Approved for Public Release 8 December 2016 - 'J THe PRESIDENT'S DAILY BRIEF 19 July 1978 1 NP8 _ - - - I- 1 - - App-or lea 8 December 2016 19 Ju1y 1978 Table of Contents Non Responsive Argentina New foreign policy directions Non Responsive Page 5 r I L ' I l _ j ooo Approved for Public Release 8 December 2016 ' - _ Non Responsive ARGENTINA New foreign policy directions The Argentine Government increasing ly irritated by US criticism of Argentina's huma n rights practices and US advice on how to develop a nu clear prog ra m is see king to strengthen its ties with France and several Communist and Arab countries Argentina r ecently purchased 170 jet engines from the French who - despite their own disagreeme nts with the Argentines over human rights--are apparently willing to sel l arms and may provide the mi li tary training previously give n -- conti nu ed 5 T8P 6E8RET Fo1 - -- ' 17ze F1 eo jeie e flral L Approved for Public Release 8 December 2016 by the US J nta member Admiral Massera recent l y visited Romania and claims to have opened up new possibilities for bilateral trade Foreign Minister Montes will travel to Romaniq this month and to the USSR later in t he year An Ar gentine eco omic delegation is cur rently vtsiting Libya Algeria and Iraq The USSR a r e 1 at i ve l y- minor t r ading partner for Argentina imports far more from the Argentines than it exports to them and would welcome an opportunity to correct this imbalance Moscow has expressed strong interest in provid ing turbines for Argentina's massive Yacyr et a hydroelectric project for which the ExportI mport Bank turned down concessio nary financing on human rights grounds The Argentines are obviously posturing to some extent about strengthe ing relations with Communist nations Their conserva tive political bias and their fears regarding potentia l subver s i on probably preclude any close diplomatic alignment or the purchase of Soviet military equipmen t Nevertheless Argentine -- cont in ued 6 T61i p a 9 W7 1 1 '1 f eiHoT I 1 l JI I o If I J I r t__ - r l_ ILo J --o -- Approved for Public Release 8 December 2016 willingness to turn to the Commu nists on economic gro unds is l i kely t o increase if the US Congress denies s up plier credits through the Export - Import Bank of approx i mat ely $800 mill ion fo r us ex ports to Argentina - - continued 7 T8P SECRET Eb l ifi Pl' Stet fit Gilt