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Conversation 007-152

TapeTape 7StartSunday, August 15, 1971 at 11:24 PMEndSunday, August 15, 1971 at 11:28 PMTape start time05:45:22Tape end time05:48:58ParticipantsNixon, Richard M. (President);  Burns, Arthur F.Recording deviceWhite House Telephone
AI Summary

President Nixon and Federal Reserve Chairman Arthur Burns discuss the immediate aftermath of the announcement of the wage-price freeze, expressing relief that the plan remained secret during its development at Camp David. The two leaders strategize on managing international monetary policy, with Nixon tasking Burns to maintain close control over Paul Volcker and Dewey Daane to ensure alignment with administration objectives. Finally, they plan to secure political support from Representative Wilbur Mills by offering him full credit for the initiative to ensure the program's success.

Wage-price freezeNixon ShockArthur BurnsInternational monetary systemWilbur MillsEconomic policy
AudioNARA Description

On August 15, 1971, President Richard M. Nixon and Arthur F. Burns talked on the telephone from 11:24 pm to 11:28 pm. The White House Telephone taping system captured this recording, which is known as Conversation 007-152 of the White House Tapes.

Nixon Library Finding Aid
Conversation No. 7-152

Date: August 15, 1971
Time: 11:24 pm - 11:28 pm
Location: White House Telephone

The President talked with Arthur F. Burns.

     Wage-price freeze speech
         -Burns’ reaction
         -Wording

          -International monetary issue
                -Burns and Paul A. Volcker
                -[James] Dewey Daane
                -Control by Burns
          -Burns’ reaction
          -Democrats
                -Spending
                      -Meeting with Burns
                           -The President's instructions
          -Burns’ talk with [Pierre-Paul?] Schweitzer
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 Do not cite this transcript as authoritative.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?
Arthur?
You must have been working hard.
Well, I got in your line about stabilization.
On the devaluation, I said we were stabilizing the dollar, which I think is the key thing there.
But the wage price and the rest will be the lead.
That's the big thing.
The world was caused by surprise.
There was no leak, apparently.
Oh, no.
That was the beauty of doing it up there in Camp David.
Oh, yeah.
Sure.
Now the thing to do, Arthur, we've got to build a new structure.
And as you and Frankie got to take the lead on that, I'm awfully glad we pulled him off of his going over and presenting the plan.
Hell, we haven't got a plan yet.
I haven't approved any damn plan.
Do we know what we're going to do?
Well, I'll tell you what I did.
I sent Dewey James to go with Volker.
Good.
Is he with you?
Yeah, he's with me.
I gave him instructions.
I gave him instructions, and he's telephoned me every day because I don't feel too comfortable.
I don't either.
Volker's got his own pet ideas, and by gosh, they may not be what we want.
And he may put it out too soon.
The thing to do is, if we want something, is to, you know, like you say, let's see what they have in mind.
And then, you know, well, in any event, you keep close control of this thing, if you will.
Yeah, you bet.
Because you know more about it than those fellows.
But I do appreciate your help.
We'll now go to the ramparts and battle them.
Yeah, I think so.
And, you know, the...
This is going to electrify the country.
You think it will?
I think it will.
And I think it will help unify the country.
Now, there will be criticism.
The Democrats will strike back on the spending.
Yeah.
Well, we're on strong ground there, though.
Yeah, they will say what we need is an increase in the spending rather than a reduction.
That's always their way to increase government spending.
And our way is to increase the private sector.
But I think you're going to have Wilbur Mills with you.
It'll be good.
You can protect him a great deal.
Oh, yes.
Now, I'm close to Wilbur.
I'm going to be in touch with Wilbur tomorrow.
You know what I'll say to him?
Wilbur, this is exactly what you've been asking for and praying for.
Why don't you tell him this?
The president personally has told you this.
No question of credit.
We want him to take the leadership, and we share the credit.
You just tell him that.
I will, and you know, really, it hurts nothing to give him all the credit in the world.
I don't care.
We just want it to work.
And you're going to give him credit.
Right?
Yeah.
We want it to work.
But you tell him that I'm not interested in credit.
I just want it to work, and that I personally will work together, and we aren't going to make any politics out of this.
Yeah, I'm going to do that, and I'm going to get hold of it right here tomorrow.
Good.
Good.
Ralph.
Well, it's been a very constructive weekend, I suppose.
Well, it was not dull.
No.
Okay, Arthur.
You deserve some sleep.
Okay, Buck.
Thank you.
Thank you.
Bye.
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