler on behalf of Moscow. The Soviets
may now be changing their traditionally
negative attitude toward GATT because of
their need for agriculture imports and
their desire to see Western trade barriers
lowered. They may also hope to obtain
better terms for Eastern agricultural ex-
ports to Western Europe, which face higher
tariffs as the Common Agricultural Policy
is applied to the enlarged EC. Except
for East Germany and Albania, all of East
Europe has some form of representation,
but little influence, in GATT.
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FOR THE PRESIDENT ONLY
URUGUAY
President Bordaberry and senior military offi-
cers seem headed for a showdown over who will wield
power in Uruguay. Military leaders have been dis-
gusted by the failure of civilian politicians to pro-
vide honest or efficient government
There is much talk of a coup in Montevideo,
particularly since yesterday, when Borda-
berry replaced his defense minister with a
retired army general known for his strong
constitutionalist views. Should the dissi-
dent officers choose to challenge this
change, indications are that Bordaberry
will try to dismiss them as well.
Uruguay's present military leaders have
never had to face such a strong stand by a
president; they are accustomed to compro-
mise. Nevertheless, tempers are high, and
a bold move by Bordaberry could force the
generals to choose between ousting him or
backing down. The officers would face
strong--possibly violent?civilian reac-
tion to an outright coup.
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New Hull Section
at Nikolayev Shipyard
.Moscow
Oikolayev
New Incomplete Hull Section
As Seen In Photo
Artist's Concept
Hull Section of Carrier Just Launched
Artist's Concept
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NOTES
It is placed on the way
in the same spot where the first hull section of ,
the initial carrier was laid in mid-1970. If 'a
second aircraft carrier is under construction, it
could be launched in 1975 and ready for service in
1978.
Jordan-USSR:
Cyprus: Yesterday's raids for arms on police
stations by General Grivas' forces may be a pre-
lude to More violence today, the filing deadline
for candidates for president. If no opposition
candidate files, Archbishop Makarios will automati-
cally be re-elected. The raids seem designed to
frighten Greek Cypriots away from a mass pro-Ma-
karios rally scheduled for today. The police are
on alert in anticipation that Grivas will try to
disrupt the rally. If conflict should break out,
a close associate of Makarios says the Archbishop
can count on some 3,000 armed men.
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Top Secret
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