Conversation: 554-007
Prev:  554-006 Next: 554-008Start Date: 4-Aug-1971 2:19 PM
End Date: 4-Aug-1971 2:55 PM
Participants:
Nixon, Richard M. (President); Connally, John B.; Bull, Stephen B.; Shultz, George P.; Sanchez, Manolo; Recording Device: Oval Office
Full Tape Conversation Start Time: 02:36:07
Full Tape Conversation End Time: 03:55:37
NARA Description:
On August 4, 1971, President Richard M. Nixon, John B. Connally, Stephen B. Bull, George P. Shultz, and Manolo Sanchez met in the Oval Office of the White House from 2:19 pm to 2:55 pm. The Oval Office taping system captured this recording, which is known as Conversation 554-007 of the White House Tapes.
Nixon Library Finding Aid:
Conversation No. 554-7 Date: August 4, 1971 21 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 554-6 (cont.) Time: 2:19 pm - 2:55 pm Location: Oval Office The President met with John B. Connally. Connally’s schedule -Forthcoming trip President’s schedule -Trips -Workload -H. R. (“Bob”) Haldeman Unknown reading material -Cartoon [?] Economy -Press conference -Connally's assessment -Foreign policy -Wage and price policy -Arthur F. Burns and George P. Shultz -Pay increase -Burns -Monetary and fiscal policy -Agreement with the President Stephen B. Bull entered at an unknown time after 2:19 pm. Shultz’s [?] arrival Bull left at an unknown time before 2:55 pm. -Duration -Left-wing theories -John Kenneth Galbraith -Performance or short-term -Need for enforcement procedures -Bureaucracy -Penalties -Secretary of Labor [James D. Hodgson] 22 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 554-7 (cont.) -Negotiations -National Commission on Productivity -Forthcoming meeting -Enforcement -Government action -Connally’s line -National Commission on Productivity -Cooperation with Congress -Scope -Small and big business -Enforcement -Wage and price board -Need for action -Business -Negative impressions -News magazines -Wall Street -Consumer Price Index [CPI] -Leading indicators -Retail sales, silver standard, housing, construction, inventories -Unemployment rate -Figures -Estimates -Burns -Burns -Inflation -International market action -Gold window -French action -Impact on exchange rates -Belgium, Netherlands -Swiss -Swiss proposal -Two rate system -Penalties -French business -Dollar speculation -Dollar intake -Switzerland, Belgium, France -French action -Valery Giscard D'estaing's recent speech 23 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 554-7 (cont.) -Holding dollars -Control on dollar speculation -Stock market -British -Japanese -France -West Germany -Dutch, Belgians -Impact of policies on US -International Monetary Fund [IMF] -Domestic economy -Psychological impression -Figures -Need for change -Prognosis -Connally's meeting with Charles W. Colson, Peter M. Flanigan, Paul W. McCracken -Pessimism -Congress and media -Negative factors -International conditions -Dollar's standing -Steel settlement -Pierre Rinfret's comments -Investment tax credit -Political strategy -Memoranda’s business -Wilbur D. Mills -Critics -Interest rates -Inflation -Money supply -Interest rates -Prime rate -Meeting -Connally and bankers -Lockheed -Bank of America -[Louis B. Lundborg] -Morgan guarantee -American Bankers Association 24 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 554-7 (cont.) -Connally’s remarks -Interest rates -Investment bankers -Connally's remarks -Turning point -Change in attitude -Need to face problems -Congress -International -Defense -Space -Demobilization -Employment -International -Japan -US automobile industry -Ford, Chevrolet, Plymouth -Datsun, Toyota -Germany -Volkswagen -Textiles -President’s focus -Foreign affairs -Domestic affairs -Business community -Connally's recommended response -Timing -Japanese businessmen’s meeting -Possible cancellation -David M. Kennedy’s view -Dinner with the President -Forthcoming IMF and World Bank -President's press conference -Connally’s statement -Burns -Need to turn tide -Connally's stampede analogy -Lack of Congressional allies -Democratic Congress -Unemployment during Democratic administration -Lack of publicity 25 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 554-7 (cont.) -Placement of blame -Michael J. Mansfield's statement -1960's conditions -Contact with Shultz Reorganization -Burns -Federal Reserve Board [FRB] -Fear of takeover by Treasury Department -Ash Council -Office of Management and Budget [OMB] -Shultz -Shultz’s suggestion -Burns -Control banker Shultz entered at an unknown time after 2:19 pm. Edwin S. Cohen's meeting with Connally -Larry Woodruff and Mills -Proposed tax program -Tax code -Timing -Import tax -Investment tax credit -Shipping taxes -Liberian, Panamanian, Greek ships -Shipping tax -Standard deduction raise -Value-added tax -Property tax reduction -Depreciation on new plant equipment -Cohen’s response -Morale of division -Connally's response -Woodruff and Mills -Similarity of views to Administration’s -Cohen -Previous tax bill -Interest in preparing law -House Ways and Means Committee 26 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 554-7 (cont.) -Cohen Manolo Sanchez entered at an unknown time after 2:19 pm. ********************************************************************** BEGIN WITHDRAWN ITEM NO. 4 [Personal Returnable] [Duration: 17s ] END WITHDRAWN ITEM NO. 4 ********************************************************************** Sanchez left at an unknown time before 2:55 pm. -Cohen -Interest in politics -Value-added tax Busing -Dallas -John D. Ehrlichman -President's statement [on Austin case, August 3, 1971] -Dallas -Press coverage -Administration plan -Importance -Austin Economy -Connally -Pressures for action -Rinfret -Tax reform -Negative impressions -News media -Time, Newsweek, New York Times, Washington Post 27 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 554-7 (cont.) -Reaction to President’s foreign policy initiatives -1972 election -Partisan split -Foreign policy -People’s Republic of China [PRC] initiative -Democrats -Psychological recession -Unemployment -Inflation -Consumers -Business community -Attitude -Inventories -Publicists -Effects -Administration response -Wage and price controls -Consumers -Negative attitude -Time, Newsweek, Dun's, Rinfret, Fortune Sanchez entered at an unknown time after 2:19 pm. ********************************************************************** BEGIN WITHDRAWN ITEM NO. 5 [Personal Returnable] [Duration: 9s ] END WITHDRAWN ITEM NO. 5 ********************************************************************** Sanchez left at an unknown time before 2:55 pm. Economy -Negative impressions -Business leaders and politicians 28 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 554-7 (cont.) -Television -Dan Rather -Need to counteract -Proposed administration actions -Timing -President’s press conference answers -Wage and price board -National Commission on Productivity -Timing -Holding action -Congress -Return from recess -Budget -Blue-collar workers -House Resolution [HR] 1 -Symbolism -Fiscal restraint -Import tax, excise tax, investment tax credit -Investment tax credit -Percentage -Research and development -Budget -Space program cutbacks -Jobs -Manned space flights -Symbolism -Cost -Scientific value of flights -Manned space flights -H. R. 1 -Russell B. Long -Wage and price freeze -Import tax -Inflation -Enforcement -Comprehensiveness -Possible study -Possible leaks -Consequence -Recommendations -Jacob K. Javits and allies 29 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 554-7 (cont.) -National Commission on Wages and Prices -Wage and price board -Connally’s view -Shultz's view -Problem of removal of freeze -Guidelines -Negative impressions -Wage and price freeze -Psychological effect -International -Stock Market -Newspapers -Chicago Tribune -Texas -Ohio -Iowa -Shultz's meeting with Senators -Gordon L. Allott -Colorado unemployment rate -Budget deficit -Administration’s response -Psychological terms -World War II analogy -Press -Ezra T. Benson -Symbolism -Wage and price freeze -Impact -Duration -Wage and price board -Price increases -Timing -Connally's recommendations -Separate imposition on as part of package -Political aspect -President’s view -Reasons for delay -Thorough analysis -Avoiding precipitous action -Congress’ return -Connally’s recommendations 30 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 554-7 (cont.) -Forthcoming meetings -Japanese visitors -Finance ministers and central bankers -Consultation with governments -Closing gold window -Confidentiality -Peter G. Peterson -The President, Connally, Shultz -H. R. (“Bob”) Haldeman -Line -Budget -Controls -President's instructions to Shultz -Treasury, Commerce Departments and FRB -Equalization tax -Congress -Division of responsibility -Office of Emergency Preparedness [OEP] -Contingency plans -Wage and price board -Study proposal -Republican request -Testimony -Administration -OEP -Bureaucracy -Treasury Department -Internal Revenue Service [IRS] -Secret Service -Banks -Administration proposals -Woodruff -Excise tax -Property tax reduction -Budget -Revenue sharing -Future Congressional action -Personal exemptions -Investment tax credit -Mills -President’s bill 31 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 554-7 (cont.) -Health insurance -Tax proposals -Health insurance -Timing -Strategy -Spending delay -Nelson A. Rockefeller -Significance -Connally’s metaphor -Wage and price board -Timing -Freeze -Political appeal Connally left at an unknown time before 2:55 pm. President’s schedule -Burns Economy -Public psychology -Burns -Statement -Democratic action -August 1971 -Burns Shultz left at 2:55 pm.