Conversation No. 650-9

Date: January 18, 1972
Time: 11:31 am - 12:31 pm
Location: Oval Office

The President met with Arthur F. Burns and John B. Connally.

     General conversation
         -Weather

     Quadriad meeting
         -Schedule
               -State of the Union address
         -Herbert Stein

Rose Mary Woods entered at 11:33 am.

     Memorandum
        -The President's response to note on Chilean loan
             -Confidentiality
                                             20

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                       (rev. 10/06)



               -Reciprocity
          -Copies
               -William P. Rogers

Woods left at an unknown time before 12:31 pm.

     Economy
         -Money supply
         -Federal Reserve Board [FRB]
              -John E. Sheehan
                     -Contact with Burns
                           -Monetary policy, regulatory policy
              -Federal Open Market Committee
                     -Last meeting
                     -Dissent
                           -Basis
                     -Length of meeting
         -Discount rate
         -Prime rate

An unknown man entered at an unknown time after 11:31 pm.

     Refreshments

The unknown man left at an unknown time before 12:31 pm.

     Economy
         -Discount rate
               -Changes
         -Interest rates
               -Paul A. Volcker
               -Level
         -Discount rate
               -Level
               -Stock market
         -The President’s relationship with advisors
         -Handling of issue
               -Budget message
                     -State of the Union
                     -Spending ceiling request by President
                     -Congress
                                       21

                    NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/06)
                                                                Conv. No. 650-9 (cont.)


                     -1968 action
     -Deficits
     -Inflation
     -Interest rates
     -Budget message
           -Phrasing
                 -George P. Shultz
           -Timing
           -Burns’s possible comments
     -Budget
           -Caspar W. (“Cap”) Weinberger
                 -Controls
           -Elliot L. Richardson
           -John A. Volpe
           -George W. Romney
           -Defense
                 -Costs
     -Release of statement before budget message release
           -Publicity
           -Deficit
           -Timing
           -Need for cooperation with Congress
           -Spending ceiling
                 -Taxes
           -Publicity
                 -[First name unknown] Dale
                 -Hobart Rowen
                 -Wall Street Journal
           -Agreement in administration
                 -Connally
                 -Burns
                 -Shultz
                       -Office of Management and Budget [OMB]
                 -Council of Economic Advisors [CEA]
           -Spending ceiling
                 -Inflation
                 -Current year

Water bill
    -Muskie
    -Effect on future spending
                                         22

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/06)
                                                                   Conv. No. 650-9 (cont.)


     -Returns

Pay Board
     -Price Commission
     -George H. Boldt
           -Qualities
                 -Administrative ability
           -Relationship with Burns
     -Arthur J. Goldberg
           -Possible role
           -Labor management committee
           -Work with President and James R. Mitchell on steel strike
           -Possible appointment
                 -Ability
                 -Attitude toward labor
                 -Experience
                       -Secretary of Labor
                 -Possible meeting with the President
                 -Control system
                 -Administrative ability
                       -Luther Hodges
                       -Experience
                             -Secretary of Labor
                             -United Nations [UN] ambassadorship
     -Difficulties
     -Pay increase guidelines
           -Exceptions
                 -Coal miners, aerospace workers
           -Evasion
                 -Business, small farmers
           -Circumvention
                 -Reclassification of employees
           -Farm workers
           -Previous year's salary increase
           -Boldt's chairmanship
     -Goldberg
     -Price Commission
           -C. Jackson Grayson
                 -Administrative ability
                 -Meeting with Burns
                       -Price increases
                                        23

                    NIXON PRESIDENTIAL MATERIALS STAFF

                               Tape Subject Log
                                 (rev. 10/06)
                                                         Conv. No. 650-9 (cont.)


                          -Business community
                               -Reports
                                     -Justification
                               -Risk
     -Price controls
           -Exemptions
                 -Small business retailers
                      -Impact
                 -Reporting
           -Big business firms
                 -Costs
                 -Reporting
           -Price Commission
                 -Relationship with administration
                      -Cost of Living Council [COLC]
                      -Recommendations
                            -Exemptions
                 -Donald H. Rumsfeld
                 -Burns meeting with Grayson

Controls
     -The President’s role
     -The President’s view
          -Public relations
          -Substance
          -Extent
          -Freeze
          -Major firms
                -Gross National Product [GNP]
                -Employment
          -Decontrol for small firms
     -Pay Board and Price Commission
          -Criticism
                -Big business vis-à-vis labor
     -Entrepreneurs
          -Role in economy
     -Major firms
          -General Motors [GM]
          -General Electric [GE]
          -Relationship with administration
     -Decontrol
                                         24

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/06)
                                                          Conv. No. 650-9 (cont.)


          -Reporting
          -Small business
                -Support for the President
     -Small businesses
          -Compared to big business
     -Timing
     -The President’s role
          -Perception

Economy
    -Political objectives
          -Jobs
          -Prices
    -Pay Board
          -Goldberg
                -Prices
    -Wage Board
    -Price Commission
    -Profit margins
          -Compared to 1938, 1966
          -Economic growth
                -Profit sharing
          -1970
          -Cost cutting
          -Pay Board
                -Price Commission
                      -November 1972
    -Pay Board
          -Boldt
                -Handling of role
                      -Difficulty
          -Aerospace industry
          -Mitchell
          -Boldt
                -Shultz
          -Shultz's view
          -Instruction for Shultz
          -Goldberg
                -Relationship with the President
                -Knowledge of labor
                      -Steel workers
                                       25

                    NIXON PRESIDENTIAL MATERIALS STAFF

                               Tape Subject Log
                                 (rev. 10/06)
                                                                Conv. No. 650-9 (cont.)


                             -John F. Kennedy
                 -Administrative abilities
                       -UN ambassadorship
           -Requirements for job
           -Labor-Management committee
           -Joseph L. Block
           -David P. Reynolds of Reynolds Company
           -Thomas Watson
           -Stuart T. Saunders of Pennsylvania
                 -Background
                       -Virginia
           -Goldberg
                 -Politics
                 -Possible meeting with the President
                 -Career
                       -Supreme Court
                       -Secretary of Labor
                       -Ambassador to UN
                       -Gubernatorial candidacy
                       -Steelworkers' chief counsel
                       -G. Harrold Carswell
                       -Compared to unknown person
                       -[Romney?]
                 -Burns’s career
     -Camp David meeting before August 15, 1971 economic action
     -Present status
     -Perceptions of economic action
     -International monetary action
     -Trade
     -Burden sharing

Japan
     -Burns’s contact with Japanese ambassador [Nobuhiko Ushiba] and other Japanese
     -View of the President's People's Republic Of China [PRC] Policy
     -Trade and monetary problem
     -Trade
          -The President’s talks with Eisaku Sato
                -Europe
     -PRC relations
          -Meetings Between The President And Japanese officials, 1966, 1967
          -Japanese interests
                                         26

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/06)
                                                                    Conv. No. 650-9 (cont.)


                -Trade
                -Compared to US interests
                -Military
     -US relations with the PRC
          -Soviet Union

Congressional hearings
    -Economists
    -Fred R. Harris
    -Edward M. Kennedy's January 17, 1972 Press Club speech on Vietnam
          -Partisanship
    -Partisanship in 1972

State of the Union address
      -Tone

Kennedy’s Press Club speech
    -Attack on the President
    -Vietnam
          -Nguyen Van Thieu

The President's opponents
     -Attacks on the President
          -Howard Hughes loan to F. Donald Nixon
          -Harris
          -Oil
                 -Harris
                      -Hughes
                 -Hubert H. Humphrey
                      -1968 campaign
                            -Allegation
                                  -Connally and contributions to the President
                 -Depletion
                      -President's position
                            -The President’s congressional experience
                      -Humphrey
                      -1969 action by President

Shultz, John D. Ehrlichman

The President’s instructions to Connally, Burns
                                               27

                            NIXON PRESIDENTIAL MATERIALS STAFF

                                       Tape Subject Log
                                         (rev. 10/06)
                                                                  Conv. No. 650-9 (cont.)



     President's schedule
          -Raymond K. Price, Jr.
                 -State of the Union address
                       -Draft
          -Burns

Burns and Connally left at 12:31 pm.