Conversation: 706-005
Prev:  706-004 Next: 706-006Start Date: 11-Apr-1972 3:06 PM
End Date: 11-Apr-1972 5:05 PM
Participants:
Nixon, Richard M. (President); Peterson, Peter G.; Ehrlichman, John D.; Flanigan, Peter M.; Cole, Kenneth R., Jr.; Bull, Stephen B.; Sanchez, Manolo; Burns, Arthur F.; Shultz, George P.; Connally, John B.; Malek, Frederic V.; Recording Device: Oval Office
Full Tape Conversation Start Time: 03:14:58
Full Tape Conversation End Time: 05:13:53
NARA Description:
On April 11, 1972, President Richard M. Nixon, Peter G. Peterson, John D. Ehrlichman, Peter M. Flanigan, Kenneth R. Cole, Jr., Stephen B. Bull, Manolo Sanchez, Arthur F. Burns, George P. Shultz, John B. Connally, and Frederic V. Malek met in the Oval Office of the White House from 3:06 pm to 5:05 pm. The Oval Office taping system captured this recording, which is known as Conversation 706-005 of the White House Tapes.
Nixon Library Finding Aid:
Conversation No. 706-5 Date: April 11, 1972 Time: 3:06 pm - 5:05 pm Location: Oval Office The President met with Peter G. Peterson, John D. Ehrlichman, Peter M. Flanigan, Kenneth R. Cole, Jr. and Stephen B. Bull; the White House photographer was present at the beginning of the meeting. Greetings John B. Connally -Forthcoming meeting with the President -Delay Bull left at an unknown time before 3:48 pm. Commerce Department -Undersecretary 37 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -James T. Lynn Economy -Foreign trade -Commercial attaches -Legislation before Congress Manolo Sanchez entered at an unknown time after 3:06 pm. Refreshment Sanchez left at an unknown time before 3:48 pm. Economic issues -Commercial attaches -Problems with pending legislation -Foreign trade -Foreign Service officers -Indoctrination on economic issues -State Department -Lack of leadership on economic issues -Undersecretaries -Textiles -Agriculture -Foreign trade -Leadership -Attaches US-Soviet Union relations -Henry A. Kissinger -Flanigan -Trade -Linkage -Soviet needs -Commercial deals -Raw materials -Capital demands -Oil and gas -Scope -Return -Soviet debts 38 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -Gradual increase -Export-Import [Ex-Im] -Most favored nation status [MFN] -Raw materials -Aleksei N. Kosygin -US credits -Soviet gains -Resources -Capital demands of Soviets -Anatoliy F. Dobrynin -Conversations with Peterson -Peterson's meeting with Soviet Trade Minister, Nikolay S. Patolichev -Arrangements -Ex-Im and MFN status -Talks -Issues -Ex-Im agreements -Credits -MFN status -1972 election -Congress Foreign trade -Poland -Yugoslavia and Rumania -US attitudes -Kissinger -Poland -The President's forthcoming trip -Poland, Yugoslavia and Rumania -Visits to US -Eastern European nations -Contacts with US -Soviet trade -Peterson memorandum -Recommendations -Donald McI. Kendall -Benefits to US -US businessmen -Sales -Credit and investment guarantees 39 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) Energy -Flanigan -Ehrlichman -Problems -Long-range view -Politics Economy -Maritime Administration -Andrew E. Gibson -Study of imports -Maritime implications -Energy -Oil imports -Percentage -Maritime fleet -Projected size -Supertankers -Japanese -Economic advantages -Dock facilities -Political problems -Delaware -Problems -Subsidies -Domestic problems -Incentives -Environment -Supertankers -Ports of call -Canada and the Bahamas -Docking problems -Japan -Australia -Recommendations -George P. Shultz -Budget problems -Investment areas -Welfare -Hard and soft goods 40 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -Investments -Welfare -Summer youth programs -Maurice H. Stans -Day care centers -Office of Economic Opportunity [OEO] -Democratic political pressures -Conflicts between business and welfare -Energy -Supertankers -Shultz -Docking problem -Pacific Northwest -Local resistance -Maine -Gulf states -Louisiana and Texas -Off-shore leasing Energy -Alaska -Political problems -Environment -Costs to consumers -Domestic ownership -Petersons' job -Budget -Shultz -Monitoring issue -Cole -Business representation -Environment -1972 election -Public awareness -Increase -Publicity -Business community -Rogers C. B. Morton -Testimony -News summary -Power shortages 41 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -Gibson -Power stations -Construction -Objections -Compared with Vietnam War -Peterson's role -1972 election -Stans -Links to liberals Foreign trade -US competitiveness -Information gathering -Steel output -Japanese -Japanese -Strategic industries -Studies -Machine tools, steel -Depreciation, write-offs -Study program -Commerce Department -Connally -Depreciation policies -Strategic industries -Foreign government support -US tax reform bill -Congress -Connally -1969 talk with the President at San Clemente -Cattle -Reform -Connally's role -Study program -Depreciation policies -Problems -Housing -ADR -Investment tax credit -German and Japanese policies -Successes 42 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -New jobs -Speech -Publicity for reform -Study for Congress -Investment tax credit -Japanese -Responsiveness -Tax reforms -Criticism -Rich compared to poor -Jobs -Treasury conservatism -Internal Revenue Service [IRS] -Peterson's meeting with Connally -Tax lawyers Technology -Industrial technology -Study by Commerce Department -Patents -US government ownership -Commercial production -Review of policies -Costs -Research and development [R&D] -Nonexclusive provisions -Patent policies -State of the Union address -Incentives for technology -Cost sharing -Government patents -Commercial production -Government R&D -Roadblocks -William M. Magruder -Commerce Department -Aggressiveness -Salesmanship -1972 election -Business -Jobs 43 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -Prices -Job creation -R&D -Emphasis on jobs -Environment -Necessity to sell -Ehrlichman, Charles W. Colson and H. R. (“Bob”) Haldeman -Image of business -Administration's image -International Telephone and Telegraph [ITT] Environment -National Industrial Pollution group -Comments -Growth -Club of Rome study -Quality of life programs -Costs -Office of Management and Budget [OMB] -Health, welfare, mass transit -Long-range costs -Source of funds -Projections -Economic growth -Zero-growth advocates Economy -Productivity Commission -Shultz -I[lworth] W[ilbur] Abel and Leonard Woodcock -Membership -Popular appeal -Advertising Council -Identification of the President with campaign -Cost-wage push -Range of problems -Germany and France -Productivity -The President’s August 15, 1971 statement -Popular appeal -International problem 44 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -Bargaining system -Phase II -Businessmen's doubts -Strikes -Costs -Strikers -Benefits -Food chains -Meeting with Connally -Bargaining system -Reform -Post-election changes -Shultz's ideas -Dangers -Pre-election attacks against labor -Minority economic development -Appeal to voters -Political appeal -"Bridge to dignity" -Problems -Peterson’s speeches -Chicago -New York -Lack of knowledge in public -Bold steps -Prominent blacks to sell program -Stars -Athletes -Dinner -New York -Inner cities -Deterioration -Economic stimulation -Unknown person's suggestion -Focus on business -1969 campaign theme -[Forename unknown] Messig [sp?] -Stans -Productivity -Peterson's recommendations -Advertising Council 45 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -Wage-cost push -Pre-election actions -Peterson's meeting with Connally -Date and location Connally, Arthur F. Burns, Shultz and Frederic V. Malek entered at 3:48 pm. Greetings Connally -Health Economy -Connally's meeting with Peterson -International competition -Productivity -Environment Peterson, Ehrlichman, Flanigan and Cole left at 3:49 pm. [General conversation] Federal Reserve Board [FRB] -Vacancy -Number -Sherman J. Maisel -Andrew F. Brimmer -Ambassadorship -Removal -Black ambassadors -Position security -Election -Rogers -United Nations [UN] -Secretary General -Confirmation -European post -African post Jerome H. Holland -Background 46 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -College -Football -Tenure -Post -Future FRB -Vacancy -Candidates -Names -Districts and regions -California -Candidates -List -Jeffrey M. Bucher -Ward C. Krebs -Bucher and Krebs -Origins -Age -Selection -Criteria -Compared with Supreme Court -Age of justices -Lewis F. Powell, Jr. -William H. Rehnquist -Youth -Length of term -Age -Compared with Supreme Court justices -Earl Warren -Warren E. Burger -Harry A. Blackmun -Powell -Bucher -Aspirations -Short-term -Banking job -Experience on board -Krebs -Duration of term -Criteria 47 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -Banking background -Krebs -Experience in banking -Bucher -Youth -Requirements -Judgment -Maturity -Longevity -Bucher -Other positions in second term -Krebs -Bucher -Longevity on board -Burns's influence -[John E. Sheehan] -Bucher -Potential -Krebs -Interview with Burns -Compared with Bucher -Bucher -Harry J. Volk -Asa V. Call and Charles D. (“Tex”) Thornton -United California Bank -Bank of America -Security First National Bnak -United California Bank -Volk -Prudential Insurance Company -Robert H. Volk -Burns's preference -Ernest C. Arbuckle -David Packard's work -Background -Stanford University -Present position -Krebs -Candidate selection -E. Penn James's and Malek's work -Brimmer case 48 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -James L. Robertson -Possible resignation -Robert C. Holland -Position on board -Political affiliations -Respect in banking world -Appointment -Replacement for Robertson -Pension -Rules -Age -Robertson -Meeting with the President -Sheehan's swearing-in -Possible retirement -Populism -Support for small banks -Appointments -Future make-up -Candidates -Krebs -Bucher -Youth -Work with Burns -Compatibility -The President’s talk with Burger -Conflicts within board -Number of dissents -Alfred Hayes -Work with Burns -Hayes's staff -Candidates for vacancy -Names -Criteria Malek left at 4:13 pm. Budget -Information for the President -Money supply and interest rates -Wage and prices 49 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -Deficit -Decrease Environment -Commerce Department study -Peterson -Costs -Quality of life programs -Relation to economic growth -Population -World -Daniel P. (“Pat”) Moynihan -US -Stabilization -The President's meeting with Peterson -Oil imports -US needs -Supertankers -Docking facilities -Local resistance -Texas -Quality of life programs -Family assistance -Day care centers -Costs -Budget -Environmental field -Regulatory activity -Proposition in California -Loss of jobs if passed -Edgar F. Kaiser -Steel plants -Peterson -Political implications -Need for economic growth Economy -Welfare programs -Family Assistance Program [FAP] -Education and health programs -Summer youth programs 50 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -FRB -Peterson -Charles H. Percy -Change of attitude -Stans -National Association of Businessmen [NAB] -Optimism -The President's meeting with Gordon E. Metcalf and John D. Harper -Prices and stocks -Rate Burns and Shultz left at 4:20 pm. Connally -Health -Illness -Gen. Walter R. Tkach ***************************************************************** BEGIN WITHDRAWN ITEM NO. 9 [Personal Returnable] [Duration: 3m 40s ] END WITHDRAWN ITEM NO. 9 ***************************************************************** Connally's schedule -Trip to Texas -Stansville [?] -Dinner honoring Texas Supreme Court Chief Justice -Speech -Time off Manolo Sanchez entered at an unknown time after 4:20 pm. Refreshment 51 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -Tea -Effects -Type Sanchez left at an unknown time before 4:46 pm. Connally -Reports -World situation -Trip to Camp David -Idanell B. (“Nellie”) Connally -The President's Canadian speech -Transportation -Rest -Camp David -Golf -Work ethic -Speech -Health ***************************************************************** BEGIN WITHDRAWN ITEM NO. 11 [Personal Returnable] [Duration: 1m 1s ] END WITHDRAWN ITEM NO. 11 ***************************************************************** -Work ethic The President's schedule -Vietnam -Reports -News summary -Critical decisions -Conversation with Haldeman 52 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) Vietnam -Kissinger -Air Force -Naval gunfire -North Vietnamese offensive -Victory -Impact on Soviet Summit -Cancellation -Impact on foreign policy -India, Middle East and Europe -Soviet Union Treaty on biological warfare -Effect -Great power restraint -The President's remarks at signing ceremony -Arms control -Great powers restraint -Soviet's views on Summit -Dobrynin Vietnam -Navy -Fleet -Shelling of roads in North Vietnam -B-52 strikes -Polls -Critics -Edward M. Kennedy -Foreign policy ***************************************************************** BEGIN WITHDRAWN ITEM NO. 13 [Personal returnable] [Duration: 24s ] END WITHDRAWN ITEM NO. 13 53 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) ***************************************************************** Economy -Interest rates -Burns's policies -Burns's work -Interest rates -Money supply -European problems -Paul A. Volcker's meetings -Press conferences -The President's Canadian trip -Trade negotiations -Great Lakes agreement -The President's speech draft -Connally's review -Pierre E. Trudeau -Reelection -Quebec -Separatism -Trudeau -Reelection campaign -Connally's speech in Chicago to national broadcasters -Reaction -Business leaders -Location -Continental Plaza Hotel -Tourist Bureau -Dallas and Houston -Format -Agenda -Foreign policy, taxes, loopholes, productivity -Taxes -Loopholes -Definition -Major reforms -Republican initiatives -Eisenhower and the President -Democratic interests 54 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -George C. Wallace -Loopholes -Creation of jobs -Home mortgage interests -Abolition -Opposition -Purpose of loophole -Municipal bonds -Support of cities -Abolition -Failures -Charitable contributions -Abolition -Impact -Capital gains -Dow-Jones Industrial Average -Depletion allowance -Energy crisis -Abolition -Disadvantages -Casualty losses -Estate taxes -Peterson -US competitive position -Depreciation allowance -Japanese and West German example -Change of position -Support for loopholes ***************************************************************** BEGIN WITHDRAWN ITEM NO. 15 [Personal returnable] [Duration: 6m 11s ] END WITHDRAWN ITEM NO. 15 ***************************************************************** 55 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -ITT case -Relations with ITT -Vance Hartke Taxation -Overwithholding -News summary -Agents of Internal Revenue Service [IRS] -Correction of problem -Timing -Public campaign -W-4 exemptions -Mailings -Shultz -Tax returns -IRS aid to average taxpayer -Publicity -Announcement of task force -IRS agents -Number -Customs Bureau in Florida -Agents -Sufficient number for job -Number for searches -Financing problems -Customs Bureau -Agents -Increase -Port officers -Value of inspections -Specific case -[Recent heroin seizure] -Budget and personnel cuts -Customs -IRS -Agents -Help for returns -Political benefits -Personnel available -Returns 56 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -Johnnie M. Walters -Survey of small professional preparers -H&R Block -Fraudulency rate -Costs of delinquency ITT case -Edmund S. Muskie charge -Corporate taxes -Validity of claim Economic policies -Food prices -Administration's actions -Albert E. Sindlinger poll -Support -Offensive stance -Sindlinger's conversation with Colson -Administration statements -Wholesale price index -Graham Purcell's hearings -News coverage -Administration's image -Farmers -Middlemen -Retailers -Safeway -Need for discussions -Profits -Actions before election -Freeze on food prices -Effect -Risks -Farm vote -Packers and producers -Current state of economy -Unemployment -Level -Figures -State in October -Inflation 57 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -Agitation of issue -Housewives -Networks -Public statements -Frequency -Connally -White House staffers -Marina von N. Whitman -Mood of nation -Florida -Youth -Tricia Nixon Cox's assessment -Harvard University -Nostalgia -Stability and leadership -Kennedy and Muskie -Lack of support -Unemployment -Figures -Analysis -Youth -New workers -Creation of jobs -Positive perspective -Social changes -Wives and youth -Entrance into labor force -Job seekers Bull entered at an unknown time after 4:20 pm. The President's meeting with Kissinger Bull left at an unknown time before 5:05 pm. Vietnam -North Vietnamese offensive -Aggression -Analysis -Compared with Laos and Cambodia -US public reaction 58 NIXON PRESIDENTIAL MATERIALS STAFF Tape Subject Log (rev. 10/06) Conv. No. 706-5 (cont.) -Bombing of North Vietnam -US troops -Hanoi and Haiphong -Bombing of other cities and railroads -US countermeasures -US choices -Consequences of failure -Credibility of foreign policy The President and Connally left at 5:05 pm.