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Approved for Release: 2020/08/11 C02000170 TOP SECRET that it intends to agree to Socialist demands to withdraw its controversial austerity program. The lower chamber of parliament reconvenes on 10 January to resume debate on the measure. (Page 4) LATE ITEM *France-Algeria: De Gaulle is expected to consider the referendum vote as a mandate to accelerate his search for an early solution of the Algerian problem. Three-fourths of the voters in metropolitan France voted their approval; in Algeria, many Moslems abstained from the balloting, but incomplete tallies indicate that a clear majority of the voters had approved. De Gaulle may soon make another offer to the rebels in terms less rigid than before, perhaps waiving his previous insistence that a negotiated cease-fire precede political discussions. Although rightist opposition leader Jacques Soustelle has warned that the European settlers in Algeria will regard the vote in France as "abandonment," the key to any successful settler opposition to defy De Gaulle or to delay his next move remains the attitude of the army. The army has maintained discipline thus far, but its morale is reported to have sagged as a result of De Gaulle's recent swift policy moves. Algerian rebel leaders are to meet in Tunis tomorrow to consider their next moves in light of the referendum. OK 9 Jan 61 DAILY BRIEF iii TOP SECRET Approved for Release: 2020/08/11 C02000170

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