Document Number (FOIA) /ESDN (CREST):
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CENTRAL INTELLIGENCE AGENCY
THE PRESIDENT'S
DAILY BRIEF
12 JULY 1966
-T'OtE3-&EG-RZI_
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DAILY BRIEF
12 JULY 1966
1. South Vietnam
2. Vietnam
3. Communist China
There is still some question about
what the Buddhists will do about the elec-
tions scheduled for September. The Bud-
dhist Institute--which our embassy feels
is still controlled by the extremists--
has made no official statement recently
on the elections. It may not get around
to defining a position, for fear of in-
ducing splits in the movement which would
dissipate such political influence as it
retains.
Mao has made his second appearance--
again in a ceremonial role--since last
November. Peking announced today that
he had received the visiting Nepalese
crown prince.
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4. Egypt Nasir's talks with Mrs. Gandhi ap-
pear to have been unproductive.
5. Iran
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Mrs. Gandhi's press conference be-
fore her departure--she arrived in Mos-
cow today--was brief and her answers
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questions provided opportunities to elab-
orate on Vietnam, but she came up with
only brief replies.
The Shah has now admitted to Ambas-
sador Meyer that he has contacted the So-
viets about an arms purchase.
Although apparently "shaken" by the
ambassador's warning that such purchases
would complicate his military relations
with the US, he said he would now have
to hear the Soviets out or be branded a
US puppet. He insisted, however, that
he would carefully watch the activities
of Soviet technicians accompanying any
equipment he might buy.
The Soviets apparently have not yet
made known their terms.
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6. Ecuador
7. Africa
A general strike in one of the high-
land provinces is presenting interim--
and reluctant--President Yerovi with what
our embassy calls the "knottiest problem"
yet.
The strikers are demanding abroga-
tion of a government tax measure. Ye-
rovi, however, has rigorously enforced
all previous tax decrees, and the army
is prepared to back him and break this
strike. The danger is that the presi-
dent may weary of the whole mess and
carry out earlier threats to resign,
plunging the country into protracted
unrest.
Yesterday, Nationalist China and
struggling little Malawi established
diplomatic relations.
About the only significance of this
is that it evens the score in Africa--
16 states now recognize the Nationalists,
and 16 the Communists.
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TOP SECRET
TOP SECRET
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