Nixon White House Tapes › Tape 7 › Conversation 007-042

Nixon phone call with Shultz on Labor disputes and Steel industry

Monday, August 2, 1971 · 9:42 AM–9:45 AM ET · White House Telephone · 2 min

ParticipantsNixon, Richard M. (President); Shultz, George P.Conversation007-042 on Tape 7 (tape position 02:03:36–02:05:37)StartMonday, August 2, 1971 at 9:42 AMEndMonday, August 2, 1971 at 9:45 AMRecording deviceWhite House TelephoneSourceNixon Library record for 007-042 ↗

President Nixon and George Shultz discuss the administration's public relations strategy regarding recent steel and rail labor settlements ahead of an 11:00 a.m. statement. They agree to avoid denouncing the large wage increases in the new contracts, opting instead to emphasize that strikes were successfully averted and that the agreements include provisions for improved productivity. Nixon instructs Shultz to coordinate with Treasury Secretary John Connally to ensure the administration presents a unified front on the matter.

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Hello.
Mr. Schell.
Yeah.
You wanted to talk to me before... Well, it's a question of our statements at 11 o'clock about the steel and the rail situation.
Yeah.
Steel, as you know, is settled.
Yeah.
The contract is settled, and they're working on a back-to-work agreement.
Mm-hmm.
And they don't plan to announce the contract settlement until they have the whole thing wrapped up.
But our... Mm-hmm.
guess is that it'll be wrapped up prior to 11 o'clock and so there would be back to work constructions and so on and our question is what to say about these contracts now it seems to me off our all the things that have happened in the discussion that you and I had Saturday that
While we can't welcome these large wage increases, we can stress the fact that a strike has been avoided, that a strike is settled, that there is something about productivity in each of these agreements and not denounce them.
Yeah.
And I think we're... Well, we have a commitment not to denounce the steel one, at least.
Right.
I think that's right.
I just wanted to be sure that was your guidance.
Yeah, we can't denounce the steel one, and it's pretty hard to roll over, but the story at least did indicate that it was in the same canal range, and nobody could expect that it could be anything else.
Well, after I start meeting with Connolly, it might be well if I get you down so that he's
including on it, too.
All right.
He won't make the statement, but he ought to know what we're doing on it.
Okay?
Okay, sir.
Fine.
I'll give you a call, sir.
Thank you.

On August 2, 1971, President Richard M. Nixon and George P. Shultz talked on the telephone from 9:42 am to 9:45 am. The White House Telephone taping system captured this recording, which is known as Conversation 007-042 of the White House Tapes.

Conversation No. 7-42
Date: August 2, 1971
Time: 9:42 am - 9:45 am
Location: White House Telephone

The President talked with George P. Shultz.

[See Conversation No. 553-3B]

     Labor disputes
          -Steel and rail strikes
          -Steel settlement
          -Rail contract settlement
                -Back to work agreement
          -White House statement
                -Shultz's talk with the President
                       -Wage increases
                       -Avoidance of strike
                       -Productivity in the agreements
           -The President's meeting with John B. Connally
  • 007-041 8:52 AM · 9 sec — President Richard M. Nixon and the White House operator talked on the telephone at an unknown time between 8:52 am and 9:42 am.
  • 553-003 9:20 AM · 30 min — President Richard M. Nixon, Henry A. Kissinger, unknown person(s), White House operator, and George P. Shultz met in the Oval Office of the White House from 9:20 am to 9:50 am.
  • 007-043 9:45 AM · 9 sec — President Richard M. Nixon and the White House operator talked on the telephone at an unknown time between 9:45 am and 12:00 pm.
  • 007-044 9:45 AM · 9 sec — President Richard M. Nixon and the White House operator talked on the telephone at an unknown time between 9:45 am and 12:00 pm.
  • 553-004 9:50 AM · 19 sec — President Richard M. Nixon and Stephen B. Bull met in the Oval Office of the White House at an unknown time between 9:50 am and 9:55 am.
  • 553-005 9:55 AM · 1 min — President Richard M. Nixon and Gerald L. Warren met in the Oval Office of the White House from 9:55 am to 9:56 am.
  • 553-006 9:58 AM · 4 hr 2 min — President Richard M. Nixon, George P. Shultz, Stephen B. Bull, John B. Connally, H. R. ("Bob") Haldeman, White House operator, Carl T. Curtis, Barry M. Goldwater, John D. Ehrlichman, Edward L. Morgan, George D. Aiken, Manolo Sanchez, J. Caleb Boggs, and Clark MacGregor met in the Oval Office of the White House from 9:58 am to 2:05 pm.
  • 269-008 10:46 AM · 4 min — President Richard M. Nixon and John D. Ehrlichman met in the President's office in the Old Executive Office Building from 10:46 am to 10:56 pm.

Conversation 007-042, August 2, 1971. White House Tapes, Richard Nixon Presidential Library and Museum, National Archives. Audio and AI transcript via Easy Nixon, https://www.easynixon.org/tapes/007-042 (accessed October 9, 2026).