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Conversation: 269-021

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Start Date: 3-Aug-1971 10:34 AM

End Date: 3-Aug-1971 12:00 PM

Participants:

Nixon, Richard M. (President)Shultz, George P.Kissinger, Henry A.Ehrlichman, John D.Pontier, AndreyBiaggini, Benjamin F.Connally, John B.

Recording Device: Old Executive Office Building

Full Tape Conversation Start Time: 02:17:24

Full Tape Conversation End Time: 03:45:37

269a.mp3

269b.mp3

269c.mp3

269d.mp3

NARA Description:

On August 3, 1971, President Richard M. Nixon, George P. Shultz, Henry A. Kissinger, John D. Ehrlichman, Andrey Pontier, Benjamin F. Biaggini, and John B. Connally met in the President's office in the Old Executive Office Building from 10:34 am to 12:00 pm. The Old Executive Office Building taping system captured this recording, which is known as Conversation 269-021 of the White House Tapes.

Nixon Library Finding Aid:

Conversation No. 269-21

Date: August 3, 1971
Time: 10:34 am - 12:00 pm
Location: Executive Office Building

The President talked with George P. Shultz.

     Busing
          -Administration action
              -Department of Health, Education, and Welfare [HEW]
                    -Regional office action
                          -White House statement on discipline and removal
                    -Plan
                          -White House statement on President’s disapproval
                    -Regional office
                    -Plan
                          -President’s disapproval
                                -Wording
                    -Regional office in Austin
                          -White House statement
                          -Direction

Henry A. Kissinger entered at 10:36 am.

           -Shultz’s planned trip to Austin
                 -Shultz's father
           -Proposed amendment
                 -[Emergency aid program]
           -Possible veto
           -President’s view
           -Shultz's trip

[End of telephone conversation]

     Busing
          -Liberals
                                                  15

                             NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/06)
                                                                    Conv. No. 269-21 (cont.)


[The President talked with John D. Ehrlichman at an unknown time between 10:40 am and 10:47
am]

[Conversation No. 269-21A]

     Busing
          -President's conversation with Shultz
                -Proposed amendment
                -Legislation
                      -President's possible veto
                -HEW regional office
          -Austin trip

     Ehrlichman’s forthcoming press conference
           -Railroad strike
           -Family Assistance Plan
           -Revenue sharing
           -Congressional recess
                 -Timing
                 -Possible special session

     President's instructions concerning Shultz

[End of telephone conversation]

     Liberals

[An unknown person [Alexander P. Butterfield?] entered at an unknown time between 10:40 am
and 10:47 am]

     President’s signature

[The unknown person [Butterfield?] left at an unknown time between 10:40 am and 10:47 am]

     President's forthcoming press conference

          -Possible foreign policy questions
               -Pakistan
               -People's Republic of China [PRC]
                     -United Nations [UN] representation issue
                           -Secretary of State’s statement
                                                16

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                        Tape Subject Log
                                          (rev. 10/06)
                                                                            Conv. No. 269-21 (cont.)


                             -Possible vote
                                  -Conservatives
                             -Taiwan, Republic of China [ROC]

[An unknown person entered at an unknown time between 10:40 am and 10:47 am]

[Unknown activity]
[The unknown person left at an unknown time between 10:40 am and 10:47 am]

                             -Possible impact on President’s planned trip
                     -Trip
                         -Importance
                              -PRC interest
                                   -Propaganda
                     -Communism

[An unknown person entered at an unknown time between 10:40 am and 10:47 am]

[Unknown activity]

[The unknown person left at an unknown time between 10:40 am and 10:47 am]

[The President talked with Benjamin F. Biaggini between 10:47 am and 10:50 am]

[Conversation No. 269-21B]

     Railroad strike settlement
          -President’s appreciation
          -Legislation
          -Unknown man [J. Curtis Counts?]
                -Background
          -Shultz
          -Peter G. Peterson
          -John B. Connally
          -Legislation
          -President’s schedule
                -Bohemian Grove

[End of telephone conversation]

     President’s forthcoming press conference
                                                 17

                             NIXON PRESIDENTIAL MATERIALS STAFF

                                         Tape Subject Log
                                           (rev. 10/06)
                                                                      Conv. No. 269-21 (cont.)


           -Possible foreign policy questions
           -PRC
                -Mutual interest
                -Analogy
                      -US-Union of Soviet Socialist Republics [USSR] relations
                -Edward M. Kennedy statement
                      -John F. Kennedy
                            -Chiang Kai Shek
                      -Possible trip
                -Significance of US opening
                      -Foreign Relations Committee
                -Trip by President
                      -Agenda
                            -Participants
                                  -President, Secretary of State, Kissinger
                                  -Press
                                        -Thelma C. (“Pat”) Nixon
                            -Decisions
                                  -Channel of communications
                                        -Possible reaction by PRC
                -World peace
                -Stature
           -UN representation

[Unintelligible]

                   -Voting procedures
                        -Majority vote
                              -Expulsion of Taiwan
                                    -Important question
                        -Resolution
                              -Spiro T. Agnew

Alexander P. Butterfield entered at an unknown time after 10:50 am.

     President's schedule
          -Connally

     Kissinger's schedule

Kissinger and Butterfield left at 10:59 am.
                                              18

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/06)
                                                                Conv. No. 269-21 (cont.)



Connally entered at 10:59 am.

     Busing in Texas
          -President’s conversation with Shultz
                -HEW regional office action
                      -President’s view
                      -Judge
                      -HEW staff member's plan
          -Emergency aid program
                -President's proposed action
                      -Amendment
          -Court action
          -Connally's talk with school board president
                -Frank Ginnis (?)
          -Local school board
          -Austin
          -Dallas
          -Corpus Christi
          -Houston
          -Shultz
          -Administration position
                -Swann decision
                -Black schools
                -Mexican-Americans
                -Necessity for time
          -Proposed amendment on emergency school aid
                -Reaction of black community
                -Democrats
                      -Votes
                            -Edmund S. Muskie
                            -Edward Kennedy
          -Court action
                -Corpus Christi
                      -Woodrow Seals
                            -Ruling on de jure discrimination
          -Dallas
                -Jim Collins
                      -Investigation
                            -Use of federal funds
          -As political issue
                                         19

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/06)
                                                                  Conv. No. 269-21 (cont.)


           -Liberals
                -Position on busing

National economy
     -Proposed action
           -Timing
                 -Presentation before Congress
                       -Investment tax credit
                       -Import tax
                       -Excise tax
                       -Wage and price freeze
                       -Perception of precipitous action
                             -Panic and irresponsibility
                       -Peterson
                       -Paul A. Volcker
                       -Arthur F. Burns
                       -Connally’s possible meeting with Shultz
                       -Congress’ return
                             -Date
                       -Shultz
                 -Budget cuts
                       -Caspar W. (“Cap”) Weinberger
                       -Family assistance plan
                       -Apollo space shots
                             -Public opinion polls
                             -Probe to Mars
                             -Lowell P. Weicker. Jr.
     -Capital controls
           -Shultz
           -Possible program
           -Floating dollar
           -New economic policy
           -Removal
                 -Opponents
                       -Trade
                             -Dollar outflow
           -Exchange rates
           -President's instructions
                 -Shultz
                 -Treasury Department
                 -Commerce Department
                                  20

               NIXON PRESIDENTIAL MATERIALS STAFF

                          Tape Subject Log
                            (rev. 10/06)
                                                           Conv. No. 269-21 (cont.)


          -Federal Reserve Board [FRB]
-Trade
     -Export-Import Bank
           -Peterson
-Wage-price freeze
     -Administration
           -Treasury Department
                 -Bureaucracy
                 -Office of Emergency Preparedness [OEP]
     -Farm prices
           -Lettuce
           -Fruit growers
     -Duration
           -Shultz’s view
                 -60 days
           -60 days compared to 120 days
                 -Possible criticism
     -Hardship cases
     -Possible reception
     -Farm prices
           -Hogs
           -Corn
           -Department of Agriculture
           -Hogs
           -Office of Price Administration [OPA]
     -Duration
     -Consumers' reaction
           -Price increases
                 -Analogy to OPA
     -Business community
           -Wages
     -Reexamination
     -Wage and price guidelines
           -1971 increases
     -International competition
           -Government intervention
                 -Subsidies
           -Antitrust laws
           -Import controls
     -Possible delay of implementation
           -Impact on 1970's
                                        21

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/06)
                                                                Conv. No. 269-21 (cont.)


                     -Bicentennial celebration
                     -Fundamental restructuring
                          -Domestic economy vis-a-vis international relations
                               -Growth

International economics
      -President’s speech to Midwestern News Media Executives in Kansas City, Missouri,
            July 6, 1971
            -Economic superpowers
                  -PRC
                  -Reduction of military
                        -Impact on PRC and USSR
                  -Europe
                        -Marshall Plan
                  -Japan
                  -USSR, PRC, Japan
                        -Goal
            -US goals
                  -Peterson


Wage and price freeze
    -Timing
         -Administration policy
                -Possible criticism
                      -Policy change
                -Secretary of the Treasury
         -Possible leak
         -Advantages of delay
                -Analysis
                -Preparation
                      -Budget
                      -Charts
                -Analysis
                      -Capital controls
         -Speech
         -Congress
                -Jacob K. Javits
                      -Incomes policy
    -Volatility of economy
         -Harry S. Truman
                                          22

                      NIXON PRESIDENTIAL MATERIALS STAFF

                                  Tape Subject Log
                                    (rev. 10/06)
                                                                    Conv. No. 269-21 (cont.)


                -1948 Campaign
                     -Republican Convention, Philadelphia
                            -Thomas E. Dewey
     -Need to endure criticism
          -Analogy
                -US military action
                     -Cambodia
                     -Laos
                            -Effect on US casualties
     -Timing
                -August
     -Connally's Munich, Germany speech
          -Trade agreements

Possible questions at President’s forthcoming press conference
     -Connally’s Face the Nation appearance
           -Retail trade, construction, corporate profits, personal incomes, inflation, Gross
                 National Product [GNP] deflator
     -International monetary action
           -Connally’s Munich, Germany speech
           -Forthcoming World Bank meeting
     -Department of the Treasury
           -Tax reforms
                 -Connally’s possible call to unknown person
     -Wage and price controls
           -Permanence
           -Construction industry
           -Steel industry and oil industry
                 -Price increases
           -Interest rates
                 -Home building
           -Connally's Face the Nation appearance
                 -Camp David
                 -PRC

Congress
    -Wilbur D. Mills
         -Credit
         -Statement
               -Peterson
         -Sharing credit
                                        23

                    NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/06)
                                                           Conv. No. 269-21 (cont.)


                -Connally’s forthcoming telephone calls
                     -Revenue sharing, tax policy, trade
          -Henry M. (“Scoop”) Jackson
          -Carl B. Albert
                -Health

Arthur F. Burns
     -Connally’s planned meeting
           -Budget
           -Postponing comparability
           -Shultz
           -Quadriad meeting
           -Confidence

President's schedule
     -Quadriad meeting
     -Possible meeting with Connally and Burns

Burns
     -Handling
          -Need to maintain pressure
     -Harold E. Stassen
     -Need to say affirmative things

Economy
    -Possible actions
         -President’s instructions to Connally
               -Peterson
                     -Need for delay
                     -No discussion
               -Paul W. McCracken
               -President’s schedule
                     -California
               -Study over talk
               -Shultz

Connally's schedule
    -Dinner
    -National Security Council [NSC] meeting
    -Dinner
           -William F. (“Billy”) Graham
                                                24

                            NIXON PRESIDENTIAL MATERIALS STAFF

                                       Tape Subject Log
                                         (rev. 10/06)
                                                                 Conv. No. 269-21 (cont.)



     President's schedule
          -California
          -Charlotte, North Carolina
          -Labor Day

     Economy
         -Wage and price freeze
             -Timing
                   -Preparation
                   -Budget
                         -Shultz
                   -Congress
                   -State of the Union address
                   -Tax reforms
                   -PRC trip
                   -Vietnam
                         -Possible announcement
                               -Paris negotiations
             -Instructions to Connally
                   -Business community
                         -Tax reform

     President’s greeting

     Idanell B. (“Nellie”) Connally

The President and Connally left at 12:00 pm.