724–3

Conversation No. 724-3

Date: May 15, 1972
Time: 3:32pm - 4:06 pm
Location: Oval Office

The President met with George P. Shultz.

Greetings

Shultz's health

Shultz's trip to South
-H. R. (“Bob”) Haldeman's report
 14

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. Jan-02) Conv. No. 724-3 (cont.)

-States visited
-North Carolina
-Mississippi
-Louisiana
-Meeting with bi-racial committees
-Support for President's Vietnam policy

President's discussion with Alexander M. Haig, Jr.

An unknown person entered at an unknown time after 3:32 pm.

Refreshment order

The unknown person left at an unknown time before 3:54 pm.

Vietnam
-Support for the President
-Washington-based ambassadors
-Swiss ambassador's [Felix Schnyder] report
-Polls
-Opinion Research Corporation [ORC]
-Louis P. Harris poll
-Percentages
-Success
-Previous Central Intelligence Agency [CIA] report
-Contrast with current situation
-Cambodian supply lines
-Sihanoukville
-Sea lanes
-Railroad Bridges
-Surgical bombing
-Oil reliance
-Contrast with guerrilla warfare
-Support for the President's actions
-President's peace offer
-Lifting blockade
-Releasing prisoners of war [POWs]
-Ceasefire
-Alternative
-US withdrawal
-Consequences

Shultz's nomination as Secretary of Treasury
 15

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. Jan-02) Conv. No. 724-3 (cont.)

-Surprise nature
-Reasons
-John B. Connally
-Agreement with President on tenure
-Extension
-Resignation
-Announcement
-Day
-Future plans
-National Security Council [NSC]
-Announcement
-Qualifications
-Caspar W. Weinberger
-Nomination as Director of Office of Management and Budget [OMB]
-Alternatives
-Value to Administration
-Work with Arthur F. Burns
-Work with OMB
-Ease of confirmation
-Surprise nature
-Qualifications
-Changes at Treasury Department
-Number of positions
-President's and Connally's choice
-Announcement
-Haldeman meeting with Burns
-Cabinet meeting
-Time
-Press briefing
-Connally's role
-Weinberger's and Shultz's role
-President's advice
-Choice of lieutenants
-Difficulty of position
-Shultz's reply
-Connally's resignation
-Reasons
-Political
-Private
-Idanell Brill (“Nellie”) Connally
-Budget preparation
-Weinberger's role
-Advice from Shultz
 16

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. Jan-02) Conv. No. 724-3 (cont.)

-Qualifications and philosophy
-Connally's concurrence
-International markets
-Tax reform
-Budget
-Work with Weinberger, Herbert Stein
-Work with Burns
-Difficulty
-Press and congressional opinions
-Acceptance
-Honor
-Responsibility
-Work with Cost of Living Council [COLC]
-Coast Guard
-John A. Volpe
-Work on Vietnam

Shultz's topics for meeting with the President
-Discussion postponed

Stephen B. Bull entered at an unknown time after 3:32 pm.

Connally
-Meeting with the President and Shultz

Bull left at an unknown time before 3:54 pm.

Budget
-President's position
-Haldeman's report
-Publicity
-Campaign issue
-Stringency
-Connally's work
-House Resolution [HR] 1
-Revenue sharing
-Agricultural programs
-Cotton program
-Director
-Weinberger
-Shultz’s view
-Replacement possibilities
-Frank C. Carlucci
 17

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. Jan-02) Conv. No. 724-3 (cont.)

-Arnold R. Weber
-The President’s view
-Future possibilities

Vietnam
-Support for the President
-George Meany
-President's call
-Statement

Shultz as Secretary of Treasury
-Lack of free time
-Proximity to White House

Connally entered at 3:54 pm.

Greeting

Connally
-Resignation
-Shultz as successor
-Work with Shultz

Shultz
-Qualifications
-Background
-Work with Weinberger
-Work with Burns
-Milton Friedman
-Appointments
-Connally's advice
-Richard V. Adams
-John S. Nolan
-Jack F. Bennett
-Frederic W. Hickman
-Connally’s view
-Paul A. Volcker
-Connally’s view
-Possible replacement
-Bennett
-Adams
-James W. Donley
-Staff meeting
 18

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. Jan-02) Conv. No. 724-3 (cont.)

-Time
-Connally's and Shultz's appearance
-Transition
-Confirmation
-Acting Secretary status
-Transition
-Duration
-Date
-Meetings
-OMB staff
-Connally
-OMB staff
-Weinberger's attendance
-Sequence
-Press briefing
-Walk to Treasury Department
-Treasury Department staff
-Internal Revenue Service [IRS]
-Customs
-Available positions
-Gordon Gooch
-Current position
-Federal Power Commission
-Background
-Connally’s view
-Background
-Connally’s view
-Desire to leave Federal Power Commission
-Connally’s view

Connally
-Future
-President's Foreign Intelligence Advisory Board [PFIAB]

Shultz
-Position to take
-International monetary affairs
-Trade
-Convertibility

Burns
-Position as Governor of International Monetary Fund [IMF]
-Nathaniel Samuels
 19

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. Jan-02) Conv. No. 724-3 (cont.)

-Resignation as alternate
-Agreement with Burns and Edward M. Kennedy
-Burns as alternate governor
-Authority under Nixon
-The President’s view

Connally gift
-Sculpture
-1939 World's Fair
-Cyrus R. Smith

Bull entered at an unknown time after 3:54 pm.

President's schedule
-Forthcoming meeting with Weinberger

Bull left at an unknown time before 4:06 pm.

Schedules
-Shultz
-Connally
-Press briefing

Connally left at 4:06 pm.

-Shultz and Weinberger
-Meeting with the President
-Time
-President
-Donald McI. Kendall meeting

Shultz left at 4:06 pm.