Nixon White House Tapes — Conversation 007-133
Date: Sunday, August 15, 1971 at 10:24 PM
Participants: Nixon, Richard M. (President); Hardin, Clifford M.
Recording device: White House Telephone
Source: https://www.easynixon.org/tapes/007-133

This transcript was generated automatically by AI (WhisperX) and has not been reviewed for accuracy. Do not cite it as authoritative.

[0:00] There you are, sir.
[0:02] Hello.
[0:03] Hi, Mr. President.
[0:04] Hi, Cliff.
[0:04] How are you?
[0:04] Oh, just fine.
[0:06] I thought that was a great speech.
[0:08] Well, it sort of shook him up a little.
[0:10] We'll see you at the cabinet meeting tomorrow, huh?
[0:11] Yes, by all means.
[0:14] Right.
[0:14] Well, we had to do this.
[0:16] Oh, they're going to take the initiative.
[0:18] Two or three things that I didn't have enough background on to have a deal for.
[0:21] Listen, this is so complicated.
[0:23] Eighteen minutes, I was covering the most comprehensive thing that's been said in 40 years.
[0:27] Yes, I know.
[0:28] And so...
[0:29] Incidentally, one thing you should know, all unprocessed things are out, for example.
[0:38] No agriculture products are covered in the grease.
[0:42] Oh, yeah.
[0:42] That's at the farm level.
[0:45] Oh, we couldn't possibly do that tonight.
[0:46] You can't.
[0:46] How about retail?
[0:48] Retail?
[0:49] Oh, hell yes.
[0:50] It's growing all the way.
[0:51] Yeah.
[0:52] But we should.
[0:53] But we don't control at the farm level, you see, which I think is fair enough.
[0:58] You ought to emphasize that.
[0:59] What's the reaction going to be to the 10% import tax abroad?
[1:03] Abroad?
[1:03] Or it'll shake them up, but it'll only make the Japanese revalue the yen.
[1:07] They should do it.
[1:11] Try them for it.
[1:12] You think they'll force them?
[1:13] They'll do it.
[1:13] Oh, they've got to.
[1:15] They're not going to sell Americans.
[1:16] They're going to sell their cars to Americans, you see.
[1:20] We want to force them.
[1:21] That's why we did this.
[1:23] It's a strong action.
[1:26] I'm in strong favor of it.
[1:28] And that's consistent with the GATT rules, too, isn't it?
[1:33] Yes.
[1:35] We do it under GATT rules, and we're going to remove it if they change their exchange rate.
[1:38] So is that affected immediately?
[1:40] As of today.
[1:41] As of the 10% tax on imports?
[1:42] As of today.
[1:43] Only, of course, those items that are affected by GATT.
[1:49] Like, for example, it doesn't affect any of the farm products.
[1:52] Well, they're under gas.
[2:01] I know, but none of them have taxis.
[2:11] We don't protect most of the final products.
[2:14] No, we don't have taxis.
[2:15] We, so you mean the car, etc.
[2:16] Oh, yeah, there's an ad valorem tax on can hands and things like that.
[2:19] Right, right.
[2:19] It would affect them.
[2:19] That's good.
[2:20] Yeah.
[2:20] This is a bargaining position.
[2:20] Now, what do you think this will...
[2:22] put some of these striking people back to work?
[2:30] I guess.
[2:32] I'm thinking about the long-term in the West Coast.
[2:37] I'm not sure of that.
[2:38] They're such radicals, but the others will all have to go back to their jails.
[2:43] And that means any settlements that have been made that are not yet in effect are affected?
[2:48] Are affected.
[2:48] And all the escalators are frozen.
[2:49] The automatics stopped them three years ago.
[2:51] They're all frozen.
[2:51] Yeah, shifted.
[2:52] Yeah, well that's no problem.
[3:10] This government thing here has been pretty good.
[3:11] That's right.
[3:12] I've been amazed at how it's targeted in this region.
[3:13] Or at least lower grade.
[3:14] That's right.
[3:15] Well, no, I think you've got the initiative now.
[3:22] You shook them up, at least.
[3:23] Well, practically everything anybody's been seriously advocating, you had him in one form or another.
[3:28] Some will say we should have done it earlier.
[3:30] Some say we should have done it more.
[3:32] We should have had the breeze longer.
[3:35] But on the other hand, they're going to have a heck of a time.
[3:38] Well, I haven't had the benefit of the discussion you've been having, but I've been puzzled with retail sales up as well as they are.
[3:41] They still have lots of savings.
[3:43] They are moving very well.
[3:52] It's psychological.
[3:54] It's the way the media is reporting.
[3:56] Actually, the economy is moving very well.
[3:58] This will give it a kick.
[4:00] It'll move much faster right now.
[4:01] As I said, you're the strong upturn already.
[4:04] This added to it.
[4:05] Say, on this tax thing now.
[4:07] Which one?
[4:08] Well, on the investment tax.
[4:09] The investment tax, the new job.
[4:11] Yeah.
[4:11] Is there any kind of a Royal America twist that you can put on that?
[4:19] Raising the cabinet meeting was John Connolly's first very useful piece of help.
[4:22] I don't know of it.
[4:23] There must be.
[4:23] There must be.
[4:24] Sure.
[4:24] This would be a good place to play around with that a little bit.
[4:28] Right, right.
[4:28] You know, we've been discussing it for a year and a half.
[4:31] We'll raise it tomorrow as we get in there, because I want all these questions raised.
[4:34] See, we did all this project.
[4:36] The reason we couldn't tell anybody else was because it disregarded me.
[4:41] You know, the credibility of gold, the price of gold, had to be kept.
[5:00] Otherwise, all hell would break loose.
[5:01] That's why Connelly and all the rest of us were lying.
[5:03] We didn't think we were going to do anything.
[5:05] We knew we were going to do it.
[5:06] We decided this 60 days ago.
[5:08] Now, the gold thing, is that going to have the effect of the devaluation?
[5:09] No.
[5:10] No.
[5:10] No.
[5:10] It hasn't.
[5:10] They'll call it that, but the devaluation will only affect Americans who travel abroad or who buy foreign products.
[5:24] It has no effect.
[5:25] Well, sure, I understand that.
[5:28] And so it really doesn't matter.
[5:30] And also, what we're really trying to do more than anything else is make the Japanese devalued again.
[5:36] If they do that, then they're going to be happy doing it.
[5:38] What's Paul McCracken say, 25% undervalued now?
[5:39] Yeah.
[5:40] We'll have him in the cabin.
[5:50] It's so complicated.
[5:50] Well, this is exciting.
[5:52] Well, we've got the ball.
[5:54] Yeah, yeah.
[5:54] There's like this, just like we did in China.
[5:58] Yeah, I think there's going to be electric across the country.
[6:00] There'll be some things we haven't thought of that'll happen.
[6:17] And how it works.
[6:17] I talked to Arnold Weber a while ago about staffing up to enforce the trees.
[6:21] That's what it takes to do anything.
[6:22] And I presume you want to be vigorous on that.
[6:25] Absolutely.
[6:26] Particularly at the beginning.
[6:26] If somebody violates the beginning, possibly right away.
[6:27] The legal basis is clear.
[6:29] Oh, totally.
[6:30] Right.
[6:34] Good.
[6:35] Well, we'll have fun.
[6:40] You'll have fun tomorrow.
[6:42] Oh, it's going to be a great day.
[6:46] All right, Seth.
[6:48] Thank you for calling us, Fred.