Easy NixonContactAbout

Conversation: 500-030

Prev: 500-029 Next: 500-032

Start Date: 18-May-1971 5:05 PM

End Date: 18-May-1971 6:34 PM

Participants:

Nixon, Richard M. (President)Shultz, George P.Klein, Herbert G.Lubar, RobertMichaels, James W.Young, Lewis H.Bleiberg, Robert M.Evans, Joseph E.Wooldridge, [Pawhatan] Jack, Jr.Brady, Raymond J.Mulloney, ThomasFleiger, Howard W.Loeb, MarshallBernstein, LesterGemmill, HenryWhite House photographerWhite House operator

Recording Device: Oval Office

Full Tape Conversation Start Time: 04:40:02

Full Tape Conversation End Time: 05:56:34

500a.mp3

500b.mp3

500c.mp3

500d.mp3

NARA Description:

On May 18, 1971, President Richard M. Nixon, George P. Shultz, Herbert G. Klein, Robert Lubar, James W. Michaels, Lewis H. Young, Robert M. Bleiberg, Joseph E. Evans, [Pawhatan] Jack Wooldridge, Jr., Raymond J. Brady, Thomas Mulloney, Howard W. Fleiger, Marshall Loeb, Lester Bernstein, Henry Gemmill, White House photographer, and the White House operator met in the Oval Office of the White House from 5:05 pm to 6:34 pm. The Oval Office taping system captured this recording, which is known as Conversation 500-030 of the White House Tapes.

Nixon Library Finding Aid:

Conversation No. 500-30

Date: May 18, 1971
Time: 5:05 pm - 6:34 pm
Location: Oval Office

The President met with George P. Shultz, Herbert G. Klein, Robert Lubar, James W. Michaels,
Lewis H. Young, Robert M. Bleiberg, Joseph E[arly] Evans, [Powhatan] Jack Wooldridge, Jr.,
Raymond J. Brady, Thomas Mulloney, Howard W[entworth] Fleiger, Marsahll Loeb, Lester
Bernstein, and Henry Gemmill; the White House photographer was present at the beginning of
the meeting; discontinuities appear in the original recording.

     Greetings

     Pictures
                                       51

                       NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                   (rev. 9/08)



Introductions

Seating arrangements

Purpose of meeting

Foreign policy

Dinner
     -Paul W. McCracken, Peter G. Peterson, Maurice H. Stans
     -Decatur House

Economic policy
    -President's May 18, 1971 meeting with legislative leaders
    -Balance of payments, trade policies, quotas
    -Future of US
          -Impact
    -Japanese and European production since World War II
    -Edward R.G. Heath
          -Labor, trade
    -Japan
    -East-West relations
          -Dollar crisis
          -US economic assistance
    -US trade policy
    -US defense policy
          -Japan, Germany, Europe
    -Protectionism
          -Congressional sentiment, public opinion
          -President's experience as Vice President under Dwight D. Eisenhower
          -Business Council
          -President's experience as Vice President
                -Steel
          -Japan
                -Automobiles
                      -West Coast sales
          -Business Council
          -US competitiveness
                -Peterson
                -Research and development
                -Great Britain
                                        52

                      NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                   (rev. 9/08)



Shultz's role in meeting

Balance of payments
     -"Dollar crisis"
           -Economists' views
                 -Federal Reserve Board, Department of the Treasury, Council of
                      Economic Advisors [CEA]
                 -Milton Friedman's article                     Conv. No. 500-30 (cont.)
                      -German economy
     -International monetary conference
           -Bretton Woods
           -Gold
                 -Arthur F. Burns’ position
           -Japan
           -Germany
           -Administration policy
                 -Need for clarity of position
           -Netherlands
           -Switzerland
           -Germany
           -Belgium
     -US interest rates
           -Compared with European rates
     -Exchange rates
           -Fluctuations
           -John B. Connally
           -US interest rates
     -Interest rates
           -US policy
                 -The President’s position

US competitiveness
     -Peterson
     -Steel industry
           -US share of world market
     -Exports
           -International lending
                 -Export-Import Bank, Inter-America Development Bank, World Bank
                       -Germany
                             -Lutshansa
                       -US policy
                       -Effect on US economy
                                         53

                    NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                   (rev. 9/08)



                -Trans World Airlines, American Airlines
                -Stimulation of exports
                     -Boeing
                -Subsidy
                     -Size, effect
                     -Henry Kearns
                     -Government subsidies
          -Japan                                                Conv. No. 500-30 (cont.)
          -American producers
          -Kearns
          -Office of Management and Budget [OMB]
                -Shultz
          -Competition
                -Japan
                -Europe
                     -Germany
                     -France
                           -Latin America
                           -Africa
                           -Arms sales
                                 -Melvin R. Laird
                                 -US foreign policy interests
                                      -Western Hemisphere

Inflation
      -Monetary policy
      -Budgetary policy
          -Congressional action
          -Full employment, full capacity
                -Definition
                -Balanced budget
                -1958 Eisenhower administration experience
          -Government responsibility
          -Full employment
                -Effect
          -Health programs advocated by Senate
                -Effect
          -President's policy
                -Vetoes
                -Shultz
                -Wage-price policy
                -Labor-management
                                         54

                       NIXON PRESIDENTIAL MATERIALS STAFF

                                  Tape Subject Log
                                     (rev. 9/08)



                  -Wage-price controls
                  -Inflation
        -Monetary policy
        -1968 experience
             -Deficits
             -Federal Reserve Board monetary policy
        -Wage and price controls
                                                            Conv. No. 500-30 (cont.)
Steel
        -Negotiations
        -Steel industry
        -Labor
        -Wages, prices
        -Productivity and investment increases
        -Labor relations
        -Strike in 1959
              -James P. Mitchell
              -Roger M. Blough and Conrad Cooper[?]
              -Work rules

Organized labor
    -Work rules
          -Railroad strike
          -Bechtel Corporation
          -National Commission on Productivity
                -Union leaders
          -Effect

US economy
     -Peterson’s forthcoming report
     -Purpose of President's forthcoming speech
           -Labor, management
     -Current status
           -Supersonic Transport [SST] vote, May 19, 1971
                -Termination costs for Boeing
     -Nuclear power
           -Environment
     -Tradition
     -Competition
           -Japan and Germany
                -Defense capabilities
           -People's Republic of China [PRC]
                                      55

                 NIXON PRESIDENTIAL MATERIALS STAFF

                             Tape Subject Log
                                (rev. 9/08)



       -Europe
            -Great Britain, Italy, Spain, France
       -Germany and Japan
            -Economic role
-SST
      -Time of flight to Paris
      -Importance
-Automobiles                                                Conv. No. 500-30 (cont.)
      -Japan
            -Costs
      -President's meetings with heads of General Motors, Ford and Chrysler
            -Airbags, seatbelts
      -Effect of safety devices on costs
            -American, foreign cars
      -Environment
      -Safety
-Steel industry
      -President's possible role
      -Workers
      -Future
            -Modernization efforts
                  -Compared with Germany and Japan
-President’s view on competition
-Public opinion
-Computers
      -USSR
-Public opinion
      -Labor and business leaders
-Future
      -Military superiority
      -Public opinion
      -Labor-management bargains
-Congress
      -Proposals regarding labor and management relations
            -Wagner Act, Taft-Hartley Act
      -Transportation
            -Compulsory arbitration
                  -Railroad strike
      -Reasons
      -Public opinion
-Peterson
-Business
                                   56

               NIXON PRESIDENTIAL MATERIALS STAFF

                           Tape Subject Log
                              (rev. 9/08)



      -President's meetings
      -Leadership
-Labor unions
      -Objectives
            -Samuel L. Gompers
      -Membership
      -Great Britain
      -Labor-management relations                            Conv. No. 500-30 (cont.)
            -Congress, public opinion
            -Taft-Hartley Act passage in 1947
                  -President's role
                  -Harry S. Truman's veto
                  -Effect of public opinion
-Productivity competition
-Antitrust laws
      -Connally
      -Regulations
      -Sherman Anti-trust Act
      -International competition
      -Review by administration
      -Mergers
      -Tom Sullivan's statement at previous Quadriad meeting
      -Shultz
            -University of Chicago background
            -Position
      -Trends in last thirty to forty years
-Peterson's report
      -Possible effects
            -Trade policy
            -Wage and labor management policy
            -Antitrust policy
-Government subsidies for research and development
      -Levels
      -Desalinization
            -Breeder reactor
                  -Benefits
                        -Energy costs
            -"New water"
                  -Uses
            -Program
                  -Office of Saline Water in Department of the Interior
                  -President's previous meeting
                                   57

               NIXON PRESIDENTIAL MATERIALS STAFF

                           Tape Subject Log
                              (rev. 9/08)



                  -Status of research
                  -Compared with Japan, Great Britain, Germany, USSR
            -Government and private contributions
                  -Compared with highway program
                  -Texas, Oklahoma, Southern California
      -Possible action
      -Highway trust fund
-Legislation in current Congress                            Conv. No. 500-30 (cont.)
      -House Ways and Means Committee
      -Welfare reform
      -Revenue-sharing
      -Health benefits
      -Tax reform
            -Wilbur D. Mills
            -Previous bill
            -Review of tax code
            -US competitive position
            -Use of tax system
                  -President education
                        -Duke University Law School
                              -Charles Lucien baker Lowndes
                                    -View on tax system
            -Tuition tax credit
                  -Views of Treasury Department
            -Connally
-Free trade
-US role in the world
-President’s view on protectionism
      -Adam Smith
      -Public opinion
      -Protectionism
            -Effect
      -Time cover story
      -East-West trade
      -International monetary policy
      -USSR
      -Japan
            -Textiles
                  -Eisaku Sato
            -Trade policy
                  -Effect on American companies
            -Regulations
                                        58

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                   (rev. 9/08)



                     -James M. Roche
                     -General Motors truck plant
                -Orientation towards the West
                     -Importance
                -Negativity ability
                     -President's legal experience
                -Textiles
                     -Peterson                                 Conv. No. 500-30 (cont.)
                     -Quotas
          -Long-term
          -American educational system
          -Businessmen
          -President’s policies
          -Long-term
                -Foreign affairs
                     -Vietnam War, arms policy, PRC initiative
          -World War I and World War II
                -Effect on Western Europe
                -Trade prior to conflicts

Business editors dinner, May 18, 1971
     -Decatur House
          -Location

Foreign policy
     -American people's responsibility
           -American people
                 -President’s view
                       -Vision
                       -Practicality
                       -Pragmatism
           -World War II effects
     -Monetary policy
           -International monetary conference
           -Gold prices
           -Interest rates
                 -Federal Reserve Bank
     -US unemployment
     -Importance of strong US economy
           -The President’s policies
     -International monetary situation
     -Trade policy
                                               59

                              NIXON PRESIDENTIAL MATERIALS STAFF

                                        Tape Subject Log
                                           (rev. 9/08)



              -Labor relations policy
              -Tariffs and quotas
              -US tax policy
              -Antitrust policy

      Gifts
              -Presidential cufflinks
              -Presidential golf balls                               Conv. No. 500-30 (cont.)
                    -Presidential seal
                    -Donald McI. Kendall, Wilson Sporting Goods
              -Cufflinks
                    -Cost
                    -Seal
              -A Group interested in US policy in Israel
                    -Previous meeting with the President
                    -Golda Meir
                          -Relations with US
                    -Presentation of gifts

      Tricia Nixon's wedding
            -Preparations in Rose Garden
                 -White flowers
                 -Previous White House weddings
                       -East Room
                       -Tricia Nixon’s view

      Democrats

      Decatur House
           -Ownership
           -Daughters of American Revolution, Society of the Cincinnati

Shultz, et al., left at 6:34 pm.
     Previous meeting
            -Results

The President talked with the White House operator at 6:34 pm.

[Conversation No. 500-30A]

[See Conversation No. 3-60]
                                               60

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                        Tape Subject Log
                                           (rev. 9/08)



Klein left at 6:34 pm.