273–20

Conversation No. 273-20

Date: August 12, 1971
Time: 5:30 pm - 7:00 pm
Location: Executive Office Building

The President met with Stephen B. Bull.

President's schedule

John B. Connally and George P. Shultz entered at 5:30 pm.

Textiles

President's forthcoming economic program
-Shultz's conversation with Arthur F. Burns
-Paul W. McCracken
-Shultz's conversation with Paul A. Volcker
-Textiles
-Burns
-Stock Market
-Performance
-Figures
-Wage and price controls
-Tax

Manolo Sanchez entered at an unknown time after 5:30 pm.

Refreshments
 19

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)



Sanchez left at an unknown time before 7:00 pm.

President's forthcoming economic program
-Burns’ views
-Stock market
-Convertibility of dollar to gold
-Federal taxes and budget
-Volcker
-Possible wage and price freeze
-Administration
-Shultz’s work
-Lack of organization
-Labor negotiations
-Strikes
-Coal miners and longshoremen
-Shultz’s view
-Coal mines
-Importance in national economy
-Energy
-Hardship relief
-Possible duration
-Labor contracts

Sanchez entered and left at an unknown time after 5:30 pm.

-Labor contracts
-Possible devaluation
-Import taxes
-Preparation
-US economic leadership
-Peter M. Flanigan [?]
-Announcement
-Timing
-Speech
-Burns
-Closing gold window
-Congress
-Backgrounders
-Congress
-Press
-Connally, Shultz
 20

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 273-20 (cont.)


-McCracken
-Peter G. Peterson
-Burns
-Reaction
-Wage and price freeze
-Timing
-Budget
-President's conversation with John D. Ehrlichman
-Family assistance
-Department of Housing, Education and Welfare [HEW]
-Legislative status
-Elliot L. Richardson
-Postponement
-International monetary crisis
-Convertibility of dollar to gold
-Possible effect
-Domestic
-International
-Connally's possible announcement
-Defense of dollar
-Speculation
-Closing gold window
-International consultation
-Stability
-Domestic program
-Wage and price freeze
-Timing of announcement
-Wage and price freeze
-Legislative package
-Border tax
-International negotiations over unilateral action
-Budget
-Closing gold window and wage and price controls
-Camp David
-Meeting
-Convertibility of dollar to gold
-Possible public reaction
-Market place
-Devaluation
-Stock Market
-News articles
 21

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 273-20 (cont.)


-Dallas Morning News
-Sylvia Porter
-Hobart Rowen
-President's role
-Convincing American people
-President’s awareness and analysis of economic problems
-Possible reaction
-Congress
-Public
-Wage and price controls
-Investment tax credit
-Piecemeal action
-Danger
-Possible leaks
-Effect
-Timing of announcement
-Convertibility of dollar to gold
-International situation
-Acquisition of dollars by foreign governments
-Piecemeal action
-Possible perception of reacting not acting
-Congress
-Public speculation
-Polls
-US debts
-President's possible statement
-Congress
-Popular opinion
-Democrats
-Camp David
-Burns’ view
-Timing
-Entire package

Sanchez entered at an unknown time after 5:30 pm.

Refreshments

Sanchez left at an unknown time before 7:00 pm.

President's forthcoming economic program
 22

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 273-20 (cont.)


-Burns’ view
-Domestic programs plus border tax
-Effect of gold prices
-Convertibility of dollar to gold
-Convertibility of dollar to gold
-Timing
-Burns’ view
-Central bankers
-Possible wage and price freeze and board
-Burns’ view
-Volcker's views
-Domestic and international problems
-Treasury Department
-Mood
-Stock Market
-International monetary situation
-Charles A. Coombs
-Federal Reserve Board [FRB]
-Possible popular reaction
-Impact
-International monetary situation
-French franc, British pound, German deutschemark, Italian lira, US dollar
-Volcker’s view
-Balance of payments
-Exports
-Percentage of Gross National Product [GNP]
-Relationship to national economy
-Trade
-Administration’s goal
-Quadriad
-Budget cuts
-Growth
-Tax cut
-Possible political effects
-Conservatives
-People’s Republic of China [PRC] policy
-Budget cuts
-Caspar W. (“Cap”) Weinberger
-PRC
-Businessmen
-Investment tax credit
 23

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 273-20 (cont.)


-Bohemian Grove
-Unknown club
-Public opinion
-Wage and price freeze
-Inflation
-Critics
-Labor negotiations
-Possible wage and price freeze
-Duration
-Administration
-Coal industry
-Permanent structure
-World War II
-Office of Price Administration [OPA]
-Timing of announcement
-Preparation
-Shultz, Connally, McCracken
-August 16, 1971

President’s schedule
-Forthcoming meeting at Camp David
-Preventing leaks
-National Security Council [NSC] meeting
-California
-Volcker
-Burns
-President, Connally, Shultz, McCracken, Peterson
-Weinberger
-Budget
-Burns
-Volcker
-Understanding of monetary system

President’s forthcoming economic program
-Possible announcement
-Format
-Wage and price freeze
-Tax package
-Budget cuts
-Wage and price freeze
-Duration
 24

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 273-20 (cont.)


-Analogy
-PRC announcement
-Press backgrounder
-Connally
-Purpose
-Providing context
-Import tax
-Legal aspects
-Congress
-National security
-General Agreement on Tariffs and Trade [GATT]
-Treasury Department
-Opinions
-Trading with the Enemy Act
-Trade agreements
-John N. Mitchell
-Announcement
-Timing
-Congress
-Wage and price freeze
-Possible business action
-Importation
-Effect on balance of payments
-Relationship to devaluation

The President talked with an unknown person at an unknown time between 5:30 pm and 7:00
pm.

[Conversation No. 273-20A]

President's schedule
-Request for a call to Thelma C. (“Pat”) Nixon
-[Wolf Trap National Park performance]

[End of telephone conversation]

President's forthcoming economic program
-Import tax
-Devaluation
-Floatation of dollar
-Negotiations
 25

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 273-20 (cont.)


-Timing
-Unilateral action on Congressional approval
-Impact on announcement
-Balance of payments problem
-Effect on total economic package
-Boarder tax
-Request of Congress
-Devaluation
-Shultz’s and Volcker’s view
-Congress
-Japan, Germany
-Possible US statement
-Repeal with proper exchange rate
-Figure
-Possible legislation
-Eventual revocation
-Floatation
-Use as negotiating stick
-Revaluation of yen
-William P. Rogers’ view
-Call to Shultz
-Peterson
-State Department
-Congress
-Japan
-Textiles, automobiles, steel
-National control over economy and currency
-Comparison with trade partners
-Japan, Germany, France, Italy, Great Britain
-Effect on negotiations
-Exchange rates
-Legal basis
-Balance of payments
-Political value
-Quotas
-Textiles
-National security
-Views of Mitchell, Maurice H. Stans, James D. Hodgson
-Danger as precedent
-Steel
-Gen. George A. Lincoln
 26

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 273-20 (cont.)


-Precedent
-Import tax
-Japan
-Mitchell’s forthcoming legal opinion on GATT
-Import taxes
-Quotas
-Devaluation
-National security
-GATT
-Solutions
-Combination
-Problems
-Monetary crisis
-Short-term
-International monetary crisis
-Balance of payments
-Domestic economy
-Inflation
-Expansion
-Presidential leadership
-International leadership
-Import tax
-US negotiating posture
-Japan
-Quotas
-US leadership
-US industry
-Possible legislation
-Limitation to tax
-Veto

Sanchez entered at an unknown time after 5:30 pm.

Unknown request by the President

-Unilateral action
-Congress
-Possible suit
-Supreme Court

Sanchez left at an unknown time before 7:00 pm.
 27

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 273-20 (cont.)



-Trading with the Enemy Act
-Trade Agreements Act
-Timing of announcement
-Mitchell
-PRC announcement
-Preparation
-Peterson's memo to President
-Spring 1971 Deutschemark crisis
-Effect

President’s schedule
-Forthcoming meeting at Camp David
-Volcker
-Lawyer
-Justice Department
-Treasury Department
-Roy T. Englert
-Weinberger
-Dan Whitlay [?] [sp?]
-Burns
-Peterson
-McCracken
-Herbert Stein
-Henrik S. Houthakker
-Stein
-McCracken
-Ehrlichman
-Agenda
-Stein
-Volcker
-Preparation by participants
-Meetings
-Speechwriter

President's forthcoming speech
-H. R. (“Bob”) Haldeman
-Ronald L. Ziegler, Herbert G. Klein
-Speechwriter
-Stein
- The Discouraging Player
 28

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 273-20 (cont.)


-William L. Safire
-Structure
-Safire
-Stein
-Treasury Department
-Raw material
-Stein

President’s schedule
-Forthcoming meeting at Camp David
-Schedule
-Agenda
-Investment tax credit
-Percentage
-Import tax
-GATT
-Meetings


President's possible speech
-Preparation
-Burns
-Possible statement
-Timing
-August 15, 1971
-Advantages
-Preempting speculation
-International markets
-Effect
-Significance of proposals

President's schedule
-Wolf Trap National Park performance
-Mrs. Nixon
-Forthcoming meeting at Camp David
-Stock market
 29

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 273-20 (cont.)


-Possible New York Times story
-Unknown person
-Klein

Connally and Shultz left at 7:00 pm.