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Conversation 007-120

TapeTape 7StartSunday, August 15, 1971 at 9:39 PMEndSunday, August 15, 1971 at 9:44 PMTape start time04:21:15Tape end time04:25:28ParticipantsNixon, Richard M. (President);  Ford, Gerald R.Recording deviceWhite House Telephone
AI Summary

President Nixon and Representative Gerald Ford discussed the political and economic implications of the administration's newly announced wage-price freeze and broader economic policy shifts. Nixon explained his strategy for protecting the dollar, including the suspension of gold convertibility and the imposition of import duties, to address international trade imbalances. Ford expressed strong support for the domestic tax and spending components of the plan, while Nixon emphasized the necessity of these unilateral actions to force international monetary reform.

Wage-price freezeEconomic policyGold standardInternational tradeFiscal policy
AudioNARA Description

On August 15, 1971, President Richard M. Nixon and Gerald R. Ford talked on the telephone from 9:39 pm to 9:44 pm. The White House Telephone taping system captured this recording, which is known as Conversation 007-120 of the White House Tapes.

Nixon Library Finding Aid
Conversation No.7-120

Date: August 15, 1971
Time: 9:39 pm - 9:44 pm
Location: White House Telephone

Gerald R. Ford talked with the President.

     Wage-price freeze speech
         -Ford's reaction
               -Wilbur D. Mills
               -Tax package
               -Spending cutback
               -Foreign aid
               -International economics
                     -Gold conversion
               -Wage-price dividend controls
                     -Possible public reaction
                     -Ninety days
                                             75

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/08)



                           -Wage-price board
          -International competition
                -Duties
                -Timing
          -Wage-price freeze
          -Congressional action
          -Dollar conversion
                -Special Drawing Rights [SDR]                  Conv. No. 7-120 (cont.)
                      -Arthur F. Burns
          -Countries
                -Germany and Japan
                -France and Great Britain


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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.

Hello.
Hi, Mr. President.
Hi, Jerry.
How are you?
I'm fine.
How are you?
Couldn't be better.
I thought that was a great speech.
Well, we got your excise tax.
Well, I was...
I think maybe, Jerry, we pulled the rug out from under those bastards who've been after us.
What do you think?
Well, I think Wilbur Mills will have a few seconds on.
Well, my reaction... You really thought it was right, though, do you?
Absolutely.
The tax package is tremendous.
The cutback in spending, what, 4.7 domestically.
I like that.
And the 10% on foreign aid, that'll be damn well received.
And the only thing I don't understand, and I'm not an expert in this area, is the international side.
Well, that's so technical.
What it really gets down to is they're trying to bust the dollar, and it doesn't have anything to do with the American market.
So we just have to quit redeeming in gold, and we work out a new system.
That's all it means.
But the key line there was I said the dollar would not be the hostage of international money traders anymore.
The imposition of wage, price, and dividend controls, I think all you have to do is prosecute one or two, and that'll take care of the rest.
We're going to.
Well, I think that's the key, Mr. President.
The people probably want it, don't they, Jerry?
I think they do, although... You can't tell.
The polls show they do, but you never know what they'll do in a quench.
Well, it all depends, you know...
The guy that raised his prices yesterday, he'll love it.
But the point is, the main thing is having it 90 days.
Right.
Then moving off to a wage price board, which is what we're going to do.
We've got to get out of it.
After 90 days, it'll break down, you know.
Well, the main thrust, though, of the whole package is, I think, going to be damn well received.
Well, it's jobs, fighting the cost of living, and protecting America abroad.
They may not...
understand the dollar, but I think they understood when I said that we've given $143 billion to build up our competitors, and now, by gosh, we're not going to fight with one hand tied behind our back.
Q And I think the 10 percent imposition of a duty or whatever you call it is going to be damned helpful in some of these areas where there's been a lot of competition.
A That's right.
That's right.
Q Does that begin tomorrow?
Today.
Oh, this minute.
See, I can oppose that unilaterally, and I can oppose the wage-price freeze unilaterally.
So that, as of this moment, it's done.
The other things require congressional action.
Well, overall, the parts that I understand, I think, are damn good, substantively as well as politically.
You will have to get your expert to explain to me the form.
Don't try to understand it.
Don't try.
Believe me, I've been over it for months.
I think I understand it, but it isn't worth the trouble.
Let me ask you one thing.
Yeah.
The comment about the convertibility of dollars...
Into gold and other assets.
Right.
And that's special drawing rights, SDRs, and it's so damn complicated.
Let me say this.
It really...
isn't something we should be worried about.
There needs to be a new international system.
I felt it for many years, and the last two years I've told Arthur Frank, everybody agrees we have to have it.
You've got to give shock treatment to other countries.
The major countries that are really giving it to us are the Germans and the Japanese.
So we're trying to force them to get in line.
The French and the British are okay.
The other countries don't matter, see?
That's what it is.
But don't try to understand international things.
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