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Conversation: 551-011

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Start Date: 29-Jul-1971 1:01 PM

End Date: 29-Jul-1971 1:48 PM

Participants:

Nixon, Richard M. (President)Shultz, George P.

Recording Device: Oval Office

Full Tape Conversation Start Time: 04:17:00

Full Tape Conversation End Time: 05:04:35

551a.mp3

551b.mp3

551c.mp3

NARA Description:

On July 29, 1971, President Richard M. Nixon and George P. Shultz met in the Oval Office of the White House from 1:01 pm to 1:48 pm. The Oval Office taping system captured this recording, which is known as Conversation 551-011 of the White House Tapes.

Nixon Library Finding Aid:

Conversation No. 551-11

Date: July 29, 1971
Time: 1:01 pm - 1:48 pm
Location: Oval Office
                                              30

                           NIXON PRESIDENTIAL MATERIALS STAFF

                                       Tape Subject Log
                                         (rev. 10/08)



The President met with George P. Shultz.

     The President's July 29, 1971 schedule
          -Congressmen
          -Ambassadors
          -Distributive Education Clubs of America [DECA]
          -John G. Tower, William D. Eberle, Martin C. (“Marty”) Anderson
          -Amount of time                                          Conv. No. 551-10 (cont.)
     Economy
          -John D. Ehrlichman
          -Announcements
          -Leading indicators
                -Reason for decrease
          -Previous month's housing permits
          -Industrial materials prices
                -Indicator of expansion
          -July 28, 1971 event with Republican leaders
                -Dwight D. Eisenhower analogy
                -Carl B. Albert
                      -Health
                -George H. Mahon

     Steel industry
           -Offer
                 -I[lorwith] W. Abel
           -Cost-of-living escalation issue
           -J. Curtis Counts
           -Possible action by Shultz
           -Strike prospects
           -Steel strike deadline
                 -Momentum
           -Management offer
                 -Wage offer
                 -Administration's option

     Economy
         -Statistics
               -Inflation
                     -Recent trends
                          -1968, 1970, 1971
                          -Gross National Product [GNP] and Consumer Price Index [CPI]
                     -Arthur F. Burns’ comments
                                         31

                      NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/08)



                 -Progress
                 -Shultz's conversation with Republican Senators
                 -Options on wages and prices

Railroad industry
     -Willie J. Usery's trip to Cleveland
           -Meeting with Charles Luna
           -Prospects of negotiated settlement                  Conv. No. 551-11 (cont.)
     -Possible meeting of the President and railroad management and labor leaders
           -Format
                 -Postal Service meeting precedent
     -Option
           -Legislation
                 -Emergency Board recommendations
                       -Commerce Department
                 -Luna's comments about Congress
                 -Work-rules issue
     -Administration stance
           -Precedent
           -Management

Airline industry
      -Legislative action

Automobile industry
    -Profits
          -General Motors [GM]

Productivity Commission
     -Scheduled meeting
           -Possible statement by the President
     -Time magazine article
     -Effectiveness of commissions
     -Budget

International monetary issues
      -Treasury Department proposals
           -Cessation of gold convertibility
           -Dollar exchange rate float
           -Wage-price controls
      -Options
      -The President's conversation with John B. Connally
                                         32

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/08)



          -Peter G. Peterson
          -Timing of possible action
                -September, August
                -Forthcoming International Monetary Fund [IMF] meeting
     -Options
          -Treasury, Council of Economic Advisors [CEA]
                -Presidential action
          -Paul A. Volcker                                    Conv. No. 551-11 (cont.)

The economy
     -Wage and price freeze
           -President’s conversation with Connally
           -Timing
                 -Effect
           -Implementation separately or as part of package
     -Export rebates
     -Import tax
           -Peterson
     -Gold convertibility
     -Paul W. McCracken
     -Dollar float
           -Impact on jobs
           -Political effect
     -Action options
           -Connally, McCracken, Volcker, Peterson
           -Volcker
                 -Recommendations
                 -Viewpoint
                 -Burns
           -Congressional action
           -Volcker
                 -Judgment
     -GNP
           -Second quarter figures
     -Retail sales figures
     -Unemployment figures
     -Wholesale price index
     -International issues
           -Sensitivity
                 -Gold convertibility
                 -Paperwork
     -Unemployment
                                       33

                    NIXON PRESIDENTIAL MATERIALS STAFF

                               Tape Subject Log
                                 (rev. 10/08)



          -June 1971 figures
          -Unadjusted figures
                 -January 1970, May 1971, June 1971
          -Seasonal adjustment
                 -Unadjusted figures
          -Method of compilation
     -Comments
          -Pierre Rinfret                                    Conv. No. 551-11 (cont.)
          -Economic trends
     -Rinfret's forecast
     -McCracken’s presentation
     -Alan Greenspan

Budget
    -Defense Department
          -Coordination
                -Henry A. Kissinger
    -Office of Management and Budget [OMB]
          -Role
          -Kissinger
    -Defense Department staffing, funding and management
          -Navy
          -Air Force
          -Army
          -Post-1972 election action
    -Intelligence agencies
          -Caspar W. (“Cap”) Weinberger
          -Kissinger
                -Attitude
                      -Staff
          -Central Intelligence Agency [CIA]
          -Defense Intelligence Agency [DIA]
          -Forthcoming meeting request
    -General budget
          -Cuts
          -Balanced budget
          -Government workers
                -Increase in average salary (grade) levels
                -Effect of cuts of federal agencies
                      -Personnel costs
    -Minority business enterprises
          -Work with Maurice H. Stans
                                             34

                           NIXON PRESIDENTIAL MATERIALS STAFF

                                       Tape Subject Log
                                         (rev. 10/08)



                 -Handling
           -Timing
                 -Supplementals
           -Fiscal year 1972
                 -Amount of income
           -Confidence of the public in the economy
                 -Businessmen
           -Appropriations bills                                      Conv. No. 551-11 (cont.)
                 -Commerce Department
                 -Agriculture Department
                 -Health, Education and Welfare [HEW] Department
           -President's budget goals compared to Congressional action
           -Shift of defense appropriation
           -Congressional responsibility for budget increases
           -Revenue sharing versus responsible budgeting

The President and Shultz left at 1:48 pm.