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Conversation 007-019

TapeTape 7StartWednesday, July 28, 1971 at 5:41 PMEndWednesday, July 28, 1971 at 5:43 PMTape start time00:47:21Tape end time00:49:37ParticipantsNixon, Richard M. (President);  Connally, John B.;  Nixon, Richard M. (President);  Connally, John B.Recording deviceWhite House Telephone
AI Summary

President Nixon and Secretary of the Treasury John Connally discussed a strategy to exert political pressure on Federal Reserve Chairman Arthur Burns regarding monetary policy. Connally reported that their coordinated 'tactic' of feigning ignorance had successfully gotten Burns' attention and prompted a shift in his outlook. They agreed to maintain pressure while maintaining a posture of plausible deniability, with Connally planning to press Burns for more positive public statements during a future meeting.

Arthur BurnsFederal ReserveMonetary PolicyPolitical StrategyPlausible DeniabilityWright Patman
AudioNARA Description

On July 28, 1971, President Richard M. Nixon and John B. Connally talked on the telephone from 5:41 pm to 5:43 pm. The White House Telephone taping system captured this recording, which is known as Conversation 007-019 of the White House Tapes.

Nixon Library Finding Aid
Conversation No. 7-19

Date: July 28, 1971
Time: 5:41 pm - 5:43 pm
Location: White House Telephone

The President talked with John B. Connally.
                                               11

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                       Tape Subject Log
                                         (rev. 10/08)



[See Conversation No. 550-3C]

     Federal Reserve Board [?]
          -Propose changes [?]
               -Effect
               -Wright Patman
               -Arthur F. Burns’ call [to Alan Greenspan?]
                     -Politics                                 Conv. No. 7-19 (cont.)
               -Ronald L. Ziegler
               -Connally's meeting with Burns
                     -Propose effect

     The President's schedule
          -George P. Shultz meeting
               -Connally meeting
                      -Senators
                           -Location
Transcript (AI-Generated)

This transcript was generated automatically by AI and has not been reviewed for accuracy. Do not cite this transcript as authoritative. Consult the Finding Aid above for verified information.

Yeah.
Secretary Connolly, Mr. President.
Yes, sir.
I thought you should know, as I'm sure you heard, that your little tactic you suggested got home to our friends across the street.
Well, that's good.
I'll tell you.
And it's a very interesting thing.
And we, of course, have said, oh, gee, who us?
And no, we don't know anything about this.
But Wright Patman stepped up to it right nice.
He'd been for that anyway.
That's right.
But Arthur is called our friend in New York...
who's very close to us, indicated his concern.
And he's just been told that we feel that this is hurting us politically and that otherwise and so forth and so on.
Well, he doesn't want to do that.
He didn't dream that was the case and so forth and so on.
But I think that we've got his attention.
Now, we've, of course, Zig, we're all the rest of us.
I mean, I'm not saying a word, but he's just playing the view that, well, this is something we know nothing about.
But I thought you should know, just play it, and then you can just play it dumb as hell, too.
Yeah, I will in the morning.
I'm having breakfast with him, so I'll play it dumb.
I think you could just say, well, these things have been, you know, these things are always kicking around, Arthur, but...
You never heard me mention it.
Yeah.
Isn't that the best way?
I think so.
Whatever comes to your mind.
No, I think that's fine.
But in the meantime, don't let up on him.
Oh, no.
I don't understand.
Yes, sir.
Because we've got to have some way to get him to say, if he says, what can he do, you say, just make one positive statement.
He just ought to say,
I mean, as far as this, I mean, that there are some positive things happening, because there are some as well as some things that are not positive.
That's right.
Okay.
George is on his way over there, incidentally.
I see.
You apparently called for him, and he was in the meeting, and I think he's headed toward your office.
Oh, well, I didn't mean to call him out of a meeting.
Well, we haven't started yet.
We're meeting with all these senators over here.
Oh, I see.
In the library at the mansion.
Oh, you are?
Oh, I'll send him back.
Fine, fine.
No, I can't hurry.
Fine, I'm sorry.
I didn't know you were in a meeting.
No, no, we weren't.
They're just all having drinks.
All right, fine, fine.
Okay, great.
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