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Conversation: 634-016

Prev:  634-015 Next: 634-017

Start Date: 9-Dec-1971 4:59 PM

End Date: 9-Dec-1971 5:54 PM

Participants:

Nixon, Richard M. (President)Connally, John B.

Recording Device: Oval Office

Full Tape Conversation Start Time: 02:10:41

Full Tape Conversation End Time: 03:05:26

634a.mp3

634b.mp3

NARA Description:

On December 9, 1971, President Richard M. Nixon and John B. Connally met in the Oval Office of the White House from 4:59 pm to 5:54 pm. The Oval Office taping system captured this recording, which is known as Conversation 634-016 of the White House Tapes.

Nixon Library Finding Aid:

Conversation No. 634-16

Date: December 9, 1971
Time: 4:59 pm - 5:54 pm
Location: Oval Office

The President met with John B. Connally.

     Connally’s schedule
                                         19

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/06)
                                                          Conv. No. 634-16 (cont.)


Tax bill
     -Call to Wilbur D. Mills
           -The President’s foreign policy"
           -“Check-off” deal
                 -Anticipated reaction from Congress
     -Treasury Department
     -John [W. Byrnes?]
           -Comments
     -Strength
     -Mills and Byrnes
           -Praise
     -Call to Mills
           -Senate
           -President’s request
                 -Connally
                 -Mills’s skill
     -Revenue sharing

International monetary situation
      -George P. Shultz
            -Previous conversation with Connally
            -Surcharge in terms of trade
      -Arthur F. Burns
            -Conversations with New York bankers
      -The President's talk with Henry A. Kissinger
      -Burns
            -Convertibility
                  -Condition for deal
      -Shultz
            -Possible deals
                  -Connally
            -US position
      -Gold issue
      -Georges J.R. Pompidou
      -British
      -Pompidou
            -Usefulness to US
      -French
            -Progress
      -Paul A. Volcker and Connally
            -Position paper
                                   20

               NIXON PRESIDENTIAL MATERIALS STAFF

                           Tape Subject Log
                             (rev. 10/06)
                                                           Conv. No. 634-16 (cont.)


-Burns’s position
     -Fixed rates
     -International Monetary Fund [IMF]
     -Convertibility
           -Limited compared to full
                 -Timing
-Shultz
     -Gold
           -Edward R.G. Heath
           -Connally
                 -Previous conversation with Shultz
           -Press
           -Connally's meeting with the Ministers
-Convertibility
-Shultz
     -Henry S. Reuss-Jacob K. Javits Bill
-Congress
     -Shultz’s concern
           -Connally’s previous conversation with Shultz
     -Gold
           -Connally’s view
           -Edward M. Kennedy
           -Edmund S. Muskie
           -Hubert H. Humphrey
           -Mills
-Convertibility
     -Connally’s conversations
           -Former Secretaries of the Treasury
           -Democrats
     -Europeans
           -Pompidou
                 -Realignment
           -Meeting in Rome
           -Price of gold
-Special Drawing Rights [SDRs]
     -British pound
     -French franc
     -Different standards
     -IMF
           -Future plans
-Surcharge
                                     21

                NIXON PRESIDENTIAL MATERIALS STAFF

                            Tape Subject Log
                              (rev. 10/06)
                                                            Conv. No. 634-16 (cont.)


-Gold
-Limited convertibility
     -Opinions of financial experts
     -Shultz
     -IMF
            -Protecting the dollar against convertibility
     -Deficit
            -US money in other government’s hands
                  -Amount
            -US assets
                  -Amount
     -Exchange rates
            -Germany
            -France
                  -High rates
                       -US blamed
-Surcharge for realignment
-Gold for trade concessions
-Germany
     -Potential problems
-Pompidou
     -Connally’s previous conversation with Kissinger
-Japan
     -Deals with US on bilateral basis
     -Trade and money
     -Wants a multilateral sum
-Canada
     -To be dealt on a bilateral basis
            -Potential US difficulties
-France
     -Pompidou
     -Willy Brandt
     -Heath
            -Under pressure for agreement
                  -Deutsche mark
                       -Value
                  -Franc
     -Gold-trade agreement
            -Trade concessions for the US
            -Remove surcharge
            -10% devaluation of the dollar
                                   22

               NIXON PRESIDENTIAL MATERIALS STAFF

                           Tape Subject Log
                             (rev. 10/06)
                                                           Conv. No. 634-16 (cont.)


          -Pompidou
               -The President’s upcoming meeting with Pompidou
                    -Knowledge of subject
                    -Connally and Valery Giscard D’estaing
                           -William P. Rogers
          -Proposed US deal with France
               -Maximum realignment
               -Proposed price of gold
                    -Italy
                    -Amount
                    -US-France negotiations
               -Connally’s view
                    -Realignment
                           -US needs
                                 -Political risks involved
                    -Trade concessions
                           -US needs
                                 -US standing firms
                                       -Ultimatum
                           -Agriculture
                                 -Grain storage commitment
                                       -Timing
-Germany
      -Pompidou
           -US concessions
           -Possible agreement
                -Timing of meeting
                       -Group of Ten
           -Negotiations
                -Value of money
-Japanese
-People’s Republic of China [PRC] and Union of Soviet Socialist Republics [USSR]
-State Department
-Kissinger
      -Pompidou
           -D’Estaing
           -Andre Meyer
                -Individuals to be conferred without the President’s meetings with
                      Pompidou
-Connally's meeting
      -Timing
                                 23

              NIXON PRESIDENTIAL MATERIALS STAFF

                         Tape Subject Log
                           (rev. 10/06)
                                                        Conv. No. 634-16 (cont.)


     -D’Estaing
          -Call for instructions
                 -Pompidou
     -Japanese
          -Preparations for meeting
     -Germany
     -France
          -Key to the European Community importance in making a deal with
                 France
          -Meyer
                 -President’s instructions
     -Bob Murphy
          -Meyer
     -Heath
     -Arthur H. Dean
          -Negotiator skills
                 -Acquaintances
     -Kissinger
          -Possible attendance at meeting
     -Pompidou
          -Trust in Kissinger
-Heath
     -Brandt
          -Heath’s possible agenda at meeting
-Canada
     -Edgar J. Benson
     -Floating the dollar
          -Convertibility
                 -Negotiations
          -Benson
          -Pierre E. Trudeau
                 -Presence at meeting
                 -US investments in Canada
                       -Oil reserves
                       -Automobiles
     -US requirements from Canada
          -Trade concessions
          -Floating the dollar
                 -Percentage and value
                       -Benson
          -Automotive agreement
                                       24

                    NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/06)
                                                               Conv. No. 634-16 (cont.)


                -Border crossings
                -Exemptions
                     -Agreed to by Canada
                           -Possible agreement
     -French
     -Bilateral meetings
           -The President’s upcoming meetings with Brandt and Eisaku Sato
     -Meeting in January
           -Group of Ten
           -Ultimatum from US
     -Surcharge
     -French
     -Connally's meeting
           -Group of Ten
           -Sato, Brandt and Heath
                 -Potential problem for the President
     -France
           -Gold
                 -Possible problems for US
                      -History
     -Germany
     -Connally's schedule
     -Policy paper
           -Kissinger

Brazil
     -The President's meeting with Emilio Garrastazu Medici
                                             25

                         NIXON PRESIDENTIAL MATERIALS STAFF

                                       Tape Subject Log
                                         (rev. 10/06)
                                                               Conv. No. 634-16 (cont.)


**************************************************************************

BEGIN WITHDRAWN ITEM NO. 1
[National Security]
[Duration: 16s ]


    BRAZIL


END WITHDRAWN ITEM NO. 1

**************************************************************************


               -Fidel Castro
               -Juan Velasco Alvarado
                    -Organization of American States [OAS]
                          -No change in US policy
               -Bolivia
               -Medici
                    -Elections
               -Venezuela
               -Colombia
               -Argentine ambassador [Pedro E. Real]
                    -Conversation with Connally
                          -Democracy compared with stability
                    -Unknown person
               -Population growth in Brazil
                    -In comparison with
               -Bolivia
               -Chile
               -Argentina
                    -Time span

    International monetary situation
          -Latin America
          -Canada
          -Southeast Asia
          -Indonesia
          -US economic growth
                                               26

                            NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/06)
                                                                       Conv. No. 634-16 (cont.)


                -Gross National Product [GNP]
                      -Compared to Great Britain
           -Indonesia ambassador’s [Suedjatmoko] previous conversation with Connally
                -Trudeau dinner
                -International organization [International Group for Aid to Indonesia [IGAI]]
                      -Meeting in Brussels
                      -Aid amount to Indonesia
                            -US amount
                            -Multilateral amount
                                  -Direct aid
                                        -Amount
                            -Japan
                            -Netherlands
                            -Germany
                                  -Proposal to increase aid
                            -Congress
                            -World bank
                            -Cut in aid
                            -India
                                  -Assistance
                            -Lt. Gen. T.N.J. Suharto

Connally left at 5:54 pm.