Conversation No. 853-12

Date: February 8, 1973
Time: 12:28 pm-1:19 pm
Location: Oval Office

The President met with E. D. Kenna, Eugene J. Hardy, W. Richard Howard; the White House
photographer was present at the beginning of the meeting.

       Greetings

       [Photograph session]

The White House photographer left at an unknown time before 12:40 pm.

       National Association of Manufacturers [NAM]
              -Kenna’s activities as president
              -Earl H. Blaik
                     -Greetings to President
                     -Residence
                             -Palm Springs
                     -Kenna’s possible visit
                     -Merle J. (McDowell) Blaik
                             -Operation
                     -Qualities
                     -New York
                     -Retirement
              -Kenna’s activities as president
                     -Travel
                               -27-

    NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                        Tape Subject Log
                          (rev. Feb.-10)
                                                Conversation No. 853-12 (cont’d)


-Support for administration policies
       -Spending
       -Members
               -Letters to Congress
-Trade policies
-Energy
-Spending
       -Importance of issue
       -Russell B. Long
       -Congress
               -Special interests
               -Accountability
               -Tax increases
               -Prices
               -Inflation
       -Membership
               -Constituents of Congress members
-Programs
       -Computerized lists of members
               -Congressional districts
       -Energy
       -Foreign trade
               -Inter-industry Council
                       -Trade associations
                       -William D. Eberle
                       -Peter M. Flanigan
                       -Special trade representative [STR]
                       -Recommendations
                       -Negotiations
                       -Data
       -Research efforts
               -Tariffs
               -Trade adjustment systems
               -Monetary reform
-Administration relations
       -Charles J. DiBona
       -Kenneth R. Cole, Jr.
       -Flanigan
                                       -28-

            NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                Tape Subject Log
                                  (rev. Feb.-10)
                                                       Conversation No. 853-12 (cont’d)


               -Eberle
               -William E. Simon, George P. Shultz
                       -Treasury Department
        -Energy
               -NAM stake
        -Export policies
               -Trade deficit
               -US market
                       -Problems
               -NAM programs
                       -World Trade Institute
                              -New York
                       -Seminars for small companies
               -US-Soviet Union trade conference
                       -US representation
                       -Approach

Trade
        -Soviet Union
        -People’s Republic of China [PRC]
        -Japan
               -Negotiations
        -Edward R. G. Heath
               -Visit to US
               -Europe
                       -Tariff barriers
                       -US approach
                               -Sales to Europe
        -Henry Kearns
               -Export-Import Bank
        -Robert D. Anderson
               -Work with Kenna
               -New York

NAM
        -Isolationism
                -Europe
                -US
                                                -29-

                   NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                       Tape Subject Log
                                         (rev. Feb.-10)
                                                             Conversation No. 853-12 (cont’d)


                              -President’s opposition
              -Representation
              -Import restrictions
              -Policy determination
                     -Foreign trade
                              -Encouragement

Stephen B. Bull entered at an unknown time after 12:28 pm.

       Shultz’s arrival

Bull left at an unknown time before 12:40 pm.

       NAM
              -Howard’s role
              -Work with administration

       Spending issue
             -President’s leadership

Shultz entered at 12:40 pm.

       Introductions
              -Simon

       NAM
              -Budget policies
                     -Spending
              -Trade
                     -Protection
                     -US companies
                             -World markets
              -Contact
              -Shultz’s forthcoming address

Kenna, Hardy, and Howard left at 12:42 pm.

       Labor relations
                                       -30-

            NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                               Tape Subject Log
                                 (rev. Feb.-10)
                                                         Conversation No. 853-12 (cont’d)


       -Railroad strike
              -Trustees
              -Federal government
              -Hearings in Congress
                      -Pete Williams
              -Legislation
                      -Responsibility of President
                      -Administration’s strategy
                             -Support
                             -Amendments
                                     -Penn Central
                                     -Unprofitable lines
                                     -Interstate Commerce Commission [ICC]
                                     -Transportation Department
                             -Peter J. Brennan
                             -Claude S. Brinegar

International monetary situation
        -Money markets
                -Chaos
        -Administration policies
        -Paul A. Volcker
                -Mission to Japan
                        -Kakeui Tanaka
        -Exchange rates
                -US moves to change
        -Trade
        -Cause of problems
                -Speculation
                -Trade balance
                -Inflation
                -Budget
                -Trade balance
                        -Psychology
                        -Speculation on exchange rates
                        -Multinational corporations
        -Floating
                -Switzerland, Great Britain
                                       -31-

            NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                               Tape Subject Log
                                 (rev. Feb.-10)
                                                       Conversation No. 853-12 (cont’d)


              -Advantages

Trade
        -Administration’s proposals
        -Treasury Department announcement
               -Consultations with Congress
               -Surcharge
        -Japan
               -Intentions of government
               -Tanaka
        -Helmut H. W. Schmidt
               -Problems
               -Germany
        -Possible agreements on exchange rates
               -Unilateral announcement
               -International Monetary Fund [IMF]
               -Market’s reaction
               -Acrimony
        -Purpose of US actions
               -Germany

Stock market
       -Shultz’s evaluation
       -Reasons for problems
              -Pessimistic reasons
                      -Arthur F. Burns
                              -Money supply rate of growth
                              -Interest rates
                              -Jawboning
                      -Inflation
                              -Phase III
                              -Explanation
                                      -Squeeze on corporate profits
                      -Burns
                              -Interest rates
                              -Demagoguery

Inflation
                                      -32-

           NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                               Tape Subject Log
                                 (rev. Feb.-10)
                                                      Conversation No. 853-12 (cont’d)


       -National gas price controls
              -Long
              -Shortages
       -France
              -Rents, housing
                      -Paris
       -Jacob K. Javits
              -Rent controls
                      -President’s opposition
                      -Reasons
              -Problems in New York
                      -Housing deterioration

International monetary situation
        -Temporary nature
        -Administration position
               -IMF
               -Strengths
                      -Negotiations
                      -Framework
               -William P. Rogers
               -US moves
                      -Strategy
                              -Effectiveness
                              -Implementation
        -Wall Street
               -David Rockefeller
                      -Telephone call to Shultz
                              -Nelson A. Rockefeller
                      -President’s trip to Romania and Poland
                      -Statement on Smithsonian Agreement
                              -President’s evaluation
                                      -New York

Personnel
       -Labor Department
              -President’s advice
              -Brennan
                                -33-

    NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                        Tape Subject Log
                          (rev. Feb.-10)
                                                 Conversation No. 853-12 (cont’d)


                -Shultz’s opinion
                -Lack of help in department
                -Amount of work
                -Appointments
                        -Vacancies
                -Shultz’s help
        -Undersecretary
                -Compatibility
                        -Simon and Shultz
                        -Elliot L. Richardson and William P. Clements, Jr.
                        -Assistant Secretaries
        -Managers
                -Loyalty
        -Role of Secretary
                -Public role
                -Help from assistants
                -Need for managers
        -Politics
                -George Meany
                        -Concern for Labor Department
        -Brennan’s personnel choices
                -Opposition to Undersecretary
                        -John D. Ehrlichman
        -Charles W. Colson
        -Ehrlichman
        -Frederick V. Malek
        -Brennan
                -Loyalists
                        -Undersecretary
                -Possible problem with Ehrlichman and Malek
        -Arnold R. Weber
                -Qualities
        -Malek
-Political sensitiveness for manager
        -Compared to business managers
-Meeting between Shultz and Brennan
        -Shultz’s meeting with Meany
                -President’s appearance at AFL-CIO convention
                                     -34-

           NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                              Tape Subject Log
                                (rev. Feb.-10)
                                                      Conversation No. 853-12 (cont’d)


              -Ehrlichman
              -Colson

Labor Department
      -Brennan
             -Assistants
                     -Vacancies
             -Willie J. Usery, Jr.
             -[First name unknown] Townsend [?]
                     -Mediation
                     -Resignation
                     -Construction job
                     -Loyalty to President
                     -Age
                     -Salary
                     -Bechtel Corporation [?]

Treasury Department
       -George D. Webster
             -General Counsel nomination
                     -Jerry H. Jones
                     -Colson
             -International Revenue Service [IRS]
             -Shultz’s evaluation
                     -Treasury’s constituents
                     -Problems
                             -Respect
                             -Lawyers for Nixon Chairman
                     -Complexities of job as general counsel
                     -IRS
                             -President’s concerns
                             -Current chief [John Larkin]
                                    -Malek
                                    -Interior Department
                                    -Qualifications
                                    -Philosophy
                                    -Ehrlichman’s interview
                                    -35-

           NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                             Tape Subject Log
                               (rev. Feb.-10)
                                                    Conversation No. 853-12 (cont’d)


Personal appointments
       -Shultz’s talk with Brennan
              -Help
              -Decision making
              -Good managers
              -Undersecretary
              -William J. Rogers [?]
                       -Background
              -Assistant Secretaries
              -Undersecretary
                       -Trustworthiness
              -Meany
                       -Labor’s interests
                              -Manpower training
                              -Taxes
                              -Trade
              -Meetings
                       -Weber
       -Webster
              -Background
              -Problems
                       -Organized labor
                              -IRS
                              -Telephone call from Meany
                                      -Opposition
              -President’s conversation with Haldeman and Colson
              -Decision
       -Brennan
              -Success
              -Ehrlichman
                       -Conflicts
              -Value to administration
                       -“Wild card”
                              -Compared to professional managers
       -Usery
              -Service at Labor Department
                       -Value to department
                              -Problem solver
                                    -36-

           NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                             Tape Subject Log
                               (rev. Feb.-10)
                                                   Conversation No. 853-12 (cont’d)


             -Mediation position
                     -Brennan
                     -Independent agency
                     -Support from Meany
             -Promotion
       -Brennan
             -Ehrlichman
             -Value to administration
                     -Cabinet
                     -Colorfulness
             -Patricia R. Hitt
                     -Possible position at Labor Department
                     -Department of Health, Education, and Welfare [HEW]
                             -Caspar W. (“Cap”) Weinberger
                             -Problems
                     -Qualities
                     -Political sensibilities
                     -Asset to administration
                     -Treasury Department
                     -Campaigning
                             -Helena M. (“Obie”) Shultz
                     -Departure from HEW
       -Romana A. Banuelos
             -Problems
             -Treasurer of the United States
             -Limousine service
             -Qualities
             -Ethnics, blacks
             -Job for Hitt
       -Hitt
             -New job
                     -Women’s Bureau
             -Assistant Secretary
             -Women in government
                     -[Dixie Lee Ray]
                             -Atomic Energy Commission [AEC]

Monetary situation
                                               -37-

                     NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                      Tape Subject Log
                                        (rev. Feb.-10)
                                                           Conversation No. 853-12 (cont’d)



Shultz left at 1:19 pm.