Conversation: 074-002Prev: 074-001 Next: 074-003
Start Date: 14-Sep-1971 8:09 AM
End Date: 14-Sep-1971 10:21 AM
Participants:Nixon, Richard M. (President); Shultz, George P.; McCracken, Paul W.; Stein, Herbert; Walker, Charls E.; Weber, Arnold R.; Scott, Hugh; Griffin, Robert P.; Allott, Gordon L.; Dominick, Peter H.; Bennett, Wallace F.; Young, Milton R.; Javits, Jacob K.; Ford, Gerald R.; Arends, Leslie C.; Anderson, John B.; Rhodes, John J.; Wilson, Robert C. ("Bob"); Smith, H. Allen; Stafford, Robert T.; Poff, Richard H.; Conable, Barber B., Jr.; Bow, Frank T.; Byrnes, John W.; Springer, William L.; Ehrlichman, John D.; MacGregor, Clark; Timmons, William E.; BeLieu, Kenneth E.; Buchanan, Patrick J.; Warren, Gerald L.;
Recording Device: Cabinet Room
On September 14, 1971, President Richard M. Nixon and Republican Congressional leaders, including George P. Shultz, Paul W. McCracken, Herbert Stein, Charls E. Walker, Arnold R. Weber, Hugh Scott, Robert P. Griffin, Gordon L. Allott, Peter H. Dominick, Wallace F. Bennett, Milton R. Young, Jacob K. Javits, Gerald R. Ford, Leslie C. Arends, John B. Anderson, John J. Rhodes, Robert C. ("Bob") Wilson, H. Allen Smith, Robert T. Stafford, Richard H. Poff, Barber B. Conable, Jr., Frank T. Bow, John W. Byrnes, William L. Springer, John D. Ehrlichman, Clark MacGregor, William E. Timmons, Kenneth E. BeLieu, Patrick J. Buchanan, and Gerald L. Warren, met in the Cabinet Room of the White House at an unknown time between 8:09 am and 10:21 am. The Cabinet Room taping system captured this recording, which is known as Conversation 074-002 of the White House Tapes.
Nixon Library Finding Aid:
Conversation No. 74-2 Date: September 14, 1971 Time: 8:09 am - unknown before 10:21 am Location: Cabinet Room 6 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/08) The President met with George P. Shultz, Paul W. McCracken, Herbert Stein, Charls E. Walker, Arnold R. Weber, Hugh Scott, Robert P. Griffin, Gordon L. Allott, Peter H. Dominick, Wallace F. Bennett, Milton R. Young, Jacob K. Javits, Gerald R. Ford, Leslie C. Arends, John B. Anderson, John J. Rhodes, Robert C. (“Bob”) Wilson, H. Allen Smith, Robert T. Stafford, Richard H. Poff, Barber B. Conable, Jr., Frank T. Bow, John W. Byrnes, William L. Springer, John D. Ehrlichman, Clark MacGregor, William E. Timmons, Kenneth E. BeLieu, Patrick J. Buchanan, and Gerald L. Warren [Recording begins while the conversation is in progress] Economics -Corporations -Tax reform act -Personal exemption -Increase in standard deductions, 1972-1973 -Cut in individual taxes -Low and mid-income brackets -Domestic International Sales Corporation [DISC] -House passage -Plant building abroad -Tax bias -Cut down of job exportation -Revenue costs -Surcharge -Revenue increase -Forthcoming meeting -Issues covered -House Ways and Means Committee -Profits and excess profit tax -John B. Connally -Job increases -Walter W. Heller -Effect on businesses and individuals -Tax cuts -Tax Reform Act -Automobile excise tax -1969, 1970, 1971, 1972, 1973 actions -President’s actions -Individual income cut -Corporate tax cut -Byrnes’ view -Ways and Means Committee 7 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/08) -Excise tax repeal -Proposal -Jobs development training -Minimum standard deduction raise -Wilbur D. Mills’ proposal -Depreciation reform -Guidelines -Competitiveness with other countries -Senate -Christmas tree tax reduction -Excise profits tax -Amendment for Economic Stabilization Act -Productivity of tax measures -Overview of economic policy -Congressional leaders’ views of wage-deferral issue -Opinion Research Corporation [ORC] poll -President’s role in development of questions -High wages and high prices -Union member -George Meany -Democrats -Critics -Specific criticism as reflection of general criticism -President’s program -Wage-price freeze -Union members -Automobiles -Import tax -Job development tax credit -Incentives for new plants and equipment -Tax cuts -Federal spending relation to high prices -Government employees -Union members -Revenue sharing -Foundation -Public approval -Opposition -Results -Consumers -Effect on investment, stock market -Psychology 8 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/08) -Broad public support -Bipartisan support -Predicting consumer action -Retail sales figures -Business compared to individual consumers -Investment -Stock market investors -Those who invest in job-producing activities -Stimulus from program -Business attitude -Congress -Budget -Wage deferral issue -Politics -President’s congressional advisors -The President’s role -Labor -Viability of program -Phase II -Cooperation of business leaders -Public opinion -Announcement in October -Effectiveness -Direction -Political aspects -President’s speech to Congress, September 9, 1971 -Results -Public support -House and Senate members -President’s role in program support -Presentation as package -Congressman Jerome R. Waldie’s efforts -Federal Employees Wage Comparability Act -Passage two years previously -Deferral of recommendation -Reaction of House and Senate -Waldie’s introduction of resolution -Civil Service and Post Office committee -House action -Ford’s trip to Puerto Rico -Speaker of the House -Scheduling 9 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/08) -Rosh Hashanah -White House liaison office -H. R. Gross and Committee members -Meeting -Conference after meeting -Republican unanimity -Government pay raises -Productivity -Volunteers -Jesse Wilcox and World War II era action -Office of Price Administration’s [OPA] 47,000 employees -Wage-price issue -Stimulus of World War II -Current freeze program’s brevity -Public support -Deferred wage increases -Democratic support -Support of outside organization -Chamber of Commerce -Resolution -Effects -Mobilization -Leonard Garment -Common Cause -Doctrinaire approach -News media -Wall Street Journal -Common Cause -John W. Gardner -Partisanship -Effect on contributors -Liberalism -Ideas from constituents -Support of Common Cause -Approach to swing Democrats and undecided Republicans -Wilson -Government employees -Wages increase -Time limit for resolutions -Senate responsibility -Pay increase for Congress and executives -Federal employees’ view 10 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/08) -Legislative machinery governing congressional pay raises -Outside commission recommendations -Comparability -Federal Reserve Board chairman -Arthur F. Burns and President’s meeting -Impact of 90-day freeze -Six month freeze -After 90 days -Impact on private sector -Phase II -Kansas City settlement of 40% -Labor and business -Wage increases -Three and six months -Freeze’s effects on federal employees -Comparability -Phase II and effects on federal employee -Recession -Six month freeze -General schedule employees -Wage board employees -Comparability surveys -Private sectors -Study of different pay systems -Public and private sectors International monetary and trade issues -Surcharge -Reaction from other countries -US goals in the world marketplace -Other countries -The Netherlands, Switzerland -Response -Perception of US leadership role -Comparison with situation in 1947-1948 -Need for new approach ****************************************************************************** Japan and Europe 11 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/08) [To listen to the segment (7m9s) declassified on 02/28/2002, please refer to RC# E-555.] ****************************************************************************** -International economics -Temporary policy -US position -US economy -Preparedness for negotiations -10% investment credit -President’s proposal -Small business issues -Appeal to patriotism -Wartime situation -Productivity -Direct appeal by President to common man -Preservation of US -Investment credit issue -Inconsistency in policies of past presidents -Firms and industries competition -Stance -Byrnes -Major industrial competitors -Europe’s effectiveness -Government and business cooperation -Japan -Germans -United front -US role -Support of US business abroad -Agricultural products -Support of business -Productivity -New plant equipment -Japanese and German progress -Use of taxes -Acceleration in depreciation -US action -Byrnes, Bennett -Job development, depreciation options -Examination of US plan 12 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/08) -Competition-domestic and foreign -US tax program -Plant development -[Peter G.?] Peterson’s views -President’s State of the Union message -Appeal -Main point and response -Republicans -Democrats -Time to emphasize US -Walker’s views -Ways and Means Committee -Byrnes -Members -Investment credit support -Automobile tax -Members’ reaction -Proposal on credit -Automobile exception -Senate and House -Minimum standards -Depreciation issue -Ways and Means Committee -Chairman -Politics -Legislation -Congress -Possible salutary effects -Effects on business -Congressional action -Health care legislation -Cooperation -Dominick -Schedules -Conclusion to meeting -Forthcoming agricultural group -President’s appreciation of support -Weber -Wage-price freeze -International monetary system -Suddenness of announcement of wage-price freeze action 13 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/08) President’s call to Nelson A. Rockefeller -Rockefeller’s call to the President -Attica prison uprising -Captors demands -Amnesty -Rockefeller’s action -Blacks -The President’s conversation with White House employee in elevator -George Jackson’s San Quentin escape attempt -Stance in negotiations -Conable, Javits -Hostages’ fate -Careful planning -Amnesty Draft bill -Filibuster -Action in Congress -Conference in House -Vote in House -Congress committee -The President’s forthcoming meeting with Allott and Arends on the Selective Service Conference report -Conversation with Michael J. (“Mike”) Mansfield about filibusters -Car buying The President left at 10:07 am; unknown members of meeting remained [General conversation/Unintelligible] The unknown people left at an unknown time before 10:21 am