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Conversation 007-042

TapeTape 7StartMonday, August 2, 1971 at 9:42 AMEndMonday, August 2, 1971 at 9:45 AMTape start time02:03:36Tape end time02:05:37ParticipantsNixon, Richard M. (President);  Shultz, George P.Recording deviceWhite House Telephone
AI Summary

President Nixon and George Shultz discuss the administration's public relations strategy regarding recent steel and rail labor settlements ahead of an 11:00 a.m. statement. They agree to avoid denouncing the large wage increases in the new contracts, opting instead to emphasize that strikes were successfully averted and that the agreements include provisions for improved productivity. Nixon instructs Shultz to coordinate with Treasury Secretary John Connally to ensure the administration presents a unified front on the matter.

Labor disputesSteel industryRailroad industryWage increasesEconomic policyJohn B. Connally
AudioNARA Description

On August 2, 1971, President Richard M. Nixon and George P. Shultz talked on the telephone from 9:42 am to 9:45 am. The White House Telephone taping system captured this recording, which is known as Conversation 007-042 of the White House Tapes.

Nixon Library Finding Aid
Conversation No. 7-42
Date: August 2, 1971
Time: 9:42 am - 9:45 am
Location: White House Telephone

The President talked with George P. Shultz.

[See Conversation No. 553-3B]

     Labor disputes
          -Steel and rail strikes
          -Steel settlement
          -Rail contract settlement
                -Back to work agreement
          -White House statement
                -Shultz's talk with the President
                       -Wage increases
                       -Avoidance of strike
                       -Productivity in the agreements
           -The President's meeting with John B. Connally
Transcript (AI-Generated)

This transcript was generated automatically by AI and has not been reviewed for accuracy. Do not cite this transcript as authoritative. Consult the Finding Aid above for verified information.

Hello.
Mr. Schell.
Yeah.
You wanted to talk to me before... Well, it's a question of our statements at 11 o'clock about the steel and the rail situation.
Yeah.
Steel, as you know, is settled.
Yeah.
The contract is settled, and they're working on a back-to-work agreement.
Mm-hmm.
And they don't plan to announce the contract settlement until they have the whole thing wrapped up.
But our... Mm-hmm.
guess is that it'll be wrapped up prior to 11 o'clock and so there would be back to work constructions and so on and our question is what to say about these contracts now it seems to me off our all the things that have happened in the discussion that you and I had Saturday that
While we can't welcome these large wage increases, we can stress the fact that a strike has been avoided, that a strike is settled, that there is something about productivity in each of these agreements and not denounce them.
Yeah.
And I think we're... Well, we have a commitment not to denounce the steel one, at least.
Right.
I think that's right.
I just wanted to be sure that was your guidance.
Yeah, we can't denounce the steel one, and it's pretty hard to roll over, but the story at least did indicate that it was in the same canal range, and nobody could expect that it could be anything else.
Well, after I start meeting with Connolly, it might be well if I get you down so that he's
including on it, too.
All right.
He won't make the statement, but he ought to know what we're doing on it.
Okay?
Okay, sir.
Fine.
I'll give you a call, sir.
Thank you.
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