318–7

Conversation No. 318-7

Date: January 26, 1972
Time: 4:23 pm - 5:01 pm
Location: Executive Office Building

The President talked with George W. Romney.

[Conversation No. 318-7A]

[See Conversation No. 19-118]

George P. Shultz entered at an unknown time after 4:23 pm and conferred with the President.

Greeting

[End of conferral]

[End of telephone conversation]

Quadriad meeting
-Arthur F. Burns's strategy
-Convertibility
-The President's call request for a call to John B. Connally
 11

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/10)
Conv. No. 318-7 (cont.)


-Shultz’s consideration of a call to Burns

Convertibility
-Administration strategy
-The President's and Connally's views
-Burns's concern
-Central bankers
-US budget
-US budget
-Strength of US economy abroad
-Exports, imports
-Money supply
-Inflation
-Connally
-European leverage
-Burns
-Camp David conference
-Gold prices
-Statement by unknown Belgium banker
-Pierre-Paul Schweitzer
-Administration strategy
-Shultz
-Herbert Stein
-Connally
-Stein
-Forthcoming conversation with Shultz
-Paul W. McCracken

Economy
-Fluctuations in confidence
-Economic community
-Connally
-Stein
-Unemployment figures
-Fluctuations
-Stein’s memorandum
-Timing
-Burns
-Unknown survey
-Unknown survey
-Behavioral test
 12

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/10)
Conv. No. 318-7 (cont.)


-Compared to attitudinal test
-Questions
-Time measured
-Burns
-Definitional problems
-Unemployment
-Change in concept
-Burns
-Memorandum
-Experimentation
-Car model changeover period
-Strength
-Retail sales
-Money supply
-Retail sales

[The President talked with Connally between 4:36 pm and 4:42 pm.]

[Conversation No. 318-7B]

[See Conversation No. 19-119]

[End of telephone conversation]

Connally

International economic policy
-European trade question
-Connally’s view

Connally
-Schedule
-Europe

Economy
-Retail sales
-Concerns
-Stein
-Money supply
-Figures for 1971
-December
 13

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/10)
Conv. No. 318-7 (cont.)


-Money supply
-M-1 and M-2
-Checks and cash

[The President talked with the White House operator at an unknown time between 4:42 pm and
4:47 pm.]

[Conversation No. 318-7C]

[See Conversation No. 19-120]

[End of telephone conversation]

Economy
-Money supply
-M-1
-Stein
-Retail sales
-Retail sales
-Inventory
-Burns

[The President talked with Peter M. Flanigan between 4:47 pm and 4:48 pm.]

[Conversation No. 318-7D]

[See Conversation No. 19-121]

[End of telephone conversation]

Marina von Neumann Whitman
-Appointment to Council of Economic Advisors [CEA]
-Women
-Qualifications
-Stein's view
-Father, John von Neumann
-Shultz's previous conversation with the President aboard plane to Florida

John Von Neumann
-The President's previous meeting
-Cabinet Room
 14

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/10)
Conv. No. 318-7 (cont.)


-Intelligence
-Theory of Games and Economic Behavior
-Oskar Morgenstern
-Relationship to Shultz
-Conversation with Shultz
-Importance

Economy
-Public confidence
-Democrats
-Budget
-International economic policy
-Need for optimistic talks
-Shultz
-Stein
-Peter G. Peterson
-James D. Hodgson
-Money supply
-Banks
-Burns
-Loans
-Loans
-Interest rates
-Pressure from administration
-Possible speech by Connally to banking community
-M-1
-Possible increase
-Federal Reserve Board [FRB]
-Andrew F. Brimmer
-Burns's view
-Recent meeting
-Burns
-Concessions
-M-1
-Interest rates
-Federal Reserve Bank of New York

FRB
-Federal Reserve Bank of New York
-Alfred Hayes
-Burns’s meeting with the President and Shultz
 15

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/10)
Conv. No. 318-7 (cont.)


-Need for votes
-Brimmer
-New post
-Burns
-Frederic V. Malek
-Possible call to William P. Rogers
-Connally
-Shultz
-Rogers’s schedule
-Press conference
-United Nations [UN]
-Export-Import [Ex-Im] Bank
-Henry Kearns
-Shultz's forthcoming talk with Malek

Economy
-Retail sales
-Milton Friedman's views of M-1
-Burns
-Figures
-Summer of 1971
-Fourth quarter of 1971
-1969 Cabinet meeting
-William McChesney Martin
-Burns
-Administration action

Manolo Sanchez entered at an unknown time after 4:48 pm.

The President's schedule
-Meeting with [Page Belcher]
-Stephen B. Bull

Sanchez left at an unknown time before 5:01 pm.

Burns
-Possible meeting with the President
-Recognition of problems
-Forthcoming talk with Shultz

Brimmer
 16

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/10)
Conv. No. 318-7 (cont.)


-Possible position

Burns
-Cabinet Room
-Connally
-FRB
-Possible appointment
-Tynan Smith
-James L. Robertson
-Retirement
-Convertibility

The President's schedule
-Meeting with Belcher

The President and Shultz left at 5:01 pm.