Conversation No. 624-13

Date: November 24, 1971
Time: 10:01 am - 11:40 am
Location: Oval Office

The President met with John B. Connally, John D. Ehrlichman and George P. Shultz.
[The recording begins at an unknown time while the meeting is in progress]

     National economy
          -Unknown man's report
                -Phase II
          -Revenue-sharing
          -Polls
                -Taxing and spending

     Council of Economic Advisors [CEA]
         -Herbert Stein's role
                -Announcement
                                            18

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/06)



           -Paul W. McCracken
           -Shultz
           -Spokesman
           -Arthur F. Burns
           -Connally and Shultz
           -International monetary situation
                 -Henry A. Kissinger, Connally and Shultz
           -The President’s view

Fiscal Year 1973 budget
     -Value Added Tax [VAT]
           -The President's schedule
                 -Forthcoming meeting
                       -Connally
     -Tax credits for parochial schools
     -Revenue sharing
     -Deficit
     -Effect on national economy
     -Political effect
           -Rhetoric
     -VAT
     -Balanced budget
           -Possible congressional action
           -VAT
     -Domestic Council poll
           -Taxes
           -Spending
           -National defense
           -Balanced budget
           -Inflation
     -VAT
           -Property taxes
           -Balanced budget
     -Poll
           -National defense
           -Balanced budget
     -Fiscal Year 1972 budget
           -Outlays
                 -Revenue sharing
           -Revenue estimate
                 -Congress
                                             19

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/06)
                                                               Conv. No. 624-13 (cont.)


               -Deficit
                     -Possible congressional action
          -Balance
          -National defense
               -Shultz's consultation with Kissinger
                     -Previous meeting with the President
               -Increase
          -Uncontrollable items
               -Fiscal Years 1972 and 1974
          -Revenue sharing
          -House Resolution [HR] 1

An unknown man entered at an unknown time after 10:01 am.

     Phone
         -Request to hold calls

The unknown man left at an unknown time before 11:36 am.

     Fiscal Year 1973 budget
          -Deficit
                -Tax yield
                     -Fiscal Year 1972
          -Revenue
                -Possible congressional action
          -Connally and Caspar W. (“Cap”) Weinberger
          -Deficit
          -Compared with Fiscal Year 1972 budget
                -Supplemental request
                     -Space program

     Connally's schedule
         -Forthcoming meeting with the President
         -[Unintelligible] judge
         -Rolf Pauls

An unknown man entered at an unknown time after 10:01 am.

     The President's schedule
          -Departure for California
          -Connally
                                           20

                         NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                       (rev. 10/06)
                                                              Conv. No. 624-13 (cont.)


          -Stephen B. Bull
          -Thelma C. (“Pat”) Nixon

The unknown man left at an unknown time before 11:36 am.

     Connally's schedule
         [Unintelligible] judge

     Fiscal Year 1973 budget
          -Federal expenditures
                -Effects
                      -Democrats
          -Balance
          -Revenue sharing
                -Possible congressional action
          -Fiscal Year 1972 budget
                -Effect
          -Balance
                -Changes
                -Effect
          -Congressional spending
          -Pending tax bill
                -The President’s view
                -Child development
          -Effect on business community
                -Burns
                -Full employment
          -Narcotics task force
          -Research and development
          -Politics
          -Polls
                -National malaise
                -Elmo Roper
                -Public associates
          -National goals
          -National growth policy
                -New cities
                -Economic development of Mid-West
                -Education
                      -Job training
                      -Revolving fund
                            21

         NIXON PRESIDENTIAL MATERIALS STAFF

                    Tape Subject Log
                      (rev. 10/06)
                                                   Conv. No. 624-13 (cont.)


      -Funding comparison to the Inter-American Development Bank and World
            Bank
-Environment
      -Edmund S. Muskie's water quality bill
            -Ehrlichman’s view
            -Possible veto
                  -Politics
      -Waste treatment
      -The President’s view
      -Poll
            -White House formulation of questions asked
      -Water quality bill
            -Possible veto
            -Editorial support
-Research and development
-National growth policy
      -Population shift to Mid-West
            -Jobs
      -Organizational structure
            -New cities
      -Prospects of success
-Shultz, Peter G. Peterson and Peter M. Flanigan
-Bureaucracy's views
      -Jeb Stuart Magruder
-Ailing industries
      -Aerospace, airlines and railroads
            -Government reorganization
-International competition
-Ailing industries
      -Possible subsidy
-International competition
      -Tax laws, research and development and career education
-Federal management of Office of Science and Technology [OST]
      -Changes in bureaucracy
            -Science Advisor
            -Office of Management and Budget [OMB]
      -Possible projects
      -National Aeronautics and Space Administration [NASA]
            -Ehlrichman’s view
      -OMB
      -OST
                                 22

              NIXON PRESIDENTIAL MATERIALS STAFF

                         Tape Subject Log
                           (rev. 10/06)
                                                        Conv. No. 624-13 (cont.)


                 -The President’s view
                      -Richard P. Feynman
                 -Albert Einstein and Franklin D. Roosevelt
                      -Atomic bomb
                 -Lobbying
                      -Executive Office of the President [EOP]
                 -Personnel
           -Atomic Energy Commission [AEC]
                 -James R. Schlesinger
           -National Bureau of Standards [NBS]
-Narcotics task force
     -Treasury Department
           -Eugene T. Rossides and Martin R. Pollner
     -John N. Mitchell
     -Street pushers
     -Myles J. Ambrose
     -Politics
     -Bureaucratic struggle
           -Drug Enforcement Agency [DEA], Bureau of Customs
                 -Connally’s view
     -Ambrose and Rossides
           -Connally’s view
     -John E. (“Jack”) Ingersoll
           -The President’s view
     -Connally's meeting with Mitchell
     -Bureaucratic struggle
           -DEA and Bureau of Customs
     -Politics
-Revenue sharing
-Welfare reform
-Space program
     -Two launches
           -17,500 employees
           -Timing
                 -1972 election
                      -The President’s view
     -Jobs
     -Space shuttle
     -Launches
           -The President’s view
                 -Amchitka
                                  23

               NIXON PRESIDENTIAL MATERIALS STAFF

                          Tape Subject Log
                            (rev. 10/06)
                                                          Conv. No. 624-13 (cont.)


           -Political risk
                 -1972 election
                 -Apollo 13
           -Timing of next launch
     -Ongoing programs
           -Space shuttle
                 -Jobs in California
                        -Ronald W. Reagan
                 -Speed of development
     -Political support
           -Compared with agriculture issues
                 -The President’s view
     -Space shuttle
     -Skylab
     -Future projects
           -Manned compared to unmanned craft
                 -Other satellites
-Rapid mass transit
     -Caspar W. (“Cap”) Weinberger's views
     -John A. Volpe
     -Emphasis
     -Connally’s view
           -Publicity
     -Political value
     -Volpe
     -Effect on cities
           -Community development
           -Jobs
                 -Subway system
     -Political value
           -Volpe's activities
                 -International treaties
     -Northeast corridor
     -San Francisco-San Diego-Los Angeles corridor
     -Mid-West
     -Publicity
-Agriculture
     -Earl L. Butz
           -Commitments to farm organizations
                 -Edwin L. Harper's conversation with Ehrlichman
     -Corn and wheat price support
                                  24

               NIXON PRESIDENTIAL MATERIALS STAFF

                          Tape Subject Log
                            (rev. 10/06)
                                                         Conv. No. 624-13 (cont.)


            -Corn blight in 1972
      -Stockpiles
            -Sales
-Mental health
      -The President's previous meeting
      -Community mental health centers
            -Elliot L. Richardson
            -Lyndon B. Johnson
                  -The President’s view
-Community assistance
-Model cities
      -George W. Romney
      -Revenue sharing
      -National growth policy
      -Purpose
            -The President’s view
      -Cosmetic improvements to slums
            -Possible organized national effort
                  -Connally’s view
            -Washington, DC program
                  -Walter E. Washington
                  -Trash collection
            -National guard
      -Miami housing project
            -The President's previous visit
      -Pruitt-Igoe (St. Louis housing project)
            -Status
      -Private ownership of public housing units
-Post Office
      -Rate increase for magazines
      -Reader's Digest
      -Subsidy
      -Rate increase for magazines
            -The President’s view
                  -Congress
            -Legal requirements
            -Possible effect
                  -Hedley W. Donovan
-Aged
      -Ehrlichman's forthcoming meeting with Arthur S. Flemming
      -Views of Flemming and Richardson
                                  25

               NIXON PRESIDENTIAL MATERIALS STAFF

                          Tape Subject Log
                            (rev. 10/06)
                                                         Conv. No. 624-13 (cont.)


      -Views of [Forename unknown] Burchang [sp?]
      -Subsidy for prescription drugs
      -Real estate taxes
-Interest groups
      -Politics
            -The President’s view
                  -Farmers and aged
                  -Blacks and Jews
-Aged
      -Social Security increase
            -Timing
      -Possible use of vacant military bases
-Water projects in west
      -Rogers C. B. Morton
-Federal employees' pay
      -Possible amendment to Economic Stabilization Act
      -Pay Board
      -George H. Mahon's previous conversation with Shultz
            -Phase II
      -Increase
      -Federal employees
            -California and Texas compared with Washington, DC
      -Increase
            -Pay Board
            -Labor unions
-VAT
      -The President's schedule
            -Forthcoming meeting
-Federal employees' pay
      -Clark MacGregor's efforts
            -Forthcoming announcement in California
-National security
      -The President's schedule
            -Shultz, Kissinger and Connally
            -Ehrlichman
-Tax deduction for political campaigns
      -Possible veto
            -Congress's possible actions
      -Possible effects
      -Possible veto
            -William E. Brock III
                                              26

                             NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/06)
                                                                  Conv. No. 624-13 (cont.)


                     -Hugh Scott
                -Possible effect
                     -The President’s view
                     -Union contributions
                -Founding Fathers' limitation on franchise
                     -Present situation
                -Possible effect

Ehrlichman and Shultz left at 11:36 am.

     The President's schedule
          -Connally, Burns, Shultz and Kissinger

     International monetary situation
           -Burns's views
                -Conversation with Connally
                -Convertibility
                -International Monetary Fund [IMF]
                -Import surcharge

     National economy
          -Money supply
                -Flanigan's efforts
                     -Connally's conversations
                           -Burns
                           -Flanigan
                -Connally's conversation with Burns

     The President's schedule
          -Forthcoming meeting

Connally left at 11:40 am.