Conversation: 851-004
Prev:  851-003 Next: 851-005Start Date: 6-Feb-1973 5:11 PM
End Date: 6-Feb-1973 6:10 PM
Participants:
Nixon, Richard M. (President); Burns, Arthur F.; Shultz, George P.; Bull, Stephen B.; Recording Device: Oval Office
NARA Description:
On February 6, 1973, President Richard M. Nixon, Arthur F. Burns, George P. Shultz, and Stephen B. Bull met in the Oval Office of the White House from 5:11 pm to 6:10 pm. The Oval Office taping system captured this recording, which is known as Conversation 851-004 of the White House Tapes.
Nixon Library Finding Aid:
Conversation No. 851-4 Date: February 6, 1973 Time: 5:11 pm-6:10 pm Location: Oval Office The President met with Arthur F. Burns and George P. Shultz. Greetings Trade policy -President’s meeting with Edward R. G. Heath -Heath -Negotiations with Europe -Cooperation -Agriculture products -Monetary situation -European attitudes -Negative -Heath’s role -Shultz -Role -Change European attitudes -Perfectionism -Reaction to US position -Sympathy -Anthony P. L. Barber -Support in Parliament -Sir Douglas Allen -International monetary situation -9- NIXON PRESIDENTIAL LIBRARY AND MUSEUM Tape Subject Log (rev. Mar.-09) Conversation No. 851-4 (cont’d) Prime interest rates -Discount rate -Banks -Testimony to Congress -Questions on Phase III Senate Banking Committee testimony -Burns -Attention -Questions -William McChesney Martin, Jr. -Phase III -Inflation -Wilbur D. Mills -Compared to previous testimony -Burns's statement -Phase III -Support -Questions -Responses -Support in government -Violations - -Support from President -John T. Dunlop’s swearing-in -Interest rates -Questions -Burns’s statement -Shultz’s testimony -William Proxmire -Committee seats Stephen B. Bull entered at an unknown time after 5:11 pm. Message to Ronald L. Ziegler -Burns's testimony -10- NIXON PRESIDENTIAL LIBRARY AND MUSEUM Tape Subject Log (rev. Mar.-09) Conversation No. 851-4 (cont’d) Bull left at an unknown time before 6:11 pm. Interest rates -Rise -Money supply -End of fast growth -Nervousness -Martin -Policies -Burns’s goals -Avoidance of recession -Tightening money supply -Impact -Complaints -Duration -Start date -Treasury Department [?] -Money supply -Growth -Control -Sustained prosperity -Elections Burns’s possible trip to Japan -Foreign Exchange problem -Shultz -Plans -Discussions -Kakeui Tanaka -Tadashi Sasaki [?] -Central Bank -Timing -Henry A. Kissinger -Meeting with Tanaka -Timing -11- NIXON PRESIDENTIAL LIBRARY AND MUSEUM Tape Subject Log (rev. Mar.-09) Conversation No. 851-4 (cont’d) Foreign Exchange crisis -Outflow of dollars -Germany -Acceleration -Administration’s actions -Meetings of economic advisors -Burns’s involvement -Herbert Stein, Paul A. Volcker, Shultz, William P. Rogers, William J. Casey, Peter M. Flanigan -Agreement on problems -“Speculative fury” -Trade deficit -Size -Balance of payments -Corrective measures -Smithsonian agreement -Effect -Offsets -Deterioration -Great Britain’s exchange rate -Solutions -Devaluation -Percentage -Revaluation by Japan -Percentage -Europe -Persuasion -Efficacy of measures -Compared to changing exchange rates -Trade legislation -President’s authority to negotiate -Expansion of world trade -Provisions -Protection of businesses -Balance of payments surcharge -12- NIXON PRESIDENTIAL LIBRARY AND MUSEUM Tape Subject Log (rev. Mar.-09) Conversation No. 851-4 (cont’d) -Impact on Japan -Trade package -Consultation with Congress, Labor, Business -Announcement -Gold market -Impact of moves by the administration -Volcker -US actions on price of gold -Private market -International agreements -Private market position -Publicity -Increase in price -Private sales of gold -Republican platform -Serbian community [?] in US -Capital control program -President’s promise -Equilibrium -Domestic programs -Phase out -Consistency of international monetary plans -Deficits -Surpluses -Japan -Crisis -Recurrence -Japan -Agreement on revaluation -Legislation -Surcharge -Appeal to Europe -Timing -Leaks Congressional leaders -13- NIXON PRESIDENTIAL LIBRARY AND MUSEUM Tape Subject Log (rev. Mar.-09) Conversation No. 851-4 (cont’d) -Leaders’ schedules -Shultz’s statement -President’s decision -Negotiations with trade partners -Trade legislation -Exchange rate realignment -Gold Wage and price controls -Burns’s view -Phasing out -Gold purchases by private citizens -Imports -Effect on balance of payments International monetary situation -Gold -Central banks -Powers -Devaluation -Percentage -Japan -Dollar value -Exchange rate -Floating dollar -Smithsonian Agreement -Trade -Great Britain -Exchange rates -Changes -“Economic belligerency” -Devaluation -Percentage -Public perception -Understanding -US position in world markets -14- NIXON PRESIDENTIAL LIBRARY AND MUSEUM Tape Subject Log (rev. Mar.-09) Conversation No. 851-4 (cont’d) -Trade package -Protectionism -Dangers -Encouragement to foreign nations -President’s speech at International Monetary Fund [IMF] Inflation -International trade -US position -Price stability in US -Announcement -Determination to curb -Congress -Large films, unions -Changes in wages and prices -Announcement -Congress -Laws on reporting wage and price changes -Testimony -Paperwork -Business overdependence on government International monetary situation -Speech -Criticism -Repetition of plans -Trade -Authority to negotiate -Imports -Compared to surcharges -Removal -Rate change -Agreements -Recurrent crises -Administration’s actions on balance of trade, payments -Trade -15- NIXON PRESIDENTIAL LIBRARY AND MUSEUM Tape Subject Log (rev. Mar.-09) Conversation No. 851-4 (cont’d) -Burns’s view -Monetary reform -Pace -Crisis -William D. Eberle -Defense -Summit talks -Preparation -Negotiations -Japan, Italy, France, Germany, Great Britain, US -Big Four -Smithsonian Conference -Meeting with Georges J. R. Pompidou -Accomplishments -US position -Global security Devaluation -Percentage -Japan -Legislation on surcharge -Safeguards on flooding -Congressional relations -Consulting -Trade -Handling -Dealings with Japan -Ambassadors -Volcker -Finance minister -Tanaka -Draft letter to Tanaka -Great Britain, Germany -Timing -Delay -Politics -16- NIXON PRESIDENTIAL LIBRARY AND MUSEUM Tape Subject Log (rev. Mar.-09) Conversation No. 851-4 (cont’d) -France -Great Britain -Japan -President’s statement -California -Kissinger -Preparation -Timing -Monetary move -Trade -Recklessness -Crisis -Timing -US advantages -Trade -George Meany -Telephone call to Shultz -Congressional relations -Discussions -Mills -Meetings with President -Tax problems President’s schedule -Meeting with Mills -Shultz’s testimony -Tax policy meeting Bull entered at an unknown time after 5:11 pm. -Tax policy meeting with Shultz, Ehrlichman -Mills’s meeting -Shultz -Length -Time -Swearing-in ceremony for John T. Dunlop -17- NIXON PRESIDENTIAL LIBRARY AND MUSEUM Tape Subject Log (rev. Mar.-09) Conversation No. 851-4 (cont’d) -Time -Mills -Length of meeting -Ehrlichman -National Security Council [NSC] reading material -[Hussein, King of Jordan] Hussein ibn Talal Bull left at an unknown time before 6:03 pm. Burns -Monetary problems -Health -Weight -State dinner invitations -Health Burns left at 6:03 pm. Railroad subsidy -Union trustees -Amount -Administration’s support -Interstate Commerce Commission [ICC] -Legislation -Federal railway administrator -Impact on trustees -Waste -Union -Bailout -Threat of bankruptcy -Judge’s decision on sale of property -Operating at a loss -ICC -Strike -Impact -Resources -18- NIXON PRESIDENTIAL LIBRARY AND MUSEUM Tape Subject Log (rev. Mar.-09) Conversation No. 851-4 (cont’d) -Railroad -Debts -ICC -Deregulation legislation President’s meeting with Mills -Ehrlichman -Trade -Health legislation -Taxes -Hearings -Administration’s tax plan -Meeting with Shultz and Ehrlichman -Russell B. Long Shultz’s testimony Shultz left at 6:10 pm.