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Conversation: 075-001

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Start Date: 14-Sep-1971 11:07 AM

End Date: 14-Sep-1971 9:50 PM

Participants:

Nixon, Richard M. (President)Kuhfuss, William J.Scott, John W.McInturf, Robert C.DeChant, Tony C.Staley, Oren LeeHardin, Clifford M.Palmby, Clarence D.

Recording Device: Cabinet Room

075a.mp3

075b.mp3

NARA Description:

On September 14, 1971, President Richard M. Nixon and agricultural leaders, including William J. Kuhfuss, John W. Scott, Robert C. McInturf, Tony C. DeChant, Oren Lee Staley, Clifford M. Hardin, and Clarence D. Palmby, met in the Cabinet Room of the White House at an unknown time between 11:07 am and 9:50 pm. The Cabinet Room taping system captured this recording, which is known as Conversation 075-001 of the White House Tapes.

Nixon Library Finding Aid:

Conversation No. 75-1

Date: September 14, 1971
Time: Unknown between 11:07 am and 9:50 pm
Location: Cabinet Room

The President met with William J. Kuhfuss, John W. Scott, Robert C. McInturf, Tony C.
DeChant, Oren Lee Staley, Clifford M. Hardin, and Clarence D. Palmby
[Recording begins while the conversation is in progress]

     Wage-price freeze
         -Agricultural segment of economy
               -Organizations
                     -Scott
                           -National Grange
                                 -Age and history of the group
               -The President’s economic action
               -Wages and price increases
                     -Productivity
                     -Economic policy
                     -Price freeze
                     -Tax proposals
                     -Cessation of gold convertibility
                     -Surcharge
                     -Freeze continuance
                           -Agricultural products
                     -Farm price contribution to inflation
                     -Business
                     -Processed agricultural products
                     -Raw agricultural product prices
                     -National Grange
                           -President’s new programs
                                 -Effect on raw product prices
                     -Productivity increase
                     -Restaurant prices
                     -Management
                           -Cost of labor
                           -Stabilized economy
                           -Economic growth
         -Agricultural production
               -Last ten years
                     -Consumer prices
                                          2

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/08)



          -Minimum government involvement in agriculture
                -Need for controls
                      -Restraint on wages and prices
                -Economic effect on farmers
                      -Increase in efficiency and productivity
                -Expandable income
                -Continuance of necessary economic controls
                -President’s program
                      -Inflationary problems
                            -Stabilization
     -Agricultural wages
          -Stability
          -Raw materials
          -Contracts
          -Voluntary restraint
          -Organized agricultural labor
          -Seasonal labor
          -Polls
          -Wage earner and wife
                -Price consciousness
                      -Retired people
                      -Person on dividends
                            -Bills and outlay
                                  -Education
                                  -Doctor’s bill

Kuhfuss
    -American Farm Bureau

DeChant
    -National Farmers’ Union
    -Statements and summary vis-a-vis presentation
          -Wage-price freeze
               -Support for the new economic policy
               -Effects
                    -Adjustments following freeze
               -Scott
          -Goals
               -Reduction of inflation and unemployment
               -Adjustments in farm prices
               -1970 Farm Act
                    -Two years ceiling on farm income
                                              3

                         NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                       (rev. 10/08)



                          -Present farm parity, 70%
                          -Last sixty years
                          -Prices for agricultural commodity
                                -Market place
                          -President’s 1970 economic report
                                -Farmers’ return on investment capitol
                          -Lag in income of rural Americans
                          -Recession in agriculture
                          -Current trend of cost
                                -Continuity and rise of costs
                          -Productivity guide for income adjustment
         -The President’s speech
         -Department of Agriculture
              -Hardin’s comments
              -Unemployment
                    -Inflation
                    -Rural areas
                    -Agricultural well-being and nutrition
                    -Support of movement of dollar and gold standard
                    -Surcharge on imports
                          -Impact on monetary fund
                          -Effects on agriculture
                          -Working group on General Agreement on Tariffs and Trade
[GATT]
                              -Possible counteraction
                         -Exports
                              -Agricultural dependence
                         -Other segments reliance on imports
         -US down payment
              -War and defense
                   -US dollar
                         -Present limitations
                         -Overseas investments
                         -Economic policy
                              -Interest rates ceiling
                                     -John B. Connally
                                     -Business on foreign money
                                           -Profits acceptability
                                           -Excess profit
                                           -President’s support in farm sector
         -American Farm Bureau
              -The President and Secretary of Agriculture
                                    4

                NIXON PRESIDENTIAL MATERIALS STAFF

                           Tape Subject Log
                             (rev. 10/08)



-Integrity of US dollar
      -Investments
            -US role in world
            -Imbalance in US economy
            -Labor, agriculture, and business
                  -Connections
                  -Imbalances and freeze
                  -Importance of security of US economy
                        -Confidence in US business
                        -Plan for investment in US economy
                        -Inflation
                              -Forces responsible
                  -Effects of end of the Vietnam war
                  -Employment levels
                  -Labor negotiations
                  -Import-export balances
                  -US and competitive world position
                  -Directions of US
                        -Market place
                              -User of commodities
                                    -Direction for producer
                                    -Supply and production
                                    -Future of agriculture and US economy
                                    -World trade
-Duration of freeze
      -Future of US economy
      -US dependence on world trade
      -US participation in world trade
      -Guidelines
            -Negotiations between groups
      -Duration of 10% import tax
            -Effects on [US] trade balance
            -Effect on US foreign trade
            -US role in world trade
-McInturf of the National Council of Farm Cooperatives
-Appreciation of President’s leadership
      -Farmers’ support for President’s group
      -Rise in farm prices, costs
      -Labor
      -Exemptions of raw farm products
            -Freeze
      -Price contribution to inflation
                                    5

                NIXON PRESIDENTIAL MATERIALS STAFF

                           Tape Subject Log
                             (rev. 10/08)



      -Farmers’ image of effective curb on prices and wage rates
           -Increase in productivity
                 -Housewife expenditures
                       -Amount spent on food
                             -Lowest in world
                       -Political acceptability
      -Farm prices and income decrease
           -Productivity and agriculture
                 -President’s talk with unknown person, September 3, 1971
                       -Increased productivity
                 -Fresh consumption
                       -Fruits and vegetables
                             -Exemption from freeze
                 -Processed food prices
                       -Exemptions relation to productivity of workers and farmers
                             involved
                             -Transportation cost
      -Market control
           -Distributing and processing market
           -Productivity of industrial firms
           -Farmers’ views
                 -Foreign and domestic economic coordination policy
                       -Import tax surcharge
                             -Duration
                             -Effect
                             -World trade economy
                             -Negotiations
                             -Exchange rates
                             -Worldwide responsibility for peace
                             -Long run trade expansion
                             -Self-help program
                                   -Cooperatives
                                   -Encouragement of farm marketing and farm
                                         supplies
                                   -Farmers’ group action
                                         -Anti-inflationary action
                                         -Need for President’s support
                                         -Agriculture as US backbone
-Need for more committee work
      -Agricultural improvement
-Staley
-Kuhfuss’s comments
                                       6

                 NIXON PRESIDENTIAL MATERIALS STAFF

                             Tape Subject Log
                               (rev. 10/08)



-Causes of imbalance
      -Freeze effects
            -International trade problems
            -Deficit of payment
            -Countries assisted through Marshall Plan
            -Dollar status
            -President’s program
      -New points
            -President’s statement of issues
            -Franklin D. Roosevelt and 1937
            -Equity and peacetime economy
      -Inflation and economic recession
            -Jack R. Miller
                  -Speech at Iowa State Convention
                        -Level of farm income
                        -President’s program with agriculture
            -Alternatives
                  -Inflation and recession
                        -Effects of freeze
                              -Long term repercussions
                              -Changing of US economy
                                    -Conglomerate corporate structure
                                          -Ability to administer prices
                                                -Lowering volume output
                                                -Profits
                                                -Gross National Product [GNP]
                                                       decrease, inflation increase
                                                -Raising interest rates
                                                -Money supply
                  -Taxation
                        -Higher income groups
                        -Incentive of capitalistic structure
                  -Labor’s responsibility
                        -Welfare
                        -Leadership
                        -Wage contracts
                              -Unions
-President’s recognition of importance of agriculture
-Agriculture’s role in economy
      -30% of US population directly tied to farmers’ income
            -Poverty in rural areas
                  -Increase of farm income
                                     7

                NIXON PRESIDENTIAL MATERIALS STAFF

                            Tape Subject Log
                              (rev. 10/08)



     -Credit and interest rates
     -Small businessmen
     -Unemployment
     -Theodore (“Teddy”) Roosevelt
     -Large corporation structures
           -Roman Empire
                 -Factors in collapse
     -Companies and interlocking directorship
           -Administration of prices
           -Antitrust enforcement
           -Wages
           -Inequities
-US foreign country development
     -Surcharges
           -Strategy
     -Reality of situation
           -President’s awareness
                 -Dollar and economy protection
-Agricultural plan
     -Farmers’ number increase
           -Average age of electronic engineers
           -Average age of farmers
           -Need for farmers’ profits
           -Organized economy
-Countries with dollars
     -Need for products
           -US as supplier
           -Japan’s future food supply
                 -World population
     -International agreements
     -Floors on foreign products
     -Common Market
     -Agricultural commodities
     -Alleviation of issue
           -Hardin
                 -Farm income
                 -Price raising
                       -Farmers in profit position
                       -Rural development in profit situation
                 -Rural development
                       -Grants
           -Raw material productivity
                                    8

                NIXON PRESIDENTIAL MATERIALS STAFF

                           Tape Subject Log
                             (rev. 10/08)



           -Increase in farm income
                 -Investment in productivity
                 -Rural economy
                 -Reforms
                 -Use of steel, oil
           -Economic income
           -Success of economic policy
-Recession
-Cost of Living Council [COLC]
      -Discussion of action following 90-day freeze
      -Options
      -Political forces
            -Rapid inflation
-Follow-up program
-Wage-price freeze
      -Duration
      -Wartime measures applied in peacetime
            -Public support
      -Labor and business views
      -Agricultural commodities
      -Effectiveness
      -Long term solution
            -Controls
      -Free market
      -Inflation
      -Government spending
            -Government influence
                  -Productivity of guidelines
                        -Proposals
                             -Labor negotiations
            -President’s presentation
                  -Freeze follow-up
                        -Firm program
                             -Enforcement of policy
                        -Majority of public support
-Establishment of board
      -Enforcement authority
      -Dealing with issues
-Two segments of economy
      -Inflation-affected segment
      -Economically depressed part
      -Views of majority of US
                                      9

                NIXON PRESIDENTIAL MATERIALS STAFF

                             Tape Subject Log
                               (rev. 10/08)



      -New tax program
             -Wages
             -Profits
             -Low interest rates
             -Economically depressed areas
             -Factors
                   -Organized labor
                         -Wage raise
                               -Effects for the unorganized
             -Type of action required
             -Inflation
                   -Wages
                   -Contracts
                   -Unemployment
-Freeze follow-up
      -Voluntary program
      -Prices and wages
-Labor contract negotiations
      -Rank and file of labor
      -National leaders
             -People at local level
             -Federal Reserve
      -Excess profits
      -Protection of prices
             -Control
             -Bureaucracy
             -President’s leadership
-Food prices
      -Investment
-Statistical data
-Investment and capital
      -Business issues
      -Low steel profits
             -World market
      -Hardin’s liaison role
      -President’s need of input for decision-making
             -Import surcharge
                   -Effects in agriculture
                   -Japan and European countries
                   -Long term purpose
                         -Exchange rates
                               -Floating dollar, surcharge
                                    10

                NIXON PRESIDENTIAL MATERIALS STAFF

                            Tape Subject Log
                              (rev. 10/08)



                      -Readjustment of exchange rates
                      -Tariff barriers
                      -US industry
                             -Greater dividend out of foreign trade
                                  -US agriculture
                                  -Japanese
                 -Opening of market to noncompetitive products
                      -Soybeans
-Connally’s trip abroad
     -Selling of agricultural products
     -Agriculture as main producer of foreign exchange
           -Aerospace industries
-Long range effect of US policies
     -Short term retaliation
     -Building of new system
     -Highly competitive commodity
     -Tax reductions
           -Automobile excise tax
           -Job investment credit
           -Job development credit
                 -Agricultural segment of population
           -Congress
                 -The President’s September 9, 1971 speech
           -Corresponding cut in spending
           -Wage-price freeze
           -Deferral of wage increase for government employees
                 -Six month deferral
                 -Wage cut’s effect
-Farmers’ views
     -Support of President’s policy
     -Parity
     -Agriculture’s position
     -Freeze
     -Imbalances
-Farmers
     -Increased costs
     -Income
     -Businessman
     -Outlay, income
     -Fertilizers’ importance
     -Amount of wage earners in US
-US world role in agriculture
                                              11

                           NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/08)



                 -Congressmen
                 -Senators
                 -Need for strong agricultural economy
                      -Public awareness
                 -Chicago speech
                 -Cost of US food program
                 -Food program subsidies
                 -Small percentage of income for food
                      -Comparison with past
           -US productivity and competitiveness
                 -Fresno, California
                 -Labor, boycotts
                 -US balance of trade
                      -Foreign produce
                 -Employees, hiring
                 -Consumers’ choice
                 -Prohibition of technology
                      -Three years
                            -Mechanical apparatus use
                            -Boycotting of products
                            -United Farm Workers
                            -Technological advances in agriculture
           -Politics
                 -Grape boycott

The President left at 12:37 pm

     [General conversation/Unintelligible]

Kuhfuss, et al. left at an unknown time before 9:50 pm