Chronologies of major developments in selected areas of international relations

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Title:
Chronologies of major developments in selected areas of international relations
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Library of Congress -- Foreign Affairs and National Defense Division
United States -- Congress. -- House. -- Committee on International Relations
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monthly, each issue cumulative from beginning of current calendar year
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World politics -- Chronology -- Periodicals   ( lcsh )
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Chronologies of major developments in selected areas of international relations

Full Text


INTERNATIONAL RELATIONS COMM PRINT

4,.i/' .......

I 0M I mLV44


Chronologies o f jor

Developments in SeleL e as

of International Relations







Cumulative Edition, 1976















If



Arms Control . . . . 1
Energy-International Aspects . .. 19 Indochina . . . 27 Middle East . . . . 35 U.S.-Western European Relations . 79 U.S.-Soviet-Chinese Relations . . 95 Southern Africa. . . . .113 Cyprus . . . . . 141
81-4. -.





















COMMITTEE ON INTERNATIONAL RELATIONS
THOMAS E. MORGAN, Pennsylvania, Chairman
CLEMENT J. ZABLOCKI, Wisconsin WILLIAM S. BROOMFIELD, Michigan
L. H. FOUNTAIN, North Carolina EDWARD J. DERWINSKI, l inois
DANTE B. FASCELL, Florida PAUL FINDLEY, Illinois
CHARLES C. DIGS, JR., Michigan JOHN H. BUCHANAN, JR., Alabama
ROBERT N. C. NIX, Pennsylvania J. HERBERT BURKE, Florida
DONALD M. FRASER, Minnesota PIERRE S. DU PONT, Delaware
BENJAMIN S. ROSENTHAL, New York CHARLES W. WHALEN, Ja., Ohio
LEE H. HAMILTON, Indiana EDWARD G. BIESTER, J%, Pennsylvania
LESTER L. WOLFF, New York LARRY WINN, JR., Kansas
JONATHAN B. BINGHAM, New York BENJAMIN A. GILMAN, New York
GUS YATRON, Pennsylvania I TENNYSON GUYER, Ohio
ROY A. TAYLOR, North Carolina ROBERT J. LAGOMARSINO, California
MICHAEL HARRINGTON, Massachusetts LEO J. RYAN, California
DONALD W. RIEGLE, JR., Michigan CARDISS COLLINS, Illinois
STEPHEN J. SOLARZ, New York HELEN S. MEYNER, New Jersey DON BONKER, Washington
GERRY E. STUDDS, Massachusetts




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For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 Price $1.65



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FOREWORD


The need for up-to-date factual information about international events and developments is implicit in the legislative responsibility of the Committee on International Relations and, indeed, of the Congress itself.
To help fill that need, the committee through the years has published a variety of documents which catalog world happenings in chronological order. For the most part those chronologies have been prepared for the committee by the Foreign Affairs Division, Congressional Research Service, Library of Congress.
Unfortunately, past chronologies proved to be of limited usefulness because they appeared annually or even less frequently. The clear requirement was for information which was relatively current and available for ready reference.
As a result, the committee has requested the Foreign Affairs Division to prepare for it monthly chronologies of significant international events in a few selected areas of particular interest. Currently, these areas are: arms control, energy, Indochina, the Middle East, U.S.-Western European relations, U.S.-Soviet-Chinese relations, Southern Africa, and Cyprus. Chronologies are submitted to the committee in the first workweek following the month covered, and are published by the committee each month in a cumulative edition for the period beginning January 1 of the current calendar year.
Analysts are cited in a footnote at the beginning of each chronology.
A new document will be begun in January 1977. At that time the areas to be covered will be reviewed in order to determine if new topics should be selected, or old topics eliminated.
Through these constantly updated chronologies it is hoped that a substantial amount of current, pertinent information can be provided to comnmittee members and other interested Members of Congress.
THOMAS E. MORGAN,
Chairman, Committee on International Relations.
(IU)



















Digitized by the Internet Archive
in 2013













http://archive.org/details/chsofmaOOlibr











ARMS CONTROL
January I-The New York Times reported that an article in Pravda denied
that the Soviet Union had been violating the Strategic Arms Limitation Agreement of 1972 and contended that the Soviet Union was not to blame for any delay in achieving further strategic arms limitations. January 4-The New York Times reported that as a result of secret negotiations in London, seven nuclear exporting countries (the United States, the Soviet Union, France, West Germany, Great Britain, Canada, and Japan) were near agreement on improving safeguards in importing countries to prevent diversion of peaceful nuclear activities to military
Use.
January 14-Secretary of State Kissinger held a press conference, where he
announced that he would be going to Moscow to discuss the strategic arms limitations talks (SALT) and the situation in Angola. He said that the United States had received assurances from the Soviets that
they were "prepared to modify their last position" at SALT. '
January 14-In an address to the Pugwash Conference of International
Scientists, Indian Prime Minister iy andhi said that India would not give up nuclear explosions as experiments in the peaceful uses of nuclear
energy.
January 18-As reported in the New York Times, an article in Pravda
indicated that the Soviet Union considered achievement of a new SALT agreement essential to continuing good United States-Soviet relations. January 19-The Senate Government Operations Committee opened hearings on the export of nuclear technology and its possible contribution to nuclear weapons proliferation. The first chairman of the Atomic Energy Commission', David Lilienthal, testified and suggested a temporary embargo on U.S. exports until.an agreement could be concluded to ensure control over proliferation. Hearings were also held on January 20, 29,
and 30.
January 21-In his annual budget message to the Congress, the President
called for a rise in the defense budget for fiscal 1977 to reverse an inflationary erosion in U.S. defense programs. He projected a rise in outlays representing an annual 2 percent growth over the next 5 years. The budget proposed no new major weapons programs for fiscal 1977, although it did plan for production of the new B-1 strategic
bomber.
January 22-In Moscow, Secretary of State Kissinger ended 2 days of
talks with Soviet leaders on proposals to break the stalemate in SALT. January 23-In Brussels, Secretary of State Kissinger met with NATO
officials and discussed his recently concluded talks with the Soviet Union.
He said that the new SALT proposals presented "'prospects for reducPrepared by Leneice N. Wu, Analyst In International Relations.





2

tions" in strategic nuclear weapons. Press reports indicated that Met Soviets had proposed a lowering of the Vladisvostok ceiling of 3,400 to
2,200 strategic nuclear delivery vehicles.
January 23-The People's Republic of China conducted a nuclear test
explosion in the atmosphere with a yield of less than 20 kilotons.
January 28-The strategic arms limitation talks (SALT) reconvened in
Geneva.
January 29-Duringy hearings before the Senate Government Operations
Committee, a State Department witness said that South Korea had canceled plans to buy a nuclear fuel reprocessing plant from France. Subsequently, the New York Times reported that an unnamed Korean official attributed the cancellation to American pressures to discourage the
purchase.
January 30-During hearings before the Senate Government Operations
Committee, General Accounting Office investigators testified that there was no evidence to prove that International Atomic Energy Agency (IAEA) safeguards had prevented diversion of material from peaceful
nuclear facilities to weapons development.
January 31-The Baltimore Sun reported that seven nuclear exporting
countries had reached agreement on uniform standards for sale of peaceful nuclear facilities and fuel. The text of the agreement is secret.
February i-In an appearance on "'Face the Nation," Secretary of Defense
Rumsfeld said that the United States should spend enough on defense to maintain a "rough equivalence"~ wit h the Soviet Union. He maintained that the U.S. defense budget had been held as low as possible and that
further spending would be necessary if SALT failed.
February 3-In a report to the Senate Defense Appropriations Subcommittee, the Pentagon's Research Director, Malcolm Currie, said that the United States had underestimated the Soviet research and development effort. He also disclosed that the Soviets had been testing a maneuverable reentry vehicle (MARV) for submarine launched missiles and may be developing them for their land-based missile force. MARV is regarded as the next generation of strategic weapons succeeding multiple independently targetable reentry vehicles (MIRY's).
February 3-The New York Times reported that, under the arms control
impact statement provision of the Foreign Relations Authorization Act (Public Law 94-141), the Defense Department was considering 20 possible weapons programs which might fall under the new requirement. Reportedly, the Department of Defense and the Arms Control and Disarmament Agency (ACDA) would submit their views to the National Security Council (NSC), which would submit the reports to
Congress.
February 3-In a speech in San Francisco, Secretary of State Kissinger
said that in the absence of a SALT agreement the United States might have to spend $20 billion for expanding its strategic weapons program, such as the B-1 bomber and the Trident submarine program. He also called "irresponsible" the charges that the administration had tolerated
SALT violations and denied that this would occur.





3

February 6--In a news conference, Secretary of Defense Rumsfeld said that
air-launched cruise missiles could be useful in enhancing U.S. strategic
bomber capability.
February 7-In testimony before the Joint Atomic Energy Committee, Secretary of State Kissinger urged Congress to approve legislation to expand U.S. uranium enrichment facilities, whether government or private, and he later told reporters the expansion was necessary to meet
foreign competition in fuel exports.
February 8-In an interview in the Christian Science Monitor, President
Ford said that he was optimistic about the outcome of SALT II and that the United States planned to submit "some suggestions for agreement
within the next month."
February 10-Air Force Secretary Thomas Reed said that the air-launched
cruise missiles might not be effective against Soviet air defenses but would be useful until the U.S. B-i bomber was fully deployed. He stated
that the missile should not be limited by SALT.
February 12-Senator William Proxmire announced that a coalition of 25
public interest groups were organizing to lobby against the B-i bomber.
Proxmire pledged to propose an amendment in the Defense Appropriations Subcommittee to strike requested funds for the plane.
February 12-In Nevada, the United States conducted an underground
nuclear weapon test.
February 15-The Washington Post reported that in Moscow, U.S. and
Soviet negotiators were meeting daily to establish limitations on peaceful nuclear explosions under the 1974 Threshold Test Ban Treaty.
The treaty is scheduled to go into effect March 31, 1976.
February 16-The Sena te approved an amendment to S. 2662, the International Security Assistance and Arms Export Control Act, which provides $1 million to, the IAEA for safeguards of nuclear facilities.
February 24-The Senate Foreign Relations Subcommittee on Arms Control concluded 2 days of hearings concerning the secret agreement among nuclear supplier nations. Administration testimony revealed that an important element of the agreement is the application of safeguards to states which are not parties to the Non-Proliferation Treaty (NPT).
The details of the agreement are contained in exchanges of letters among
the governments involved.
February 24-The New York Times reported that in an interview the Chairman of the Nuclear Regulatory Commission (NRC), William Anders, said that a U.S. embargo on the export of nuclear materials and technology would be "irrational and counterproductive." He said that there would be greater risk of nuclear weapons proliferation if individual nations were forced by a moratorium on exports to develop their own
nuclear facilities.
February 25-During a visit to Ottawa, Pakistani Prime MinisterBhutto
rejected suggestions by Canada that that country have a role in determining safeguards over a nuclear reactor which Pakistan is purchasing from France. The Canadian negotiations concern fuel supply and technical assistance.





4

February 25-Senators Kennedy, Humphrey, and Javits, introduced Senate
Resolution 399, proposing a United States-Soviet moratorium on flight
testing of cruise missiles until a SALT agreement is concluded.
February 26-The Christian Science Monitor reported that talks on U.S.
supply of peaceful nuclear facilities to Iran had stalled because of Iran's
rejection of U.S. conditions attached to the sale.
February 29-The New York Times reported that at the nuclear suppliers'
conference, France and West Germany had rejected U.S. requests to
halt the export of nuclear fuel reprocessing plants.
February 29-A Audy released by two private arms control groups ("World
Military and Social Expenditures, 1976") concluded that world military spending had risen to almost $300 billion annually and was increasing
most rapidly in developing countries.
March ]-At the United Nations, the Ad Hoe Committee on the World
Disarmament Conference reconvened for its 1976 series of meetings.
March 2-The Natural Resources Defense Council, the Sierra Club and
the Union of Concerned Scientists filed a joint petition with the Nuclear Regulatory Commission calling for a ban on the export of 40,000 pounds of uranium to India on the grounds that it would contribute to nuclear
weapons proliferation.
March 5-The Air Force announced that its air-launched cruise missile
(ALCM) had been successfully flight tested for the first time on that day. March 9-The Washington Post reported that the Navy had stopped work on
its submarine launched cruise missile (SLCM) prototype on the previous
day. Two weeks earlier, the first flight test of the missile had failed.
March 9-In testimony before the Senate Government Operations Committee, Secretary of State Kissinger said the United States was making the "strongest representations" to nuclear suppliers to halt the export of potentially dangerous nuclear facilities to sensitive areas such as Pakistan. He rejected the suggestion that the United States should joi with the Soviet Union in a ban on exporting enriched uranium to countries
which would not meet minimum safeguards.
March 9-The President sent a message to the Congress requesting supplemental appropriations for fiscal year 1976, the transition quarter, and fiscal year 1977, for the U.S. Arms Control and Disarmament Agency. March 10-The New York Times reported that Canada and India had signed
an agreement in which Canada would resume assistance to India, into eluding some nuclear fuel, in exchange for an Indian pledge that none of.. the Canadian-supplied reactors in that country would be used to
develop a nuclear explosive.
March 11-Congressman Clarence Long announced he had introduced legislation to create a House Select Committee on Nuclear Exports and Nuclear Proliferation.
March 14-The Boston Globe reported that in the latest American SALT
proposal, it had been suggested that the issues concerning the U.S. cruise missiles and the Soviet Backfire bombers be deferred until a later round of talks in order to conclude an agreement based on the Vladivostok
principles.








March 14-The New York Times reported that, according to European diplomatic sources, a follow-up conference of the nuclear suppliers had been tentatively scheduled for June 1976, in London and would include the original six members and the Netherlands, Sweden, Belgium, Italy,
East Germany and Poland.
March 15-The Washington Post reported a disclosure by Arthur Kranish,
editor of "Science Trends," that he had learned from the CIA that Israel has from 10 to 20 nuclear weapons available for use. On March 16, the Israeli Embassy denied the allegation and said it would not be the first
to introduce nuclear weapons in the Middle East.
March 15-In a closed hearing, the Arms Control Subcommittee of the
Senate Foreign Relations Coimmittee heard testimony from George Vest, Director of the State Department's Bureau of Politico-Military Affairs, on nuclear weapons nonproliferation, including a report on the nuclear
suppliers conference.
March .15-The United States conducted an underground nuclear weapons
test in Nevada.
M1'arch 17-In Nevada, the United States conducted two separate under.,ground nuclear test explosions.
MIarch 18--The New York Times reported that, according to high Administration officials, United States and Soviet negotiators had almost completed an agreement on peaceful nuclear explosions, in connection with the Threshold Test Ban Treaty signed by the two countries in July 1974. March 22-In Paris, French and Libyan officials signed an agreement under
which France will build a nuclear power plant in Libya. The French made it clear that no weapons-producing facilities would be provided. March 25-The Subcommittee on International' Security and Scientific
Affairs of the House International Relations Committee concluded a series of hearings on U.S. policy toward first use of nuclear weapons.
(Earlier hearings had been held on March 16, 18, and 23.)
March 25-The New York Times reported that because of strained United
States-Soviet relations over problems such as Angola, the chances of a U.S. visit by Soviet party leader Brezhnev seemed less likely, even if a SALT agreement were concluded. Reportedly, the United States was still awaiting a Soviet reply to American SALT proposals, forwarded
earlier in the month.
March 26-Senator John Tunney introduced a resolution calling on the
President to suspend a proposed transfer of enriched uranium to India until a public hearing could be held by the Nuclear Regulatory Commission (NRC).
March 29-In remarks at the Pentagon, President Ford pledged to veto any
defense spending bill which he thought would be inadequate for U.S.
national security.
March 30-ACDA Director Ikle testified in a closed session of the Joint
Committee on Atomic Energy.
March 31-The State Department and the White House issued an announcement that the United States and the Soviet Union expected to complete negotiations to limit peaceful nuclear explosions within the next several





6

weeks. The talks were an outgrowth of the 1974 Threshold Test Ban treaty limiting weapons tests only; the earlier agreement had been scheduled to go into effect on March 31, 1976, an action which apparently was deferred pending the outcome of the negotiations limiting peaceful
nuclear explosions.
March 31-ACDA released its annual publication on world military expenditures and arms trade which stated that in 1974, the dollar value of U.S. conventional weapons sales was higher than any other country and that the Soviet Union exceeded the United States in overall weapons
spending.
March 31-State Department spokesman Robert Funseth said that the
Soviet Union had replied to the latest U.S. SALT proposal. No further
details were disclosed.
April 2-The Soviet Ministry of Defense newspaper Krasnaya Zvezda said
that U.S. acquisition of the cruise missile would make it impossible for
a new SALT treaty to be concluded.
April 2-France conducted an underground test explosion of a nuclear
device.
April 4-Time magazine reported that in October 1973, Israel assembled
13 nuclear weapons for possible use during the ongoing conflict at that
time.
April 6--The Christian Science Monitor reported that Australia and New
Zealand had persuaded other Pacific countries not to pursue discussions
of a South Pacific nuclear free zone.
April 9-The House rejected an amendment to the defense procurement
authorization bill which sought to prohibit Rlight testing of MARVs, a weapon which has implications for SALT. The House approved the bill. April 9-The United States announced that U.S. and Soviet negotiators had
completed a proposed text of a treaty which limits the size of peaceful nuclear explosions (PNEs). It was reported that some provision for onsite inspection of PNE sites was included in the terms of the agreement. April 10-The Navy laid the keel for the first Trident submarine. April 11-The New York Times reported that SALT was deadlocked and
that administration officials were not optimistic that an agreement could
be reached before the November elections.
April 13-At the Conference of the Committee on Disarmament (CCD)
in Geneva, the United States proposed that there be an arrangement to prohibit further production of chemical weapons and to reduce existing
stockpiles, as a first step toward a comprehensive 'ban.
April 13-The Chicago Tribune reported that the Soviet Union had accused
the United States of violating SALT I in four different areas.
April 18-The New York Times reported that early in May, negotiators
would meet in Tehran to discuss the question of West Germany's supplying nuclear facilities, including fuel enrichment plants and reprocessing facilities, to Iran. (The United States does not export these types of facilities, as a method of discouraging proliferation of nuclear
weapons.)






7

April 21-In a speech in Washington, President Ford said that SALT offers
"the best hope for sanity in superpower relations."
April 21-Senator John Culver announced that the administration had
informed him that the United States would not make any initiatives to establish an arms control arrangement in the Indian Ocean, as had
been requested in earlier legislation.
April 22-Secretary of State Kissinger said in Washington that the administration hoped to conclude a SALT agreement in 1976, although there had been "a certain slowdown in new initiatives" because of the political campaign.
April 25-Senator William Proxmire announced that he would make six
Senate speeches opposing production of the B-1 bomber, and at his invitation, the Air Force would reply. He said that the Air Force responses would be placed in the Congressional Record.
April 25-The Washington Post reported that in a recent commentary, the
Soviet news agency Tass accused the United States of seeking a "unilateral advantage" at SALT through deployment of cruise missiles.
April 26-In a speech in St. Louis, ACDA Director Wke denied that Presidential election politics had delayed a SALT agreement. He said the two countries had drafted a basic text but had failed to agree on some issues dealing with the gray area between strategic and tactical
capabilities.
April 26-The Washington Post reported that in an environmental impact
statement released by ERDA the previous week, it was stated -that the United States would not restrict uranium exports as long as the purchasing country agreed to safeguards against diversion for weapons purposes. Restricting exports only to NPT parties, the report noted, would drive recipients to other suppliers, whose safeguards might not be as
stringent as those of the United States.
April 26-The President submitted a request to the Congress for a supplemental appropriation of $322.4 million over the next 2 fiscal years for continued production of Minuteman III ICBMs, which originally
had been scheduled to end.
April 28-At a hearing before the Joint Committee on Defense Production,
former Defense Department official Paul Nitze testified that because of shifts in strategic concepts which take into account -the possibility of limited nuclear war, the United States should expand its civil defense efforts. Former presidential adviser Richard Garwin, opposing civil defense expansion, contended that the possibility of controlling a nuclear exchange was dubious.
April 28-Both the Senate and the House approved the conference committee version of S. 2662, which seeks to enhance the congressional role
in the U.S. foreign military sales program.
April 29-In a press conference in Houston, President Ford said that his
decision to continue production of Minuteman III missiles was based on
the "slowdown"~ in SALT.
Wfay 3-The House approved House Concurrent Resolution 570, calling for
prompt conclusion of SALT 11, a comprehensive nuclear test ban, and
making proposals to strengthen safeguards of nuclear facilities.






8

May 5-In Geneva, the current round of SALT negotiations adjourned until
June 2.
May 5-The Senate approved Senate Resolution 406 regarding SovietAmerican detente, which called for a SALT 11 agreement and included an amendment stating that no SALT agreement should limit U.S. forces
to levels inferior to those of the Soviet Union.
May 7-The President vetoed the International Security Assistance and Arms
Export Control Act which had contained various new congressional restrictions on the U.S. foreign military sales program
May 14-In an interview, ACDA Director Ikle said that the United States
would study the idea of an international nuclear transportation service as an added safeguard for transporting potentially dangerous nuclear materials such as plutonium and enriched uranium. Other proposals to be studied include international depositories for nuclear fuel storage,
disposal of wastes and international fuel fabrication units.
May.17-The New York Times reported that during negotiations on a U.S.
sale of nuclear facilities to Iran, the United States had demanded that control of any fuel reprocessing plant in Iran be shared with another country as an added safeguard against diversion of the material to weapons use. (This is a more stringent control than exists now for other U.S.
bilateral agreements for cooperation in nuclear facilities. Talks on this
issue are continuing.)
May 18-The Canadian Foreign Secretary announced that Canada would
suspend its nuclear cooperation agreements with India until India accepted the safeguards of all its nuclear facilities, as proposed by Canada,
to prevent diversion to weapons use.
May 20-The Senate approved an amendment to the military procurement
authorization bill which would bar funds from being obligated for the
B-i bomber prior to February 1, 1977.
May 24-The administration announced that the Soviet Union had acknowledged that it had committed a technical violation of the SALT I agreement and had moved toward correcting the matter, which involved dismantling certain SLBMs.
May 24-In a speech in San Diego, President Ford criticized the Senate
action to hold funds for the B-i bomber until February 1977, and he said that by November 1, he would decide whether to move forward with
production of the plane.
May 24-Japan ratified the Treaty on the Nonproliferation of Nuclear
Weapons.
May 26-The Senate defeated an amendment to the military procurement
bill which would have deleted funds for continued production of Minuteman III missiles; supplemental funding had been requested as a hedge
against a failure at SALT. The bill passed the Senate on the same day.
May 27-A subcommittee of the Senate Foreign Relations Committee held
hearings on the proposed sale by General Electric of nuclear reactors to
South Africa.
May 28-In simultaneous ceremonies in Moscow and Washington, Soviet
party leader Brezhnev and President Ford signed a treaty which sets a ceiling of 150 kilotons on an indivi dual underground peaceful nuclear explosion. Characterized by a 5-year duration, the treaty provides for
some onsite inspection of test sites under certain circumstances.





9

Mfay 29-In Paris, the Iranian Prime Minister said that Iran did not
intend to build nuclear weapons from the plants to be built in that country by France. During his visit, the official had signed contracts for two
French-supplied nuclear facilities.
May 29-It was announced in South Africa that the contract for the country's nuclear power plant would be awarded to a French company. Negotiations with a United States-Dutch consortium, originally thought to be
chosen for supplying the plant, had been suspended.
May 30-A study prepared by the Congressional Budget Office concluded
that the U.S. foreign military sales program saved U.S. military costs
$560 million last year.
June ]-The Nuclear Suppliers Conference, with 11 countries participating,
reconvened in London.
June 2-In Geneva, SALT II reconvened after a month of recess. June 4-Durig a Habitat Forum Conference in Vancouver, it was
announced that Cuba would receive a nuclear power reactor from the
Soviet Union.
June 5-The Soviet newspaper Pravda accused the Ford administration of
not doing enough to work toward a conclusion of SALT.
June 10--Senator Abraham Ribicoff said that there were "disturbing indications" that the United States had supplied a key ingredient for India's
nuclear explosion in 1974.
June .16-In testimony before the House International Relations Committee, Albert Wohlstetter said that the spread of nuclear technology for electricity is providing many countries with the capability to acquire nuclear weapons. The hearings were on an amendment to the Export Administration Act to strengthen safeguards of peaceful nuclear facilities. On June 7, the committee heard testimony from NRC Commissioner
Victor Gilinsky and Henry Rowen of Stanford University.
June 16-House and Senate conferees on the International Arms Export
Control Act approved an amendment to cut off military and economic assistance to any country that delivers nuclear reprocessing or enrichmnent equipment to another country or to any country which receives
such facilities.
June _17-The Stockholm International Peace Research Institute (SIPRI)
released its annual report on. world armaments,, and it concluded that the risks of nuclear war had increascd because efforts had been made to
minimize the hazards of such an occurrence.
June 18-The Ad Hoc Committee to review the role of the U.N. in disarmament concluded its general debate.
June 21-The NRC approved an export license application for a nuclear
reactor to Spain. In a rare move, one commissioner, Victor Gilinsky, voted against the application because of the potential for weapons acquisition, since Spain is not a party to the NPT.
June 25-The Senate passed an amendment to the ERDA authorization bill
(H.R. 13350) which would require congressional review prior to exporting nuclear fuel to a country which is not a party to the NPT.





10

June 30-White House Press Secretary Ron Nessen refuted a statement
made by Soviet party leader Brezhnev the previous day that the United
States was delaying conclusion of a SALT agreement.
June 30-The International Security Assistance and Arms Export Control
Act became law (Public Law 94-329). Previously vetoed by the President, the measure includes provisions for more congressional control of military sales, a phasing out of military assistance, and cut-offs of aid to either suppliers or recipients of nuclear facilities which are not under
IAEA safeguards.
July 2-With one of four commissioners dissenting, the NRC authorized
the issuance of an export license for part of a uranium shipment to India.
A decision on the remainder of the material was pending a July 20 hearing on nonproliferation issues raised by the export.
July 7-The Boston Globe reported that efforts were under way within the
Administration to formulate a new list of options for SALT in an effort
to achieve agreement before the November Presidential election.
July 9-At a press conference, President Ford said that he was still trying
to achieve agreement at SALT and that he would sign a "good agreement .. regardless of political consequences."
July -11-The New York Times reported that India was considering alternate sources of enriched uranium for its nuclear powerplant at Tarapur, because of delays in U.S. supplies. An NRC decision on the shipment has been delayed by groups opposing the shipments on the grounds that there are not adequate safeguards at Tarapur to prevent diversion to
weapons use.
July 14-The President signed the military procurement authorization bill
for fiscal year 1977 into law (Public Law 94-361). The law authorizes
funds for initial production of the B-i bomber.
July 14-The U.N. Ad Hoc Committee on a World Disarmament Conference
concluded its second 1976 series of meetings, and adopted a report to the General Assembly which concluded that there was no consensus by the
nuclear weapons states on the convening of such a conference.
July 20-The NRC conducted a hearing on a proposed license to export
enriched uranium to India. Both opponents and supporters of the export
testified.
July 21-The Senate Appropriations Committee approved an amendment
to the Defense appropriations bill which would defer production. of the
B-1 bomber until February 1977.
July 27-The United States conducted an underground nuclear explosion
with a force between 20 and 150 kilotons.
July 27-The President, in a letter to Congressman John Anderson, informed him that group had been created to review U.S. nuclear policy objectives and options, with emphasis on exports, reprocessing, and waste management. on both the domestic and international levels. The
group is led by Robert A. Fri, Deputy Administrator of ERDA.
July 29-The President submitted the 1974 Threshold Test Ban Treaty and
the 1976 treaty on peaceful nuclear explosions to the Senate for its advice
and consent to ratification. (Executive N, 94-2.)







July 29-ACDA issued its 15th annual report to the Congress. The report
disclosed that the Soviet Union had begun deploying MIRV's. on its intermediate range missiles aimed at Western Europe and that by 1985 almost 40 countries could have enough plutonium to make nuclear weapons. On the same day ACDA Director Mke asked the Conference of the Committee on Disarmament (CCD) in Geneva to examine ways to
restrict the international arms trade.
July 29-A CBO study for the House Armed Services Committee projected
that a ban on all U.S. 'foreign military sales would, by 1981, cause U.S. domestic price levels to be 0.2 percent lower and the unemploynment rate to be 0.3 percent higher than otherwise projected.
July 30-In a summary of a classified report, GAO urged that Congress
give all funds sought by ERDA for physical security of nuclear facilities, because of the dangers associated with unauthorized or accidental use of
special nuclear materials such as plutonium.
July 30-The House passed an amendment to the Nuclear Fuel Assurance
Act (H.R. 8401) which eliminated the sections allowing private industry to engage mn uranium enrichment activities. The measure is to be reconsidered on August 4.
July 31-The Washington Post reported that in an interview, ACDA official
John Lehman said Soviet deployment of intermediate range SS.-20 missiles would have implications for the fate of, the U.S. cruise missiles
in SALT.
August 3-The United States announced that the Soviet Union had conducted two underground nuclear explosions during July. On August 5, the White House indicated that they may have exceeded the 150-kiloton ceiling of the Threshold Test Ban Treaty (TTB) but that they are not
a violation of that agreement, since it has not entered into force.
August 4-The House reversed an earlier vote (see July 30, above) on the
Bingham amendment to the Nuclear Fuel Assurance Act. The effect of the move was to allow private industry to engage in uranium enrichment activities, thereby ending government monopoly over them.
August 5-The New York Times reported that France was negotiating with
South Korea over the, sale to that country of its fifth and sixth nuclear
power reactors.
August 5-A subcommittee of the House Interior Committee released testimony and other materials on security requirements for civilian nuclear facilities. Federal officials with access to a GAO classified report said the study indicated over 2 tons of plutonium were unaccounted for in U.S. civilian reactors. Although it is missing only in the sense that it is imbedded in machinery, the study indicated that inventory controls were not adequate to meet timely response and recovery, if the material
were stolen.
August 5-The State Department announced that both Egypt and Israel had
initialed identical agreements with the United States to purchase nuclear
power reactors.
August 6-Following discussions with Secretary of State Kissinger, the
Shah of Iran said that a multinational nuclear fuel reprocessing plant might be acceptable to Iran, but that he would not accept limits on





12

his country's sovereignty. The question of the multinational center has been in contention during negotiations for the sale of U.S. nuclear
power reactors to Iran.
August 6-The White House announced that the size of Soviet underground nuclear explosions would no longer be announced by the U.S.
Government.
August 8-Senator Ribicoff made public a letter from Secretary of State
Kissinger, which indicated that, as a result of a staff review, there was high probability that U.S.-supplied heavy water had been used by India to produce the plutonium for its 1974 underground nuclear
explosion.
August 9-At the conclusion of talks in Pakistan, Secretary of State
Kissinger said that Prime Minister Bhutto had agreed to work on an arrangement which would insure that material from a nuclear reprocessing plant, to be supplied by France, would not be diverted to the development of a nuclear weapon. In an earlier statement, Kissinger had indicated that the United States might not sell Pakistan U.S.
weapons if a compromise over the reprocessing plant could not be
reached.
August ]]-The State Department announced that the Soviet Union
officially denied that its two nuclear explosions conducted in July had
exceeded 150 kilotons.
August 12-At the CCD in Geneva, Great Britain submitted a draft treaty
to ban chemical weapons.
August 29-The Washington Post reported that according to U.S. intelligence reports, Taiwan was secretly reprocessing spent uranium fuel, a process which can produce material for nuclear weapons. On the same day, a Taiwanese spokesman denied the report, and said that a laboratory was under construction which could reprocess a small
amount of fuel for research purposes only.
August 29-The Soviet Union conducted an underground nuclear test.
According to the Swedish Seismological Institute, the size of the
explosive could have been close to 150 kilotons.
August 31-In a speech before the Town Hall of California, in Los Angeles,
ACDA Director Ikle said that Soviet deployment of MIRVed intermediate range missiles in Europe could jeopardize SALT.
September 3-The CCD adjourned in Geneva. Among final actions was the
submission of 'a U.S.-Soviet draft treaty banning environmental warfare,
which would be forwarded- to the UN General Assembly.
September 9-In Geneva, a U.N. group of experts on the reduction of military budgets concluded its final session and adopted a report to the General Assembly entitled "The Measurement and International Reporting of Military Expenditures."
September 10-The Ad Hoc Committee on the UN Disarmament role concluded its work with adoption of its report to the General Assembly.
September 14-The New York Times reported that President Ford, on the
basis of a report by a presidential task force on September 7, would issue a major statement on U.S. nuclear export policy'. (See July 27, above.)





13

September -15-Following a meeting with President Ford in Washington,
NATO Secretary General Joseph Luns said that the Soviet Union was
delaying a SALT agreement until after the presidential election.
September 15-The Committee for Economic Development issued a report
which recommends continuing U.S. development of nuclear energy but calls for an integrated national and foreign policy which will address its
dangers.
September 15-It was announced in Paris that a consortium consisting of
France, -Spain, Italy, Belgium and Iran, had decided in principle to
construct its second uranium enrichment facility, beginning in 1978.
September 19-The Boston Globe reported that 'unless Soviet Foreign
Minister Gromyko brought a new Soviet proposal to the U.N. (to convene later in the month), it was unlikely that there would be a SALT II a Agreement before the presidential election. Reportedly, discussions
within the Administration on SALT had come to a standstill.,
September 20-The President signed into law the defense appropriations
bill which includes a provision to defer d decision on full production of
the B-1 bomber until January 1977.
September 2-1-In Geneva, SALT resumed followig a summer recess.
Reportedly the U.S. delegation brought no new proposals to the talks.
Upon his arrival in Geneva the previous day, chief negotiator U. Alexis Johnson said it was hoped to conclude an agreement before the presidential election
September 22-State Department official Arthur Hummel told a Senate
Foreign Relations subcommittee that the United States would watch developments in Taiwan to ensure that U.S. cooperation with that country
in the field of nuclear energy would not contribute to proliferation. September 26--China announced that it had conducted a nuclear test. September 27-In a press conference, Defense Secretary Rumsfeld said
that Soviet military strength indicated that that country sought "not to be on the losing side," in a nuclear exchange. He added that Soviet progress had been consistent with U.S. predictions, and would not
warrant a change in the current U.S. defense budget.
September 28-In a report released by Senator Culver, Secretary of State
Kissinger said that proposals for worldwide limitation on conventional
arms exports are "politically infeasible."
September 28-A GAO report concluded that Congress should require
future U.S. agreements for cooperation on nuclear energy to be contingent upon acceptance of appropriate safeguards to prevent diversion
to weapons use.
September 28--The Joint Atomic Energy Committee eliminated an amendment to the ERDA authorization bill which would have required congressional review of nuclear fuel exports.
September 29-The Senate defeated a bill which would have allowed private
industry to engage in uranium enrichment. On the same day the New York Times reported that congessional conferees had approved an amendment to the Export Administration Act which would prohibit the
export of equipment for reprocessing spent nuclear fuel.



81-813 0 77 2






14

September 30-During a visit to the U.N., Secretary of State Kissinger
stated that President Ford would soon outline a three-point program on nuclear nonproliferation, in an effort to see strengthened international
controls on the sale and reprocessing of nuclear fuels.
September 30-The New York Times reported that the previous night in
New York, Secretary of State Kissinger and Soviet Foreign Minister Gromyko had held discussions on SALT; both sides offered assurances that efforts to limit strategic arms would continue. Gromyko wasscheduled to meet with President Ford in Washington on October 2.
October 3-Belgian Foreign Minister Van Eslande announced that his
government, as a result of an apparent shift in third world country attitudes which would favor such proposals, was preparing a U.N. proposal to limit conventional arms transfers.
October 5-The Joint Economic Committee released May 1976 testimony
of CIA official who stated that the Soviet Backfire bomber is primarily
a medium range aircraft and should not be covered by SALT.
October 5-The New York Times reported that in a memorandum filed
with the U.N., Soviet Foreign Minister Gromyko said his country was prepared to discuss on-site inspection to verify a comprehensive nuclear
test ban.
October 6-French President Giscard d'Estaing and the Shah of Iran
signed an agreement of cooperation for France to build two nuclear
power reactors in Iran.
October 8-The Christian Science Monitor reported that, following a trip
to Moscow, W. Averell Harriman stated that the Soviet Union was eager for a SALT agreement to leading strategic nuclear equivalence with the
United States.
October 11-The French Government announced several changes in its
nuclear export policy in a move which was regarded as a contribution to nonproliferation efforts. Among the ideas favored by France were multinational fuel recycling centers and cooperation among nuclear
suppliers.
October 13-The State Department announced that while two recent Soviet
underground nuclear tests were close to the 150 kiloton limit of the Threshold Test Ban (TTB) preliminary data indicated that they were consistent with the terms of the treaty. Both countries had stated they would abide by the terms of the treaty even though it has not entered
into force.
October 13-The Wall Street Journal reported that in a classified interagency report on U.S. nuclear export policy (see July 27, above), several agencies had recommended that alternatives to plutonium reprocessing be explored since that source of reactor fuel was "an unacceptable proliferation risk." Reportedly, the President had rejected this
proposal in favor of a demonstration U.S. reprocessing facility.
October 15-The Washington Post reported that an unnamed State Department official had said that the Soviet Union had been "chiseling" on the T1B Treaty by exploding underground nuclear devices with a yield close to the 150 kiloton limit. He also stated that the United States and





15

the Soviet Union has gone about 90 percent of the way toward a SALT II agreement. Reportedly a major obstacle is agreement within the
U.S. Government on the U.S. negotiating position.
October 17-The People's Republic of China conducted a nuclear test in
the atmosphere.
October 28-The White House released an announcement by the President
of a new U.S. policy on both domestic and foreign nuclear issues. Included in the plan were a proposal for an international moratorium on the export of nuclear fuel reprocessing facilities for three years, and strengthening the IAEA. It was expected that a proposed U.S. reprocessing facility in South Carolina might become part of an "evaluation program" suggested in the Presidenesstatement.
November 3-The New York Times reported that at SALT, the United
States and Soviet Union had signed two minor agreements, which would remain secret. One deals with modernization or replacement of the ABM system allowed each country, while the other concerns the direct communications link between the two countries.
November 9-A French Government official said that France would not
sell any more nuclear reactors to South Africa after two ordered reactors
are delivered.
November 9-Tlie New York Times reported that later in that week the.
nuclear suppliers' conference would reconvene in London.
November 12-The New York Times reported that it seemed now that the
proposed purchase by Pakistan of a French nuclear fuel reprocessing
Plant might not occur.
November 14-In a report, a study panel of the United Nations Association recommended a freeze on United States and Soviet military spending as a method of controlling the arms race of conventional weapons.
Other recommendations included a call for agreement to limit the development of long-range cruise missiles.
November 16--Brazil stated that its purchase from West Germany of a
nuclear fuel reprocessing plant would proceed as planned. This was in response to a statement by President-elect Jimmy Carter, who said he
would attempt to block the sale.
November 16-The Washington Post reported that the Defense Department
had approved the sale of 110 A-7 light bombers to Pakistan. Chances were good, the report indicated, that the State Department would also approve the sale if reports were confirmed that the Pak-French nuclear
deal was canceled (see November 12, above).
November 17-In Washington, three delegates to a joint meeting of the
American Nuclear Society and the European Nuclear Society said that Western Europe and Japan would use plutonium to fuel their nuclear
power reactors.
November 17--China conducted its largest atmospheric nuclear test. November 18-The New York Times reported that South Korea had si e
a contract with Westinghouse and a British company to buy its second
nuclear power reactor.






16

November _18-The Baltimore Sun reported that the administration had
ordered the production of 60 additional Minuteman III missiles, a move
which postponed an expected halt in production in September 1977.
November 19-In a speech before the U.N. General Assembly, ACDA Director Wke proposed that the CCD discuss a ban on radiological materials as weapons.
November 22-The Washington Star reported that a National Security
Council study had been prepared for President-elect Jimmy Carter containing options for a U.S. response to the Soviet military buildup over
the next 10-15 years.
November 23-Newsweek reported that during 1976 evidence indicated
that the Soviet Union damaged U.S. space satellites with laser beams.
The satellites are used to monitor compliance with the SALT agreements and as part of the U.S. early warning system. A State Department spokesman denied that there had been any Soviet interference with U.S. reconnaissance satellites.
November 24-The Washington Post reported that within the previous 2
weeks the Soviet Union had conducted its first test of a submarinelaunched missile equipped with MIR V's.
November 29-The New York Times reported that advisers to Jimmy
Carter were recommending a delay in the decision regarding production of the B-1. a view shared by the Pentagon. U.S. SALT policy was one consideration in the recommendation. On November 23 the Defense Department had announced that a planned DSARC final review of the
Plane had been postponed.
November 30-In a speech in Moscow before a group of American businessmen, Soviet Party leader Brezhnev called on the incoming administration to give high priority to pursuing a SALT agreement.
December 2-The New York Times reported that the -Defense Systems
Acquisition Review Committee would meet on January 6 to decide whether to consolidate the Air Force and Navy cruise missile programs. December 2-In a press conference, Air Force Secretary Reed said that B-i
bomber production had been ordered, under contracts limiting spending
to $87 million per month until June 1977.
December 3-Apparently in response to a public appeal by Soviet leader
Brezhnev, President-elect Carter said he would move "aggressively"
toward achieving a SALT agreement.
December 4-France conducted an underground nuclear test in the South
Pacific.
December 5-In an interview, Secretary of State-designate Cyrus Vance
said that the most important task facing him will be to end the deadlock
at SALT.
December 7-The Soviet Union conducted an underground nuclear test. December 8-The United States conducted an underground nuclear test in
Nevada.






17

December 9-The Boston Globe reported that, in his last budget request to
Congress, the President would ask for $250 million to initiate full scale development of the M-X missile, an important step toward production, which is to replace the Minuteman III ICBM. This figure marks an increase from $70 million for fiscal year 1977 for basic research and
development.
December 9-The New York Times reported that according to submissions
to the IAEA, the Soviet Union would supply 200 tons of heavy water to
India for its nuclear power program.
December 11-In a Pravda article, Soviet expert Georgi Arbatov said that
movement in SALT should receive a high priority from the incoming
Carter administration.
December 14-In a press conference, President-elect Carter said that if
there were no progres 's at SALT, the United States would have to
escalatee . ."~ production of its weapons.
December 15-The New York Times reported that ACDA was in the process of accounting for nuclear weapons-grade material in about 20 countries which have bought U.S. nuclear powerplants. Some of the
material remains unaccounted for.
December 16-The French Government announced it would no longer export nuclear fuel reprocessing plants.
December 16-The Washington Post reported that France was considering
whether to cancel sales of nuclear facilities to Pakistan and Iraq. On the same day, it was reported that Libyan President Quaddafi had gained Soviet agreement to supply Libya with a nuclear powerplant and other
technical cooperation.
December 20-West Germany announced it would not export nuclear technology which could lead to the construction of new nuclear weapons.
December 20--General Electric announced it had been chosen to build a
$200 million nuclear powerplant in Spain.
December 22-Pakistani Premier Bhutto said he would not let other countries interfere with his country's purchase of a nuclear reprocessing plant from France. On the same day, Canada announced it would restrict its nuclear exports to countries which are NPT parties.
December 22-The 31st session of the U.N. General Assembly ended, following approval of a resolution to hold a special session on disarmament in 1978. (A preparatory committee will meet in March 1977.) Other resolutions passed during the session included one calling for an underground nuclear test ban, another for a treaty on chemical weapons production and stockpiling, and finally approval of a treaty banning hostile
use of environmental modification techniques.
December 23-The Canadian Government announced its decision to end
its nuclear cooperation program with Pakistan.
December 26-The New York Times reported that the CIA, in its most
recent national intelligence estimate, had concluded that the Soviet
Union seeks military superiority over the United States.






18

December 27-President-elect Carter said he would probably meet with
Soviet Party leader Brezhnev sometime before September 1977 to discuss a SALT agreement. Commenting on press reports regarding intelligence estimates of Soviet military capability, he said that the United
States was still "by far stronger."
December 28-The Baltimore Siun reported that the emerging SALT
strategy of the Carter administration was to freeze levels of strategic forces first and then to begi talks immediately on reductions. This approach appeared to leave the cruise missile/Backfire issue to the follow-on
negotiations.
December 28-The Natural Resources Defense Council filed a petition
with the NRC to block a proposed shipment of 9,000 pounds of highly
enriched uranium to West Germany.
December 29-In an interview, Soviet Party leader Brezhnev said he
would favor a summit meeting with the President-elect Carter if there
were agreement at. SALT.
December 30-The 1977 edition of "Jane's Weapons Systems" was released in London; it reported that the Soviet Union was developing three missiles (SS-NX-13, 17, and 18) which could match the U.S.
Navy Tomahawk cruise missile.
December 31-The New York Times reported that the Soviet Union had
conducted its fourth test of 1976 of a satellite interceptor. U.S. intelligence sources called the test a failure.












ENERGY-INTERNATIONAL ASPECTS1
January 7-The first tankers began loading at the port of al-Bakr, Iraq,
the terminal of 810 kilometer north-south pipeline connecting the Kirkuk
fields with the Rumayla fields.
January 12-Industrial, raw materials, and oil producing states began informal meetings to map their strategies prior to the four commission meetings of the Conference on International Economic Cooperation, due
to begin in February.
January 15-The Government of South Korea would neither confirm nor
deny the rumors that large quantities of oil had been found.
January 18-Rescuers found two survivors of the Norwegian oil and ore
boat Berge Istra which exploded near Mindanao on December 29. The
115,000-ton supertanker was carrying ore at the time.
January 27-Japan and the Soviet Union began discussions of a proposed
sale of 10 Japanese nuclear powerplants to the Soviets.
January 28-The 13 members of the Organization of Petroleum Exporting
Countries (OPEC) agreed to establish a $800-million fund to assist
poor nations.
February 3-Italian oil companies threatened to stop importing oil unless
the Government allowed them to raise prices.
February 5-The American business community in Venezuela called for
the repeal of the anti-OPEC amendment of the 1974 Trade Law. The only countries affected by the amendment were Venezuela and Ecuador
neither of which took part in the 1973 oil embargo.
February 17-Britain's Secretary of State for Energy said that country
would be self-sufficient in oil within 4 years and would be the world's
10th largest oil producer by 1980.
February 17-Iran lowered the selling price of its crude oil by 9.5 cents
per barrel.
February 19-The Energy Research and Development Administration
(ERDA) announced plans for underground storage of nuclear waste.
February 19-Three former General Electric Co. engineers said the U.S.
nuclear power program was so dangerous it "threatens the very existence
of life on this planet."
February 23-U.S. Treasury officials announced that OPEC investments
in the United States dropped by 44 percent in 1975.
February 23-Kuwait announced new oil discoveries which could double
or triple the country's current reserves.
Prepared by Clyde Mark, Analyst in Middle Eastern Affairs.
(19)






20

February 24-A Tokyo newspaper reported that the Soviet Union and
Japan were considering an oil deal. The story appeared the same day that a Japanese team arrived in Peking to discuss a long-term oil
purchase.
February 26-President Ford sent an energy proposal to the Congress. March 5-It was reported that the oil well fire 30 miles offshore Dubai in
the Persian Gulf had extinguished itself when the casing collapsed. The fire, which had burned since July 1975 despite efforts to quell the blaze, was estimated to cost about $100 million, the most expensive such fire
in history.
March 5-The Organization for Economic Cooperation and Development
(OECD) reported that OPEC aid to developing countries totalled $5.6
billion for 1975, compared to $4.6 billion for 1974.
MIarch 11]-The International Monetary Fund (IMF) oil facility announced
that it had loaned or committed $8 billion to some 40 countries in the 18 months of the Fund's existence. The largest beneficiaries were Italy
and the United Kingdom. The largest contributor was Saudi Arabia. March 12-The Arabian American Oil Co. (Aramco) and the Government
of Saudi Arabia announced that they had reached a "general accord"
on the sale of Aramco's remaining 40 percent of the company's operations in Saudi Arabia.
IWarch 15-Venezuelan Oil Minister Valentin Hernandez said that the
U.S. Government had contacted his country concerning a direct sale of
Io*I that would bypass the oil companies.
Peotrch 16-According to press reports, the talks between the United States
and the Soviet Union for the purchase of Soviet oil broke down.
March 18-It was reported that the Popular Movement for the Liberation
of Angola had nationalized the Cabinda Gulf Oil Co. Gulf Oil Co. officials
denied the report.
March 22-The Taiwan News Agency reported that a series of explosions
at the Taching oil fields in Manchuria had seriously curtailed oil production in the People's Republic of China.
March 29-It was reported that France had agreed to furnish a 600-megawatt nuclear powerplant to Libya.
April 5-During his visit to West Germany, Egyptian President Sadat discussed the possibility of purchasing nuclear reactors.
April S--One of the subjects discussed at a Swedish scientific conference
was the growing debate over radioactivity, accidents, pollution, waste disposal, and costs of nuclear power generation. Sweden's 5 nuclear plants now generate between 15 and 20 percent of its power, and it is expected that by 1985, 13 nuclear plants will generate about 40 percent
of its power.
April 6-Based on the first quarter reports, Venezuela's opposition party
claimed the nationalized oil industry was losing money, but the government claimed it would clear about $600 million for the year.
4April 9-The Venezuelan Government filed a tax deficiency claim against
two Exxon affiliates for the year 1970.





21

April 9-Federal Energy Administrator Zarb told a Washington meeting
that there was a good chance of another oil embargo that would be much worse than the last one. He also said that OPEC was not going to be
broken up, despite U.S. actions.
April 15-The second Arab petrochemical conference began in Abu Dhabi
to discuss cooperation in developing local petrochemical industries.
April 15-It was reported that Japan would provide Iraq with $2 billion
in aid for the construction of fertilizer, cement, aluminum, petrochemical, LPG, and refining plants in exchange for 90 million tons of crude oil
over the next 7 years.
April 21-OPEC ministers met in Geneva to discuss the agenda for the
May 27 OPEC meeting in Bali, I[ndonesia.
April 21 -Iran and BP opened negotiations on a guaranteed minimum
income clause.
May .10-It was reported that Iran was negotiating with three American
companies to barter oil for weapons.
Mfay 10-OPEC finance ministers, meeting in Paris, discussed establishing
a long-term, no-interest loan fund for poor nations. The OPEC ministers also agreed to contribute $400 million to a $1 billion agricultural fund. May -13-According to reports from Norway, production of the new
"Statfiord A" field in the North Sea might be delayed for 1 year.
MIay 19-Canada announced that it would stop supplying nuclear equipment and technology to India because the two nations could not agree on
safeguards.
May 20-The U.S. State Department approved a General Electric sale of
two nuclear powerplants to South Africa, worth $2 billion.
May 24-Reports from Moscow stated that the Soviet Union was negotiating
with American companies to purchase oil refining equipment and technology worth about $2 billion.
May 26-The International Energy Agency reported from Paris that
emergency sharing of oil supplies could be implemented within 2 weeks. May 28-The United States and the Soviet Union signed a treaty limiting
nonmilitary nuclear explosions.
May 29-At their meeting in Bali, Indonesia, the members of OPEC could
not agree on the amount of a price increase and so decided to maintain
the price freeze indefinitely.
May 31-It was reported that the British Government had decided to retain
a 51 percent share in the offshore oil leases to be opened to bidding later
in 1976.
May 3-1-France and Iran reportedly signed contracts for the construction
of two nuclear powerplants worth about $1.2 billion in Iran.
May 31-According to press accounts, South Africa accepted a French bid
for the construction of two nuclear powerplants of 1,000 MW each for
the Cape Town area.
June 4-Egypt commissioned Westinghouse to construct a 600 MW nuclear
reactor near Alexandria.






22

June 14-Several members of OPEC reduced the price of their heavy crude
oil by 5 to 10 cents per barrel following the decision reached at Bali in May to adjust the price differentials between heavy and light crudes.
Libya and Algeria raised the price of their light crudes. Venezuela, acting contrary to the OPEC decision, raised the price of its heavy crude. June 18-Japan agreed to construct a nuclear powerplant in Iran. Iran has
two nuclear plants on order from West Germany and two from France for a total of 4,200 MW. Iran hopes to have 23,000 MW on line by 1994. June 20-Occidental Petroleum Corp. and the Government of Iran signed
a letter of intent for the Iranian purchase of 10 percent of Oxy's stock for $125 million, with a long-term option to purchase another 10 percent
at a later date.
July 5-Exxon inaugurated an offshore drilling rig in the Santa 'Barbara
Channel in water 850 feet deep, almost 400 feet deeper than the previous
deep water recordholder in the North Sea.
July 10-The energy commission of the Conference on International Economic Cooperation (CIEC) ended the first phase of its meetings to analyze international energy problems. The second phase, recommending solutions to the problems, should be completed before the CIEC
Ministerial Conference scheduled for December 1976.
July.19-Western European imports of crude oil for 1975 were lowest since
1970, according to reports released during the week.
July 19-It was reported that the European Economic Community and the
United States had agreed to cooperate in nuclear fusion research.
July 21-U.S. State Department officials testified at a Nuclear Regulatory
Commission hearing that the United States should sell 13.5 tons of enriched uranium to India in order to maintain a restraining influence over India. Critics of the sale maintained that India might use the fuel to
produce more nuclear weapons.
July 28-U.S. Commerce Secretary Elliot Richardson said another Arab oil
embargo against the United States could lead to a "major military
struggle."1
August 10-It was reported that Iran and Britain were negotiating an armsfor-oil agreement worth about $500 million.
August 10-Indonesia and Campagnie, Francaise des Petroles (CP) signed
a revised service contract, bringing to five the number of companies
that have accepted the new Indonesian tax split of 85-15.
August 18--MTA Sismik I, the Turkish scientific ship, began -its third
exploration voyage through the Aegean Sea in search of oil. Sismik's explorations have touched off a Greek-Turkish controversy over offshore
rights and territorial sea boundaries.
August 20-It was reported that Australia and Iran had signed an agreement for the supply of Australian uranium for the proposed 23 nuclear
powerplants to be built in Iran in the next 15 years.
August 27--Occidental Petroleum and the Government of Iran announced
that the proposed sale of Oxy stock had been canceled. (See June 20,
above.)






23

August 28-Reports from Vienna indicated that OPEC economic ministers
could not agree on a common formula for price differentials, due to be
considered at the next scheduled OPEC meeting in December.
September 4-Israeli gunboats expelled an Amoco drill ship from eastern
Gulf of Suez waters because Israel claims sovereignty over the sea since its occupation of the Sinai in 1967. Amoco and its partner, the Egyptian
Government, signed a 1964 contract to explore for oil in the area.
September 9-The FEA announced in Washington that it had chosen 8
underground sites for storage of a 150 million barrel strategic oil reserve intended to conteract the effects of future oil embargoes. The reserve is
supposed to be in place by 1978.
September 16-The Government of Qatar agreed to pay $41 million to the
Qatar Petroleum Company as compensation for the remainig 40 percent of QPC's assets. QPC will receive an operators fee of 15 cents per
barrel of production from the Dukhan field.
September .17-The Trilateral Commission, composed of foreign policy
experts from Japan, Europe and North America, recommended that Iran, Brazil, and Mexico be invited to j oin the Organization for Economic Cooperation and Development (OECD) and that Saudi Arabia be invited to join the International Monetary Fund's Group of Ten.
September 17-Egypt reported that several new oil fields had been discovered in the western Sahara and in the Gulf of Suez.
September 17-It was reported that Kuwait had contracted with an
American drilling company to drill a 20,000 foot well in the Burgan dome, one of the world's most prolific oil fields. The Kuwaits believe there
is a massive sweet gas reserve below Burgan.
September 20-At the CIEC Energy Commission meeting, the United States
repeated its proposal to establish an International Energy Institute to
assist developing nations in energy matters.
September 24-According to reports from the Persian Gulf, spot prices for
crude oil were running about 20 cents per barrel above long-term contract prices, a factor which reinfoced oil producers' claims that prices
would be raised in December.
September 27-Venezuela raised the prices of its crude oil by 20 to 70
cents per barrel, effective October 1.
October -1-At the end of the CIEC Energy Commission meeting, the EEC
proposed that a permanent energy consultative forum be created to continue the discussions of energy matters after the CIEC completes
its work in December.
October ]-The IEA report on energy conservation stated that the 19
member-states had reduced 1975 energy consumption 4.8 percent below the 1973 rate. The report chastised the United States for wastig energy. October 8-During the visit of French President Giscard d'Estaing to Iran,
the President and the Shah signed the final contracts for construction of two nuclear powerplants (900 MW each) valued at $1,420 million.
Iran and France also agreed in principle to build six more nuclear power





24

plants over the next 20 years. A West German group currently is constructing two nuclear plants in Iran (1,200 MW each).
October 15-Reports from the Persian Gulf and the Caribbean indicated
that spot market prices for crude oil continued to creep upward in anticipation of an OPEC price rise in December.
October 22-It was announced that Iran will purchase a 25 percent interest
in Krupp, the West German conglomerate. In 1974, Iran purchased 25
percent of a Krupp subsidiary.
November 11-Representatives from 15 nations met in London to discuss
limiting nuclear exports to insure that the technology could not be used to develop nuclear weapons. Officials from Belgium, Canada, Czechoslovakia, France, East Germany, West Germany, Italy, Japan, Netherlands, Poland, Sweden, U.S.S.R., United Kingdom, United States and one
unnamed country (reportedly Switzerland) attended.
November 15-Five explosions crippled France's largest uranium mine.
A group calling itself the "Opposition Commando Using Explosives Against the Destruction of the Universe" (COPO) claimed credit for the act. The same day, West German police used tear gas and water cannon to break up anti-nuclear demonstrations near Brokdorf, West
Germany.
November 15-Prime Minister Hussein Onn reported to the Malaysian
Parliament that the revised production sharing agreements with company operators were nearing completion. According to the Petroleum Eonomist, Malaysia was seeking a 92.5/7.5 split to replace the prevailing 85/15 split. It was reported earlier that the Government had agreed
to purchase 51 percent of one of the country's three refineries..
November 18-Iran and British Aircraft Corp. signed a $640 million barter deal to exchange oil for a surface-to-air missile system. BAC will sell
the oil to Shell.
November 22-In an interview with Der Spiegel, the Shah of Iran stated
that his country would be willing to arrange a bilateral indexing system to peg the price of oil to other trade commodities. In the past, the Shah has advocated a worldwide indexing system, but under the new proposal, each of Iran's trading partners would be able to index just those commodities traded with Iran and thereby protect themselves from the
higher inflation rates of other countries.
November 24-Canada announced that it would cut its oil exports to the
United States by 21 percent, from 385 Mb/d down to 305 Mb/d, beginning January 1, 1977.
November 26-Pakistan and the Soviet Union announced that a team of
Soviet geologists would begin new oil and gas explorations in Pakistan. December 8-The Conference on International Economic Cooperation
meeting scheduled for December 15 was postponed until March 1977.
December 9-France and the United States each set off underground nuclear explosions.
December 9-It was reported that the Soviet Union had agreed to sell 200
tons of heavy water to *India to replace the Canadian supplies cancelled
after India exploded its nuclear device.






25

December 13-Exxon and Shell announced that it would cost $3.84 billion
to develop the Brent oil field in the North Sea.
December 16-France announced that it would stop bilateral sales of nuclear fuel reprocessing plants to foreign countries. Apparently, the
announcement would not effect the sale to Pakistan.
December 17-At the end of their 3-day meeting in Qatar, 11 members of
OPEC announced a price increases of 10 percent to take effect January 1 and a 5 percent to take effect July 1, 1977, while Saudi Arabia and the United Arab Amirates announced an increase of 5 percent effective January 1. Later, Indonesia dropped its announced increase from 10 to
6 percent.
December 20-Members of the IEA signed an accord to coordinate research in solar energy.
December 21-West Germany announced an end to bilateral sales of nuclear reprocessing plants, although the proposed sale to Brazil would
be completed.
December 21-A Japanese newspaper reported that China was developing
the recently discovered Liaoning oil field for export.
December 21-Saudi Arabian Oil Minister Yamani was quoted as saying
that his country would not increase production past the 8.5 MMb/d ceiling already established. It had been reported at the end of the OPEC meeting that the Saudis would flood the market in an attempt to drive
world oil prices down.
December 31-In December, there were five separate oil spills in U.S.
waters, each involving tankers registered in Liberia.
















INDOCHINA1

January 19-Radio Saigon announced that North Vietnam and South
Vietnam will elect a joint national assembly on April 25, 1976, which
will be the legislative body for a reunified Vietnam.
January 21-The New York Times reported that the communist government in Cambodia was conducting a second mass migration, involving hundreds of thousands of people and causing considerable hardship and
many deaths.
February 2-The New York Times reported that, according to congressional sources, North Vietnamese leaders told several visiting Members of Congress that former President Nixon sent them a memorandum early in January 1973 that promised $3.25 billion in American reconstruction aid after the signing of the Vietnam cease-fire agreement. According to the Times, Representative Paul McCloskey, one of the Congressmen who
visited Hanoi, confirmed the account.
February 4-The Cambodian Government announced that elections would
be held on March 20, 1976, for a Cambodian Peoples Representative
Assembly of 250 members.
February 8-Le Duan, First Secretary of the Vietnamese Communist Party,
and Kaysone Plomvihan, General Secretary of the Laos Communist Party and Prime Minister of Laos, gave speeches in Hanoi, pledging support by Vietnam and Laos for the communist-led insurgency in TIhailand and for other communist insurgencies in Southeast Asia. Le Duan said that Vietnam would ""fully support" and "contribute actively" to
the communist revolutionary movements in Southeast Asia.
February 14-The North Vietnam News Agency reported that communist
forces in South Vietnam had put down an "armed rebellion" after a
13-hour siege of a Catholic church in Saigon.
February .16-The North Vietnamese Communist Party journal Hoc Tap
stated in an article that Vietnam, in its foreign policy toward the remainder of Southeast Asia, would resolutelyy support" communist revolutionary movements in the region but would also seek friendly relations
and cooperation with the other countries in Southeast Asia.
February 18-Representative Jonathan Bingham stated that, on the basis
of talks he held with Vietnamese officials in Paris, the Vietnamese were anxiousus~ to resume exploration for offshore oil with the aid of foreign
companies.
February 22-Vietnamese authorities in Saigon released to aides of Senator Edward Kennedy the remains of the last two American servicemen
known to have been killed in the Vietnam war.
'Prepared by Marjorie Niehaus, Analyst in international Relations.
(27)






28

February 27-Cambodia charged that three U.S. F-ill's bombed Siemi
Reap on February 25, killing 15 persons and wounding over 30. The
United States and Thai Governments denied the charge.
February 28-A lead article in the Official North Vietnamese newspaper
N/ian Dan called on communist movements throughout Southeast Asia to intensify their efforts to overthrow existing governments, and the
article stated that North Vietnam would "fully support" them.
March 12-Secretary Kissinger reportedly told the House Select Committee
on Missing Persons (according to a United Press International report) that the United States soon would take steps to establish diplomatic relations with North Vietnam.
March 17-The Deputy Director of the CIA, Lt. Gen. Vernon Walters,
told the House Select Committee on Missing Persons that the CIA had no evidence that any American MIA's were still alive in Southeast Asia, but he said that North Vietnam undoubtedly had information on some
of the more than 800 unresolved MIA cases.
March 17-The Foreign Report of the Economist (London) reported that
the Soviet Union had begun to construct repair and refuelling facilities for Soviet submarines in North Vietnam near Haiphong and that the Soviet Union had agreed to supply the Vietnamese navy with Whiskey class Soviet-built submarines and train Vietnamese seamen for submarine duty.
March 20-The new regime in Cambodia held elections for a national
assembly; top communist officials of the government won seats with
100 percent of the vote as did nominal chief of state Prince Sihanouk.
March 26-The Washington Post reported that the Ford administration had
authorized exploratory talks with communist Vietnam on possible
normalization of relations.
March 27-Secretary Kissinger stated that the United States had sent a
message to North Vietnam on March 26 that the Ford administration was prepared in principle "to normalize relations with Hanoi." Kissinger said that the message listed the MIA question as the principal concern
of the United States.
March 29-A spokesman for the North Vietnamese Embassy in Paris reiterated North Vietnam's position that the United States must provide reconstruction aid to Vietnam before Hanoi would provide information
on U.S. MIA's.
April 6-In the second part of a series dealing with the planning and implementation of the North Vietnamese 1975 offensive against South Vietnam, North Vietnamese Chief of Staff General Van Tien Dung disclosed that the military and psychological effects of congressional cuts in military aid on South Vietnamese forces and the post-Watergate political climate in the United States were major factors in the North Vietnamese Politburo's decision to launch the offensive. General Dung's
series appeared in the official Hanoi newspaper, N/ian Dan.
April 9-13-The Laotian Government arrested approximately 1,200 people
in what it described as a "cultural revolution" intended to eliminate
"Creactionaries" and the "depraved" Western way of life.





29

April 14-Radio Phnom Penh announced a new Cambodian Government
headed by Tol Sat, a former rubber plantation workers' representative, and including the Khmer Rouge leadership (Khieu Samphan, leng Sary,
and Son Sen) in top cabinet posts.
April 14--The Washington Post reported that the United States had received from North Vietnam a sternly worded reply to the Ford administration's overture for explanatory talks on normalization of relations. April 19-Time Magazine reported that 500,000 to 600,000 people had died
from political reprisals, disease, or starvation since the Communists took over Cambodia in April 1975 and that the regime was liquidating
"anyone with an education."
April 25-Elections for a unified national assembly were held in North and
South Vietnam. All candidates were selected by the Lao Dong (Communist) Party, and most seats not contested.
May 3-Lt. Pech Lim Kuon, a pilot for the Communist Government of
Cambodia, was interviewed following his defection to Thailand on May 2. He confirmed widespread executions of Cambodians identified with the Lon Nol government and said that Saloth Sar, Secretary General of the Communist Party, was No. 1 in a ruling group of five individuals. June .1-French journalist Yves-Guy Berges, reporting in the daily Paris
newspaper France-Soir, stated that he personally had been with antiCommunist guerrillas in Cambodia who occupied large jungle areas of
the country.
June 2-The Washington Post and New York Times reported that a team
of United Nations officials had submitted a report to Secretary Waldheim recommending that the U.N. undertake a campaign to generate
$432 million in international aid for Vietnam.
June 4-A Veterans of Foreign War delegation stated in Paris that North
Vietnamese officials whom they had met had given them the impression
that North Vietnam still held some American prisoners of war.
June 5-South Vietnam's Provisional Revolutionary Government issued a
statement reaffirming Vietnam's sovereignty over the Spratley Islands.
The Spratley's, lying southeast of Vietnam and southwest of the Philippine's island of Palawan, are also claimed by China, Taiwan, and the
Philippines.
June 7-The North Vietnamese Embassy in Paris issued a statement in
response to the June 4 comments of a Veterans of Foreign Wars delegation. In the statement, the Embassy denied that Hanoi still held American prisoners of war.
June 10-Official Vietnam Government statements said that Vietnamese
associated with the United States and other opponents of the Communist government would be brought to trial and "severely punished" and that 40,000 former soldiers and civil servants of the Thieu government
would have to remain in "re-education" camps for at least 3 years.
June 14-China claimed "indisputable sovereignty" over the Spratley Islands
and warned other nations not to encroach on the islands.



81-813 0 77 3






30

June 18-The Government of Thailand disclosed that its Foreign Minister
had just returned from Cambodia where agreement was reached on
border demarcation and the establishment of embassies.
June 24-Vietnam's national assembly convened in Hanoi, and Vietnam
was declared a united country in the opening ceremony.
June 25-In a major policy speech before the Vietnam National Assembly,
Le Duan, first secretary of the Vietnamese Communist Party, stated that the Government's policy would be a rapid transformation of the southern half of the country to "socialism"; that this would include the elimination of most forms of private enterprise and the collectivization of agriculture; and that the Government would "rapidly do away with the bureaucratic and militarist comprador bourgeoiseie as well as all
vestings of the feudal landlord class."
July 2-Vietnam formally proclaimed its unification as the Socialist Republic of Vietnam.
July 12-The Socialist Republic of Vietnam and the Republic of the
Philippines established formal diplomatic relations. In a joint communique the two countries agreed "not to allow any foreign country to use one's country as a base for direct or indirect aggression and intervention against the other country or other countries in the region." July 12-Radio Hanoi said that Vietnam will welcome an official delegation
from Thailand next month, and indicated Vietnam is ready to establish friendlier relations with Thailand now that all American troops, except
for a 270-man adviser group, are scheduled to leave the country.
July 13-The New York Times reported that a government official in Saigon
indicated to a correspondent in the spring of 1976 that there were 200,000 prisoners in the so-called "reeducation camps"~ in South Vietnam. (The Hanoi government indicated in June that 40,000 prisoners would have to remain in the camps for 3 years and that most of the
remainder had been released.
July 14-Vice Foreign Minister Phan Hein of Vietnam said the United
States had proposed new talks with Hanoi over the question of American servicemen still listed as missing in Vietnam. Hein emphasized that American postwar reconstruction aid was a precondition for progress
in relations between the two countries.
July 20-The extensive 11-year old U.S. military presence in Thailand
ended with the departure of the last American serviceman. A group of
270 military advisers are to remain in Thailand.
July 2-1-Vietnam notified Senators Kennedy, McGovern, and Representative Montgomery that Americans who had been stranded in South Vietnam since April 1975, would be able to depart in August with their
wives and children.
July 22-The Washington Star reported that although the new policy had
not been publicly announced, the administration had modified its attitude on possible sales by Vietnam of captured U.S. weapons and was
w illing to help "friendly countries" that might buy them.






31

July 22-In a speech given in "Seattle, Wash., Secretary Kissinger said that
there can be no progress toward improved relations with Hanoi without
a wholly satisfactory accounting for all missing Americans.
July 23-At the seventh annual meeting of the National League of Families
of MIA's, Representative Montgomery, the chairman of the House Select Committee on Missing Persons in Southeast Asia, told the group that based on his committee's investigation, he has abandoned his hope
that the men are alive.
July 30-Cambodian Premier Pol Pat, in an interview given to the Vietnam, News Agency, said that Cambodia had serious medical problems, food shortages, and no means to build new factories to spur the
economy.
August 1-Radio Phnom Penh announced the establishment of diplomatic
relations between Canmbodia and Japan.
August 2-Malaysian Foreign Affairs Minister Tengku Ahman Rithauddeen
stated that Vietnam had assured Malaysia that all weapons left behind by the United States in Vietnam would not be provided to Communist
insurgents in neighboring countries.
August 6-Vietnam and Thailand agreed to set up diplomatic relations.
With this agreement, Vietnam had established diplomatic relations with
every non-Communist country in Southeast Asia.
August 17-At the conference of "non-alined" nations at Colombo Sri
Lanka, Prime Minister Pham Van Dong said that Vietnam wanted to develop economic ties with capitalist countries and normal diplomatic
relations -with the, United States.
September 1-Vietnam's permanent observer to the United States called
on'the United States not to veto Vietnam's request for admission to the United Nations; he said that increased contacts between Vietnam and the United States would help facilitate a solution to the issues of MIA's
and reconstruction aid.
September 6-The Vietnamese Embassy released the names of 12 missing
American pilots and said that they had been killed in action during the
Vietnam War.
September 13-U.N. Ambassador William Scranton announced that the
United States would veto Vietnam's application for admission to the United Nations because of failure to account for American MIA's.
Vietnam responded by accusing President Ford of using the veto for domestic political purposes, and Hanoi made public several notes exchanged between Washington and Hanoi on the MIA issue.
September 14-The United Nations Security Council decided to put off
consideration of Vietnam's membership in the world organization until
November, after the U.S. presidential election.
October 5-In speeches before the U.N. General Assembly, the foreign ministers of Laos and Cambodia indicated that anti-Communist forces are
active in their countries.
October 16-Jack Anderson reported in the Washington Post that the Communists who have taken over Vietnam are holding between 200,000 and






32

300,000 political prisoners inre-education camps" according to the
organization SANE.
October 24-A statement by the Vietnamese Embassy in Paris said Vietnam has agreed to a U.S. proposal for an exchange of views on problems of interest to each side. Secretary Kissinger confirmed that Vietnam has agreed to the talks.
October 29-The U.S. Government approved the first U.S. commercial export to the Communist government of Cambodia-a $450,000 sale: of insecticide. U.S. officials, said the action was taken in response to a humanitarian need, and does not indicated a change in the overall export control policy which forbids commercial transactions with Vietnam and
Cambodia.
November 6-Vietnam, announced that it faced food and raw material short..
ages as well as a trade deficit.
November 9-The Pentagon released an inventory of an estimated $2 billion worth of U.S. equipment which was taken over by the North Vietnamese from the South Vietnamese in April 1975.
November 11-The New York Times reported that 40,000-50,000 Laotians are confined in harsh and repressive internment camps throughout
Laos.
November 12-The United States and Vietnam opened talks in Paris on
the possibility of normalizing diplomatic relations.
November 15-The United States vetoed the U.N. membership application of Vietnam for the third time because the Vietnamese, acodn to the administration, had not demonstrated their willingness to abide by the human rights criteria' of the U.N. Charter, by withholding data on
American MIA's.
November 29-As reported in the Wall Street Journal, Cambodia appears
to be preparing for trade with non-Communist nations.
December 15-The House Select Committee on Missing Persons issued a
report stating that no Americans were still being held prisoner as a result of the Indochina war but that the Indochina states could account
for many of the MIA's.
December 15-The Vietnam Worker's Party (Communist) opened its
first party congress since 1960.
December 17-Vietnamese Comimunist leaders at the party congress described Vietnam's future economic development as emphasizing industrial development in the north with the south serving to provide food for the country and workers to supplement the northern- labor force in
industry.
December 20-At its first party congress, the Vietnam Workers Party
officially renamed itself the Communist Party and renamed Le Duan to the position of secretary general of tbe party. (The party chairmanship has been vacant since the death of Ho Chi Minh.) Other top party positions remained in the hands of northern leaders.





nn
00

December 28-Thanat Khoman, former Thai foreign minister and currently head of the Thai National Assembly's foreign relations committee, stated that intelligence reports showed that the Soviet Union had built missile silos in the mountains of Laos that could be used to direct missiles against either China or Thailand.
December 29-A group of individuals, formerly prominent in the Vietnam
antiwar movement in the United States, stated that Vietnamese officials had rebuffed their efforts to inquire into reports of widespread abuses
of political and civil liberties in Vietnam by the Hanoi government.
December 30-Vietnam's chief spokesman at the United Nations denied
that his government was infringing on human rights or imprisoning
thousands of people for their political beliefs.















MIDDLE EAST

January 2-The Israeli newspaper Ma'ariv reported that Foreign Minister
Allon was calling for informal talks with Jordanian and West Bank Arab
leaders in an effort toward negotiating an interim peace agreement.
January 4-The Israeli Government devalued the nation's currency 1.9
per cent-the sixth devaluation in 14 months.
January 6-Egyptian Foreign Minister Fahmi -declared his country's oppoiion to any Arab attempts to alter Security CouniReouos24
and 338 during the forthcoming debate on the Middle East scheduled
to open on January 12.,
January 7-Secretary of State Kissinger and Israeli Foreign Minister Allon
began a series of strategy discussions in Washington relating to the Security Council Middle East debate. (Israel maintained its position of boycotting the debate and called for a U.S. stand to oppose amendment
of Resolutions 242 and 338.)
January 8-Israeli Defense Minister Peres said that Israel would consider
Syrian intervention in Lebanon as an invasion and would respond accordingly. (Peres' declaration followed a statement by Syrian Foreign Minister Khaddam saying that Syria would immediately intervene to prevent the partition of Lebanon into Christian and Muslim states. State Department spokesman Robert Funseth reported U.S. opposition to any
external intervention by either Israel or Syria.)
January 9-Israeli Foreign Minister Allon said that Israel would reject
any attempt to shift Middle East peace diplomacy from the Geneva Conference to the U.N. Security Council.
January 9-The Washington Post reported that the U.S. Embassy in Saudi
Arabia had warned Washington that U.S. Federal and State moves against American firms complying with the Arab boycott against Israel
may damage the entire United States-Saudi relationship.
January 1O--Omani Foreign Affairs Under Secretary Yusuf al-Alawi said
that'Iranian forces would remain in Oman to assure support against
incursions from the People's Democratic Republic of the Yemen.
January 11]-Kuwait Finance Minister Abd al-Raliman Attiqui stated in an
interview that his country had decided to purchase Soviet arms for the first time and that Kuwait's rulers were apprehensive over future political and economic relations with the United States.
'Prepared by Clyde Mark, Analyst'in Middle East Affairs.
(35)








January 12-Speaking in New York as the U.N. Security Council opened
its debate on the Middle East, Israeli Ambassador Chaim Herzog said his government was prepared to negotiate with its Arab neighbors but not with the Palestine Liberation Organization (PLO). (By an 11-1 vote, with the United States in opposition and France, the United Kingdom and Italy abstaining, the Security Council approved the seating of
the PLO.)
January 13-Egyptian President al-Sadat stated that Egypt would be willifng to j oin a reconvened Geneva Conference without initial attendance by the Palestinians, but it would press for their eventual participation.
(At the Security Council, however, Egyptian Ambassador Ismet Abel Meguid requested that the Council call for resumption of the Geneva
Conference with full participation by the PLO.)
January 13-President Ford signed an order committing up to 200 U.S.
civilian technicians and $20 million to early warning stations in the
Sinai buffer zone.
January 15-Diplomatic sources disclosed that Israeli Prime Minister Rabin
and Jordanian King Hussein had held at least one secret meeting in
recent months to discuss peace proposals.
January 15-Israel supported Egyptian President al-Sadat's proposal to
reconvene the Geneva Conference without initial Palestinian participation and indicated its readiness to discuss eventual Palestinian representation. (At the Security Council, Soviet Ambassador Malik called
for the speedy resumption of the Geneva Conference.)
January 19-U.S. Ambassador to the United Nations Moynihan informed
the Security Council that the United States opposed ranges in the already agreed upon guidelines for a Middle East peace settlement (Resolutions 242 and 338) that all substantial negotiations would have to take place at the Geneva Conference table; any changes would have
to be accepted by all the parties concerned.
January 20-Palestinian Liberation Army (PLA) units, based in Syria
and equipped with armor and artillery, joined Muslim groups in seizing large parts of Lebanon. (Lebanese Interior Minister Camille Chamoun appealed for immediate intervention by the U.N. Security Council to avert the danger of a new Middle East war. Secretary of State Kissinger said in Copenhagen, en route to Moscow, that "'the United States has warned all outside parties, and I want to repeat it here, against unilateral
acts which could expand the conflict.")
January 20-Arab delegates at the Security Council debate on the Middle
East branded current guidelines to a peace settlement as inadequate
because they ignored Palestinian political aspirations.
January 21-An advance party of U.S. technicians arrived in the Sinai to
begin construction of the early warning system in the buffer zone.
January 22-A joint L.ebanese-Syrian-Palestinian supervisory committee
announced a cease-fire throughout Lebanon for 8 p.m. local time.
January 23-Both the United States and the PLO rejected a draft resolution on Palestinian rights. (The measure would have the Security Council recognize Palestinian rights to a separate state while guarantee-





37

ing Israel's security within its own borders, demand Israel's withdrawal from all occupied territories, and reaffirm the rights of Palestinian refugees to choose between returning to their former property in Israel or
receiving compensation.)
January 26-The United States vetoed a Sec urity Council resolution calling
for the establishment of an independent Palestinian state and Israeli
withdrawal from all occupied. territories.
January 26-It was reported that the Ford administration would submit
to Congress a request for $1.8 billion in economic and military aid to Israel for fiscal 1977-almost $500 million less than Israel will receive
in the current fiscal year.
January 26-The UNEF transferred part of the northern sector of its Sinai
buffer zone to Egyptian forces in implementation of the September 1975
Egyptian-Israeli interim agreement.
January 27-Israeli Prime Minister Rabin arrived in Washington for a
3-day visit with U.S. Government and private officials.
January 28-In an address to a joint session of Congress, Prime Minister
Rabin called for the reconvening of the Geneva Conference, and he said he was ready to meet with any Arab Government leader "at any time and at any place," pledging undefined Israeli concessions in return for serious negotiations. ,(He reiterated the need for a military strong
Israel in face-to-face negotiations with Arab leaders.)
January 29-A third meeting between President Ford and Israeli Prime
Minister Rabin was scheduled reportedly because of differences over (1) a formula for new Arab-Israeli negotiations; (2) Israeli flexibility in future negotiations; and (3) the amount of U.S. economic and military aid to Israel.
January 29-State Department spokesman John Trattner said- the United
States was encouraged by the progress being made in. Lebanon and recognized "the constructive role the Government of Syria is now playing, now that the cease-fire appears to be taking hold."
January 30-The Washington Post reported that estimates of foreign advisers and technicians serving with the Syrian armed forces, in addition to the 3,000 Soviet military advisers, indicate a figure of between 1,000
and 1,500 Cubans, North Koreans and North Vietnamese.
January 30-Algeria reported that Polisario guerrillas had launched new
waves of attacks on Moroccan and Mauritanean positions in former Spanish Sahara. (Morocco had claimed a Victory over Algerian troops
on January 29 after a 3-day battle at the oasis of Amghala.)
February 2-It was reported that President Ford had agreed to a suggestion by Israeli Prime Minister Rabin to explore the possibilities of arranging negotiations between Israel and Jordan on the future of the
West Bank.
February 2-State Department spokesman John Trottner confirmed that
Egypt had expressed an interest in purchasing a number of C-130 transport aircraft, and he stated that no U.S. Government decision on "4a military supply relationship" with Egypt would be taken without "thorough
consultation with Congress."'






38

February 3-Israeli Prime Minister Rabin said he doubted that the United
States and Egypt had made a secret deal concerning the Middle East.
(Egyptian President al-Sadat previously had asserted that he and Secretary Kissinger had reached an agreement, although he did, not
elaborate.)
February 4-The Israeli Government announced that the first shipment
of 100 U.S.-supplied Lance ground-to- ground missiles had arrived and
were in place at an Israeli artillery base.
February 5-In Amman, a reconvened Jordanian Parliament, which had
been dissolved in 1974 following the Rabat summit conference, approved an amendment to the constitution allowing King Hussein to postpone indefinitely elections scheduled for March 23, thus clearing the
way for representation of the West Bank.
February 7-Lebanese President Franjieh met in Damascus with Syrian
President al-Assad to discuss peace arrangements ending Lebanon's 10month old civil war. (Syria assumed responsibility for the strict observance by Palestinian guerrillas of the 1969 and 1973 agreements to respect Lebanon's sovereignty;- the peace arrangements also provided for a more equitable sharing of power between the Christians and
Muslims.)
February 9-Israeli Prime Minister Rabin defended his government's
revised request for U.S. military equipment, and Rabin overcame a veto
of no-confidence in the Knesset.
February 10-A newly published American Enterprise Institute study of
the Arab-Israeli balance in the Middle East warned that "any new conflict threatens to escalate from a conventional to a nuclear war," and concluded that Israel possessed a clearcut advantage in the air and a superiority in missiles, electronic countermeasures, and naval capabilities.
February 10-Jordanian Prime Minister Rifai strongly- denied reports
from Israeli sources that Jordan was considering negotiations or a
joint arrangement with Israel over the West Bank.
February 1.1-Israel devalued the pound by another 2 percent. February 12-Egyptian Foreign Minister Fahmi reaffirmed his government's support for the PLO as a sole representative of the Palestinian people. (It had been reported that several members of the Egyptian
parliament had questioned the continuation of that policy.)
February 13-By a 23-1 vote, with 8 abstentions, the U.N. Commission
on Human Rights adopted a resolution accusing Israel of having committed "war crimes" in the occupied Arab territories. (The United
States cast the only opposing vote.)
February 13-sraeli Prime Minister Rabin declared in an interview that
his government's position was "not to negotiate with the terrorist organizations or to agree to negotiate for another limited agreement with
one of the Arab countries.')
February l6--In a speech published in Beirut, Saleh Khalaf, second-incommand of Al Fatah, declared that under no circumstances would the PLO recognize the State of Israel, and that the guerrilla umbrella orga-






39

nization was planning to close its ranks and establish closer cooperation with "progressive forces" in the Arab world "for a decisive battle with
Israel."91
February 17-Syrian Prime Minister Ayoubi said that his country would
not participate in a reconvened session of the Geneva Conference on the Middle East because his government is convinced that "this route will not lead to peace." (Jordan had rejected participation in the Geneva
Conference on February 16.)
February 18-The Department of Defense announced contracts with Saudi
Arabia and Iran for military equipment, construction, and aircraft parts
totaling more than $1.2 billion.
February 18-Syria and Jordan announced that, starting 'in June, their
countries' diplomatic representation abroad would be unified.
February 20-The Washington Post reported that Algeria was seeking
an estimated $500 million in new loans to bolster its economy, which had been strained by the continuing slump in oil revenues, and by military confrontation on its western borders with Morocco. (The loans would help finance Algeria's drive to lessen its dependence on dwindling oil reserves and to become one of the world's largest suppliers of natural
gas.)
February 20-Israeli Foreign Minister Allon said that "constructive"' Palestinian elements should be included in negotiations with Jordan over
the occupied West Bank.
February 21I-Egyptian President al-Sadat flew to Riyadh, Saudi Arabia,
on the first leg of a week-long tour of oil producing Arab countries.
(AI-Sadat stated in an interview before his departure that he expected his tour to result "in a financial blood transfusion into Egypt's arteries.") February 22-Egyptian troops in the Sinai took over from UNEF the last
area due them in the final step to implement the second Egyptian-Israeli
disengagement agreement of September 1975.
February 22-Israel announced that it would direct its Middle Eastern,
peacemaking efforts seeking a formal end to the state of war with the
Arab States.
February 23-The Kuwaiti Oil Ministry announced the discovery of "huge,"
quantities of oil and gas reserves beneath its present fields.
February 24-Israeli Finance Minister Rabinowitz presented an $11.5 billion budget for the forthcoming fiscal year, beginning April 1, which included defense spending of $4.4 billion, or nearly 38 percent of the total (The budget entailed a contraction of government services and programs, increased taxation, and envisaged a deficit of $363 million.) February 24-Israeli Foreign Minister Allon, in an address to the Knesset,
stated that the United States must obtain advance Israeli approval of the exact terms" before undertaking any new approaches to the Arab States
to seek a Middle East settlement.
February 24-In an address before the Soviet Communist Party Congress.,
Chairman Brezhnev said the Soviet Union was prepared to participate in international guarantees of borders in the Middle East, and he attacked those who "use separate partial agreements of delay, or even entirely place in question, genuine solutions," to the Middle East conflict.






40A

February 24-The New York Times reported that although Secretary Kissinger had expressed support for congressional efforts to allocate $556 million in additional aid to Israel' this fiscal year, the Ford administration privately had informed key legislators it prefers that no extra
appropriations be made.
February 25-In a meeting with Israeli Ambassador Dinitz, Secretary Kissinger received a new Israeli negotiating position, approved by the Israeli Cabinet on February 22, authorizing the United States to explore possibilities in negotiations with Egypt, Syria, and Jordan to exchange territorial concessions by Israel for an end to the state of belligerency on the part of the Arab countries. (Israeli Foreign Minister Allon, in a recent interview in Israel, had spoken of "a formula much broader than the non-use of force, yet less than a total normalization for the time
being.")
February 26-The State Department announced that U.S. Ambassadors to
Egypt, Jordan, and Syria were being summoned to Washington to review what steps might be taken to promote a Middle Eastern peace settlement. February 26-Saudi Arabia gave an immediate cash grant of $300 million
to Egypt and also pledged an additional amount as a long-term loan to Egypt to help pay off its military and economic debts to the Soviet Union. February 27--Spain officially withdrew from Spanish Sahara, giving control
of the territory to Morocco and Mauritania. Algeria warned it would not
recognize the transfer of power.
February 27-King Hussein arrived in Damascus for talks with Syrian
President al-Assad on current Middle Eastern developments.
February 29-In Kuwait, Egyptian President al-Sadat criticized Syria and
Jordan for trying to create a united front against Israel without Egypt.
(AI-Sadat also warned that Syria must "shoulder the responsibility" if it did not choose to renew the U.N. peacekeeping mandate on the Golan
Heights.)
February 29-King Hassan 11 of Morocco warned that he would use "all
possible means" to defend Morocco's newly acquired Saharan territory
against the Algerian-supported Polisario Front guerrillas.
February 29--Overriding protests by Israeli Arab citizens, the Israeli
Cabinet approved a plan to expropriate 1,500 acres of Arab-owned land in northern Galilee for housing development projects, and 1,000 acres of Jewish-owned land in southern Galilee for an army training zone.
(A spokesman said that all persons losing their land or homes would
receive compensation and housing.)
March I-It was reported that PLO Chairman Arafat, during a recent
meeting in Beirut with Senator Stevenson, proposed that Israel create United Nations buffer zones in the West Bank and Gaza as a step toward a conference on a Middle East settlement and recognition of
Israel's right to exist.
March I-Israeli Prime Minister Rabin announced that his government
had strongly protested U.S. plans to supply more arms to Saudi Arabia. illarch 2-Saudi Arabian Crown Prince Fahd said in Riyadh that his country would be compelled to resort to war should current peaceful efforts
aimed at an Israeli withdrawal from occupied Arab territories fail.





41

March 3-South Yemeni Presidential Council member, Abd al-Fatab
Ismail, and leader of the Popular Front for the Liberation of Oman and the Arab Gulf (PFLOAG) insurgents, Abmad Said Sulaiman, held talks
in Moscow with Cuban Prime Minister Castro.
March 3-The Ford administration informed Congress that it intended to
sell six C-130 transport aircraft, together with spare parts and training, to Egypt. (A formal proposal was forwarded on March 25.)
March 4-Israeli Prime Minister Rabin stated that Israel would do all it
could to prevent the sale of U.S. arms to Egypt. (Secretary Kissinger informed the Committee on International Relations that the planned sale of six C-130s to Egypt was in the national interest, particularly in
light of the Soviet cutoff of arms to that country.)
March 5-Former Israeli Prime Minister Golda Meir came out of political
retirement to resume an active role in the leadership of the governing
Labor Party and to help Prime Minister Rabin.
March 5-An article by Edward R. F. Sheehan in the sprig issue of Foreign Policy disclosed allegedly secret discussions between Secretary Kissinger and Israeli and Arab leaders during Kissinger's Middle East "diplomatic shuttles." (On March 12, the State Department announced that Assistant Secretary of State Atherton had voluntarily admitted having read accounts of Kissinger's discussions with Middle East leaders to author Sheehan, and that' Atherton had been "severely
reprimanded.")
March 6-Algeria formally recognized the "Sahara Arab Democratic Republic" and promised "political, moral and material support" to the "legitimate" ruler, the Polisario Front. (The following day, Morocco and Mauritania announced they had broken diplomatic relations with
Algeria.)
March 7-Treasury Secretary Simon concluded a tour of Middle Eastern
countries that had included discussions with government officials in
Saudi Arabia, Israel, Syria, and Egypt.
March 8-Israeli Ambassador to the United States Dinitz warned that the
United States was launched on a dangerous course of action i opening up a military supply relationship with Egypt. (Leaders of Jewish organizations in the United States informed President Ford in a telegram that they were "most strenuously opposed" to the administration's plan
to lift the military embargo against Egypt.)
March 8-Syrian President al-Assad said in a speech in Damascus that the
September 1975 Egyptian-Israeli interim agreement was the starting point for "all setbacks" experienced by the Arabs during the past year
and constituted "complete yielding to the demands of Israel."
March 9-The PLO requested United Nations action for the immediate return of Palestinians displaced from territories that Israel has occupied
since the June 1967 Arab-Israeli war.
March 9-As incidents of violence threatened the cease-fire in Lebanon,
Syrian Foreign Minister Khaddain and Air Force commander, Lt. Gen.
Naji Jamil, arrived in Beirut at President Franjieh's request to resume
mediation among the country's various factions.





42

March 9-Israeli border police clashed with rock-throwing Arabs in the
West Bank following charges that Israeli soldiers had stormed a school
the previous day and had beaten protesting students.
March 10-Saudi Arabia and the People's Democratic Republic of the
Yemen (PDRY-South Yemen) announced the establishment of diplomatic relations between the two countries.
March lO-Israeli Prime Minister Rabin warned Syria not to try to blackmail Israel over renewal of the U.N. peacekeeping mandate on the Golan
Heights.
March 10-In Kuwait, PLO Chairman Arafat, said that 16,000 Palestinians had been killed and 40,000 wounded during the 11-month Lebanese civil war, the objective of which, he claimed, was and remained the liquidation of the Palestinian revolution, and to strike at the Palestinian presence in Lebanon and at the Arab cause.
March 11-The commander of the Beirut garrison, Brig. Aziz Ahdab, dedared a state of emergency throughout Lebanon and demanded the immediate resignation of President Franjieh, calling on parliament to elect a new president within 7 days. In a radio address, Prime Minister Karami announced that he was resigning "in the face of perplexing and rejectionist stands" taken by warring Lebanese factions.
March 11-Israel stepped up its military alert along its border with
Lebanon as rebel Muslim units of the Lebanese army occupied several
outposts near the border.
March 11-The Libyan Government ordered the deportation of some 6,000
Egyptians and confiscated their property, reportedly in retaliation for the arrest by Egyptian authorities in Cairo of 27 alleged Libyan spies. March 12-It was reported that Cuban Prime Minister Castro had arrived
in Algiers for talks with President Boumedienne and leaders of the
Polisario Front.
March 14-Egyptian President al-Sadat proposed that the Egyptian-Soviet
treaty of friendship and cooperation be dissolved, in large measure because of Moscow's refusal to supply his government with spare parts for its Soviet-built weapons systems and aircraft. (The following day
the Egyptian Parliament nullified the treaty by a 307-2 vote.)
March 15-Rebel Lebanese army units under Lt. Ahmad Khatib and under
Brig. Ahdab united on plans to use force to oust President Franjieh
from office following the latter's refusal to resign.
March 15-Iran threatened to break diplomatic relations with Cuba over
a reported meeting in Moscow between Prime Minister Castro and
exiled Communist (Tudeh) leader Iraj Eskandari.
March 15-An article in the Washington Post stated that, according to
senior CIA officials, Israel was estimated to have from 10 to 20 nuclear
weapons "ready and available for use."
March 16-TASS charged that Egyptian President al-Sadat's action in
terminating the Egyptian-Soviet treaty was a "new manifestation of the unfriendly policy in regards to the Soviet Union that he has actually been pursuing for a long time," and warned that the Egyptians would
be responsible for the consequences.





43

March 16-The Netherlands recalled its charge' d'affaires from Baghdad
for consultations following the execution by Iraqi authorities of a Dutch
Jew accused of espionage.
March 17-Syrian President al-Assad opened negotiations in Damascus
with Lebanese Christian and Muslim leaders and with Palestinian representatives in an effort to bring about a cease-fire in the Lebanese
conflict.
March 17-The Indian Foreign Ministry acknowledged that "contractual
commitments" with the Soviet Union prevented India from supplying Egypt with spare parts for the latter's MIG-21 jet aircraft and other
Soviet-supplied equipment.
March 18-Israeli security forces moved into east Jerusalem and several
towns in the West Bank to break up violent anti-Israeli demonstrations. March 21-The Israeli Supreme Court in Jerusalem upheld the authority
of police to ban Jewish prayer on the Temple Mount, the site, of sacred
Muslim shrines.
March 21-A U.S. military mission that included Acting Assistant Secretary of Defense Amos Jordan and Lt. Gen. Howard Fish arrived in Saudi Arabia for conferences with Saudi officials; the mission was so
scheduled to travel to the Yemen Arab Republic (North Yemen).
March 22-Israeli and PLO delegations, facing each other for the first
time in the U.N. Security Council, traded charges over responsibility for anti-Israeli violence in the occupied West Bank. (U.S. Ambassador Scranton had objected to PLO participation in the debate but had been
voted down 11-1. with 3 abstentions.)
March 22-West Bank Arab notables drafted a nine-point document, to be
delivered to Israeli occupation authorities, which included demands that the Israelis undertake to preserve Muslim holy sites and bar the
establishment of Jewish settlements in the occupied territories.
March 23-U.S. Ambassador to the United Nations Scranton said in the
Security Council that the presence of Israeli settlements in occupied Arab territory was "seen by my government as an obstacle to the success of the negotiations for a just and final peace between Israel and its neighbors." He stated that substantial resettlement of the Israeli civilian population in the occupied territories, including east Jerusalem, was illegal under the Geneva Convention covering occupation rights and duties. (The following day, the State Department, in response to Israeli criticism of Scranton's speech, said that this was a restatement
of U.S. policy extending back to 1968.)
March 23-Austrian Chancellor Bruno Kreisky, returning from a fact.
finding mission to Arab countries as head of a Socialist International delegation, said that his government would permit the PLO to open an
office in Vienna.
March 23-Tunisia ordered the expulsion of three Libyan diplomats fol.
lowing the discovery of an assassination plot against Tunisian officials. March 25-The United States vetoed a Security Council resolution (voted
14-1) deploring Israel's annexation of Jerusalem and calling for an end to Israeli actions against the inhabitants of occupied Arab
territory.






44

March 25-Lebanese President Franjieh retreated from his hillside palace
after heavy shelling from opposition force, and his supporters retaliated by bombarding Beirut, killing numerous residents. (The death toll in Lebanon in the 11-month civil war was estimated as having
reached 15,000 dead and nearly 33,000 wounded.)
March 27-The Washington Post reported that Egyptian President alSadat, in an interview, called the U.S. proposal to sell his government six C-130 transport aircraft "a very small thing," but he made it clear that the evolving relationship with the United States was of prime
importance to Egypt.
March 29-Secretary Kissinger, in an appearance before the Committee
on International Relations, said that failure to approve the proposed sale of six C-130s to Egypt would be a matter "of utmost gravity," and that if Congrhss rejected the proposal, "it will be a slap in the face of
Sadat."
March 29-State Department spokesman Robert Funseth announced a
U.S. warning to Syria and Israel against intervention in the Lebanese
civil war.
March 29-Syria halted shipments of arms, food and medicine to Palestinian forces in Lebanon in an effort to pressure them to impose a ceasefire on Lebanese Druze leader, Kamal Jumblett.
March 29-Egyptian President al-Sadat arrived in West Germany on the
first leg of a five-nation European tour aimed at seeking economic aid and military equipment following the abrogation of the Soviet-Egyptian
friendship treaty.
March 29-In a letter to Senator Brooke, President Ford said recent congressional cuts in foreign military aid would lead to "serious reductions . in the program for Jordan, reducing the incentive for this
moderate Arab country to play a helpful role in the Middle East."
March 30-President Ford and King Hussein, who arrived in Washington,
issued a joint appeal for a cease-fire and a political solution in Lebanon. March 30-Five Arabs were killed as Israeli security forces moved to halt
riots in Israel stemming from a day-long strike called by the Israeli
Communist Party.
March 31-Special U.S. envoy L. Dean Brown arrived in Beirut in a direct
American effort to achieve a cease-fire in Lebanon.
March 31-Lebanese Prime Minister Karami rejected any U.N. involvement in the Lebanese civil war, stating that the problem was "an internal matter."
March 31-The Israeli Knesset overwhelmingly defeated a Communist noconfidence motion against Prime Minister Rabin's government.
March 31-The West German Government announced it will give Egypt
$120 million in credit guarantees in addition to $92 million in economic
assistance.
April 1-Following reported Syrian pressures on Lebanese leftist groups
to halt the fighting, Beirut Radio announced that the various factions in Lebanon's civil war had agreed to a 10-day cease-fire designed to give
Parliament time to elect a new President.






45

April 2-King Hussein said in Chicago that the "twin policies of Israel
have been to buy time and hold territory ... time has served only to
escalate and magnify the problem. "
April 4-Time magazine reported that Israel possessed 13 nuclear weapons
which had been hastily prepared during the 1973 Arab-Israeli war.
April 4-Secretary Kissinger told the American Jewish Congress that the
"survival and security of Israel are unequivocal and permanent moral commitments of the United States," and that the United States "will never abandon Israel--either by failing to provide crucial assistance, or by misconceived or separate negotiations, or by irresolution when challenged to meet our own responsibility to maintain the global balance of power." April 4-In an interview published in the Boston Globe, U.S. Ambassador
to the United Nations, William Scranton, said that U.S. Middle Eastern
policy had not tilted toward the Arab position.
April 5-The State Department confirmed that the United States had been
informed by the Bahraini Government it desired to phase out use by
1977 of its facilities by the U.S. Navy Middle East Force.
April 5-Under Secretary of State Sisco told the Senate Subcommittee on
Refugees that the United States had no plans to intervene in Lebanon but that there were plans to evacuate Americans from that country if necessary. (Sisco declined to comment on whether some form of military intervention might be possible in that event.)
April 6-Speaking in California, King Hussein proposed a four-point program for peace in the Middle East that included: (1) guarantees for all Middle Eastern states, including Israel; (2) withdrawal by Israel from all lands occupied since 19671; (3) self-determination for the Palestinians; (4) the right of Palestinians to return to their homes or to receive
compensation.
April 6-Egyptian President al-Sadat told Italian Government leaders that
a new Geneva Conference on the Middle East should be convened after the U.S. November Presidential election. (Al-Sadat also said that Secretary Kissinger's step-by-step diplomacy was no longer viable.)
April 7-In a letter to. House Speaker Albert, President Ford warned that
because of the Federal deficit and budgetary pressures, he would be compelled to veto a foreign aid bill if it contained an additional $550 million in aid for Israel to cover the 3-month transitional quarter ending
October 1, 1976.
April 7-ran severed diplomatic relations with Cuba because of alleged
interference by Prime Minister Castro in internal Iranian affairs.
April 8-Egyptian President al-Sadat warned Israel that if it deploys
nuclear weapons, Egypt would do the same.
April 9-Following his appearance before a closed session of the Senate
Committee on Foreign Relations, Secretary Kissinger told newsmen that progress was being made toward a politicial solution of the Lebanese crisis but there still remained a risk of outside intervention.
(In Beirut, Muslim and Christian leaders agreed to extend the ceasefire, but the truce apparently broke down as fighting was reported
throughout the country.)


81-813 0 -77- 4





46

April 12-State Department spokesman John Trattner denied that the
United States had been acting as a middleman between Syria and Israel to insure that the Israeli Government would not react to Syrian military
action in Lebanon.
April 12-Israeli officials announced that West Bank election results showed
that the towns of Nablus, Hebron, and Ramallah had been won by candidates who advocated the creation of a Palestinian state. (Election officials reported that 72 percent of the territory's eligible 88,000 voters
had turned out in 22 municipalities.)
April 13-The House Committee on International Relations, on a voice
vote, agreed to set aside five resolutions aimed at blocking the sale of six C-130 transport aircraft to Egypt. (The previous day, Senate opposition to the sale evaporated when Senator Case announced he would not press his resolution for disapproval after having received
State Department assurances on training for Egyptian officers.)
April 14-Secretary Kissinger told the Senate Subcommittee on Foreign
Operations of the Committee on Appropriations that the situation in Lebanon had "greatly improved" in the past 3 weeks, that a pattern for a political settlement was emerging, and that the United States had played a major role in seeking a solution to the conflict. Kissinger acknowledged that Syria had deployed military forces in the immediate border areas of Lebanon, and he later told reporters that Israel was
willing to tolerate the present level of such forces.
April 15-Israeli Prime Minister Rabin stated that Israel may have to
reassess its military supply relationship with the United States if Washington refused its demand for $550 million in additional aid.
April 15-The Defense Department announced that it had halted production of Hawk missiles for Jordan because of "financial problems the
Jordanian Government is having."
April 15-Egyptian President al-Sadat, reporting on his five-nation European tour, informed the Egyptian National Security Council that he had secured new sources of weapons to replace the recently abrogated
agreement by which Egypt had been supplied with Soviet arms.
April .16-Some 40,000 Israelis marched into the occupied West Bank and
demanded that Israel annex the territory, contending that it was part
of historical Israel.
April 16-A communique issued in Rabat announced that Morocco and
Mauritania had agreed to share the lucrative phosphate mines in Western Sahara, with the extent of Mauritanian participation to be determined
later by joint agreement.
April.19-Egyptian Vice President Mbarak, accompanied by governmental
and military leaders, opened talks in Peking with Chinese leaders on
increased Chinese military assistance to Egypt.
April 19-Israel devalued its pound by a further 2 percent-the 10th
devaluation since June 1975.
April 19-White House Press Secretary Nessen announced that President
Ford had dropped his total opposition to all external military intervention in Lebanon, stating that Syria s use of its troops represented "a constructive role," and that Ford would oppose any intervention in
Lebanon "that could lead to a Middle East confrontation or war."






47

April 19-Israeli troops killed one Arab and wounded three others while
breaking up demonstrations opposing the April 16 march by Israelis
across the occupied West Bank.
April 21-It was reported that China had agreed to supply military equipment and economic aid to Egypt.
April 25-Jordanian officials were reported to have announced that the
United States had agreed to lower the price of Hawk missile systems and that the Jordanian Government was discussing the American offer with Saudi Arabia in an effort to persuade the latter to finance the
deal.
April 26-Two Israeli newspapers reported that Syrian President al-Assad
had indicated his readiness to meet with President Ford and that the meeting might take place before May 31, the expiration date for the mandate of U.N. peacekeeping forces on the Golan Heights. (White House Deputy Press Secretary John Carlson subsequently said that there was an "open possibility' that Ford would meet with Al-Assad in the
near future.)
April 26-A four-member Egyptian delegation, led by Trade Minister
Zakaria. Tewfig, arrived in Moscow to conduct talks with Soviet
officials.
April 26-Egyptian President al-Sadat suggested at a Cairo news conference that Egypt would delare a state of nonbelligerency if Israel withdrew from Arab territory seized in 1967.
April 28-Israeli Defense Minister Peres said Syrian involvement in the
Lebanese civil war was part of an overall plan to take over the country
in order to stage future attacks against Israel.
April 29-Eleven Mauritanian soldiers and 27 Polisario guerrillas were
killed in a 2-day clash in Western Sahara.
April 30-In a major blow to Syrian efforts to achieve a solution to the
civil strife in Lebanon, heavy fighting and extremist opposition forced
the Lebanese Parliament to postpone elections for a new President.
May 3-Egyptian Foreign Minister Falimi called for an urgent meeting of
the U.N. Security Council, with PLO participation, to discuss Israel's "'measures of oppression and terrorism"~ in the West Bank and Gaza against the Palestinian people. (Israeli officials subsequently called the Egyptian request an infringement of the September 1975 Sinai agreement by which Egypt pledged to tone down its diplomatic warfare against
Israel.)
May 4-Former U.S. Ambassador to Saudi Arabia James Akins said before
the Senate Subcommittee on Multinational Corporations that the State Department had ignored Saudi offers to roll back oil price increases and to prevent the establishment of a Soviet Indian Ocean base in Somalia. May 6--Israeli Prime Minister Rabin, in a speech marking his country's 28th
anniversary of independence, vowed that Israel would "maintain law and public order" in territory captured from Jordan, Egypt, and Syria.
(Previously, he had warned Israelis that the United States eventually
may waver from its present firm stand against talks with the PLO.)
Way 9-In a speech in Baltimore, Secretary Kissinger, warning that continuation of the status quo constituted the greatest risk in the Middle





48

East, said negotiations must take place between all parties in the region, conceding that "any negotiation will require Israel to exchange territory in return for political and therefore much less concrete concessions."
(Kisinger reaffirmed the United States' commitment to Israel's survival and security and stated there could be "no imposed solutions" to
a Middle East settlement by outside powers.)
May 9-The Israeli Cabinet adopted a compromise plan to deal with Jewish
settlers in the occupied West Bank, declaring that future settlements would be approved only in the Jordan valley and along the pre-1967war border between the West Bank and Israel.
May 9-Federal Energy Administrator Frank Zarb confirmed in Tehran
that some American defense contractors and the Iranian government were discussing a possible trade of Iranian oil for American arms, but
he said no firm arrangements had as yet been concluded.
Way 10-State Department spokesman Robert Funseth, commenting on
the Lebanese election on May 8 of Elias Sarkis to succeed outgoing.President Sulaiman Franj ieh, said that the United States hoped "the Lebanese constitutional process continues to go forward and, as before, we stand ready to help in any way we can in keeping with our goal of preserving the sovereignty, territorial integrity, unity, and national cohesion of Lebanon." (The subsequent outbreak of fresh fighting in that country, however, wrecked immediate hopes for peace between the
various factions.)
May 10-A World Health Organization (WHO) report on conditions in
the West Bank and Gaza described health services as improved since Israeli occupation began in 1967, with some now on a high technical level. (On May 17, the World Health assembly in Geneva, on the initiative of India and Arab states, approved by a 65-18 vote, with 14 abstentions, a motion declaring the WHO report "inadmissible.")
May 10-In an interview published in the Jerusalem Post, President Ford
said it was time to discuss an overall settlement of the Middle East conflict, and that the United States had "gone about as far as we can in
the step-by-step process" of Arab-Israeli negotiations.
May. il-The New York Times reported that Israel was drawing up plans
for the establishment of a large number of settlements, ranging from agricultural villages to industrial towns, in the occupied Golan Heights, the West Bank, the Jordan valley, and the Rafah area of Gaza over the
next several years.
May .12-Israeli Prime Minister Rabin declared that there was a chance
both Egypt and Syria would agree to negotiations to end the state of
war with Israel sometime in 1976.
May 12-Israeli Foreign Minister Allon warned that the recently reported
cooperation between Egypt and the PLO would turn back the clock on
relations between Egypt and Israel.
May 13-Speaking in Washington before the American Jewish Committee,
President Ford declared that the United States "will remain the ultimate guarantor of Israel's freedom," and that "the fundamental American-Israeli friendship" would not be eroded despite differences that
may arise between the two countries.






49

May 14-It was reported that Secretary Kissinger and Israeli Ambassador
Dinitz had agreed on a formula for continued U.S. military aid to Israel and had discussed the dangers of a general Middle East war stemming from the renewed fighting in Lebanon. (Kissinger also was reported to have emphasized U.S. opposition to Israeli plans to establish more Jewish settlements in occupied Arab territories.)
May 15-PLO leaders appealed to Syria to end its military intervention in
Lebanon and its involvement "in a bloody conflict against the national movement and the Palestinian revolution" for its own political purposes. (The growing dispute between Syria and the PLO centered on the Syrian land and sea blockade of territory held by Palestinians and the Lebanese Muslim-Leftist Alliance; and on Palestinian concern over Syrian efforts to bring the guerrilla movement under its control to permit pursuit of a policy of accommodation with the United States
and Israel.)
May 15-Israeli Ambassador to the United Nations Chaim Herzog denounced the terrorist activities of the Jewish Defense League in New
York, calling it a small, irresponsible group.
May 16-Nabil Shaat, head of the PLO planning section, said in Brussels
that all Israeli Jews will be formally recognized as Palestinians by the Palestinian National Council under a planned amendment to- article 6 of the PLO National Covenent. (The amendment would bring the Covenant in line with the PLO program for a democratic, secular
Palestinian state for all its inhabitants irrespective of religion.)
May 16-At the seventh Islamic Conference in Istanbul, foreign ministers
from 40 Muslim nations passed a resolution -on the Middle East urging Islamic countries to sever all relations with Israel and equating Zionism with racism. (The Conference also established a $60 million
fund to counter Israeli rule in occupied Arab territories.)
May 16-Eleven terrorists and four policemen were killed in shootouts at
three Marxist guerrilla hideouts in a residential section of Tehran.
May 17-A Soviet delegation, led by Deputy Defense 'Minister Pavel
Kutakhov and two air force generals, arrived in Jordan for 4 days of talks on Jordanian air defense needs in response to an invitation by
Jordanian air force commander General Aboud Salim.
hary 17-Libyan Prime Minister Jalloud unexpectedly arrived in Beirut in
an apparent attempt to mediate the rift between Syria and Palestinian and Muslim factions in the Lebanese civil war. (Jalloud had flown from Damascus, where he had met with Syrian President al-Assad,
and was accompanied by PLO Chairman Arafat.)
May 1 7-A report published by Amnesty International stated that. hundreds
of persons had "disappeared" in the People's Democratic Republic of the Yemen and that several thousand political prisoners were held in
that country.
May 18-The financial weekly Barron's stated that after two decades of
spectacular economic growth, Israel was running into severe recession, and its dependence on American aid was causing considerable
concern.






50

May l9-In a report to the Senate Committee on Foreign Relations by
Senators Javits, Haskell, Stevenson, and Abourezk, who recently had returned from the Middle East, it was recommended that Israel withdraw from, and return, occupied Arab territories as a necessary step
toward achieving peace in that region.
May 20-It was reported that internal problems in Syria, in part generated
by the government's intervention in Lebanon, were responsible for the abrupt cancellation of Syria's scheduled conference with Egypt in Riyadh, with Saudi Arabia and Kuwait acting as mediators, to resolve differences between the two countries. (The Syrian Government on May 19 had announced the postponement "to permit further
consultation.")
May 23-A senior State Department official indicated that the United States
was giving serious consideration to an offer by France to send peacekeeping forces into Lebanon. (Lebanese Prime Minister Karami joined Muslim-Leftist Alliance factions in rejecting the French offer, stating
that Lebanon "will never go back to the days of the mandate.")
Way 25-Iranian Prime 'Minister Hoveyda announced that Iran had signed
contracts to purchase two nuclear powerplants from France.
May 25-The State Department announced that the Soviet Union was permitting a slightly higher level of emigration since the Helsinki Conference, but the level still remained far below that when detente was in
full bloom.
May 26-The U.N. Security Council issued a majority opinion deploring
the establishment of Israeli settlements on Arab territories, but the United States rejected the measure. (The opinion called upon Israel to rescind actions altering the character of occupied Arab lands and
deplored the Israeli practice of setting up new villages there.)
May 26-Following unannounced discussions between Soviet and Israeli
diplomats in Washington and at the United Nations, initiated by the Soviets, the Israeli newspaper Ha'aretz reported. that the Foreign Ministry had issued instructions requiring home-office authorization prior
to further contacts with Soviet representatives.
May 26-Secretary Kissinger, speaking before a Conference of Central
Treaty Organization (CENTO) ministers in London, said that the time was approaching "when new impetus must be given to movement towards an overall peace" in the Middle East, and that the civil war in Lebanon had "preoccupied the attention of many of the parties"~ in the region.
(Iranian Foreign Minister Khalatbari declared at the conference that the passage of recent events in southern Africa-the Soviet-supported Cuban invasion of Angola--"could repeat themselves in our immediate
neighborhood with disastrous repercussions.")
May 27-U.N. Secretary General Waldheim announced that Syria had
agreed to extend the mandate for the U.N. Disengagement Observer
Force (UNDOF) in the Golan Heights for a further 6 months.
Way 27-Saudi Arabian King Khalid concluded 4 days of talks with the
Shah of Iran and other Iranian officials reportedly aimed at resolving differences over the price of oil and at promoting security arrangements
in the Persian Gulf.






51

May 27-In Beirut, gunmen forced their way into the home of Lebanese
Druze leader Kamal Jumblatt's sister, Mrs. Linda al-Atrash, killing her and wounding her two daughters, thereby compelling a postponement of
talks between Jumblatt and President-elect Sarkis for a week.
Meay 27-Israeli U.N. Ambassador Herzog rejected the U.S. position that
the establishment of Jewish settlements on Arab lands constituted an
obstacle to peace in the Middle East.
May 28-A report by the International Commission of Jurists on human
rights and the legal system in Iran declared that the Iranian Government had not implemented basic civil and political rights of its citizens and that "there is abundant evidence showing the systematic use of impermissible methods of psychological and physical torture of political
suspects during interrogation."~
Mtay 30-Egyptian Foreign Minister Fahmi recommended that the Arab
League revise the status of the PLO from that of an observer to full membership in order to "bolster [the PLO's] international position and
give it significant weight."
Mtay 31-Syria moved fresh troops into northern Lebanon to block a
Muslim-Leftist Alliance seige of two Christian towns in the Akkar valley.
(Leb-anese Druze leader Jumblatt and moderate Christian leader Roymond Edde subsequently charged that the United States had agreed to a plan whereby Lebanon would be partitioned, with most of the country
moving under Syrian control.)
May 31 -Israel and South Africa announced a program to strengthen
scientific and technological relations.
June ]-A Syrian task force, including an armored brigade,- entered eastcentral Lebanon in an effort to halt fighting between that country's warring factions. (The PLO issued a statement charging that the invasion was "the beginning of a Syrian occupation" of Lebanon. Israeli Foreign Minister Allon declared that Israel had the right "to take the necessary measures to protect our interests" if its security were threatened by the Syrian move. State Department spokesman Robert Funseth said the United States "continues to warn all concerned about the dangers of escalating a civil strife into an international conflict.")
June i-White House Press Secretary Ron Nessen stated that President
Ford had instructed members of his administration to seek an overall peace settlement for the Middle East, and that Ford and his advisers were studying the possibility of a preliminary meeting of all parties concerned in Geneva to be followed by a full-scale conference.
June I-Israeli Foreign Minister Allon called for 'a meeting between Israel,
Jordan, and leaders of the occupied West Bank to discuss the territory's
future.
June I-Soviet Prime Minister Kosygin arrived in Damascus from Iraq for
3 days of talks with Syrian President al-Assad and other officials. (The Defense Department announced that since May 27 the Soviet Union had increased its Mediterranean fleet to 65 ships, including a helicopter
carrier.)
June 3-Egyptian Foreign Minister Fabmi, in a letter to Arab League Secretary General Mahoud Riad, condemned the Syrian intervention into Lebanon and called for an urgent meeting of Arab foreign ministers to
discuss the situation.





52

June 5-The Egyptian Foreign Ministry announced it had ordered Syria to
close its Embassy in Cairo and all Syrian diplomats to leave the country within 48 hours. (The ministry also said that the Egyptian Embassy in
Damascus was being closed.)
June 7-Egyptian President al-Sadat stated in a message opening a Middle
East Development Conference in Cairo that Egypt's recovery from inflation and other economic problems depended upon the achievement of a permanent peace in the region, and that it was "imperative that an applicable Middle East peace be achieved, not only for Egypt, but for all
parties involved."
June 7-In its first direct attack against Al Fatah, Syria accused the Palestinian group of trying to partition Lebanon "so that part of it would become an alternative to Palestine." (The statement also said that clashes in Lebanon which had killed or wounded large numbers of people on June 6 had been "treacherously and premediatedly engineered by Al
Fatah and its allies."")
June 8-Appearing before the House Commite on International Relations,
Assistant Secretary of State Joseph Greenwald and Deputy Secretary of Defense William Clement argued that proposed legislation prohibiting American companies from complying with the Arab boycott against Israel would "contribute to a sense of confrontation and would be counterproductive," cause a "deterioration of relationships with countries with which we are making progress," and "adversely affect our
efforts to reach a settlement" in the Middle East.
June 9-Syria opened a third front in its intervention in Lebanon meeting
stiff resistance from Palestinian and Muslim Leftist Alliance forces. (An official Soviet statement released by Tass warned Damascus to halt its action and also contained a warning to Lebanon, because of its offer to send peacekeeping troops to Lebanon,, and to the United States,
because of the presence of U.S. ships off the Lebanese coast.)
June 10-In Cairo, the Arab League voted to seek a cease-fire in Lebanon,
the withdrawal of Syrian troops, and their replacement by a joint Arab peace-keeping force, and League mediators flew to Damascus to discuss the proposal with Syrian President al-Assad. (Lebanese President Franjieh said that Lebanon "will, resist with all its means and resources an Arab force that enters its territory against its will and without its prior
agreement.")
June 10-President Ford conferred with Sudanese President Jaafar
Numeiri at the White House.
June li-The PLO accused Syria of injecting new troops into Lebanon
and of failing to implement the agreement reached by Arab foreign ministers, in Cairo on a collective peacemaking initiative in that country. June 14-Syrian troops and armor captured Palestinian and leftist bases in
southeast Lebanon and advanced to within 14 miles of the Israeli border.
(Palestinian leaders appealed to Arab states for a food airlift to break
Syria's blockade of Lebanon's major ports.)
June 14-Egyptian Foreign Minister Falimi said that Syria had received
"the green light" to intervene militarily in Lebanon following contacts with the United States and Israel through France and Jordan, and that the Soviet Union and the United States had agreed not to permit the
Lebanese situation to lead to a confrontation between them.





53

Jiue 15-Following reports that Syrian armored columns had captured
a number of Palestinian positions to within 21/2 miles of the Israeli border, Israeli Prime Minister Rabin told the Knesset that "should a new situation [in Lebanon] be created, there could be a change in our
position as well, as will be necessitated by our security needs."
June 15-The New York Times reported that Saudi Arabia was seeking to
purchase 1,900 Sidewinder interceptor missilestfrom the United States. June 16-U.S. Ambassador to Lebanon Francis Meloy, Economic Counselor Robert Waring, and their Lebanese driver were kidnaped and murdered in Beirut while traveling to a meeting with Lebanese President.
elect Sarkis. (The United States subsequently urged all Americans to
leave Lebanon.)
June 18-The PLO announced that it had arrested gunmen responsible for
the murders of U.S. Ambassador Meloy, his aide and driver, and would hand them over to the pan-Arab peace-keeping force scheduled to
arrive in Lebanon to enforce a ceasefire.
June 18-Syrian President al-Assad arrived in Paris for 3 days of talks on
the Lebanese situation with French President d'Estaing.
June 20-A U.S. Navy landing craft evacuated 263 Americans and Europeans from Lebanon after fighting had blocked a planned overland convoy evacuation to Damascus. (Palestinian and Muslim Leftist Alliance troops provided security for the evacuation.)
June 21-It was reported that the Israeli Defense Ministry will order a
reassessment of the country's military activities because of budget cuts
and reduced U.S. financial aid.
June 21-Two battalions of Syrian and Libyan troops arrived in Beirut
as the vanguard of the pan-Arab peace-keeping force.
June 21-Egyptian President al-Sadat, Saudi Arabian King Khalid, and
PLO Chairman Arafat opened talks in Riyadh aimed at "current efforts
to stop the bloodshed in Lebanon."
June 21-The Polisario Front confirmed the death of its Secretary General, Sayid al-Wali, but denied he had been killed when Polisario guerrillas had attacked the Mauritanian capital of Nouakchott earlier
in June.
June 22-Secretary Kissinger stated that the United States supported French
proposals to send a peace-keeping force into Lebanon and to host a
peace conference to end the Lebanese civil war.
June 22-President Ford announced that he was sending Deputy Assistant
Secretary of State Talcott Seelye to Beirut temporarily to take charge
of the U.S. Embassy.
June 23-Pravda commented that the Lebanese crisis had sharply worsened
in recent days and stated that "the senseless and provocative assassination" of the U.S. diplomats on June 16 "served as a pretext for a debate in NATO circles about the possibility of their open armed interference
in the affairs of Lebanon."
June 23-Lebanese Christian forces began an assault on the Palestinian
refugee camps of Jisir Alpashah and Tal Zaatar.





54

June 23-Egyptian President al-Sadat said in Doha, Qatar, that the oppor.
tunity still existed for resumption of the Geneva Conference on the Middle East this year, and, "as soon as the American elections are over,
the United States can then play its role" in such a conference.
June 24-At the conclusion of a 2-day conference between Egyptian Prime
Minister Salim and Syrian Prime Minister al-Ayyoubi in Riyadh, it was announced Egypt and Syria had agreed to set up a joint committee to coordinate political and military strategy toward Israel, halt their propaganda war, and arrange a summit meeting between Presidents al-Sadat and al-Assad, thus ending a 10-month rift between the two
countries.
June 27-Palestinian terrorists hijacked an Air France jet airliner over
Greece during a flight from Tel Aviv to Paris and flew its 256 passengers
and crew to Entebbe Airport, Uganda, after a refueling stop in Libya.
June 28-A communique issued at the conclusion of a 12-day visit to Moscow by Jordanian King Hussein called for an "all embracing" Middle East settlement ""and not by separate and partial measures." (No mention was made of a possible Jordanian purchase of a Soviet air defense system which King Hussein earlier had said he would discuss with
Soviet leaders during his visit:.)
June 29-The United States vetoed a Security Council resolution endorsing
a report submitted by a 20-nation Palestinian Rights Committee that called for an Israeli withdrawal from occupied Arab territories and affirmed the rights of Palestinians to national independence. (The report demanded that Israel withdraw from the West Bank and Gaza which then would be placed under U.N. jurisdiction and eventually turned over
to the PLO.)
June 30-Arab League envoy Hassan Sabri al-Kholi, who had arranged a.
cease-fire the previous evening, left Beirut for Damascus as Christian forces captured one of the two Palestinian refugee camps they had been attacking since June 23 and continued their assault on the second camp. June 30-Egypt expelled Libyan charge d'affaires Milod Sadiq after he
had been detained and accused of distributing "'seditious leaflets instigating rebellion" against the government of President al-Sadat.
July I-The Israeli Government reversed a standing policy by announcing
its decision to negotiate with pro-Palestinian terrorists for the release of hostages aboard an Air France 'airliner held at Entebbe Airport, Uganda. (The hijackers had given a deadline of July 4 for the release of extremists imprisoned in Israel, France, Switzerland, West Germany,
and Kenya.)
July 1-A contingent of 1,300 Saudi Arabian and Sudanese troops arrived
in Lebanon to join the pan-Arab peace-keeping force attempting to
establish a truce in the country's civil war.
July 4-An Israeli army spokesman announced in Tel Aviv that an Israeli
airborne commando force had successfully rescued 103 Jewish (mostly Israeli) and French hostages held at Entebbe Airport, Uganda. (Seven pro-Palestiian hijackers and terrorists had been killed, and a number
of Soviet-supplied Ugandan air force aircraft destroyed.)








July 5-A meeting scheduled between Arab League mediators and Lebanese
Christian leaders was canceled because of intense fighting in various parts of the country. (The previous day, Syrian Foreign Minister Khaddam, PLO Chairman Arafat, and Lebanese Muslim Leftist Alliance leaders had held talks at Sofar, near Beirut, under the auspices of Arab
League Secretary General Riad.)
July 5-U.N. Secretary General Waldheim, stated that the Israeli raid on
Entebbe Airport constituted a violation of Uganda's sovereignty, but he expressed satisfaction that the lives of hostages had been saved. (At its meeting in Mauritius, the OAU unanimously passed a resolution condemning the Israeli action and calling for a Security Council session
to take "all appropriate measures" against Israel. )
July 5-Secretary Kissinger said in Chicago that it was "essential that some
international arrangements be made to deal with terrorists, because it cannot be tolerated that innocent people become the playthings of
international thugs."
July 5-Egyptian Minister of War General Gamassi, at the conclusion of
a visit to the United Kingdom, said in an interview that decisions on the creation of an Egyptian arms industry, with British and French participation, will, be taken in August at a meeting of defense ministers from
Saudi Arabia, Egypt, the United Arab Emirates, and Qatar.
July 6-The Sudan broke off diplomatic relations with Libya in response
to the Libyan Government's alleged role during the abortive coup d'etat of July 2 against President Nimeiri. (The following day, the Arab League announced in Cairo that the Sudan had been requested to drop charges
against Libya in the Security Council in the interests of Arab unity.)
July 8-Speaking at a luncheon in Washington for Saudi Arabian Second
Deputy Prime Minister Abdullah bin Abd al-Saud, Secretary Kissinger called for a roundtable conference of all parties involved in the fighting in Lebanon, declaring that the civil war was preventing an overall
Middle East peace settlement.
July 8-It was reported that the Defense Department had discouraged Saudi
Arabia from purchasing advanced fighter aircraft such as the F-14 and F-15 on the grounds that they were too sophisticated for the Saudi air force to maintain and fly, and had advised that the Saudis should build their capability and experience around the less complex F-5
fighters purchased from the United States.
July 9-Iraqi Vice President Saddam, Hussain al-Takriti said that his
country's leadership had "studied the general Arab situation" and had decided to form a new Arab front against Israel, comprising Iraq, Libya,
Algeria, and the Palestinians.
July 9-On his return from four days of discussions in Moscow, Syrian
Foreign Minister Khaddam said he had obtained agreement from Soviet leaders to persuade the Palestinians to disengage their forces from the
conflict Lebanon.
July 11-Damascus radio reported that Jordanian King Hussein and Saudi
Arabian Foreign Minister Prince Saud were conferring with a delegation of Lebanese Christian leaders in Damascus on the civil war in
Lebanon.





56

July ]]-The Baltimore News American reported that South Africa and
Israel will conduct military staff talks and that Israel will supply arms to the South African army as the latter reequips in order to change its primary mission from that of dealing almost exclusively with internal security to meeting the threat of full-scale attacks from across its borders. July 12-U.S. Ambassador to the United Nations Scranton, during debate
on the Israeli action in Uganda, stated in the Security Council that there "is a well-established right to use limited force for the protection of one's own nationals from an imminent threat of injury or death in a situation where the state in whose territory they are located either is unwilling or unable to protect them. The right, flowing from the right of self-defense, is limited to such use of force as is necessary and appropriate to protect
threatened nationals from injury."
July .12-It was reported that, according to Damascus sources, Syrian President al-Assad had authorized the use of up to 50,000 Syrian troops, together with armor and air support, to restore order in Lebanon. (It was estimated that, currently, there were about 13,000 Syrian troops in
Lebanon.)
July 13--Jordanian Prime Minister Rifai resigned and King Hussein asked
Mudar Badran, Chief of the Royal Cabinet, to form a new government.
(Former Ambassador to the United States, Abd al-Hamid Sharif, became
Chief of the Royal Cabinet.)
July 13-Israeli Navy Commander Michael Markai said that Israel will
double its long-distance combat fleet with six more Gabriel-carryin
Flame missile boats, costing $15 million each.
July 14-At the end of 4 days of inconclusive debate in the Security Council, African members of the Council withdrew a resolution condemning the Israeli rescue mission at Entebbe Airport as a "flagrant violation"
of Uganda's sovereignty, and announced they would not participate in voting on a concomitant Anglo-American resolution condemning the hijacking of airliners and calling on all governments to "prevent and
punish such terrorist acts."~
July .14-The Washington Post reported the State Department had concluded that Israel had used U.S.-supplied aircraft and equipment in its rescue mission in Uganda for "legitimate self-defense", permitted under
the Foreign Military Sales Act.
July 14-In Beirut, Libyan Prime Minister Jalloud submitted a Syrian
proposal to the Palestinian forces for a step-by-step arrangement starting with a limited Syrian withdrawal and leading eventually to a cease-fire. July 15-Syrian forces captured Baalbak, the last Palestinian/Muslim
Leftist Alliance stronghold in eastern Lebanon, as the PLO accused the Damascus government of having sent 1,000 fresh troops into Lebanon. July 18-The Soviet aircraft carrier Kiev entered the Mediterranean for the
first time to reinforce the Soviet fleet. (It was reported that U.S. officials had indicated the Soviet Union had more than 70 warships in the
Mediterranean.)
July 18-A joint communique, issued at the conclusion of 3 days of talks
between Saudi Arabian King Khalid, Egyptian President al-Sadat, and Sudanese President Nimeiri at Jiddah, Saudi Arabia, announced agree-






57

ment "to promote and intensify cooperation" between the three countries, condemnation of the continuation of fighting in Lebanon, and a declaration of support-in the wake of the July 2 abortive coup in Khartoumfor the "heroic Sudanese people in their confrontation with conspiracies,
aggression and sedition."
July 18-Israeli devalued its pound by a further 2 percent-the fourteenth
in a series of devaluations since November 1974. (The Israeli Government also decided to link its pound to the U.S. dollar, the pound sterling, the West German mark, the French franc, and the Dutch guilder, in a move designed to improve Israeli exports; previously, it had been tied
only to the U.S. dollar.)
July 18-According to two studies prepared by the State Department's Office
of the Inspector General of Foreign Assistance and released by Representative Aspin, it was necessary that "major improvements in contact management" be made or "'Iran will not develop the desired defense capabilities and our relations could suffer unavoidable strain." (Aspin charged that "the management of some contracts appears to be absolute
anarchy.")
July .18-Libyan Minister of State Muhammad az-Zawi announced in
Kuwait that his government had dispatched French-built Mirage jet aircraft to Uganda to replace Soviet-supplied MIG jets that had been
destroyed by Israeli commandos at Entebbe.
July l8-The Middle East News Agency (MENA) reported that finance
ministers from Saudi Arabia, Kuwait, Qatar, and the United Arab Emirates had initialed an agreement in Cairo establishing a $2 billion
fund to help finance development in Egypt.
July 19-In an interview published in Newvsweek, Jordanian King Hussain
said that the PLO had weakened its argument, because of its role in the Lebanese civil war, that Jews, Muslims, and Christians could live in harmony side by side in a future greater Palestine; and that it can "now be seen that Arabs themselves', citizens of the same country,, not only cannot coexist but collide day and night." (Hussain also stated that the Israelis were "dangerously complacent" and, unless the momentum toward peace was resumed, there would be "'a rapid deterioration toward
another explosion.")
July .19-Following talks in London between Oman Sultan Qabus and the
British Government, it was announced that the Royal Air Force will withdraw from its staging airfield on Masirah Island, off the coast of Oman, in March 1977, and will hand over operations of the airfield at Salalah, Dhofar Province, to the Omani authorities. (British pilots and other staff seconded to the Sultan's forces will not be affected by the
agreement.)
July 19-The State Department announced that negotiations had been completed on a draft agreement for the United States to sell nuclear power
reactors to Israel and Egypt.
July 2O-Syrian President al-Assad, in a broadcast speech, rejected Palestinian demands that he withdraw Syrian forces from Lebanon, stating that the Palestinians had "no right, legal or otherwise, to demand the withdrawal of Syrian forces from Lebanon," and that they were "fighting a battle that has nothing to do with their cause." (AI-Assad said







that Syrian troops would leave only at the request of Lebanese President
Franjieh or other legitimate officials.)
July 20-The Paris newspaper Le Monde reported that Soviet Communist
Party Chairman Brezhnev had accused Syria of prolonging the civil war in Lebanon, and had requested the Damascus government to with.
draw its forces.
July 20-A joint communique issued in Cairo announced the conclusion of
a 25-year defense pact between Egypt and the Sudan, signed by the
leaders of the two countries on July 15.
July 21-A partial truce between Christian and Palestinian forces in
Lebanon was shattered by a mortar attack on an Arab League peacekeeping unit and by renewed fighting around the Palestinian refugee
camp of Tal Zaatar.
July 21 -Israeli Prime Minister Rabin, referring to reports that Israel
apparently was supplying arms to Christians in Lebanon, denied that his country was involved in the civil war and declared it would not intervene unless its security was threatened. (State Department spokesman Robert Funseth, responding to questions concerning reports of Lebanese Maronite forces receiving covert arms supplies from Israel, stated that the United States "has not approved directly or indirectly
the transfer of arms by any country to Lebanon.")
July 22-Lebanese Druze leader Jumblatt announced the establishment of
a "central political council"-a civil administration to govern those sections of Lebanon controlled by the Muslim Leftist Alliance. (The
move was seen as a step toward partition of Lebanon.)
July 22-A Palestinian delegation met with Syrian Foreign Minister
Khaddam and senior members of the Ba'ath Party in Damascus to discuss ways of resolving differences stemming from Syrian intervention in the Lebanese civil war.
July 22-U.S. Ambassador to Egypt Hermann Eilts and Egyptian Minister
of Economic Cooperation Zaki Shafii signed a loan agreement in Cairo for importation of American agricultural and industrial equipmentthe first of seven loan agreements to total $435 million scheduled to be
signed in the near future.
July 22-The Scripps-Howard newspaper chain, quoting "senior U.S.
diplomats," reported that Al Fatah second-in-command Salah Khalaf (also known as Abu Iyad) had directed the June 16 murder of U.S.
Ambassador Meloy, his aide and driver, in order to provoke the United States into intervening in Lebanon with the aim of uniting the various
warring factions.
July 23-The Washington Star reported that Ashland Oil, New England
Petroleum, General Dynamics, and Litton Industries were negotiating a $13 billion arrangement whereby Iran would be offered a limited share of ownership in the American companies in return for use of Iranian oil to finance the purchase of U.S. jet fighters and warships. (An Ashland Oil Co. spokesman subsequently denied that part-ownership was
being considered.)
July 25-Newsweek reported the leaders of Saudi Arabia, Egypt and the
Sudan had agreed at their Jiddah summit meeting that Libyan leader
Qaddafi must be ousted by whatever means were necessary.






59

July 26-In an interview following the conclusion of hearings on the
Middle East by the Senate Committee on Foreign Relations Subcommittee on Near Eastern and South Asian Affairs, Senator McGovern stated that the United States should consider "international intervention to restore order"~ in Lebanon, either through the creation of a United Nations force or alongside France, Britain, and possibly the Soviet
Union.
July 26-It was reported that oil and shipping companies operating in the
Persian Gulf had received a detailed alert from the State Department
warning against the possible hij acking of an oil tanker in the region.
July 27-A U.S. Navy landing craft evacuated 308 persons, including 156
Americans, from Beirut in an apparent final "organized departure" from Lebanon. (Special U.S. Ambassador Seelye and other embassy personnel boarded the craft, leaving a skeleton staff of 15, including 12 U.S. Marines, in the capital; security for the operation was provided by
Palestinian and Muslim Leftist Alliance units.)
July 27-At the conclusion of 5 days of talks between Syrian and Palestinian leaders, a draft cease-fire agreement was dispatched for study by the various factions in the Lebanese civil war. (The agreement reportedly would require Palestinian forces to abide by the 1969 Cairo pact under which they promised not to interfere in the internal affairs of Lebanon in return for being permitted to maintain camps in that
country; and it would preclude partition of Lebanon.)
August I-Damascus radio reported the resignation of Syrian Prime Minister Mahmoud al-Ayoubi and the succession to that post of Maj:. Gen.
Abdul Ralunan Khlefawi, who had served as Premier from 1971 to 1972. August I-Arab demonstrators clashed with Israeli troops in Nablus in the
occupied West Bank. (The demonstration and a previous commercial strike had been called to protest a newly imposed value-added tax by
Israel that would raise prices of goods by 5 percent.
August 2-A report on U.S. military -sales to Iran, published by the Senate
Subcommittee on Foreign Assistance of the Committee on Foreign Relations, indicated that the 1972 decision by President Nixon "to sell Iran the F-14 and/or the F-15 aircraft and, in general to let Iran buy anything it wanted effectively exempted Iran from arms sales review processes in the State and Defense Departments." (Responding to the report, the State Department denied that weapons systems were being sold to
Iran without any review by U.S. officials.)
August 2-Israeli troops blocked an attempt by right-wing Jews, led by
American Rabbi Meir Kahane) founder of the Jewish Defense League), to set up an unauthorized settlement near Jericho in the occupied West
Bank.
August 3-Egyptian President al-Sadat said in a speech in Alexandria that
Israel and Syria had conducted secret discussions in Geneva and had reached agreement giving the Damascus government a free hand in Lebanon. (Al Sadat stated that it had become clear "the Syrians are liquidating the Palestinians in a more cruel manner than the Israelis did,"'I and that Egypt was prepared to "liberate" Israeli-held territories
if peaceful negotiations failed.)





60

August 4-The commander of the Arab League peacekeeping force in
Lebanon, Maj. Gen. Hassan Ghunaim, announced that all warring factions in the Lebanese civil war had signed a new cease-fire agreement
to come into effect on August 5.
August 4-Israeli radio reported that talks between Israeli officials and
breakaway units of the Lebanese army led by Lt. Abmad Khatib had been held at the Rosh Haniqra checkpoint on the Israeli -Lebanese border in an effort to curb guerrilla attacks against Israel from
southern Lebanon.
August 5-The United States completed the signing of agreements to sell
nuclear reactors to Israel and Egypt. (The projected delivery of the
reactors was estimated for the mid-1980's.)
August 5-The Egyptian Middle East News Agency (MENA) reported
that large numbers of tanks, armored vehicles, and artillery pieces were being amassed by the Soviet Union in Libya; that Mig-25 jet aircraft were being flown on reconnaissance missions by Soviet pilots from airfields near Tripoli; and that the Soviet Mediterranean fleet was using
Libyan port facilities.
August 7-In Iran, Secretary Kissinger defended the U.S. arms sales program to that country,, stating that the transactions were "not a favor to Iran," but "in the interest of the United States" in supplying arms to an
ally against "potential threats" from its neighbors.
August 8-Secretary Kissinger and Iranian Economic Affairs Minister
Hushang Ansari signed an economic agreement that is expected to lead to $40 billion in trade between the United States and Iran during the 1975-80 period. (The figure did not include U.S. arms sales to Iran
which were expected to be between $2 and $3 billion per year.)
August 11]-Four persons were killed, including staff aide to Senator Javits,
Harold Rosenthal and more than 30 injured when Palestinian terrorists shot up and bombed an Istanbul international airport building after
having failed to hij ack an Israeli El Al airliner.
August 11-The Defense Department notified Congress that it intends to
sell to Iran almost $315 million of artillery ammunition and support
items for previously purchased F-5 jet aircraft.
August 12-After 54 days of seige, Lebanese Christian forces finally captured the fortified Palestinian Tal Zaatar refugee camp near Beirut. August 13-The Syrian Ministry of the Interior annouced in Damascus
that "in view of current security circumstances in Lebanon, and to safeguard the convenience of Lebanese and Syrian citizens," the Government had issued instructions regulating travel and movement between the two countries-thus restricting for the first time since the
Lebanese civil war began travel across the Syrian border.
August 13-The Egyptian newspaper Al AIhram reported that Egypt had
moved troops, armor, and weapons westward to protect its border with
Libya and to prevent infiltration by saboteurs.
August 14-At least seven persons were killed and several injured in Alexandria when a bomb exploded in a train being boarded by farmers and
workers bound for Aswan.






61

August 14-Arab Foreign Ministers attending the fifth nonalined summit
conference in Sri Lanka rejected a PLO proposal calling for the immediate expulsion of Israel from the United Nations.
August iS-The Libyan Government requested an urgent session of the
Arab League Council to discuss tensions along the Libyan-Egyptian
border.
August 15-Saudi Arabian Minister of Planning Hisham Nazir said in
Washington that Saudi foreign assistance, currently $4 billion. per year,
had reached its peak and would be decreased in the future.
August 15-Israeli Minister of Justice Haim Zadok said in Washington
that capital punishment for terrorists "would not serve Israel's best interests," and stressed that decisions regarding the punishment of terrorists "must be guided by cool judgment rather than by emotional
reaction."
August 1 7-The State Department acknowledged that the Soviet Union had
complained to the administration over the interception by Israeli naval patrols of supplies bound for Palestinian anid leftist forces in Lebanon.
(In Tel Aviv, Israeli Defense Minister Peres said that six ships had been halted off the Lebanese coast but stated "there. is no blockade"' of
Lebanon by Israel.)
August -18-Israeli radio announced that Israel had protested to the U.N.
peacekeeping force, accusing Egypt of having moved 16 to 18 battalions to the east bank of the Suez Canal instead of the 8 permitted by the Sinai interim agreement of September 1975. (Israeli defense officials said that the Egyptians also had placed missile batteries'and helicopters in restricted areas, but these had been withdrawn in July following
Israeli complaints.)
August _18-The Baltimore Sun reported that Israeli arms exports were
expected to reach more than $300 million in 1976, with sales to "generally non-alined" countries, including Mexico, Ecuador, Bolivia,
Nicaragua, Singapore, Austria, and South Africa.
Augrut .19-Uganda radio announce ed that President Amin had cabled
Israeli Prime Minister Rabin requesting compensation for the loss of lives and property during the July 4 rescue of hostages at Entebbe Airport, as well as for the "hospitality for the hostages" given by Uganda. August 21-Finance Ministers of Egypt and four Arab oil-producing countries-Saudi Arabia, Kuwait, Qatar, and the United Arab Emiratessigned an agreement establishing a $2 billion fund to help finance
development in Egypt.
August 22-The State Department announced that Robert Houghton and
David Mack, both Foreign Service officers, had been sent to Lebanon to confer with Lebanese officials in Christian -controlled areas. (The move was believed to indicate growing concern in Washington for a trend toward partition of Lebanon between Christians and Muslims.) August 22-Israeli Defense Minister Peres said in an interview that tensions
between Israel and Syria had relaxed to such a degree that Israel may soon be able to "open the gates a little bit" to allow members of families separated by the cease-fire line to visit each other. (Peres said that U.N.
officials were exploring the matter with the Syrian authorities, and that
Israel was awaiting an announcement.)

81-813 0 77 -5





62

August 23-Egyptian paratroopers at Luxor Airport dressed as airport employees rescued 101 passengers and crew held hostage aboard Egyptian airliner that had been hijacked shortly after takeoff from Cairo. (The Egyptian Government subsequently announced that the hijacking
operation had been planned by Libya.)
August 23-The Israeli newspaper Jerusalem Post criticized the Soviet
policy of allowing dissidents to leave Russia with visas only to Israel, thus enabling Moscow to label all Soviet opposition movements as Jewish or Zion ist-tain ted. (The newspaper urged that "non-Jews be allowed
to emigrate, but without forcing them to use the Israeli channel.")
August 24-The Christian Science Monitor reported that the PLO, following heavy military and propaganda losses in recent weeks, has been taking several measures to restore its strength, including: (1) conscription of Palestinians between the ages of 18 to 30 in Lebanon; (2) a ban on all Palestinians from leaving the country; (3) a general call for Palestinians abroad to return to Lebanon to fight; (4) reinforcement of precarious Palestinian mountain positions that are claimed by Christian forces; and (5) a campaign to pressure supporters, such as Algeria and the Soviet Union, into declaring their backing for the PLO
and the Muslim Leftist Alliance in the Lebanese conflict.
August 25-Egyptian President al-Sadat accepted the unanimous nomination by the Egyptian People's Assembly for a second 6-year term of office. (Al-Sadat will be the sole candidate in a yes-or-no plebiscite on
September 16.)
August 25-Former Israeli Defense Minister Dayan said i Tel Aviv that
the United States should reduce military aid to Israel, deescalate the Middle East arms race, and work for a new Arab-Israeli agreement to end the formal state of war; but he added that Israel "must have a nuclear option" to offset the numerical superiority of the Arab States and their financial capability to buy weapons. (Israeli Prime Minister Rabin subsequently described Dayan's statement as being "not correct,
unfortunate and better left unsaid."')
August 26-Following a closed session of the Senate Foreign Relations
Committee, Secretary Kissinger told reporters that he and those Senators opposed to or critical of administration proposals to sell sophisticated weaponry to Saudi Arabia would meet the following day "and see if we can reach a solution" before the administration gave formal
announcement of the proposed sale.
August 26-Lebanese President Franjieh called for the proposed Arab
League summit conference on the Lebanese civil war to be held in
Lebanon.
August 26-Israeli Defense Minister Peres stated that his government was
ready for a new interim agreement with Syria, and offered to cooperate
with Egypt in development projects.
August 26-The Egyptian newspaper Al Ahram reported that France was
producing a modified version, of its Crotale surface-to-air missile for
eventual production in Egypt.
August 27-Secretary Kissinger informed the Senate Subcommittee on
Foreign Assistance of the Committee on Foreign Affairs that the United States had agreed to sell Iran 160 General Dynamics Corp. F-16 jet






63

fighters at a cost of about $3.4 billion. (Kissinger said that delivery would not begin until 1979, with an initial 10 trainers, and the remaining 150 aircraft would be delivered over the subsequent 4 years.)
August 27-An Iranian Government spokesman announced that Iran and
Occidental Petroleum Corp. had canceled a $125 million plan to develop
Caspian Sea oil, and to process and market other Iranian oil.
August 28-A terrorist group ambushed and killed three American
employees of a U.S. defense firm in a Tehran suburb.
August 28-Arab League mediator Hassan Sabri al-Kholi met with Lebanese Christian, Muslim Leftist Alliance, and Palestinian leaders in an effort to promote the League's new peace plan for ending the civil war. August 28-The Algerian news agency APS reported the opening of the
third congress of the Polisario Front under. its acting secretary general Malifud Larussi, in Western Sahara with some 40 foreign delegations
attending.
August 29-The Amir of Kuwait, Shaikh Sabah Salim al-Sabah, suspended
his country's constitution and dissolved the national assembly, and strengthened the Government's authority to suspend newspapers, declaring that Kuwait was at a "dead end," and that "deteriorating conditions" prompted his actions. (The Washington Post reported the occurrence of unrest among the Palestinian population, including criticism of the Kuwaiti Government and several bombing incidents.)
August 29-P ravda published an article calling on Syria to withdraw its
forces from Lebanon and to cooperate with its "natural allies in the anti-imperialist struggle-the Palestinian resistance movement and the national patriotic forces of Lebanon"~ in order to "facilitate the
reconstruction and strengthening of the front of Arab forces."
August 29-Egypt moved reinforcements along its border with Libya and
canceled Ramadan leaves for some of its military units.
August 29-Assessing the 1-year-old Sinai interim agreement between
Israel and Egypt, Israeli Prime Minister Rabin stated that "the agreement stands up when judged" against Israel's standards for peace and security; and Foreign Minister Allon noted that while Egypt had honored its agreement to limit the numbers of troops and missiles in the Sinai, it had generally ignored its pledge to lessen political attacks on Israel, and that there had been no further progress toward peace since the pact was signed in September 1975. (Allo subsequently said in a broadcast that the Lebanese civil war was blocking "every hope and every possibility for any Arab readiness" to negotiate new peace moves.) August 29-Egypt announced it was seeking the extradition from Jordan
and Kuwait of two Palestinians involved in planning the hijacking of an
Egyptian airliner on August 23.
August 30-An editorial appearing in the Syrian newspaper Al Tluzwra
written by a former major in the Lebanese army called for the formation of a federal relationship between Syria, Lebanon, Jordan, and the
Palestinians.
August 30-Israeli Prime Minister Rabin declared that the Soviet Union
must scale down its support of "extremist" Arab demands and adopt a more moderate tone before Israel would agree to Soviet participation
in a Geneva conference on the Middle East.






64

August 30-As a Soviet delegation left Moscow to attend Libya's Revolution Day celebration, Pravda accused Egypt of making threats against Libyan leader Qaddafi, and declared that the "development of events around Libya attracts close attention throughout the world since there emerges the danger of a new military conflict breaking out in the area
of the Middle East."
August 31-ebanese President-elect Sarkis held discussions for the first
time with Syrian President al-Assad in Damascus.
August 31-Arab League Secretary General Mahunud Riad said in Cairo
that all factions in the Lebanese civil war had agreed to the latest League peace proposals, but that he doubted if the plan will be effective because
of the lack of trust on all sides.
September 1-U.S. foreign service officers,. Houghton and Mack, arrived
in Jounieh, Lebanon, for further talks with Christian leaders, including President Franjieh, President-elect Sarkis, militia chief Pierre Gemayel,
and Interior Minister Chamoun.
September I-The Defense Department informed Congress it planned to
sell, almost $6 billion in weapons to ten countries including 160 F-16 advanced jet fighter aircraft for Iran, and air-to-air and air-to-ground
missiles for Saudi Arabia.
September 2-The Arms Control and Disarmament Agency, in an official
statement, said that the proposed sale of 110 F-5E aircraft, 850 Sidewinder air-to-air missiles, and 650 Maverick air-to-ground missiles
would not "be likely to lead to an arms race" in the Middle East.
September 6-The Arab League voted unanimously to accept the PLO as its
twenty-first member.
September 7-The State Department reported that Israeli aircraft fired
on U.S. marker buoys near an oil rig in the Gulf of Suez the previous day in what was described as the latest development in a dispute between Israel and the United States over oil drilling rights in the gulf.
September 7-The House Subcommittee on Oversight and Investigations
of the Committee on Commerce charged in its report that the Department of Commerce was guilty of laxness in monitoring the Arab boycott of Israel and recommended stricter enforcement of the Export Administration Act, which requires American firms to report boycott-related requests from Arab governments. (Commerce Secretary Richardson responded that the situation described in the report no longer existed.) September 8-Pravda criticized the entry of Syrian troops into the
Lebanese civil war, but also, and for the first time, criticized leftists elements which rejected peace proposals, stating that "all sides, in the interests of peace, must now exert efforts to remove differences through a dilog," and that this "must be done by the Lebanese themselves
without any outside pressure."
September 9-President Ford, speaking before a B'nai B'rith convention
in Washington, declared that there would be "no imposed solutions"
in the Middle East, stating he planned to seek further progress in peace negotiations but only with the "closest constant consultation with Israel." (Ford also pledged he would continue to press the Soviet Government to permit more Jewish emigration.)






65

September 10-It Was reported that Egyptian Foreign Minister Fahmi
had invited prominent Lebanese political and religious leaders to Cairo
for talks on ways of ending the 17-month civil war in Lebanon.
September 13-The Beirut newspaper As Sa/ir, quoting "high-level Arab
diplomatic sources," reported that Syria had informed the PLO that the Lebanese civil war must end by September 23-the date on which Lebanese President-elect Sarkis was due to take office-r "Syria will
seek a military solution."
September 14-Egyptian President al-Sadat conferred with Lebanese
Prime Minister Karami on prospects of ending the civil war in Lebanon.
(In an interview with the Cairo newspaper Al AkIhbar, Karami said only
speedy collective Arab action could settle the Lebanese conflict.)
September 14-The Arab League "Secretariat invited Arab heads of state
to meet in Cairo on October 18-20 to seek ways of ending the fighting
in Lebanon and of settling inter-Arab differences.
September 15-The Defense Department announced that the U.S. Air
Force was investigating the financial records of, the U.S. military mission in Iran, and the activities of Maj. Gen. Kennieth P. Miles, because
of "possible procurement irregularities."
September 15-Lebanese President Franjieh took key posts in the country's six-man cabinet away from Muslim Prime Minister Karami and shifted them to Camille Chamoun, a Christian and a former president.
(Karami was in Cairo at the time the changes were announced with
other Lebanese leaders meeting with Egyptian President al-Sadat.)
September 16-U.N. Secretary General Waldheim said that negotiations
between Israel and the Arab states "must be resumed as soon as possible, and that he intended to resume consultations with leaders of both sides when they come to the United Nations for the next General
Assembly session.
September 16--ZUnder Secretary of State Philip Habib, appearing before
the Senate Subcommittee on Foreign Assistance of the Committee on Foreign Relations, stated that if the proposed sale to Iran of 160 F-16 jet fighters were blocked by Congress, "serious political problems" would be raised in American- Iranian relations. (Habib also said that the Administration agreed with the Shah of Iran's recent contention that if his country entered a war, Americans in Iran "would be completely free not
to become involved.")
September 1 7-Lebanese President-elect Sarkis, PLO Chairman Arafat,
and Syian air force commander Major General Jamil met to discuss a three-point truce agreement that called for:- (1) a cease-fire in all parts of Lebanon to be policed by the Arab League peacekeeping force; (2) the gradual withdrawal of Syrian forces from Lebanon; and (3) implementation of the 1969 Cairo agreement limiting the activities of
Palestinians resident in Lebanon.
September 19-Lebanese President Franjieh said that the PLO must be
dissolved if there was to be an end to the Lebanese civil war and proposed the creation of a pan-Arab council to take over political leadership
of the Palestinian guerrilla movement.






66

September 20-State Department spokesman Frederick Brown said that
allegations made by columnist Jack Anderson that the PLO permanent observer at the United Nations had been conducting clandestine fundraising activities in the United States were under investigation.
September 21-In an article entitled, "Israel: Defensible Borders," in the
September issue of Foreign Affairs, Israeli Foreign Minister Allon proposed: (1) Israeli evacuation of most of the West Bank and its demilitarization, except for forces stationed along the Jordan River; (2) use of the Gaza strip, demilitarized, as a port for the West Bank, with access along a prescribed route; (3) continued Israeli strategic control of the Golan Heights; (4) substantial Israeli withdrawal from the Sinai except for Sharmn al-Shaikh; and (5) continued Israeli control of Jerusalem. September 23-The Israeli Knesset criticized the proposed sale of $7.5
billion in arms to Saudi Arabia, sting that the deal would "endanger
Israeli's security," and urging the U.S. Congress to block it.
September 23-Elas Sarkis was sworn in as President of Lebanon in a
ceremony at the Syrian-occupied town, of Chtaura.
September 24-The Senate Committee on Foreign Relations, by a 8 to 6
vote, disapproved the sale of 650 Maverick air-to-ground missiles to
Saudi Arabia.
September 26-Four pro-Palestinian terrorists seized about 90 hostages
in a Damascus hotel until Syrian troops stormed the building, killing the group's leader and capturing the other three. (Four hostages also were reported to have been kill. The captured terrorists were publicly
hanged the following day.)
September 27-The State Department and the Saudi Arabian Information
Office denied the validity of a report issued on September 26 by the Egyptian Middle East News Agency that Saudi Arabian Foreign Minister Prince Fahd had delivered a warning of an oil embargo to Assistant Treasury Secretary Gerald Parsky if Congress enacted legislation that
would weaken the Arab boycott of Israel.
September 28-Israeli Defense Minister Peres said that Israel was pro,ducing a small missile that could be operated by one person.
September 28-By a 56-24 vote, the Senate gave final congressional
approval to a $5.1 billion foreign aid appropriations bill for fiscal 1977 that included $1 billion in foreign military credit sales and $735 million in security supporting assistance for Israel: $700 million for Egypt; $70 million for Jordan; and $80 million for Syria. (In
an, Israel was authorized $12 million for assistance to refugees
going to Israel from East Europe and the Soviet Union.)
September 28-Syrian forces, supported by Lebanese Christian militiamen, launched a major attack against Palestinian positions in the
Lebanese central mountains.
September 28--Secretary Kissinger, after testifying before the Senate Comm ittee on Foreign Relations which had met to reconsider its September 24 disapproval of Maverick missile sales to Saudi Arabia, informed reporters that refusal to sell the missiles would jeopardize U.S.-Saudi
rations,, stating that Saudi Arabia had been "a good friend of the
United States," had played a stabilizing role in the Middle East, and
had been helpful in the search for peace in that region.






67

September 28-Arabs in Israel, the West Bank and Gaza went on strike to
protest a controversial report that recommended reducing the Arab
population in Israel.
September 28-In a report released by Senate Armed Services Committee
member Senator Culver, Secretary Kissinger stated he believed it was "Ppolitically infeasible" to persuade the international community to agree to universal restrictions on arms exports, and that there was "no universal, common political interest among the large producers.... One is led to the conclusion that regional or subregional approaches to the control of arms transfers are likely to be more promising that the development of broad controls on a world-wide basis."~
September 29-Senator Tower announced that he would object to the
formal appointment of Senate conferees to work out compromise legislation on the Export Administration Act which would strengthen current
measures to counter the Arab boycott of firms dealing with Israel.
September 29-Israel devalued its pound by a further 1.8 percent-the
fifteenth in a series of devaluations since November 1974.
September 29-Egyptian Foreign Minister Fabmi called for the holding of
a limited Arab summit conference, consisting of Egypt, Syria, Lebanon, the PLO, Saudi Arabia, and Kuwait, within 48 hours to deal with the
new fighting in Lebanon.
September 29-Syrian forces continued their Lebanese offensive and a
Palestinian military spokesman conceded that the towns of Aintoura and Mtein, in the central mountains, had fallen to Syrian troops and tanks. September 30-In a major address before the U.N. General Assembly,
Secretary Kissinger called for an early resumption of the Geneva Conference on the Middle East, stating that the "step-by-step negotiations of the past 3 years have now brought us to a point where comprehensive
solutions seem possible."
September 30-In an interview published in the Israeli newspaper Yediot&
AIhronot&, President Ford said he intended to visit the Middle East ("right after the election" in order to do ""some serious talking about a
broader settlement-and that means peace and recognition of Israel."
October I-Vladimir Saikan, the Soviet Charge d'Affaires in Beirut, announced that the Soviet Union would launch a diplomatic effort to end the fighting in Lebanon. The announcement appeared to be a criticism of the Syrian military intervention in Lebanon, since the Soviet Plan reportedly called for the withdrawal of the Syrian troops and their
replacement by French and Egyptian troops.
October 3-Lebanese leader Kamal Jumblatt met with French officials in
Paris in an attempt to arrange a cease-fire.
October 3-The Israeli army imposed a curfew on the occupied West Bank
town of Hebron following several incidents in which Jewish and Muslim
religious objects were desecrated.
October 5-French President Valery Giscard d'Estaing arrived in Tehran
for a 4-day visit, during which France and Iran signed agreements for the construction of two nuclear powerplants, a housing project, highways, and other development programs.







October 7-In an address to the U.N. General Assembly, Israeli Foreign
Minister Yigal Allon stated that Israel was ready to participate in a Geneva peace conference. The day before, Egyptian President Anwar al-Sadat stated that 1977 would be the year for "an overall settlement." October 8-Israeli Prime Minister Yitzhak Rabin suggested that Defense
Minister Shimon Peres should resign, as the power struggle between
the two Israeli leaders continued.
October 9-The United States informed Israel that "fuel air explosive" devices and an infrared detection system sought by Israel would be sup.
plied. The State Department later said that the transfer of the controversial weapons would be subject to congressional approval when the
95th Congress convenes in January 1977.
October 11-The Arab League announced a new cease-fire in the Lebanese
civil war, but within 24 hours, fighting broke out near the port city of
Sidon.
October 11-Three men attacked the Syrian Embassy in Rome, wounded
one consular official and held two others hostage for an hour before surrending to the Italian police. In Islamabad, Pakistan, three men at.
tacked the Syrian Embassy with hand grenades but were rebuffed by
police.
October 17-PLO Chairman Arafat, Syrian President Assad, Egyptian
President al-Sadat, Saudi King Khalid, Kuwaiti Crown Prince Sabah al-Salam, and Lebanese President Sarkis signed an agreement in Riyadh, Saudi Arabia, calling for an end to the Lebanese war and the emplacement of a 30,000 man Arab League force to monitor the peace.
October 18-When asked by an interviewer if Israel was a blessing or a
burden in military terms, General George Brown, Chairman of the Joint Chiefs of Staffs, replied that Israel was a burden to the United States. The interview was made in April 1976, but was not released
until October 18.
October 18-Asher Yadlin, the Government's nominee to be the Governor
of the Bank of Israel, was arrested on a charge of accepting bribes, evading taxes, and fraud in connection with mishandling the Histadrut's
health funds.
October 20-Reports from Israel indicated that four prominent Israeli
"leftists" had been meeting with representatives of the PLO to discuss possible peace terms. The four were Meir Pail, member of the Knesset and reserve army colonel, Matti Peled, Tel Aviv University lecturer and reserve army general, Uri Avneri, publisher and former Knesset member, and Yacov Arnon, former finance ministry official.
October 20-Palestinians charged that Israeli forces were assisting rightistChristian factions in the south of Lebanon and that Israeli equipment
and uniforms were being supplied to the anti-Palestinian forces.
October 22-The United Nations Security Council approved the extension
of the UNEF peacekeeping force in the Sinai.
October 27-Except for sporadic sniper fire, the week-old cease-fire in
Lebanon appeared to be holding.
October 28-Egyptians went to the polls to elect 346 representatives from
among the over 1,600 candidates for seats in the national Parliament.






69

October 28-srael devalued its currency again to a level of $1 to 8.61
Israeli pounds.
November 1-The leaders of the two major Lebanese Christian militias,
Pierre Gemayal and Camille Chamoun, announced that they had agreed to allow an Arab peace-keeping force to patrol Christian areas following President Sarkis' reported decision to use 'force if necessary to implement the latest cease-fire arrangement which called for the Arab
force to monitor the truce.
November 1--:Egyptian Ambassador to the. United Nations, Ismat Abel
Meguid, issued a warning before the U.N. Security Council of the possibility of "an overall liberation war" unless Israel ended its alleged mistreatment of Arabs in occupied territories. (The Council had met at Egypt's request to consider the situation in Israeli-held territories, and had voted 11-1, with the United States objecting, to give the PLO a
nonvoting role in the discussion.).
November 2-In Lebanon, U.S. Charge d'Affaires George Lane met with
Druze leader Jurnblatt in an effort to open contact with factions involved in the Lebanese civil war. (Lane subsequently met with Christian leader
Chamoun on November 5.)
November 2-The Egyptian news agency MENA reported that the estimated
30,000 Egyptian troops stationed along the Libyan border have been withdrawn to new locations in the Suez Canal and Sinai Peninsula areas. November 2-The Syrian Government announced that Iraq had closed the
frontier between the two countries and had stepped up military patrols
along the borders.
November 4-Egyptian Foreign Minister Fahmi and Soviet Foreign Minister Gromyko issued a joint communique following 2 days of talks in Sofia, Bulgaria, calling for an urgent resumption of the Geneva Conference on the Middle East. (The talks were the first such Egyptian-Soviet
discussions in a year and a half.)
November 5-Syrian Foreign Minister Khaddam announced that his country's 22,000-man army in Lebanon would be placed at the disposal of Lebanese President Sarkis to be used as the main contingent of the Arab
League peace-keeping force.
November 5-Israeli Defense Minister Peres said that President-elect Carter
had taken a positive stand on some aspects of the Arab-Israel conflict, including the problem of the Arab boycott of Israel, but he stated that "we have to tell the United States that as in the past, so in the future we cannot give up defensible borders and that Jerusalem and its environs, now united under Israeli administration, will never be divided
again."
November 7-As fighting escalated in Beirut and elsewhere in Lebanon,
despite the 19-day old cease-fire, President Sarkis appealed to his countrymen to lay down their arms and "restore life to Lebanon," stating that the pan-Arab peace-keeping force would remain in the country untill we succeed in rebuilding our army and our internal security
force."
November 8-About 70,000 Israeli workers--one-fourth of the country's
work force-went on strike, joined in slowdowns or threatened work
sanctions in a wave of labor unrest.





70

November 8-Syrian troops, serving as the vanguard of the Arab League
peace-keeping force in Lebanon, moved without resistance into rightist and leftist areas in the central mountains and headed toward Beirut.
(Lebanese Druze leader Jumblatt announced his support for the Arab
force and called on his followers to assist the troops.)
November 9-Lebanese Christian leaders Gemayel and Chamoun met with
President Sarkis and subsequently issued a statement calling on their followers to support the latest cease-fire agreement. (Christian troops and militiamen, however, rejected their leaders' pleas, promising that they would be "forced to open fire" if Arab 'peace-keeping forces attempted
to enter Christian-held territories.)
November 9-E gyptian President al-Sadat said in a meeting in Cairo with
a 12-member delegation from the House Committee on the Judiciary that he would sign a peace agreement with Israel when the Israelis reliquish Arab territories occupied since the 1967 Arab-Israeli war, but that he would negotiate with Israel only within the context of the Geneva
Conference on the Middle East.
November 9-PLO Chairman Arafat announced that he had arranged a
meeting between Egyptian President al-Sadat and Libyan leader Qaddafi
in his efforts to reconcile differences between the two leaders.
November 10L-Israeli Government sources said in Tel Aviv that Israel had
requested from the United States $2.3 billion in military and economic
assistance for fiscal 1978-a $500 increase over fiscal 1977.
November 10-Syrian forces, acting as part of the Arab League peacekeeping force, moved into Beirut without meeting resistance.
November 10-State Department spokesman Robert Funseth said that
after a 2-week investigation of the diplomatic activities of the Iranian Government in the United States, "we found no evidence of illegal or improper activities"; and that Iranian Embassy officials had been informed "we do not accept any police function by foreign officials in this country and in order to insure that there will be no misunderstanding,
we explained the American law to them."
November 10-Senator Ribi~coff proposed in Jerusalem that President-elect
Carter name Secretary Kissinger a special envoy to seek peace i the
Middle East.
November 10-The Christian Science Monitor reported that the official
Syrian newspaper Al Thawra and government television broadcasts had expressed the fear of Syrians and other Arabs that President-elect Carter's administration may move with less deliberate speed toward an
Arab-Israeli peace settlement after it takes office in January.
November I1I-The United States j oied other members of the U.N. Security
Council in a consensus statement deploring the establishment of Israeli settlements in occupied Arab territories, terming them an obstacle to peace, and calling upon Israel to comply strictly with the Geneva convention governing the administration of occupied lands.
November 11-Four unidentified gunmen fired on and wounded Lebanese
Christian leader Raymond Edde in the Muslim-held western section of
Beirut.






71

November 11-Egyptian President al-Sadat announced that the three wings
of the Arab Socialist Union (ASU) would be transformed into independent political parties. (The ASU had been the only legal political
party in Egypt since 1953.)
November 11-Thirteen U.S. Senators left Israel for Amman, Jordan', with,out having obtained permission to visit the Israeli nuclear reactor in the Negev. (The Israeli newspaper Yediotk Ahronoth reported that Prime Minister Rabin had given Senator Ribicoff a verbal message for Egyptian President al-Sadat to be conveyed when the delegation visited
Cairo.)
November 13-Addressing a 13-member Senate delegation in Cairo, Egyptian President al-Sadat urged that President-elect Carter help promote movement toward an overall Arab-Israeli peace settlement in 1977, stating that the Geneva Conference on the Middle East remained the proper vehicle for negotiations, and that Carter, before making his decisions, "should seek our viewpoint just as he seeks Israel's," adding: "I am not
asking him to take our side."
November 14-Syrian troops and tanks positioned themselves for a push
into the heart of Beirut as Syrian Prime Minister Abd al-Rahman Khulaifawi asserted that the Arab League peacekeeping force would
use 'tall means" to impose the new cease-fire agreement.
November 14-Israeli Prime Minister Rabin said that his government was
more than ready for peace talks with Egypt, but that Israel desired a peace settlement that included "defendable boundaries" and a solution of "the Palestinian issue in a way that will not be a seed that will arouse
a lot of trouble and will serve as a time bomb for the future."
November 14-Following a meeting with Israeli Prime Minister Rabin,
Representative Flowers, whose congressional delegation had met with Egyptian Prime Minister al-Sadat on November 9, stated that Israel and Egypt were prepared to reopen the Geneva Conference on the Middle East without prior conditions, but there existed some outstanding problems of protocol, timing and language which must be resolved before
resumption of the conference.
November 15-Thiree columns of Syrian troops and tanks, augmented by
Saudi Arabians and Sudanese and acting as part of the Arab League peace-keeping force, moved into Beirut, seizing control of the entire city
and halting fighting between Lebanese factions.
November 15-A report by the Special U.N. General Assembly Committee
on Palestine, chaired by Senegalese Ambassador Medoune Fall, urged that Israel withdraw from occupied Arab territories by June 1977 and
called for a phased return of the Palestinians.
November 16-In Beirut, Syrian peace-keeping forces took over radio and
television stations, occupied Lebanese Government ministries and utility offices, set up 52 checkpoints around the city, and formed an
antikidnaping squad in an effort to curb terrorism.
November 17-During an interview at the United Nations, PLO foreign
affairs spokesman Faruq Khaddoumi said that the Palestinians were
willing to accept a homeland in the West Bank and Gaza.





72

November 17-Addressing a group of students in Haifa, Israeli General
Mordechai Gur said that, from the Israeli viewpoint, Syria's peace-keeping effort in Lebanon had reached an "unpleasant" state, in that Syrian
troops now controlled all the key Lebanese routes to Israel.
November 17-Four terrorists belonging to an Iraqi-based Palestinian
splinter group known as "Black June" held the Intercontinental Hotel in Amman, Jordan, for 4 hours. (Seven persons-three terrorists, two Jordanian commandos, and two hotel employees-were subsequently
killed before the hotel was freed by Jordanian troops.)
November 18-Iran and the British Aircraft Corp. signed a $640 million
agreement to exchange the Rapier ground-to-air missile system for crude oil. (Iranian crude would be supplied up to the amount of the missile system's purchasing price, based on prevailing oil prices at the time of delivery, and the United Kingdom would earn foreign exchange on the
oil by selling it abroad through the Shell Oil Co.)
November 22-Israeli Defense Minister Peres toured the border area with
Lebanon, stating that Israel was "arranging its forces according to developments,' in Lebanon, and that, Israel had not drawn a line below which it would not want Syrian forces to advance, "we have made known some points that are very sensitive and we think the Syrians understand this."~ November 23-Israeli Prime Minister Rabin and Foreign Minister Allon,
in separate appearances, warned against the presence of Syrian forces near its border w ith Lebanon and against a resumption of Palestinian guerrilla activity in southern Lebanon. (A State Department spokesman, following a conference between Secretary Kissinger and Israeli Ambassador to the United States Dinitz, said: "We are watching the situation in southern Lebanon very closely and are urging all concerned
to exercise restraint."')
November 23-The United States and Israel signed three agreements,, consisting of a $245 million loan and two grants totaling $490 million, that will enable Israel to purchase industrial and. agricultural commodities
and related services from the United States.
November 25-As a conference of foreign ministers from Persian Gulf
countries opened in Muscat, aimed at seeking ways to maintain the security of the Gulf area, the PDRY Government announced in Aden it had shot down an Iranian fighter aircraft over the eastern part of its
territory..
November 26-It was reported that Syrian President al-Assad had requested
PLO Chairman Arafat to cease using southern Lebanon for operations against Israel; let Syrian forces into Palestinian camps;- suppress a radical wing of the Palestinian guerrilla movement; and terminate relations with the Muslim Leftist Alliance with whom the PLO fought during
the Lebanese civil war.
November 28-A Kuwaiti Government spokesman announced that the Soviet Union had agreed to supply Kuwait with unspecified amounts and types of arms, and quoted defense Minister Shakh Sa'd al-Abdullah abSabah as having informed the Kuwaiti Cabinet that the Kremlin had
agreed to make the deal "under the terms we have requested."'








November 28-The London Surnday Times reported that Egyptian President
al-Sadat was ready to improve his country's relations with the Soviet Union, but only if Moscow respected Egyptian independence. (Al-Sadat was reported to have sent a personal message to Soviet Communist Party
Chairman Brezhnev offering to normalize relations.)
November 28-Israel repeated its warnings against the movement of Syrian
troops into southern Lebanon and urged that a Lebanese force be established in. the area.
November 29-Israeli Foreign Minister Allon stressed in a speech the value
of the Geneva Conference as an instrument for Middle East peace-making in that its importance lay not only in the "unprecedented" forum for Arab-Israeli negotiations but also in the opportunity created for bilateral sessions between, Israel and the participating Arab states (Egypt, Syria,
and Jordan).
November 29-Israeli Government sources in Tel Aviv were reported to
have said that Israel, Syria and Lebanon had reached a "tentative and interim" understanding on the presence of Arab peace-keeping forces in southern Lebanon. (The following day, the Beirut Christian radio reported that a 1,000-man non-Syrian force would move into southern Lebanon to extend the Arab League's peace-keeping effort throughout
the country.)
November 30-By a 12-0 vote, with China, Libya, and Benin not participating, the U.N. Security Council renewed the mandate of the U.N. peacekeeping force on the Golan Heights through May 31, 1977.
December ]-An unkown number of gunmen ambushed and slightly
wounded Syrian Foreign Minister Khaddam.
December 2-The Fiat Automobile Co. president announced in Turin
that Libya had bought a 10 percent interest in the company for $415
million.
December 3-In an interview published in the Saudi Arabian newspaper
Arab News, Egyptian War Minister Gamassi stated that Soviet military advisers "will not return to Egypt under any circumstances because their
dismissal in 1972 was an affirmation of Egyptian will."
December 5-In an interview in Newsweek, Egyptian President al-Sadat
declared his readiness to sign an agreement with Israel to terminate the state of belligerency between the two countries, stating that the pact "should be linked with the complete withdrawal by Israel from the Arab land occupied after the 1967 war," and that he would not oppose sending a single Arab delegation to a reconvened Geneva Conference if all other Arab states agreed. (Al-Sadat also advocated the creation of a Palestinian
state on the West Bank with some ties to Jordan.)
December 5-The Israeli state radio announced that Prime Minister Rabin
had informed his cabinet the United States had agreed in principle to sell Israel F-16 jet fighter aircraft. (Israel reportedly has been seeking
250 F-16's.)
December 5-The Manchester Guardian Weekly reported that following
Saudi Arabian mediation efforts, Morocco and Algeria appeared ready
to end their dispute over Western Sahara.








December 6-Israeli Ambassador to the United Nations Herzog proposed
in a resolution the immediate reconvening of the Geneva Conference on the Middle East, but without the participation of the PLO; Herzog contended that his government "will not sit with the PLO" at Geneva, but also would not "examine the credentials of members of the Arab countries." (A separate resolution, supported by Arab countries proposed
reconvening the conference by the end of March 1977.)
December 8-Lebanese President Sarkis named Salim al-Hoss as Prime
Minister to head a new "reconstruction government" which would begin reestablishing security and rebuilding the country's economy. (The new Prime Minister subsequently announced his ministerial selections, with
most being economists, administrators, and "technocrats.")
December 9-The U.N. General Assembly voted 122 to 2 (with the United
States and Israel dissenting) to reconvene the Geneva Conference on the Middle East by March 1977 with the participation of Palestinian
delegates.
December 9-The Soviet news agency Tass reported that Libyan leader
Q addafi, during his first visit to Moscow, had signed a series of economic, shipping, and cultural agreements with the Soviet Union.
December ]1-In an interview published in the Beirut newspaper ABairaq, the Emir of Kuwait stated that the Kuwaiti National Assembly
would be reinstated within 4 years.
December l2-In a Newsweek interview, Israeli Prime Minister Rabin
stated the Palestinians should be represented at a reconvened Geneva Conference by Arab leaders from Israeli-occupied territories, and suggested that they could participate as part of a Jordanian delegation.
(Rabin made a distinction between the need to resolve the Palestinian
problem and the demand that Israel negotiate with the PLO.)
December 12-A fourth attempt in 6 months to assassinate Lebanese
Christian leader Raymond Edde was unsuccessfully carried out by an
unidentified gunman.
December 13-Israeli Defense Minister Peres said in Washington that
because of inflationary pressures his government is requesting a $500 million increase over the $1 billion U.S. supporting assistance for fiscal 1978. (Peres also stated that "there is fair chance of peace"~ in the Middle East, but believed more progress could be made through stepby-step diplomacy than through a reconvened Geneva Conference.)
December 13-In a BBC interview, the Shah of Iran said that the United
States and West Germany could "easily" absorb a 15 percent oil-price increase, but that such a boost would be difficult for other Western European countries; and remarked that the United States had put much pressure on him to maintain current prices.
December 14-Ariving at Doha, Qatar, for the meeting of OPEC, Saudi
Arabian Petroleum Minister Yamani called for a 6-month freeze on the price of oil, stating that the world economy "would not tolerate" a new
increase at this time.
December 14-Members of the 42-man PLO Central Council, following a
3-day summit meeting in Damascus, issued a statement declaring the






75

Palestinians "have a legitimate right to repatriation and the establishment of a Palestinian state on their national soil." (PLO sources were reported to have said tha -t momentum has grown among moderate elemenits in favor of a Palestinian state of the West Bank and Gaza rather
than a secular state which would include all of Israel
December 14-A time bomb in a suitcase exploded in Baghdad international airport, collapsing the roof and killing and wounding an undetermined number of persons.
December 15-Following a week of unrest in the West Bank stemming
from the imposition of a new 8-percent sales tax, Israeli authorities placed curfews on the towns of Nablus and Ramallah and arrested numbers of suspected troublemakers, and Israeli troops fired into crowds of
demonstrating Arab students.
December 16-It was announced in Doha, Qatar, that 11 of the 13 members of OPEC would raise oil prices by 10 percent on January 1, 1977; the remaining two-Saudi Arabia and the UAE-will increase prices by 5 percent. (The split-level pricing arrangement will extend through
June 1977.)
December 16-Following a meeting in Washington with Secretary Kissinger, Lebanese envoy Ghassan Tueni stated that 'his country was seeking $3 billion in direct humanitarian aid from the United States anid other
countries to begin reconstruction.
December 17-Saudia Arabian Petroleum Minister Yamani was reported
to have said his country had split with OPEC partners on the amount of an oil price rise after direct consultations with President-elect Carter's advisers, and to have stated that he expected the West to appreciate the Saudi move: "This has to be shown on two dferent fronts-the NorthSouth dialogue and an Arab-Israeli settlement." (Yamani also was quoted as saying that Saudi Arabia would lift all oil production ceilings.) December 17-State Department spokesman Robert Funseth denied that
the Saudi Arabian move on oil price increases would alter U.S. policy in the Middle East; and President-elect Carter's Secretary of Statedesignate, Cyrus Vance, told reporters in New York that while he was "(greatly pleased" by the Saudi price restraint, the incoming administration had made "no commitments" on other Middle East issues.
December 19-Egyptian President al-Sadat and Syrian President al-Assad
opened formal talks in Cairo to discuss common strategies for n'egotiations toward an Arab-Israeli settlement and alternative strategies in the event of a breakdown or stalemate in negotiations. (AI-Sadat declared that "the Arab cause has reached the point of imposing itself on the
world.")
December 19-Three National Religious Party (NRP) members of the
Israeli Cabinet were dismissed, thus initiating a political crisis in which the ruling Labor coalition government would be unassured of votes necessary for a majority in the Knesset.
December 19-The Beirut magazine Monday Morning published a statement by PLO official, Faruk Khaddumi, in which he was quoted as saying that the PLO continues to refuse to attend a reconvened Geneva
Conference and to negotiate with Israel.






76

December 19-In Beirut, Syrian troops occupied the offices of the independent newspaper, An Nahar, the French-language L'Orient-Le Jour, the Communist newspaper, An Nidal, Newsweek, and United Press International, under the pretext that the building in which the offices were
located would be bombed.
December 20-Israeli Prime Minister Rabin tendered his resignation and
called for early elections for 1977. (Under law, new elections cannot be held before May, and Rabin was expected to head a caretaker government until that time.)
December 21-Egyptian Foreign Minister Fahmi announced in Cairo that
agreements concluded after 4 days of talks between President al-Sadat and Syrian President al-Assad included: (1) close coordination between Egypt and Syria in political, military, and other fields; (2) initiation of the mechanisms for merging the two countries; and (3) the early reconvening of the Geneva Conference on the Middle East.
December 21-The Christian Science Monitor reported that a public
opinion poll, conducted by the Port Institute of Tel Aviv for the newspaper Ha'aretz, indicated that 47.5 percent of all Israelis would favor peace talks with the PLO if the latter recognized the state of Israel, with
37.4 against.
December 21-Fighting broke out at the Chatila refugee camp in Beirut
between Sa'iqa and Rejection Front guerrillas, with Syrian forces joining the clashes for the first time.
December 22-Former Israeli Foreign Minister Abba Eban announced
that he will challenge Prime Minister Rabin's leadership of the ruling Labor Party at the party convention in February 1977. (Former Defense
Minister Dayan earlier had said he would support Eban's bid.)
December 24-The Lebanese Parliament voted unanimously to grant
Prime Minister al-Hoss special powers to govern the country by decree under martial law. (The powers conferred on the government included the power to amend, cancel or decree new laws for 6 months. Reportedly this would include some forms of censorship and limitations on the
rights of assembly.)
December 25-Unidentified gunmen assassinated PFLP political bureau
member Abd al-Wahab al-Sayid and his wife in Beirut.
December 27-The Middle East Economic Survey reported that Saudi
Arabia will increase its oil production to 10 million barrels a day from
the current 8.5 million barrel ceiling.
December 28--Official sources on Damascus were reported to have confirmed a Syrian Government decision to lift the 28-year-old restrictions on its estimated 4,500 Jewish citizens and restore their rights to travel,
own property, and enter government service.
December 28-United Arab Emirates (UAE) units with the Arab League
peace-keeping forces in Lebanon were reported to have begun deployment in the southern areas of the country.






77

December 30-The Washington Post published an interview with Egyptian
President al-Sadat in which al-Sadat listed a number of conditions for reaching a Middle East peace settlement, including; that any Palestinian state which might be created be formally linked to Jordan; that Israeli withdrawal from occupied territories must be swift and complete, not phased over an extended time frame; and that Lebanon must be a full
participant in any Geneva Conference.











































81-813 0 77 6














UNITED STATES-WESTERN EUROPEAN RELATIONS1
January 5-In Washington, Secretary of Transportation William Coleman
held public hearings on whether the Anglo-French Concorde SST should
be granted landing rights in the United States.
January 7-Belgian Prime Minister Leo Tindemans made public his report on European Union, which calls for appointment of a strong chief executive for the European Community (EC) and for close agreement
among the EC countries on joint foreign and defense policy.
January 7-The Italian Government under Prime Minister Aldo Moro resigned after the Socialist Party withdrew its parliamentary support, upon which the coalition government of Christian Democrats and Republicans had depended.
January 7-It was disclosed in Washington that the United States had
significantly increased covert financial support to non-Communist political parties in Italy. The new program reportedly involved gifts of
$6 million, primarily for the Christian Democrats.
January 12-In the wake of increased sectarian violence, Prime Minister
Wilson announced stepped-up security measures for Northern Ireland; Secretary of State for Northern Ireland Merlyn Rees reported to Commons the Government's rejection of the Ulster Constitutional Convention report on returning government to Ulster.
January 14-In Paris, French Communist Party leader Georges Marchai
confirmed the French CP had dropped references to the "dictatorship of the proletariat," a move which was interpreted as a step by the CP to show its independence of the Soviet Union and to gain respect in France
as viable political alternative.
January .18-19-European Socialist leaders meeting in Denmark for a 2day conference on political strategy split along north-south lines, with the northern Socialists less inclined and the southern Socialists more inclined to cooperate with communist parties in order to gai politically
power.
January 19-The Portuguese Government arrested former Gen. Otelo Saraiva de Carvalho and charged the popular military leader with promoting and supporting the unsuccessful leftist coup attempt in November 1975. Carvalho had been reduced to his pre-revolution rank of
major 2 days after the attempted coup.
January 20-The EC announced it was prepared to resume talks with Spai
about Spanish associate status with the Common Market.
January 21-The caretaker Italian Government of Aldo Moro closed all
foreign exchange markets in response to pressure against the lira resultig from Italy's severe economic slump and the collapse of the
Italian Government on January 7.

'Prepared by Stanley Sloan and Charlotte Phillips, Analysts in European Affairs.
(79)







January 24--In Madrid, the United States and Spain signed a new 5-year agreement to govern defense and other relations between the two countries. The "Treaty of Friendship and Cooperation" ensures continued U.S. access to three air bases and one naval base on Spanish soil in return for increased military and other assistance and a much closer defense relationship between the two countries. For the first time in the history of the United States-Spanish base relationship, the agreement is in treaty form and therefore requires the advice and consent of the
Senate.
January 26-The eighth round of talks on Mutual and Balanced Force reductions opened in Vienna, Austria.
January 27-British Prime Minister Wilson and Iceland Prime Minister
Hallgrimsson concluded an initial round of talks on the cold war, which were facilitated by the Royal Navy's withdrawal from the contested
waters on January 20.
January 28-Spanish Prime Minister Carlos Arias Navarro, in a speech
to the Cortes (Parliament), announced that in the next 2 years a bicameral Parliament would be established, the ban on political parties relaxed, and a new electoral law passed. Arias also promised that the Government would relax restrictions on freedom of assembly, speech and demonstration; but he warned against anarchy and a break with the
past.
January 29-The Senate confirmed Anne Armstrong as U.S. Ambassador
to the United Kingdom.
February 3-The Northern Ireland Constitutional Convention reconvened
for 1 month to attempt again to fashion an autonomous rule formula
acceptable to the British Government.
February 4-France joined with other European NATO allies in a forum
organizationally separate from NATO to discuss joint European arms
production and procurement.
February 4-The French Communist Party began its 22d Party Congress,
which was notable for policy decisions regarding the party's relationship with the Communist Party of the Soviet Union and for removing the concept of the necessity for a dictatorship of proletariate from its
doctrine.
February 6-Spain repealed key sections of the tough anti-terrorist law
passed in August 1975. In announcing the action, Justice Minister Antonio Garrigues acknowledged that "terrorism can and in fact doesr
come from the extreme right as well as the extreme left."
February 10-The United Kingdom ordered Navy frigates back into contested fishing waters around Iceland to protect the British trawler fleet. February li-In Rome, Premier Aldo Moro formed a minority government composed solely of Christian Democrats. The new government, Italy's 33d since World War II, is regarded largely as a stop-gap solution to Italy's political crisis.
February 12-The death of convicted and imprisoned IRA arsonist Frank
Stagg, as the result of a long hunger strike, prompted anti-British'outbursts among Catholics in Ulster.






81

February 18-France, followed by the rest of the EC countries, announced
its recognition of the MPLA government of Angola.
February 19-Iceland broke diplomatic relations with the United Kingdom over their dispute on fishing rights, the first such break between
two NATO countries since the Atlantic Alliance was formed.
February 19-The United Kingdom Government's announcement of plans
to cut $3.6 billion from public spending scheduled for 1977-1978 was widely interpreted as an indication of change in the view of the Laborites regarding some aspects of the socialist-welfare state and performance
of the British economy.
February 24-In Washington, D.C., EC President Francois-Xavier Ortoli
emphasized to President Ford that free trade is one of the EC's most
important goals.
February 26-The leaders of the Portuguese armed 'forces and the five
largest political parties announced agreement that elections for a parliament. would be held on April 25, 1976, and for a president of the
republic on June 25, 1976.
February 26-The United Kingdom Government announced a participation agreement with two U.S. firms, Gulf Oil Co. and Continental Oil Co., providing for an option on 51 percent of their North Sea oil output in 3 years and an increase to 51 percent in the United Kingdom's ownership of the oil licenses for these particular companies' fields.
February 26-The United States and United Kingdom signed an agreement permitting expansion of U.S. naval facilities on Diego Garcia
Islanil.
March 3-The Senate Foreign Relations Committee opened hearinsn
the "Treaty of Friendship and Cooperation" between the United States
and Spain.
March 4-The Northern Ireland Constitutional Convention was dissolved
after an additional month-long session could not reach a decision on
autonomous rule satisfactory to the British Government.
March 10-A military court in Madrid sentenced nine officers to prison
terms after their conviction on charges of sedition for their activities in the Military Democratic Union, a liberal underground organization
of Spanish military officers.
March .12-The upper house of the Federal Republic of Germany's parliament, after a week of difficult debate and last-minute diplomatic activity, cleared for ratification a major agreement with Poland on pensions, emigration of ethnic Germans from Poland, and financial credits
for Poland.
March 13--14-European socialist leaders, meeting in Oporto, Portugal,
promised to help Portugal solve its economic and financial problems through programs developed "at different levels within the framework
of European institutions."
March 14-The Communist and Socialist Parties in France registered
gains in French cantonal elections, which prompted claims that the united left had achieved a majority position among the French
electorate.






82

March 15-The Times of London reported that a senior NATO officer had
concluded that Warsaw Pact forces could drive through Western defenses before Western forces could resort to tactical nuclear weapons.
It was later reported that the study by a Belgian officer had been prepared 6 years ago as an academic project but the report nonetheless enlivened the controversy in Europe about the ability of NATO to defend against a Warsaw Pact attack.
March 16-In London, Prime Minister Harold Wilson announced his resignation, to be effective when the Labor Party elected his successor.
March 17-T1he U.S. Agriculture Department announced a $50 million line
of credit to Portugal to finance the purchase of American commodities. March 18-In response to increased pressure for liberalization, the Spanish Government announced its decision to lift a ban on political parties-with the exception of the Communists, anarchists, and separatists-and said that the penal code would be revised.
March 18-On a state visit to the United States, Irish Prime Minister Liam
Cosgrave addressed a joint session of Congress and met with President Ford. The President agreed to intensify U.S. efforts to halt the flow of illegal arms from the United States to Ireland and Northern Ireland, and he appealed to Americans not to contribute to illegal organizations
in Ireland which purchase weapons and explosives for the IRA.
March 24-In Rome, Benigno Zaccagn ws, re-elected leader of the ruling Christian Democratic party following a divisive battle with the party's right wing which left the Christian Democrats badly split at the.
end of their party congress.
March 24-The U.S. Army announced a decision to purchase $30 million
of light machine guns from a Belgian manufacturer.
April 2-The European Community's nine political leaders ended a 2-day
summit in iLuxembourg without achievig any progress in monetary or economic matters, or in the institutional sphere, on the question of the distribution of seats in the proposed future European Parliament, to be
elected by direct universal suffrage.
April 4-West German Chancellor Helmut Schmidt's Social Democratic
Party suffered a defeat in a state election held in Baden-Wurttemberg.
The Christian Democrats won 56.7 percent of the vote to the Social
Democrats' 33.3 percent.
April 5-Britain's Foreign Secretary James Callaghan was elected new
leader of the Labour Party, to succeed retiring Prime Minister Harold
Wilson.
April 6-British Prime Minister Callaghan announced the 1976-77 budget
designed to provide new incentives for British business. The budget included tax concessions intended to encourage British trade unions to agree to a 3-percent ceiling on wage increases in the next fiscal year. April 8-In Vienna, the talks on Mutual and Balanced Force Reductions
recessed until May 17 with no progress reported.
April 15-At ceremonies in Washington, Greek Foreign Minister Bitsios
and Secretary of State Kissinger signed an agreement in principle on defense cooperation which would extend for 4 years U.S. use of certain Greek military facilities. The agreement included a 4-year commitment






83

to Greece of $700 million in defense assistance, a part of which would
be grants.
April 25-The Socialist Party won a plurality in parliamentary elections
under Portgual's new constitution. The Socialists took approximately 35 percent of the vote, followed by the liberal Popular Democratic Party with 24 percent, the conservative Social Democratic, Center with 16
percent, and the Portuguese Communist Party with 14.5 percent.
April 28-The Spanish Government announced that a referendum on constitutional changes would be held in October this year and elections for a reorganized Parliament early in 1977. The constitutional changes include replacing the present unicameral legislature with a two-house
Parliament.
April 30-In Rome, the minority Christian Democratic government of Aldo
Moro resigned, having found it impossible to establish a workable governing arrangement with the other Italian political parties. The resignation set the stage for early parliamentary elections in June.
May ]-Italian President Giovanni Leone dissolved Parliament in preparation for national elections, which were scheduled for June 20 and 21.
May 6-A massive earthquake hit northeastern Italy's Friuli region leaving
an estimated 900 dead, 400 missing, 2,000 injured and approximately
150,000 homeless.
May 7-The Spanish Government announced a proposal for a two-house
parliament in which the entire lower house and most of the senate would be directly elected. The government also recognized the right of workers
to form labor unions outside the state-run syndicates.
May 10-11 -A third summit meeting of French President Giscard d'Estaing
and official of 19 African states took place in Paris. The French President made a number of wide-ranging proposals for economic cooperation and development which were endorsed in the conference's final communique. M~ay 11]-The U.S. Senate approved $25 million in emergency relief for
earthquake victims in Italy. Vice President Rockefeller toured the devastated area on May 13 to determine how American aid could best be
used.
May 12-Portugal's Socialist Party announced its endorsement, along with
that of the Centrist Popular Democratic Palkty and the conservative Center Democratic Party, of the army chief of staff, General Antonio
Ramalho Eanes, for the Presidency.
May 18-French President Valery Giscard d'Estaing arrived in Washington for a 5-day state visit to the United States.
May 18-The Senate Committee on Foreign Relations ordered favorably
reported the Treaty of Friendship and Cooperation between the United
States and Spain. (Exec. Rept. No. 94-25.)
May 18-The Senate Committee on Foreign Relations ordered favorably
reported Senate Concurrent Resolution 105, expressing the sense of the Congress regarding democracy in Italy and participation by Italy in
NATO. (S. Rept. 94-915.)
May 18--Canadian Foreign Minister MacEachen announced that Canada
had decided to make permanent its suspension of nuclear cooperation
with India.






84

May 20-21-Fifteen NATO foreign ministers met in Oslo, Norway, for
their semiannual meeting. A joint communique issued on May 21 pledged that NATO would "continue to strive for a relaxation of tensions" but stated that certain recent trends in East-West relations gave "cause for
concern."$
May 20-Secretary of State Henry Kissinger stated at the NATO foreign
ministers' conference in Oslo that U.S. foreign policy would continue to support a firm defense of the West against Soviet military and ideological
aggression.
May 20-Representatives of the EC and the 20-member Arab League ended
3 days of inconclusive talks in Luxembourg, during which the Arabs
demanded political support in return for economic cooperation.
May 24-The British and French Concorde began transatlantic service to
Dulles Airport.
Way 25-Spain's Parliament approved legislation legalizing most political
meetings and demonstrations.
May 31-British and Icelandic delegations met in Oslo to exchange proposals on fishing limits in order to end the dispute between the two countries over fishing rights. According to Norwegian sources, Britain and Iceland have agreed in principle to a 6-month truce while they work out
the final agreement.
June 2-King Juan Carlos of Spain addressed a joint session of the U.S.
Congress.
June 7-The United States put up $2 billion of a total of $5.3 billion provided to bolster the British pound by the members of the Group of Ten (Belgium, Canada, France, West Germany, Italy, Japan, Sweden, the Netherlands, and the United States.) The pound had sunk to an all time
low of $1.70.
June 9-The Spanish Parliament (Cortes) approved a law legalizing political parties for the first time in 37 years. Rightists in the parliament later delayed implementation of the law, intensifying differences between conservative Premier Arias and moderate reformers in the government.
June 10-According to press reports, the head of the Soviet delegation to
the Vienna force reduction talks for the first time provided data on the number of Warsaw Pact air and land forces in the potential reduction zone. According to informed sources, the Warsaw Pact figures were
"well below" NATO's estimates of the same forces.
June 11-The defense ministers of 12 NATO countries, meeting in Brussels, adopted 5-year planning goals "to maintain a valid deterrent in the face of the increasing capabilities of the Warsaw Pact." Following the meeting, U.S. Secretary of Defense Rumsfeld visited Athens and urged Greece to resume full participation in NATO's integrated military structure. Greece restricted its participation in the aftermath of the Turkish
invasion of Cyprus in 1974.
Juine 11-The Senate unanimously agreed to House Concurrent Resolution
651 expressing congressional support for democracy in Italy and continued participation in NATO. The resolution, passed by the House on June 9, states that it is the sense of Congress that the United States "should stand ready to participate in efforts to provide financial assistance to Italy through the proposed OECD Special Financing Facility
and/or by other means deemed appropriate."






8-5

June 21-The Senate ratified the Treaty of Friendship and Cooperation
with Spain in a vote of 84r-11.
June 21-The U.S. Nuclear Regulatory Commission approved the Sale of
the ninth American nuclear reactor to Spain. But in the first individual dissent in the Commission's history, one commission member protested that safeguards which will govern the transaction are insufficient to
guard against nuclear weapons proliferation.
June 22-The House Committee on International Relations voted to table
a resolution sponsored by Representative Harrington which would have directed the President to provide the House -with information regarding
payments by the United States to influence Italian politics.
June 22-Following a hard-fought campaign, parliamentary elections in
Italy resulted in gains for the Italian Communist Party (PCI) and the ruling Christian Democratic Party (DC) at the expense of the smaller parties. The PCI garnered approximately 34.5 percent 'of the vote and the DC 38.8 percent. The Socialists barely held their own with 96 percent.
The elections left the DC with the difficult task of forming a new government and the PCI with an even stronger claim on a say in national
policymaking.
June 22-Press reports indicated that the Portuguese army had begun to
receive new military equipment from the United States. Modern tanks and armed personnel carriers reportedly are intended to be used in forming a new air-transportable mechanized brigade earmarked for NATO
use in case of war.
Pitne 27-General Antonio Ramhlo Eanes handily won election as Portugal's
first elected President under the new Portuguese constitution, capturing
over 61 percent of the vote.
June 28-President Ford and leaders of Canada, West Germany, Japan,
Britain, France, and Italy, issued a joint'statement after 2 days of economic talks in San Juan, Puerto Rico, in which they agreed to pursue the objective of economic growth without inflation and to consider creating a new multinational credit facility to aid developed nations
that experience temporary international payments problems.
July 3-Following the resignation of Spanish Premier Carlos Arias Navarro
on July 1, King Juan Carlos chose his close friend, Adolfo Suarez
Gonzalez as successor.
July 5-British Prime Minister James Callaghan made his first visit since
becoming Prime Minister to Northern Ireland, where he said that the territory would remain part of the United Kingdom but that Ulster
residents would have to learn to live together.
Jitly S-Italian Communist Pietro Ingrao was elected as speaker of the
Italian Chamber of Deputies.
July 6-Queen Elizabeth of Great Britain began a 6-day bicentennial visit
in Philadelphia.
July 6-The European Communities and Canada signed a general agreement designed to establish and strengthen commercial ties between
them.
July 7-Gustav Heinemann, Social Democratic President of West Germany
from 1969 to 1974, died at the age of 76.






86

July 7-Spanish Premier Adolfo Suarez appointed a cabinet composed
mainly of young, liberal, reform-minded Christian Democrats.
July 12-The heads of government of the European Communities reached
tentative agreement on the distribution of seats in a new, directly elected
European Parliament, scheduled for 1978.
July 13-Giulio Andreotti, a Christian Democrat and former Premier, was
selected by Italian President Leone to attempt to form a new Italian
cabinet in the wake of the indecisive June elections.
Muy 14-The Spanish Parliament approved changes in Spain's penal code to bring into effect earlier legislation legalizing political parties. The legislative body acted only after receiving assurances from the government that the Communist Party of Spain would continue to be illegal.
July 15-West German Chancellor Helmut Schmidt arrived in Washington for a ceremonial bicentennial visit.
July 16-Newly elected Portuguese President Eanes called on Socialist Party
leader Soares to form Portugal's first constitutional government since
the overthrow of the rightist dictatorship on April 25, 1974.
July 17-The United States and West Germany announced that the offset
arrangements under which Bonn contributed toward the maintenance of American troops in West Germany would be replaced by a single payment by Bonn toward the cost of increasing U.S. combat strength in West
Germany by one brigade.
July 17-A White House spokesman said that he "would have no quarrel
with" West German Chancellor Schmidt's statement that during the seven-nation economic summit in Puerto Rico the United States, West Germany, France, and Britain had agreed informally to bar additional loans to Italy if Communists hold cabinet posts in any new Italian Government. British Foreign Secretary Anthony Crosland subsequently
denied that Britain was a party to such agreement.
July 21-The British Ambassador to Ireland Christopher Ewart-Biggs was
killed when a land mine was detonated under his car on the outskirts of
Dublin.
July 2.1-The East-West talks on mutual force reductions recessed for the
summer with spokesmen for each side blaming the other for lack of results in the negotiations. The talks are scheduled to resume on
September 27.
July 22-U.S. Secretary of the Army Hoffman delayed a choice between
competing main battle tank prototypes manufactured by Chrysler and General Motors pending further United States-West German efforts to agree on a common tank design or at least extensive use of interchangeable parts. One of the U.S. prototypes is scheduled to be tested later this year against the West German entry in the tank competition,
the Leopard 11.
July 23-Portugal's Prime Minister Mario Soares and his government were
sworn into office. The Cabinet is made up largely of moderate Socialists with several independents and military officers. There are no Communists
in the Cabinet.
July 26-The Italian Communist Party, with 228 seats in the 620-seat Parliament, won the chairmanship of four major committees: Finance and
Treasury, Public Works, Constitutional Affairs and Transport.






87

July 28-Great Britain broke diplomatic ties with Uganda after several
weeks of deteriorating between the two countries.
July 30-King Juan Carlos of Spain granted an amnesty for all political
prisoners except those sentenced f or terrorist acts. Officials said between 400 and 500 of an estimated 650 persons jailed for political crimes would
be freed immediately.
July 30-Italian Prime Minister Giulio Andreotti and his minority cabinet
composed only of Christian Democrats were sworn into office.
August S-The Committee on International Relations reported House Resolution 14940, to authorize funds to implement the fiscal 1977 provisions of the Treaty of Friendship and Cooperation between the United States
and Spain.
August 9-The Rome Council, now controlled by a coalition of Communists,
Socialists, and Social Democrats, elected Marxist historian Giulio Carlo
Argan Mayor of Rome.
August 10--General Antonio de Spinola, whose book critical of Portugal's
colonial policies helped set off the April 25, 1974 revolution, and who served as Portugal's first postrevolutionary president, returned to Portugal. (Spinola had been in self-imposed exile since having been inplicated in a right-wing coup attempt against the Lisbon government
in May 1975.)
August -11-The minority Christian Democratic Government of Premier
Giulio Andreotti received a vote of confident in the Italian Chamber of Deputies, thanks to abstentions by the Communists, the Socialists, the
Social Democrats, the Republicans, and the Liberals.
August _13--In Lisbon, the United States. and Portugal signed agreements
providing for a special $25 million program of economic and social
assistance.
August 23-President Ford transmitted notice to Congress of his intent
to designate Portugal as a beneficiary developing country for -purposes
of the Generalized System of Preferences.
August 25-The Government of Spain refused to i ssue passports to allow
two veteran Communist leaders-Party Chairman Santiago Carrillo and President Dolores Ibarruri-to return from exile. (Under the terms of a royal amnesty published on August 4, many Communist leaders had been released from j ail or permitted to return from exile, but Spanish conservatives apparently had pressured the Government into refusing
passports to Carrillo and Ibarruri.)
August 25-The West German Government announced that the Bundesbank
would grant the Bank of Italy a new gold-secured loan of approximately
$2 billion.
August 25-French President Giscard d'Estaing appointed Raymond Barre,
an economist with no political affiliations, to be Prime Minister,
following the resignation of Gaullist Jacques Chirac from that post.
August 26-Prince Bernhard of the Netherlands resigned virtually all
military and business posts following the publication of a government commission report which criticized his "unacceptable" relationship with
the Lockheed Aircraft Corp.





88

August 31-The Irish Government proposed emergency legislation to curb
the IRA in the Republic that includes an increase in police powers of detention without trial to 7 days instead of 2; a maximum sentence of 7 years instead of 2 for membership in the IRA; and a penalty of upto
10 years imprisonment for inciting a person to join or support the IRA
September 4-A coalition of Spanish opposition forces-the "Democratic
Coordination" which includes Christian Democrats, Socialists, Communists, and regional grous--met openly in Madrid and issued a communique calling for "Democratic freedoms; trade union freedom; amnesty without exclusions; and political rights to the nationalities
and regions."
September 9-Portuguese Premier Mario Soares, warning that Portugal
was threatened with imminent economic collapse, called for economic austerity and increased productivity and took a hard line against leftwing agitation.
September 10-Spanish Prime Minister Adolfo Suarez Gonzales, in a
speech to the nation, outlined a draft law on political reform, promising direct and secret election by universal suffrage of a new Spanish parliament no later than June 1977.
September 10-British Prime Minister James Callaghan announced the
reorganization of his cabinet. Merlyn Rees, formerly Secretary of State for Ireland, became Home Secretary. He replaced Roy Jenkins who will become President of the Commission of the European Community next January. Mrs. Shirley Williams became Secretary for Education; Fred Mulley, formerly Education Secretary, became the Defense Secretary, replacing Roy Mason who assumed the job of Secretary of State for
Ireland.
September 16-The Council of Europe approved Portugal's application
to become the 19th member of that organization.
September 19-A Swedish three-party Center-right coalition led by
Thorbjorn Falldin defeated the Social Democratic Party under Prime Minister Olof Palme which had held office for 44 years. With some postal votes still to be counted, the electoral tally was 180 parliamentary seats for the three-party coalition and 169 for the Social Democrats and Communists. No great change of policy is anticipated.
September 21-In Madrid, Spanish Foreign Minister Oreja Aguirre and
U.S. Ambassador to Spain Wells Stabler exchanged the instruments of ratification of the Treaty of Friendship and Cooperation between the
United States and Spain.
September 22-French Prime Minister Raymond Barre announced an
austerity plan aimed at curbing inflation which was running at a rate of 11 to 12 percent. An immediate price freeze went into effect to be followed by 6.5 percent guidelines for 1977. Middle East class families and businesses were assessed a 4 percent tax surcharge and this rate was doubled for higher bracket taxpayers. Drastic controls on consumption
included a rise in the price of gasoline to $2.15 per gallon.
September 22-King Juan Carlos of Spain appointed Army General Manuel
Gutierrez Mellado, reportedly the most liberal active general in the army, as first premier for defense affairs, replacing conservative General
Fernando de Santiago y Diez de Mendivil who was retired.






89

September 30-The East-West talks on mutual force reductions resumed in
Vienna following the summer recess.
September 30-British Chancellor of the Exchequer Denis Healy announced
to the Labour Party Conference at Blackpool that he would ask the International Monetary Fund for a loan of $3.9 billion to defend the
pound. The pound has sunk to $1.64 on September 28.
September 30-The House accepted the House-Senate Conference Report
on S. 3557 authorizing the appropriation of funds necessary during fiscal year 1977 to implement the provisions of the Treaty of Friendship and
Cooperation between the United States and Spain.
October 3--Chancellor Helmut Schmidt's Social Democratic Party and
his coalition partner, the Free Democratic Party, combined to win 50.6 percent of the vote in the German parliamentary election. This total insures them of a parliamentary majority of 8 seats, a considerable
erosion of the 46 seat margin they enjoyed in the previous 4 years.
October 4-A prominent Spanish rightist, Juan Maria de Araluce Villar,
was assassinated in a terrorist attack. The Basque autonomist movement ETA claimed responsibility for the killing.
October 5-In Athens, the Greek Government announced that the GreekU.S. bases agreement would not be concluded until after the Presidential elections in the United States.
October 8-Italian Prime Minister Andreotti revealed his government's
austerity program which included proposals for strict monetary controls, partial wage curbs, and an increase in the price of gasoline.
October 9-French President Valery Giscard d'Estaing reannounced a decision to withdraw 10,000 men from the French First Army Division deployed in West Germany, reportedly for financial reasons. The West
Germans do not offset the expense of stationing' troops in Germany.
October 11 -The Spanish Government denied as false reports in the Washington Post that secret clauses exist in the Treaty of Friendship and Cooperation with the United States. A government spokesman said that the treaty, its complementary agreements and procedural annexes are
all public.
October li-The French Government indicated its willingness to discuss
on an international level limitations on the spread of nuclear technology, including proposals for sharing markets with other nuclear exporters, in return for tighter international controls.
October 17-The value of the West German mark was raised between 2
and 6 percent against several other West European currencies at a meeting of finance ministers and central bank heads of countries in the socalled "European snake," the European joint float.
October 18-The -Central Committee of the Italian Communist Party
(PCI) met amid signs that the party's benign attitude toward the minority government of Christian Democrat Prime Minister Andreotti
was causing tensions within the PCI.
October 19-Canada's governing Liberal Party lost two bi-elections in the
one-time safe constituency of Ottawa Ca 'rlton and in St. John's Newfoundland. Public opinion polls showed the Liberal Party nationally
trailing the Progressive Conservatives by 33 to 45 percent.






90

October 23-In Portugal, the popular leftist army major, Otelo de Car.
valho, began serving a 20-day prison term. Carvaiho was sentenced for participation in a political rally in violation of the code of military
discipline which limits political activity by military officers.
October 25-The British pound dropped 5 cents in 1 day to $1.595 following a London Sunday Times story that the United States and the International Monetary Fund seek a $1.50 level as a condition for the $3.9 billion loan requested by Britain. U.S. Treasury Secretary
Simon and IMF officials denied the story.
October 27-Spain's King Juan Carlos arrived in Paris on his first official visit to a West European country since Franco's death. The visit was viewed as part of the King's attempt to regain international respectability for Spain and bring the country into the mainstream of European
affairs.
October 28--Th e Pentagon announced a move to increase the capability
of its jet-fighter force in Europe by about a third in an effort to counter military improvements made by the Warsaw Pact, namely the introduction of the Mig-23 Interceptors. The net U.S. increase amounts
to 84 aircraft and 3,000 men.
October 28-Three men, apparently disguised as medical staff, slipped into
a Belfast hospital and shot and killed Marie Drumm, the former vice president of the Provisional Sinn Fien, the political wing of the Irish
Republican Army.
October 30-Portuguese Prime Minister Soares, addressing the Socialist
Party's second national congress,' appealed for support of his government's efforts to restore economic and social stability. Most of Westtern, Europe's Socialist leaders attended the congress as a sign of their
support for Soares, and his party.
November 1-Following a ministerial meeting in the Hague, the Council
of Ministers of the European Community decided to create a 200-mile fishing limit on Community members' North Sea and Atlantic coastlines
as of January 1, 1977.
November 2-Britain and France announced that they will build no more
Concorde supersonic jet transports than the 16 already built or under
construction unless they get orders for additional planes.
November 8-The British Labour Government narrowly survived three
votes in parliament. A bill dealing with the nationalization of the shipbuilding and aircraft industries passed by only one vote (311-310). In the previous week two Labour candidates were defeated in by-elections
by Conservatives in normally pro-Labour districts.
November 9-Dr. Patrick J. Hillery became the youngest man to be awarded
the Presidency of Ireland, succeeding Caerbhafl O'Dalaigh who resigned suddenly after a personal disagreement with a Cabinet Minister on
October 22.
November 12-In Rome, the minority Christian Democratic government of
Prime Minister Andreotti survived a vote of confidence following debate in the Chamber of Deputies on the Government's economic austerity program. Only the Christian Democratic deputies voted for the Government, and the motion passed thanks to the abstention of most other
deputies, including the Communists.








November 15-Senators Sam Nunn and Dewey Bartlett, returning from a
study mission of NATO, warned that improvements in Soviet conventional capabilities and weaknesses in NATO's posture could invite a successful conventional Warsaw Pact attack on Western Europe. The Senators recommended strengthening NATO's conventional forces and
repositioning of major combat units closer to the Eastern borders.
November 15-Rene Levesque, leader of the Separatist Party of Quebec,
polled approximately 40 percent of the popular vote *in a provincial election and won 69 of the 110 seats in the Quebec legislature as compared to 6 seats in 1973. The results were interpreted as a protest vote against the administration of incumbent Premier Bourassa and the eco.
nomic record of the National Government. Mr. Levesque stated that he could not be expected to abandon his long-term goal of independence but he intended to rule as a provincial premier for the next- 4 years within
the present structure.
November 15-The European -Community rejected a Soviet bloc proposal
to conduct commercial relations with the Communist trade group COME CON, stating a preference for dealing with the Communist states on an
individual basis.
November 16-State Department officials confirmed that the United States
was planning to extend about $300 million in emergency economic aid
to Portugal.
November 18-The Spanish Cortes (Parliament) decisively approved a
plan for constitutional reform to lead to parliamentary elections in 1977.
The plan, if approved in a popular referendum on December 15, would replace the currently unrepresentative Francoist parliament with Spain's
first democratically elected legislature since the Spanish civil war.
November 19-The Christian Social Union of Bavaria, led by Franz Josef
Strauss, voted to end a 27-year alliance with its coalition partner, the Christian Democratic Union. As a result, Chancellor Schmidt's, Social Democratic Party will regain its position as the strongest party in the
Bundestag.
November 23-In Rome, the members of the European Program Group
continued discussion of their efforts to coordinate production of defense equipment. Following the 2-day meeting, a spokesman announced that Portugal had joined the group, so that the membership now included all the European members of NATO, but reports indicated that little progress was made on the central question the group's relationship with
the United States and Canada.
November 30-The British Government introduced a bill in parliament to
grant some power of self-rule to Scotland and Wales. The bill provides for a Scottish assembly of 150 members and a Welsh assembly of 80.
They will have the power to determine spending priorities in such areas as education, housing, transportation and industrial development but wiU not be able to raise revenue through taxes. London will keep authority over defense, foreign relations, and the North Sea oil deposits. November 30-During a summit conference at the Hague, the nine leaders
of the members of the European Community called for a meeting as soon as possible between the Community and the administration of Presidentelect Jimmy Carter.






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December 5-Italian Prime Minister Andreotti began an official visit to the
United States for the primary purpose of discussing Italy's economic
problems with American officials.I
December 8-The NATO defense ministers agreed in principle to purchase
the Airborne Warning and Control System (AWACS) from the United States. The ministers agreed to meet again early in 1977 to make a final
decision on the flying radar system.
December 10-The NATO foreign ministers, meeting in Brussels, rejected
a proposal from the Warsaw Pact for a mutual renunciation of the first use of nuclear weapons. The NATO ministers also rejected a Pact proposal-aimed at forestalling Spanish membership in NATO-for freezing current membership in the two alliances. In a message delivered by Secretary of State Kissinger, President-elect Carter told the ministers that "the American commitment to maintaining the NATO alliance shall
be sustained and strengthened under my administration."
December 11-In Madrid, Spain's fourth-ranking government official,
Council of State President Antonio Maria de Oriol, was kidnaped by
gunmen of an extreme left guerrilla organization.
December 12-West Germany's two conservative parties, the Christian
Democratic and the Christian Social Unions, reconciled differences that
had threatened to end their 27-year-old parliamentary alliance.
December 13-Portugal's governing Socialists held their own in nationwide local elections, winning over 33 percent of the votes cast. The outcome was widely regarded as a vote of confidence for the Socialists and
a sign of political stability for the new Portuguese democracy.
December 15-Spanish voters overwhelmingly approved by referendum
reform of the Spanish political system including election of a new parliament in 1977.
December 15-SPD Chancellor Helmut Schmidt was reelected to the chancellorship by the Bundestag. He received 250 votes, only 1 more than the
required absolute majority.
December 16-In Vienna, NATO and Warsaw Pact negotiators recessed
their talks on mutual force reductions with spokesmen admitting that during the 3 years of talks the two sides had increased, rather than reduced, troop levels in Central Europe.
December 19-Following a December 15 announcement by France that it
would curb its nuclear technology exports, West Germany voiced similar intentions to refrain from nuclear exports that might lead to the construction of new weapons. The ban, however, will not affect the planned
$4 billion nuclear reactor transaction with Brazil.
December 22-The Group of Ten, which includes the United States and
nine other maj or industrial nations, agreed to provide $3.289 billion of the $3.9 billion loan that Britain has requested from the IMF. The United States promised to contribute the largest share of the loan$1.087 billion.
December 22-Santiago Carrillo, Secretary General of the Spanish Communist Party, was arrested in Madrid. He had reportedly been operating
underground in Spain for nearly a year.






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December 30-Spanish Communist leader Carrillo was released on bail.
The same day, the Madrid government announced two significant legal reforms, abolishing the Court of Public Order which had considered political cases during the Franco regime and''decreeing that cases of "'terrorism" would no longer be considered by military tribunals but by
ordinary civilian courts.
















































81-813 0- 77 -7














UNITED STATES-SOVIET-CHINESE RELATIONS1
January 8-A Central Intelligence Agency (CIA) study was made public
which predicted that China will be in a position to export in 1985 only a tenth of the oil now being exported by members of the Organization
of Petroleum Exporting Countries (OPEC).
January 8-The Soviet Union complied with a section of the Final Act of
the Conference on Security and Cooperation in Europe by notifying Western countries of maneuvers to be conducted along the Turkish
border and inviting NATO observers.
January 9-The New China News Agency reported from Peking that Premier Chou En-lai died of cancer at the age of 78. Vice Premier Teng
Hsiao-ping is Chou's apparent successor.
January 12-Soviet Foreign Minister Gromyko warned in Tokyo that the
Soviet Union might "reconsider" its relations with Japan if that country
signed a proposed treaty with the People's Republic of China.
January 13-Soviet Foreign Minister Andrei Gromyko ended a 5-day series
of talks with Japanese leaders in Tokyo, attempting to conclude a World War II peace treaty. The Soviets reportedly exasperated the Japanese by rejecting Japan's key demand-return of four Soviet-held islands in
the southern Kurile chain.
January 13-Prime Minister Takeo Miki said Japan would sign as soon
as possible a peace treaty with China including the antihegemony clause,
to which the Soviet Union objected.
January 15-A Bureau of Mines report said that China may become one
of the world's top five oil producers by 1985, producing 4 million barrels a day.
January 20-Western press reports indicated that the Soviet Union had
taken steps to simplify emigration procedures, including the lowering
of exit visa fees.
January 23-Secretary of State Kissinger concluded 3 days of talks with
Soviet leaders in Moscow. The sides reportedly made some progress toward a second SALT agreement but were unable to reach any understanding on Angola.
January 27-In a report to the Congress, Secretary of Defense Rumsfeld
suggested that Japan consider establishing a capability to conduct antisubmarine warfare. The Defense Secretary said that the biggest threat to keeping the Northeast Asian sea lanes open was Soviet submarines. January 30-Secretary of State Kissinger testified before Congress that
the administration would not press for a relaxation of trade restrictions against the Soviet Union as long as Soviet involvement in Angola
continued.
1Prepared by Francis Miko and Marjorie Niehaus, Analysts in International Relations.
(95)






96

February ]-The Soviet news agency TASS and newspaper Pravda carried reports strongly criticizing President Ford and Secretary of State Kissinger for allegedly distorting Soviet policies and activities in
Angola.
February ]-Ile official Chinese newspaper the People's Daily charged
that Moscow has become a "super" arms dealer in the pursuit of political and military advantages and in a bid to bring recipient countries into
its sphere of influence.
February 3-Secretary of State Henry Kissinger delivered a speech in San
Francisco on Soviet-American relations in which he generally defended the policy of detente but cautioned that the United States must maintain an equilibrium of power with the Soviet Union, and must oppose direct intervention by the Soviet Union and other Communist countries in
places such as Angola.
February 6-An attack on "capitalist roaders" appeared in the People's
Daily, which appeared to be directed at Vice Premier Teng Hsiao-pingo
who had been expected to succeed the late Chou En-lai.
February 7-The New China News Agency referred to Hua Kuo-feng, a
Vice Premier and Minister of Public Security, as Acting Premier, succeeding the late Premier Chou En-lai.
February 18-The Peoples Daily reported that the central committee of
the Communist Party was split by the current political crisis.
February 19-The Second World Conference on Soviet Jewry, meeting in
Brussels, condemned Soviet anti-Semitism and called on the Soviet Union to respect the right of Jews to practice their own religion and to emigrate
to Israel.
February 20-The Soviet newspaper Pravda repudiated charges from the
West, including West European Communist -parties, concerning Soviet
denial of human rights and suppression of dissent.
February 21-Former President Richard Nixon arrived in Peking and
began his 9-day stay in China at the invitation of the PRC Government. February 22-At a banquet for former President Nixon, Hua Kuo-feng,
China's Acting Premier, said that a "revolutionary mass debate" was occurring throughout the nation and was affecting such fields as education, science, and technology.
February 24-The 25th Congress of the Communist Party of the Soviet
Union opened in Moscow, attended by delegates from the Soviet Union and 96 foreign countries. In this 5-hour keynote speech, Soviet Communist Party leader Leonid Brezhnev pledged his country to the continued pursuit of detente and arms limitation. He defended the Soviet involvement in Angrola and lauded worldwide: Communist successes. On the subject of the Soviet economy, he claimed significant progress but conceded that there were setbacks in agriculture and the consumer
sector, blaming them on human as well as natural causes.
February 24--China announced a new government program that placed
greater emphasis on agriculture over industry in national development.
Februay 26-Dr. Malcolm R. Currie, the director o ees eerha
the Department of Defense, warned of rapid advances in Soviet weap-