Conversation No. 273-20

Date: August 12, 1971
Time: 5:30 pm - 7:00 pm
Location: Executive Office Building

The President met with Stephen B. Bull.

     President's schedule

John B. Connally and George P. Shultz entered at 5:30 pm.

     Textiles

     President's forthcoming economic program
          -Shultz's conversation with Arthur F. Burns
          -Paul W. McCracken
          -Shultz's conversation with Paul A. Volcker
          -Textiles
          -Burns
          -Stock Market
                 -Performance
                       -Figures
          -Wage and price controls
          -Tax

Manolo Sanchez entered at an unknown time after 5:30 pm.

     Refreshments
                                              19

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/06)



Sanchez left at an unknown time before 7:00 pm.

     President's forthcoming economic program
          -Burns’ views
                 -Stock market
          -Convertibility of dollar to gold
          -Federal taxes and budget
                 -Volcker
          -Possible wage and price freeze
                 -Administration
                       -Shultz’s work
                       -Lack of organization
                 -Labor negotiations
                       -Strikes
                             -Coal miners and longshoremen
                             -Shultz’s view
                       -Coal mines
                             -Importance in national economy
                                  -Energy
                 -Hardship relief
                 -Possible duration
                 -Labor contracts

Sanchez entered and left at an unknown time after 5:30 pm.

               -Labor contracts
          -Possible devaluation
               -Import taxes
          -Preparation
          -US economic leadership
               -Peter M. Flanigan [?]
          -Announcement
               -Timing
                     -Speech
                     -Burns
                          -Closing gold window
                     -Congress
                     -Backgrounders
                          -Congress
                          -Press
                                -Connally, Shultz
                                  20

               NIXON PRESIDENTIAL MATERIALS STAFF

                          Tape Subject Log
                            (rev. 10/06)
                                                         Conv. No. 273-20 (cont.)


                     -McCracken
                     -Peter G. Peterson
                     -Burns
-Reaction
      -Wage and price freeze
-Timing
      -Budget
      -President's conversation with John D. Ehrlichman
            -Family assistance
                  -Department of Housing, Education and Welfare [HEW]
                  -Legislative status
                  -Elliot L. Richardson
                  -Postponement
-International monetary crisis
      -Convertibility of dollar to gold
            -Possible effect
                  -Domestic
                  -International
      -Connally's possible announcement
            -Defense of dollar
                  -Speculation
                  -Closing gold window
                  -International consultation
                        -Stability
            -Domestic program
                  -Wage and price freeze
-Timing of announcement
      -Wage and price freeze
      -Legislative package
            -Border tax
      -International negotiations over unilateral action
      -Budget
      -Closing gold window and wage and price controls
      -Camp David
            -Meeting
-Convertibility of dollar to gold
      -Possible public reaction
            -Market place
            -Devaluation
            -Stock Market
      -News articles
                                             21

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                       (rev. 10/06)
                                                                     Conv. No. 273-20 (cont.)


                      -Dallas Morning News
                      -Sylvia Porter
                      -Hobart Rowen
          -President's role
                -Convincing American people
                      -President’s awareness and analysis of economic problems
          -Possible reaction
                -Congress
                -Public
                      -Wage and price controls
                      -Investment tax credit
          -Piecemeal action
                -Danger
          -Possible leaks
                -Effect
          -Timing of announcement
                -Convertibility of dollar to gold
                -International situation
                      -Acquisition of dollars by foreign governments
                -Piecemeal action
                      -Possible perception of reacting not acting
                      -Congress
                      -Public speculation
                -Polls
                      -US debts
                -President's possible statement
                      -Congress
                -Popular opinion
                -Democrats
                -Camp David
                -Burns’ view
                      -Timing
                            -Entire package

Sanchez entered at an unknown time after 5:30 pm.

     Refreshments

Sanchez left at an unknown time before 7:00 pm.

     President's forthcoming economic program
                                    22

                NIXON PRESIDENTIAL MATERIALS STAFF

                           Tape Subject Log
                             (rev. 10/06)
                                                             Conv. No. 273-20 (cont.)


-Burns’ view
      -Domestic programs plus border tax
            -Effect of gold prices
      -Convertibility of dollar to gold
-Convertibility of dollar to gold
      -Timing
      -Burns’ view
            -Central bankers
-Possible wage and price freeze and board
      -Burns’ view
-Volcker's views
      -Domestic and international problems
      -Treasury Department
            -Mood
      -Stock Market
      -International monetary situation
-Charles A. Coombs
      -Federal Reserve Board [FRB]
-Possible popular reaction
      -Impact
-International monetary situation
      -French franc, British pound, German deutschemark, Italian lira, US dollar
      -Volcker’s view
      -Balance of payments
            -Exports
                  -Percentage of Gross National Product [GNP]
      -Relationship to national economy
            -Trade
            -Administration’s goal
                  -Quadriad
                  -Budget cuts
                  -Growth
                        -Tax cut
-Possible political effects
      -Conservatives
            -People’s Republic of China [PRC] policy
            -Budget cuts
                  -Caspar W. (“Cap”) Weinberger
            -PRC
            -Businessmen
                  -Investment tax credit
                                        23

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/06)
                                                               Conv. No. 273-20 (cont.)


                     -Bohemian Grove
                     -Unknown club
          -Public opinion
                -Wage and price freeze
                     -Inflation
                     -Critics
                     -Labor negotiations
     -Possible wage and price freeze
          -Duration
          -Administration
                -Coal industry
                -Permanent structure
                -World War II
                     -Office of Price Administration [OPA]
     -Timing of announcement
          -Preparation
                -Shultz, Connally, McCracken
          -August 16, 1971

President’s schedule
     -Forthcoming meeting at Camp David
           -Preventing leaks
           -National Security Council [NSC] meeting
           -California
           -Volcker
           -Burns
           -President, Connally, Shultz, McCracken, Peterson
           -Weinberger
                 -Budget
           -Burns
           -Volcker
                 -Understanding of monetary system

President’s forthcoming economic program
     -Possible announcement
           -Format
                 -Wage and price freeze
                 -Tax package
                 -Budget cuts
                 -Wage and price freeze
           -Duration
                                             24

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                       (rev. 10/06)
                                                                   Conv. No. 273-20 (cont.)


                     -Analogy
                          -PRC announcement
               -Press backgrounder
                     -Connally
                     -Purpose
                          -Providing context
          -Import tax
               -Legal aspects
                     -Congress
                     -National security
                     -General Agreement on Tariffs and Trade [GATT]
                     -Treasury Department
                          -Opinions
                                -Trading with the Enemy Act
                                -Trade agreements
                     -John N. Mitchell
                     -Announcement
                          -Timing
                                -Congress
                                      -Wage and price freeze
                          -Possible business action
                                -Importation
                                      -Effect on balance of payments
                     -Relationship to devaluation

The President talked with an unknown person at an unknown time between 5:30 pm and 7:00
pm.

[Conversation No. 273-20A]

     President's schedule
          -Request for a call to Thelma C. (“Pat”) Nixon
                 -[Wolf Trap National Park performance]

[End of telephone conversation]

     President's forthcoming economic program
          -Import tax
                 -Devaluation
                       -Floatation of dollar
                 -Negotiations
                                  25

               NIXON PRESIDENTIAL MATERIALS STAFF

                          Tape Subject Log
                            (rev. 10/06)
                                                         Conv. No. 273-20 (cont.)


     -Timing
           -Unilateral action on Congressional approval
                 -Impact on announcement
                 -Balance of payments problem
                 -Effect on total economic package
                 -Boarder tax
                       -Request of Congress
     -Devaluation
     -Shultz’s and Volcker’s view
     -Congress
     -Japan, Germany
           -Possible US statement
                 -Repeal with proper exchange rate
                       -Figure
     -Possible legislation
           -Eventual revocation
     -Floatation
     -Use as negotiating stick
           -Revaluation of yen
     -William P. Rogers’ view
           -Call to Shultz
           -Peterson
           -State Department
     -Congress
     -Japan
           -Textiles, automobiles, steel
     -National control over economy and currency
           -Comparison with trade partners
                 -Japan, Germany, France, Italy, Great Britain
           -Effect on negotiations
     -Exchange rates
     -Legal basis
     -Balance of payments
     -Political value
     -Quotas
-Textiles
     -National security
           -Views of Mitchell, Maurice H. Stans, James D. Hodgson
           -Danger as precedent
                 -Steel
           -Gen. George A. Lincoln
                                             26

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                       (rev. 10/06)
                                                               Conv. No. 273-20 (cont.)


                     -Precedent
               -Import tax
               -Japan
               -Mitchell’s forthcoming legal opinion on GATT
                     -Import taxes
                     -Quotas
                     -Devaluation
               -National security
               -GATT
          -Solutions
               -Combination
          -Problems
               -Monetary crisis
                     -Short-term
               -International monetary crisis
                     -Balance of payments
               -Domestic economy
                     -Inflation
                     -Expansion
                     -Presidential leadership
               -International leadership
          -Import tax
               -US negotiating posture
                     -Japan
                           -Quotas
                           -US leadership
                           -US industry
               -Possible legislation
                     -Limitation to tax
                           -Veto

Sanchez entered at an unknown time after 5:30 pm.

     Unknown request by the President

                -Unilateral action
                     -Congress
                     -Possible suit
                            -Supreme Court

Sanchez left at an unknown time before 7:00 pm.
                                          27

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/06)
                                                          Conv. No. 273-20 (cont.)



                -Trading with the Enemy Act
                -Trade Agreements Act
     -Timing of announcement
          -Mitchell
          -PRC announcement
     -Preparation
          -Peterson's memo to President
          -Spring 1971 Deutschemark crisis
     -Effect

President’s schedule
     -Forthcoming meeting at Camp David
           -Volcker
           -Lawyer
                 -Justice Department
                 -Treasury Department
                       -Roy T. Englert
           -Weinberger
                 -Dan Whitlay [?] [sp?]
           -Burns
           -Peterson
           -McCracken
           -Herbert Stein
           -Henrik S. Houthakker
           -Stein
                 -McCracken
           -Ehrlichman
           -Agenda
                 -Stein
                 -Volcker
                 -Preparation by participants
                 -Meetings
                 -Speechwriter

President's forthcoming speech
     -H. R. (“Bob”) Haldeman
            -Ronald L. Ziegler, Herbert G. Klein
     -Speechwriter
            -Stein
                  - The Discouraging Player
                                        28

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/06)
                                                          Conv. No. 273-20 (cont.)


                -William L. Safire
          -Structure
          -Safire
          -Stein
          -Treasury Department
                -Raw material
          -Stein

President’s schedule
     -Forthcoming meeting at Camp David
           -Schedule
           -Agenda
                 -Investment tax credit
                      -Percentage
                 -Import tax
                 -GATT
                 -Meetings


President's possible speech
     -Preparation
            -Burns
            -Possible statement
            -Timing
                 -August 15, 1971
                        -Advantages
                            -Preempting speculation
                            -International markets
            -Effect
                 -Significance of proposals

President's schedule
     -Wolf Trap National Park performance
            -Mrs. Nixon
     -Forthcoming meeting at Camp David
            -Stock market
                                               29

                           NIXON PRESIDENTIAL MATERIALS STAFF

                                       Tape Subject Log
                                         (rev. 10/06)
                                                                Conv. No. 273-20 (cont.)


                -Possible New York Times story
                -Unknown person
                -Klein

Connally and Shultz left at 7:00 pm.