THE PRESIDENT'S DAILY BRIEF 16 AUGUST 1973

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0005993904
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 12
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: August 16, 1973

Declassified in Part - Sanitized Copy Approved for Release 2016/06/15 : CIA-RDP79T00936A011700020014-1
The President's Daily Brief
16 August 1973
Declassified in Part - Sanitized Copy Approved for Release 2016/06/15 : CIA-RDP79T00936A011700020014-1
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Exempt from general
declassification scheduk of E.O. 11652
exemption category 513f 1).(2).(3)
declassified only on approval of
the Dirtctor of Central Intelligence
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FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
16 August 1973
PRINCIPAL DEVELOPMENTS
Logistic problems and casualties from recent US air
attacks apparently have forced the insurgents to
put off early attacks on Phnom Penh. They have
been getting sizable shipments of arms and ammuni-
tion over the past few days, and one insurgent mes-
sage speaks of a "new offensive" planned for August
21. (Page 1)
If the generally good weather holds, the USSR is
likely to have a record grain crop of 155 to 160
million metric tons. Even so, it probably will
have to import 11 to 16 million tons in order to
meet its requirements until the harvest in 1974.
(Page 2)
Brezhnev has lent his personal prestige to the cur-
rent campaign against China by publicly condemning
"the practice of Maoism." (Page 3)
The sharp rise of the dollar on international money
markets this week has become at least partly self-
sustaining, and has enabled major central banks to
sell some of the dollars they had acquired earlier.
Announcement yesterday of improved US balance-of-
payments figures may give further impetus to the
rally. (Page 4)
The French have publicly attacked recent EC Commis-
sion proposals on agriculture, and have aimed un-
usually sharp criticism at Bonn. This has raised
hackles among West German officials who are inclined
to attribute French acidity to resentment over West
Germany's growing political and economic power.
(Page 5)
Notes on new Soviet - North Vietnamese economic
agreements and on recent snags in West Germany's
Ostpolitik appear on Page 6.
FOR THE PRESIDENT ONLY
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Phnom Penh
tek
A
Small-scale
Communist attacks
Government
defense ?line
554524 8-73 CIA
Statute Miles
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25X1
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FOR THE PRESIDENT ONLY
CAMBODIA
Khmer insurgent attacks against the capital
scheduled for the night of August 14 have been post-
poned a week. According to an insurgent message of
August 14 from the Phnom Penh area, a "new offensive"
will begin on August 21. In preparation for the
planned attacks, insurgent forces around Phnom Penh
have received sizable shipments of arms and ammuni-
tion in the past few days.
Logistic problems and casualties from re-
cent US air attacks apparently forced the
Communists to delay plans for earlier ac-
tion.
Combat activity on August 15 was limited to rel-
atively small-scale shellings and probes against
government positions near Route 1 ten miles southeast
of Phnom Penh and along the Bassac River five miles
below the city. No significant fighting occurred
along the major defense lines north and south of the
capital. Government troops in these sectors are
taking advantage of the battlefield lull to strengthen
their defenses.
1
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FOR THE PRESIDENT ONLY
USSR
If the generally good weather holds, the USSR
is likely to have a record grain crop of 155 to 160
million metric tons. Even so, it probably will have
to import 11 to 16 million tons in order to meet
export requirements and domestic demand until the
harvest in 1974.
Purchases already made this year together
with deliveries of grain bought in 1972
will probably suffice if the harvest
reaches 160 million tons. Further imports
will be necessary if the harvest is less,
or if the Soviets decide to increase their
grain reserves, which are now minimal.
Moscow has gone back on earlier statements that
it would make no further grain purchases from the US
through 1975. It also has indicated interest in ad-
ditional purchases from Canada, Australia, \ and France.
The Canadians agreed to supply no more than 2.5 mil-
lion tons of grain during fiscal 1974 in addition
to the 1.5 million tons sold earlier. Other export-
ing countries will probably be reluctant to commit
much of their crop until they know how much they
will be able to export.
2
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FOR THE PRESIDENT ONLY
USSR-CHINA
Brezhnev lent his personal prestige to the
current campaign against China yesterday by con-
demning "the practice of Maoism." In a speech
in Alma Ata, not far from the Chinese border,
the Soviet leader gave a gloomy assessment of
relations with Peking and echoed the strident
themes of recent Soviet propaganda. According
to a TASS summary of the speech, Brezhnev placed
special stress on Moscow's vague suggestion for
an Asian collective security system, implying
that China's "rabid anti-Sovietism" is the major
obstacle to stability in Asia.
Brezhnev himself first floated the Asian
collective security proposal in a clearly
anti-Chinese context four years ago.
Since then Soviet pronouncements have
plugged the idea periodically, partic-
ularly since the signing of the Vietnam
peace agreement early this year.
3
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CHANGES IN THE DOLLAR VALUE OF FOREIGN CURRENCIES SINCE 19 MARCH
(In Percent)
15 August 9 August 27 July 11 July 6 July
Mark
+14.8
+19.0
+23.1
+17.6
+25.1
French franc
+ 5.9
+ 9.5
+12.5
+11.6
+19.9
Sterling
+ 0.2
+ 0.8
+ 1.9
+ 3.6
+ 3.9
Yen
- 0.2
--0.1
- 0.2
+ 0.2
+ 1.1
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FOR THE PRESIDENT ONLY
INTERNATIONAL MONETARY DEVELOPMENTS
The sharp rise of the dollar on international money
markets this week has produced growing confidence in
the dollar and has become at least partly self-
sustaining. Announcement yesterday of improved US
balance-of-payments figures may give further impetus
to the rally.
The rise has enabled major central banks to sell some
of the dollars they had acquired earlier. In addi-
tion, the Bundesbank was able to sell in the open
market last week about $150 million acquired from
the expenditures of US military forces in Germany.
The German decision to sell dollars at this juncture
reflects concern that too quick a dollar recovery
could cause exchange market instability in the fu-
ture.
4
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FOR THE PRESIDENT ONLY
FRANCE-EC-US
With the blessing of President Pompidou, French
Minister of Agriculture Chirac has again publicly
attacked recent EC Commission proposals that would
harm certain French agricultural producers. He
criticized all of France's EC'partners for failing
to support Paris' efforts to encourage European
soybean production in the face of US limitations
on soybean exports. Chirac reserved his strongest
criticism for the West Germans, who allegedly are
"turning away from Europe."
Chirac's particularly sharp criticism of
Bonn reflects Pompidou's pessimism about
German intentions in political as well as
economic matters. The comments are part
of Pompidou's efforts to discourage West
Germany from embarking on "foreign adven-
tures" in the East.
The
West German press has responded strongly.
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//In general, the Germans believe Chirac's
remarks reflect French resentment over Germany's
growing political and economic power, displeasure
with its improved relationship with Eastern Europe
and the USSR, and opposition to Bonn's role in pro-
moting US-European dialogue.
On the subject of US-European relations, a
ranking French Foreign Ministry official has again
expressed French "distress" with the US imposition
of "artificial deadlines" on an Atlantic declaration
of principles and an Atlantic summit.
Paris' arguments against such haste are
in part self-serving, but it remains true,
as the French argue, that the Europeans
are not yet ready to speak with one voice
in an Atlantic dialogue. This is strik-
ingly borne out by the growing controversy
over the EC's farm policy.
5
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FOR THE PRESIDENT ONLY
NOTES
North Vietnam - USSR: North Vietnamese Premier
Pham Van Dong and Soviet Premier Kosygin presided
Tuesday at the signing of economic aid and trade
agreements for 1974 and 1975. Moscow agreed to as-
sist North Vietnam in reconstruction and in the de-
velopment of the power and coal industry, roadbuild-
ing, virgin lands, and geological prospecting. Mili-
tary men from both sides took part in the talks, but
the press announcement of the signing contained no
hint of military aid, suggesting that significant
problems still remain in this field. In the past
the aid agreements covered both economic and military
contributions.
West Germany - Eastern Europe: West German ne-
gotiations with Czechoslovakia and Bulgaria on es-
tablishing diplomatic ties have stalled. Bonn in-
sists that its prospective embassies in Prague and
Sofia be allowed to represent West Berlin institu-
tions. The Czechs and the Bulgarians have thus far
refused to accept this position. In an effort to
buttress its case, Bonn has asked the allies to is-
sue a statement to the effect that West German views
on the issue are in accord with the quadripartite
agreement on Berlin. Both the Germans and the East
Europeans retain a strong desire to normalize rela-
tions and they probably will resolve these differ-
ences before long.
6
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Top Secret
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