Conversation: 273-020
Prev:  273-019 Next: 273-021Start Date: 12-Aug-1971 5:30 PM
End Date: 12-Aug-1971 7:00 PM
Participants:
Nixon, Richard M. (President); Bull, Stephen B.; Connally, John B.; Shultz, George P.; Sanchez, Manolo; [Unknown person(s)]; Recording Device: Old Executive Office Building
Full Tape Conversation Start Time: 02:01:40
Full Tape Conversation End Time: 03:38:09
NARA Description:
On August 12, 1971, President Richard M. Nixon, Stephen B. Bull, John B. Connally, George P. Shultz, Manolo Sanchez, and unknown person(s) met in the President's office in the Old Executive Office Building from 5:30 pm to 7:00 pm. The Old Executive Office Building taping system captured this recording, which is known as Conversation 273-020 of the White House Tapes.
Nixon Library Finding Aid:
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.