Conversation No. 516-11

Date: June 10, 1971
Time: 4:25 pm - 5:18 pm
Location: Oval Office

The President met with John D. Ehrlichman and Egil (“Bud”) Krogh, Jr.Conv. No. 516-10 (cont.)

     Impressions of Dr. Jerome H. Jaffe

     Administration role
         -Department of Health, Education, and Welfare [HEW]
         -Drawbacks of bureaucracy
               -Sense of mission
         -Jaffe dealing with Pentagon
               -Earlier military
                     -Jaffe meeting
                     -Jaffe demeanor
                     -Brigadier General [Forename unknown] Gard [?]
                     -Military commitment to drug program
                           -Objections to Jaffe ideas

     Drugs as an issue
         -Attack on drugs
                -Problem with statistics
         -Department of Defense [DOD] attitude
                -Jerry W. Friedheim
                -Press relations
                -Congressional relations
         -Presentation of drug attack
         -Narcotics head
                -Qualifications
                -Myles J. Ambrose
                      -Qualifications
                            -US Customs Service
                      -Future plans
                            -Dispute between US Customs Service and Bureau of Narcotics and
                                  Dangerous Drugs [BNDD]
                      -Transfer to White House
                      -Creation of new position
                            -John E. (“Jack”) Ingersoll
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                            NIXON PRESIDENTIAL MATERIALS STAFF

                                       Tape Subject Log
                                         (rev. 10/08)



                             -Effect on Justice Department
                        -John N. Mitchell
                             -Attempts to hire Ambrose for Law Enforcement Assistance
                                   Administration [LEAA]
                        -Background of Justice and Treasury Department competition
                        -Outside offers
                        -Competition with Ingersoll
          -Personnel
               -Need for good man in Vietnam
               -General Gard possibility
               -Armed Forces attitude
          -Memo from President to Melvin R. Laird
          -Public relations
               -Advertising versus action
          -Drug problem
          -Use of parasites to destroy poppies
               -Dr. Edwin H. Land’s role
                      -Control of insects
               -Problems with insects
                      -Variable factors

Krogh left at 4:36 pm

     Ehrlichman’s schedule
           -Peter G. Peterson
           -George P. Shultz

     Economy
         -Railroad prospects
               -Revenue sharing
                    -Taxes
                    -Tunnel credits
                          -Internal Revenue Service [IRS] rules
                    -Impact on economy
                          -John A. Volpe role
               -National Railroad Passenger Corporation/American Track [AMTRAK]
                    -Ehrlichman’s view
                    -Volpe and Ray Haas [?]
                    -Vance Hartke
                    -Future money needs
                          -Office of Management and Budget [OMB] prospectus
         -Decision affecting employment
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                          NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/08)



                -Shultz role
                -Peterson role
                -Caspar W. (“Cap”) Weinberger
                -Peter M. Flanigan
                -Tax write-offs
                      -Effects
                -Use of federal money
                      -Benefits                                      Conv. No. 516-11 (cont.)
                -Increase in spendable income
                -Tax cuts as investment stimulus
                -Depreciations
                      -Changes
                      -Treasury role
                            -Law suit
                                 -Effect
                                 -Details
                                 -Current disposition

Flanigan entered at 4:42 pm

                -Peterson’s role
                -Shultz’s role
                -Weinberger’s role
                -Railroad plans versus personal income tax exemption cuts
                -Council of Economic Advisers [CEA] view
                      -Acceleration of personal exemptions
                -Stimulation of business
                -Problem of savings
                -Stimulate defense spending

Alexander P. Butterfield entered at unknown time after 4:42 pm

     Schedule

Butterfield left at unknown time before 5:18 pm

     Economy
         -Ship building in California
         -Flanigan role
              -Aid to employment
              -IRS rule on tunnels
                    -Effect on railroads
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                NIXON PRESIDENTIAL MATERIALS STAFF

                            Tape Subject Log
                              (rev. 10/08)



                  -Alternatives
-Justice Department problems
      -Mitchell
      -Opposition to mergers
            -Rock Island
            -Effect on railroads
      -Flanigan talk to Mitchell
            -Merger positions                        Conv. No. 516-11 (cont.)
            -Richard W. McLaren
      -Railroad problems
            -Penn Central
            -Mergers
      -Airline mergers
            -Ehrlichman’s study
            -Specifics
                  -Application to railroads
      -McLaren
            -Justice personnel
            -Merger view
      -Administration strategy
      -Railroad prospects
      -John B. Connally
-Aid to railroad
      -Passenger service
      -Highway Trust Fund
            -Railroad crossing money
            -Use as basis for aid
                  -Magnitude of aid
            -Use of money
                  -Legal requirements
            -Federal Highway Commission
                  -Francis C. Turner’s role
-Need to protect business
      -Employment emphasis
            -Accelerated depreciation tax credits
            -Money to consumers
            -Tax legislation prospects
            -Need for spending
            -Weinberger
            -Anti-trust concerns
            -IRS rules
            -Regulatory problems
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    NIXON PRESIDENTIAL MATERIALS STAFF

                Tape Subject Log
                  (rev. 10/08)



-Weinberger operation
     -Need for spending
-Construction project
     -Problems
           -Appropriations
     -General Services Administration [GSA] role
-Congressional problems
     -Jacob K. Javits action                    Conv. No. 516-11 (cont.)
           -House Resolution [HR] 1
           -Office of Economic Opportunity [OEO] extension bill
           -Details
           -Payments
           -Appropriation for ACTION
                 -Joseph H. Blatchford
           -Future of ACTION
           -Shultz
     -Administration action
           -Job creation
           -Money flow
-Housing
     -Interest rates
     -Subsidizing
     -Financing
           -George W. Romney role
           -Preston Martin role
                 -Savings and Loans
           -Romney role
                 -Federal Housing Administration [FHA]
-Spending prospects
     -Romney
     -Volpe
           -Highway
           -Mass transit
-Congressional problems
     -Mass transit money hold up
     -Spending
           -Weinberger’s view
     -Preliminary set up of programs
     -Location of spending projects
           -California
                 -Los Angeles
           -New York
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          NIXON PRESIDENTIAL MATERIALS STAFF

                     Tape Subject Log
                       (rev. 10/08)



                  -Pennsylvania
                  -Illinois
                  -Mass transit projects
                        -Los Angeles
                        -San Diego
                        -San Francisco
                        -Bay Area Rapid Transit [BART]
                  -Shipbuilding in California        Conv. No. 516-11 (cont.)
                  -Breeder reactor
                        -Orange County
            -Announcement of projects
                  -President’s participation
            -Nuclear power plant construction
                  -Earthquake restrictions
-Railroad problems
      -Government takeover
            -Problems
                  -Unions
      -Mergers
            -Justice Department role
            -Benefits
      -Airlines
            -Pan American role
            -Management problems
      -Najeeb E. Halaby role
            -Donald McI. Kendall
      -Problems
            -Over-competition
      -Trans World Airlines [TWA] prospects
            -Service
      -Pan American prospects
            -Effect of increasing competition
-Anti-trust problems
      -Administration image
      -Secor D. Browne
      -McLaren
      -Anti-trust Department
      -McLaren role
            -View of observers
                  -Mitchell role
            -Qualifications
                  -Legal skill in decision
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                NIXON PRESIDENTIAL MATERIALS STAFF

                           Tape Subject Log
                             (rev. 10/08)



                        -Role of legal skill in decisions
-Employment emphasis
      -Housing role
      -Transportation role
      -Location of other funds
            -DOD use
            -HEW
                  -Social security                            Conv. No. 516-11 (cont.)
                  -Education
                  -Welfare
                  -Elliot L. Richardson
      -HEW budget
            -Research products
                  -Location
                        -California
            -Dr. Edward E. David, Jr.’s role
                  -Memo from Ehrlichman
                  -Appointment with President
                        -Reason
                        -Spending of money
                        -Support of scientific community
                        -National Aeronautics and Space Administration [NASA]
                        -Environmental Protection Agency [EPA]
                        -Atomic Energy Commission [AEC]
            -California spending
                  -Veterans’ Administration [VA] hospital
                        -Yorba Linda
                  -Breeder reactor construction
                        -Design contracts
                        -Willard F. (“Al”) Rockwell, Jr. role
-International trade
      -Supersonic Transport [SST]
            -Japanese
            -William M. Magruder
      -Germans
      -Concorde
      -Japanese agreement prospects
      -German/American SST
            -Willy Brandt
            -Prospects
            -Benefits
                  -French
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                            NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                       (rev. 10/08)



                          -English
                          -Russians
          -Administrative regulations
              -Javits’ role
              -Anti-trust problem
              -Legislative strategy
                    -Congressional blame
              -Department of Transportation [DOT]                Conv. No. 516-11 (cont.)
              -Union problems
                    -Teamsters

     President’s schedule

Ehrlichman and Flanigan left at 5:18 pm