Conversation 001-063

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Hello?

Mr. President, I have Dr. Arthur Burns.

Oh, yeah.

All right.

Hello, Arthur?

Hope I didn't disturb you at lunch.

I told him I could wait.

How are you?

I'm just fine, thank you.

I'm just fine.

I had two things that are not urgent, but I would like for you to, if you could, that you might want to consider.

We had an excellent briefing at the cabinet, I mean at the cabinet, but you know we set up this new committee on international economic policy, you know, which I know you favored setting up and we've got it and Pete Peterson had it and he

It was an hour and a half briefing, actually.

It raised a lot of profound problems.

Not a great deal in the, I mean, looking over, looking toward the future, about the future of the American economy and the balance of payments and a lot of other things and so forth and so on.

Not much in the field of international monetary policy and the rest, naturally.

But what I thought would be a very great

and you can do it if you like or not.

I think the staff of the Fed ought to see it.

I think it'd be interesting for you to see it.

I'd like for you people to know the kind of things that we're looking at, and what would you think of the idea?

Well, I like the idea.

And I, as a matter of fact, when the briefing started, I thought we could have had you this, but then we'd get into that independent deal.

But I can tell Pete Peterson to call you

and arrange it.

Now, it's what I am doing.

I thought so much of it myself that I am having it given to the rest of the cabinet and to the whole White House staff.

Now, the second point, the reason that I'm calling you is that, and I'd like for you, if you were to, I don't know whether your staff will undertake this or not, to put on your other hat.

I don't mean, it has nothing to do with money.

One of the things that this briefing really raises, a very fundamental point, Arthur, is the question of our antitrust laws and how we can continue to compete with, for example, in airlines and so many other areas, with foreign governments, with foreign concerns that are subsidized by the governments and so forth and so on, and we move in other directions.

You know what I mean?

Yeah.

Now, I wondered if...

your staff i've had i might be mccracken's to make a study of this and also mitchell's and the rest and harlequin i wonder if independently of that you've got a lot of bright guys your staff and if if you could spend some time after you hear this thing

to give me your views on it, because I, you know, there hasn't been any real change in the antitrust law since the Sherman Act.

Well, the country's changed a lot, and I don't think that you and I have ever talked about it, but after you've had a chance to think about it, I wondered if you'd come in, because I don't, I just have a feeling we've made some mistakes here.

I think we're, I don't mean by that that we don't, but I think that for the future we're all for cartelization and all that sort of thing, but I also know

that we cannot just apply the rules that were appropriate 50 years ago to the problems of today.

Mr. President, in that connection, I have meant to write you a memorandum.

I've talked to several highly placed men in the aviation industry.

Right, right.

That's one of our sick ones, the one that we're worried about.

You know, unless we get some merges arranged rather promptly, we can have mass failures there.

Well, let me tell you that if you could... What really concerns me is if you could look at this briefing, and then also...

Give me a strong memorandum on that.

And then when we come in, I'd like for you, I think it'd be worth an hour and a half of your time to see the briefing, too.

It's done with charts, and he's gone over the whole...

situation as to what has happened to the american position in the world and it's a fascinating briefing really a fascinating briefing much of it will be old hat to you but the members of your staff like it and i'm uh our people all around here just sat there and said my god we we've got to see you again see so so two points if you on the aviation thing i'm working on that oh i'm so glad and second uh but i'd like but i need for you for my for purposes of

getting the heat on this damn Justice Department.

I understand Mitchell's all right, but it's the people down below.

I could use an MRN from you, and I'll just keep it to myself.

Third, would you give consideration to the whole problem of antitrust in your staff?

Because you've probably got some experts over there that kick this around, don't you?

Yeah, yeah.

And it would not be inconsistent with what you do otherwise.

Not in the slightest.

And it's a look at everything, banks, everything else.

I'm not so sure.

The other thing is that if...

If then on this international situation, after you look at it, since it is so closely related to the whole question of balance of payments and international monetary thing, then if you independently, I mean, I'm really interested in what you think, not just what you're studying.

If you could then either come in and give me your views about it, it would be very helpful.

Could you do that?

You bet.

Okay.

Yeah, of course I will.

Incidentally, Pete Peterson just walked in the office.

Can I put him on the phone and we set the date for you now?

Yeah, fine.

Fine.

Hello.

Yes, I've just been talking to the president.

Yes, sir.

What a wonderful briefing you gave to the cabinet.

That'll surprise you, Arthur, I'm sure.

The president would like to have some members of the Fed's staff see this, and I'd like to see it.

All right.

And the president wants me to arrange a date with you.

All right.

Well, the minute I get back to office, I'll call you and we'll set up the time.

We'll set up the time.

Great, Arthur.

Very good.

Fine.

Bye-bye.

Bye.