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Conversation: 853-010

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Start Date: 8-Feb-1973 10:31 AM

End Date: 8-Feb-1973 12:24 PM

Participants:

Nixon, Richard M. (President)Long, Russell B.Ehrlichman, John D.White House photographerSanchez, ManoloShultz, George P.Bull, Stephen B.

Recording Device: Oval Office

853-010a.mp3

853-010b.mp3

853-010c.mp3

NARA Description:

On February 8, 1973, President Richard M. Nixon, Russell B. Long, John D. Ehrlichman, White House photographer, Manolo Sanchez, George P. Shultz, and Stephen B. Bull met in the Oval Office of the White House from 10:31 am to 12:24 pm. The Oval Office taping system captured this recording, which is known as Conversation 853-010 of the White House Tapes.

Nixon Library Finding Aid:

Conversation No. 853-10

Date: February 8, 1973
Time: 10:31 am-12:24 pm
Location: Oval Office

The President met with Russell B. Long and John D. Ehrlichman; the White House photographer
was present at the beginning of the meeting.

       Greetings

       [Photograph session]
              -Newsletter
                                       -7-

            NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                               Tape Subject Log
                                 (rev. Feb.-10)
                                                         Conversation No. 853-10 (cont’d)



George P. Shultz
      -Attendance at meeting
      -Taxes

Vietnam settlement
      -Letter from President

Congressional relations
      -President’s visit to John C. Stennis
              -Chances of living
              -Physical condition
                      -Compared to Harry F. Byrd, Jr.
              -Attitude
      -Southern Democrats
              -Richard B. Russell
              -Long’s support for President
              -Vietnam settlement
                      -Support for President
                              -Political disagreements
                              -Republican Senators
                              -Foreign policy

Public relations
        -Support for President
               -South
               -Registered Democrats
               -George S. McGovern
               -Carolyn Bason Long
                       -Family Assistance Plan [FAP]
               -Welfare Rights Organization
                       -McGovern
        -Albert E. Sindlinger
               -Telephone polls
               -Up-to-date polls
               -Congress
               -Executive privilege
               -Attack on Stennis
                                        -8-

            NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                Tape Subject Log
                                  (rev. Feb.-10)
                                                          Conversation No. 853-10 (cont’d)


                      -Public sympathy
                             -Prayer breakfast
                      -Crime issue
               -Public concerns
                      -Awareness

Congressional relations
      -Support for President
              -Long’s conversation with Russell
              -President’s visit to Russell
              -[Senate]
              -[Vietnam settlement]
      -Budget
              -President’s tax pledges
              -Joint budget
                      -Long’s committee seat
              -Ceiling
              -Cuts in spending
              -Debt ceiling
              -Tax increase
              -Inflation
              -Increase
                      -Social Security
                      -Poor
                      -Elderly

Welfare
       -Meeting with Long and President
       -Shultz
       -Caspar W. (“Cap”) Weinberger
               -Confirmation
               -Qualities
               -John G. Schmitz
                       -John Birch Society
                       -Comments on Senate attacks
       -Single mothers
               -Incentives for lawsuits against fathers
               -Effect on amounts
                                              -9-

                  NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                      Tape Subject Log
                                        (rev. Feb.-10)
                                                            Conversation No. 853-10 (cont’d)


                       -Reliability of government money

Manolo Sanchez entered at an unknown time after 10:31 am.

       Refreshments
              -Sanka

Sanchez left at an unknown time before 11:05 am.

       Welfare
              -Mothers
                     -Assistance from fathers
                             -Employers
                     -Benefit levels
                     -Incentives for employment
                             -1973 Inauguration
              -Department of Health, Education, and Welfare [HEW]
              -Working poor
                     -Social Security
                             -Cash rebate on contributions
                             -Compared to FAP
                             -Administration’s cooperation
                             -Long’s proposal
                                     -FAP
                             -Guidelines
                             -Changes in income
                             -Abraham A. Ribicoff
                                     -Approval
                             -Senate support
                                     -Edward M. (“Ted”) Kennedy

       Housing
             -Federally built housing projects
             -Permanent ghettos
                    -Miami
             -James T. Lynn
                    -Department of Housing and Urban Development [HUD]
             -Great Britain’s housing allowance
                                            -10-

                 NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                      Tape Subject Log
                                        (rev. Feb.-10)
                                                            Conversation No. 853-10 (cont’d)


                    -Buyer’s market


******************************************************************************
[Begin segment reviewed under deed of gift]

             -President’s first car
                    -Used car
                             -Model A

[End segment reviewed under deed of gift]
******************************************************************************


                    -New compared to old housing
                    -Housing for poor
                           -Dishwasher, recreation center, color television [TV]
                           -Deterioration
                    -Federal programs
                           -Changes
                           -Social security
                           -Housing allowances
                           -Long’s opinion

      Welfare
             -Incentives for employment
                     -Workforce
             -Selfishness
             -Blacks, Chicanos
             -Florida
                     -Charles G. (“Bebe”) Rebozo
                     -Employment rate
                     -Cubans
                     -Blacks
                             -Work habits
             -Incentives for employment
                     -Long’s input
             -Ribicoff’s proposal
                                              -11-

                  NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                     Tape Subject Log
                                       (rev. Feb.-10)
                                                        Conversation No. 853-10 (cont’d)


                    -Amount
                    -Food stamps

      Housing
            -Housing projects
                   -Edward W. Brooke’s amendment
                   -Rents
                   -Maintenance costs
                          -Deterioration


******************************************************************************
[Begin segment reviewed under deed of gift]

      Support for President
            -Carolyn Long
                     -Parents
                            -North Carolina

      Long
             -Opposition in State of Louisiana
                   -Republicans

[End segment reviewed under deed of gift]
******************************************************************************


      Welfare
             -Incentives for poor
                     -Self-help
                     -President’s statement
                             -John F. Kennedy
                                     -Peace Corps
             -Enforcement
                     -Fathers
                     -Penalties
                     -Positive incentives
                             -Costs
                                     -12-

           NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                              Tape Subject Log
                                (rev. Feb.-10)
                                                     Conversation No. 853-10 (cont’d)


                            -Kennedy, Ribicoff
                     -Alternatives

Congressional relations
      -Purpose of meeting
              -Discussion with Wilbur D. Mills
                      -Japanese textile controversy
                              -Credit
                      -Conflict between Mills and Long
      -Taxes
              -Trade legislation
              -Cooperation between administration and Congress
                      -Politics
              -Need for Long’s and Mills’s support for programs
      -President’s approach to Congress
              -Tax bill
                      -Joint effort
      -Outside advice
              -Bureaucrats
                      -Longevity
                      -Interference with President and Congress
                              -Under Secretary
                      -“Invisible government”
      -Lyndon B. Johnson
              -Vietnam War
                      -John Kennedy
                              -Responsibility for war
                      -Length of war
                              -Honorable end
                      -Non-communist Asia
                              -People’s Republic of China [PRC]
      -President’s conversation with Alice Roosevelt Longworth
              -Editorials
              -December 1972 bombing
                      -Prisoners of War [POWs]
                      -President’s decision
                      -North Vietnam response
                      -Negotiations
                                              -13-

                   NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                        Tape Subject Log
                                          (rev. Feb.-10)
                                                            Conversation No. 853-10 (cont’d)


                                      -Cease-fire
                      -President’s actions
                             -Popularity compared to respect
                                      -Timidity
                                              -Demonstrators, press
                                      -Effect on allies
                                              -Trust
                                      -Respect of enemies
                                              -Soviet Union
                                              -PRC
                                              -Future relations
                                              -Respect for Presidency
              -“Invisible government”
                      -Bureaucracy
                             -Johnson
                      -Press
                             -John W. Chancellor, [Arnold] Eric Sevareid
                      -Elected officials
                             -Authority
                             -Need for communication
              -Long’s role
                      -Contact with Ehrlichman
                      -Consultations in advance on measures
                             -Taxes
                             -Bipartisan briefings
                             -Long’s leadership

George P. Shultz entered at 11:05 am.

       Greetings

       FAP
              -Ribicoff
              -1973 inaugural address

       Congressional relations
             -Meeting with Ehrlichman, Long, Weinberger, Lynn
                     -Housing allowance
                                      -14-

            NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                               Tape Subject Log
                                 (rev. Feb.-10)
                                                  Conversation No. 853-10 (cont’d)


                      -Senate Finance Committee
                      -Rents
                      -Controls
                      -Great Britain
       -Welfare
              -Poor
                     -Food stamps
                     -Housing
                     -Transportation
              -Long’s input
              -Medical issues
       -Senate Finance Committee
              -Common Cause
                     -United Auto Workers [UAW]
              -Adlai E. Stevenson, III
              -Democrats
              -Republicans
                     -Number
              -Robert W. Packwood
              -Herman E. Talmadge
              -Harry Byrd
              -Lloyd M. Bentsen, Jr.
              -Support for Long
                     -Number of votes

Tax policy
       -Mills’s hearings
       -Tax reform
               -1972 campaign
                       -Demagoguery
       -President’s commitments
               -Aid to parochial schools
               -Tax relief for elderly
                       -Property taxes
                       -Equity
       -Implications
               -Energy
               -Trade
                                -15-

    NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                        Tape Subject Log
                          (rev. Feb.-10)
                                                 Conversation No. 853-10 (cont’d)


-Trade
       -Senate Finance Committee
       -President’s options
               -Treaty
               -Act of Congress
                       -Committee approval
                               -J. William Fulbright
       -Trade bill
               -Senate
               -Finance Committee
               -Foreign Relations Committee
-Tax reform
       -Long’s opinion
       -Mills’s hearings
               -Treasury Department testimony
       -President’s commitments
       -Simplification
       -Energy
       -Strategy ideas
       -Reduction in rates
               -Mills
               -Charity
                       -Private foundations
                       -Compared to giving to heirs
               -Colleges, charities, churches
                       -Contributions
               -Foundations
                       -Tax status
                       -Activities
                       -Subcommittee
                               -Bentsen
                               -Seniority
       -Income tax avoidance
               -Corporate returns
                       -Deductions
                       -Minimum tax
                       -Big companies
               -Corporate taxes
                                       -16-

             NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                Tape Subject Log
                                  (rev. Feb.-10)
                                                       Conversation No. 853-10 (cont’d)


                              -Treasury Department study
                              -Oil industry
                                      -Exploration
                                      -Foreign drilling
                                              -Tax exemptions
                                      -Domestic sources
                                              -Development
                -Changes in corporate tax structure
                      -Foreign tax exemptions
                      -Internal revenue code

Energy
         -Oil imports
         -Natural gas
                -Price control
                        -Removal
                -Superior product
                -Incentives
                -Shortages
                        -Schools
                        -Generator plants
                -Incentives
                        -Controls
                        -Production
                -Compared to oil and coal
                -Washington Post
                -Charles E. Walker
         -Controls on natural gas
                -Prices
                -Impact on production
                -Contract restrictions
         -Oil
                -National security
                -Friendly nations
                        -Suez crisis
                                -Europe
                                -Egypt
                -Domestic production
                                      -17-

           NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                              Tape Subject Log
                                (rev. Feb.-10)
                                                     Conversation No. 853-10 (cont’d)


                     -Shale oil
                     -Coal
             -Emergencies
             -Domestic productions
                     -Market forces
                     -Incentives
                             -Shale oil
             -Solar energy
                     -Feasibility
             -Nuclear power
                     -Compared to fossil fuels
             -Oil
                     -Pricing
                             -Free market
                     -Imports
                             -Stock piles
                             -Problems
                     -Refineries
                             -Defense
                             -Louisiana
                     -National emergency
                             -Limited war
                     -Prices
                             -Increase
                             -Cost of gasoline
                             -Elasticity of supply

Tax policy
       -Reforms
              -Pro-business orientation
              -Congress
              -Wealthy people
                      -Investment
                      -Leonard Woodcock
                      -Politics
              -Irresponsible proposals
              -Minimum income tax
       -1969 tax legislation
                                    -18-

           NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                              Tape Subject Log
                                (rev. Feb.-10)
                                                 Conversation No. 853-10 (cont’d)


       -Investment taxes
              -Incentives
              -John B. Connally
              -Depreciation
                      -Guidelines
       -Albert A. Gore, Sr. [?]
       -Tax increases
              -Unpopularity
              -Minimum income tax
              -Senate Finance Committee
              -Jack R. Miller
              -Paul H. Douglas
              -Gore
              -John Mayer [?]
              -Fred R. Harris
       -Tax cuts

Shultz possible meeting with Long

Oil exploration
       -Dry holes
       -Tax credit
               -Rewarding exploration
               -Pay off for failure
       -Problems in defining
       -Incentives
               -Tax breaks
       -Small operators
               -Compared to large companies

Tax policy
       -Minimum tax
              -Offset increases
              -Energy exploration
       -Tax reform
              -Property taxes
              -Minimum tax
                      -Equity
                                                -19-

                   NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                        Tape Subject Log
                                          (rev. Feb.-10)
                                                              Conversation No. 853-10 (cont’d)


                                -Tax increase
                                       -Veto

       Oil production
              -Dry holes
              -Wells
                      -Number
              -Productivity of US
              -Tax avoidance
                      -Accountants, lawyers
              -Independent operators

       Ehrlichman’s briefing
              -Shultz’s questions and answers [Q&A]

Ehrlichman left at 11:44 am.

       Trade
               -Problems
               -Trade balance
                      -Japan
                              -Difficulties
                              -Countervailing duty
               -Authority for President
                      -Negotiations
                      -Reductions and increase on duties
                      -John F. Kennedy’s administration’s policies
                      -Surtax
               -Balance of payments
                      -Emergency
                      -Surtax
                      -President’s actions
                      -Previous surtax
                              -Connally’s negotiations
                      -Inflation
                              -Tariffs
               -Japan
                      -Inundating markets
                              -20-

    NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                       Tape Subject Log
                         (rev. Feb.-10)
                                               Conversation No. 853-10 (cont’d)


                -Job loss
                -Electronics
                -Flooding
                -Automobile market
                        -California
                -Protection
                        -Countervailing duty
                        -Dumping laws
                        -Safeguards
-Labor, business
        -Job retention
        -Support for welfare
        -Protectionist
-Tariffs
        -Compared to Kennedy negotiations
                -Reductions
        -Europe
        -Japan
        -US negotiating position
-Trade deficits
        -Long’s experience
                -Majority whip
                -Visit to Lyndon B. Johnson’s ranch
        -Johnson’s view
                -Unilateral actions
                -Conference
                -Trade representative
                -Dean Rusk
        -Problems
        -Connally
        -Peter G. Peterson
        -Japan
        -US balance of payments
                -Trade coupons
                        -Spain
                                -France
                        -Latin America
                        -Compared to US oil imports system
                               -21-

    NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                         Tape Subject Log
                           (rev. Feb.-10)
                                               Conversation No. 853-10 (cont’d)


                             -Petrochemicals
          -Surtax
          -Flexibility
-Surtax
        -Application
               -Latin America
                       -Compared to Japan, Europe, Canada
               -General Agreement on Tariffs and Trade [GATT]
        -Legislation
               -Emergency power
                       -Japan
        -Need for trade surplus
-US policies
        -Foreign aid
        -Defense
               -Japan
               -Europe
               -Canada
-Defense
        -Need for supplies
               -France, Europe
-Deficits
        -Size
        -Imports
        -Trade coupon
               -Exchange of dollars
                       -Speculation
-Legislation
        -President’s authority
               -Negotiations
                       -Japan
                       -Congress
               -Limits
               -Negotiations
                       -Congressional support
                               -Consultation
                               -William Proxmire
               -Long’s support for increased authority
                                    -22-

          NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                             Tape Subject Log
                               (rev. Feb.-10)
                                                    Conversation No. 853-10 (cont’d)


                           -Suggestions

Oil
      -US shipping
              -Paul Hall
                      -Seafarers Union
      -Labor negotiations
              -No strike pledge
      -Cost of shipping
              -Labor costs
                      -Compared to factory
              -Balance of payments
      -Connally’s views
              -William E. Simon [?]
              -US market
                      -Venezuela, Middle East
              -Producers
                      -Control of production and transport
                      -US dealings with Saudi Arabia, Iran, Gulf States
                             -US control of tankers
                                     -Bargaining position
      -Tankers
              -Soviet Union
              -Deepwater ports
              -Subsidies
      -Oil industry
      -Strikes
              -Hall
              -Relations with administration
              -Labor Management Advisory Committee
      -Number of unions
              -Competition
                      -Hall
                      -Thomas W. (“Teddy”) Gleason
                             -International Longshoremen’s Association [ILA]

Oil
      -US shipping
                                                -23-

                   NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                      Tape Subject Log
                                        (rev. Feb.-10)
                                                             Conversation No. 853-10 (cont’d)


                      -Organization of Petroleum Exporting Countries [OPEC]
                             -Pressure on oil companies
                             -Tankers for producing countries
                             -Profits
                      -Control
                             -Jobs
                             -Steel
                             -Fabrication of ships
               -Oil imports
                      -Quota tickets
                             -Oil companies
                             -Maritime industry
                             -Costs of energy
                      -Offshore oil
                             -Domestic pricing

Stephen B. Bull entered at an unknown time after 11:44 am.

       Press relations
               -Statement for Ronald L. Ziegler
                       -Meeting with President, Long, Shultz, and Ehrlichman
                              -Welfare reform
                              -Tax, trade, energy policies
                              -Length
                              -Politics

Bull left at an unknown time before 12:04 pm.

       Trade
               -Negotiations
                      -Japan
               -Trade bill
                      -Shultz’s consultations with Long
                      -Congressional leaders
                              -Meeting
                      -Monetary matters
                      -Need for quick action
               -President’s responsibilities
                                      -24-

           NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                              Tape Subject Log
                                (rev. Feb.-10)
                                                 Conversation No. 853-10 (cont’d)


              -Long’s support
              -Consultations
                     -National interest
                     -Statement

Long’s schedule
       -Senate reconvention
       -Vacation

Long’s support for President in Congress
       -Louisiana Republicans
       -Democrats
       -President’s courage
       -Congressional relations
              -Opposition to President
                      -Cabinet confirmations
                      -Politics
                      -Electoral mandate

Congressional relations
      -David H. Gambrell
      -Sam Nunn
              -Carl Vinson
              -Georgia
              -Vietnam War
      -Walter Huddleston
              -Kentucky
      -J. Bennett Johnston, Jr.
              -Louisiana
      -Common Cause
              -Influence in Democratic Party
                      -Committee Chairmen
                      -Democratic caucus
                      -Long’s opposition
                      -Budget controversy
                             -Obstruction
                      -Tax reform
              -Democratic Policy Committee
                                               -25-

                    NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                        Tape Subject Log
                                          (rev. Feb.-10)
                                                               Conversation No. 853-10 (cont’d)


                                -Stanley S. Surrey
                                -Tax reform
                                -Recommendations
                                        -George S. McGovern
                                        -UAW
                         -Bentsen
                         -George W. Romney
                         -Attack on seniority
                                -Common cause
                                        -Press release
                                                -Mills
                                                -James O. Eastland
                         -Senate leadership
                                -Johnson during Eisenhower’s administration
                         -President’s support for Long

       Monetary matters
             -Dollar
             -Consultations with Long

Long left at 12:24 pm.

       Monetary matters
             -Forthcoming meeting

Shultz left at 12:24 pm.