Nixon White House Tapes › Tape 9 › Conversation 009-040

Nixon phone call with Shultz on Phase II and Wage and price controls

Thursday, September 16, 1971 · 11:48 AM–11:50 AM ET · White House Telephone · 3 min

ParticipantsNixon, Richard M. (President); Shultz, George P.Conversation009-040 on Tape 9 (tape position 01:23:29–01:26:28)StartThursday, September 16, 1971 at 11:48 AMEndThursday, September 16, 1971 at 11:50 AMRecording deviceWhite House TelephoneSourceNixon Library record for 009-040 ↗

AI Summary

President Nixon and George Shultz discuss the need to curb public speculation by administration officials regarding the structure of the upcoming Phase II wage and price controls. Nixon expresses concern that comments from cabinet members, specifically Maurice Stans, prematurely signal policy decisions and undermine the administration's credibility. To maintain control over his options, Nixon instructs Shultz to issue a memorandum directing officials to refrain from speculating on the final program until a formal decision is announced.

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Transcript (AI-generated)

This transcript was generated automatically by AI (WhisperX) and has not been reviewed for accuracy. Names and numbers are often wrong; speakers are not identified. Do not cite it as authoritative — verify against the audio and the finding aid.

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President.
Yeah.
Yeah.
George, one thing that I may, somebody may ask, I doubt it, but they might.
Stans, as you note, said that wage increases in Phase II would be based on productivity and that we were leaning to a government administration of wage and price controls rather than a part-type board.
Now, actually, in my opinion, I mean, I'm not going to, I mean, it's not all that big, but
It's really well for all of our people not to say a damn thing about what we're leaning to.
You're absolutely right.
I mean, that's an option that I've got to make, and for cabinet people to indicate that, well, we lean to this or that or the other thing only creates either uncertainty or raises expectations that we may dash or creates conflict that we don't need to have.
But it also is inconsistent with the posture that we're in.
We're supposed to be talking to people.
I intend to say today that we're going to have, that we will have an effective program, that it will deal with both wages and prices, particularly in major industries.
I think that's what I should say.
Does that sound all right to you?
That sounds all right.
And that it will have teeth in it.
I think we've got to say that.
I don't think we can say that there's not going to be any sanctions.
Sure.
And that's all.
But that's all I'm going to say.
But if you get it in the form of stands... What would you say on that?
That represents one point of view.
It's speculations, but you are going to make that decision, and you are still listening.
Yeah, that's right.
Uh-huh.
And there is no decision.
Okay.
All right.
You feel that that's important to knock that down because... Yeah.
Yeah.
And we've told that to Ron Ziegler.
I don't know how he's made out this.
Sure.
Well, I will knock it down.
It's important to knock it down.
And I don't know when we...
Unfortunately, Connolly's not here because he's the fellow that should keep that cost of living council in line.
But...
And I don't want to bother.
Well, I've whacked at them a couple of times when they've gotten out of line.
I'll do that again.
I would just simply say, I just think you'd better put out a memorandum, maybe from me, that I would strongly suggest that until the decision is announced, announced around the middle of next month, there should be no speculation whatever as to what that decision will be.
Okay.
I'll get to that.
Just say that.
That is the, that I, that I, that I understand that there'll be great interest in it and I, and there can be discussion, but there should be no speculation as to what the President's decision will be so that he will have, so that we, so that our continued, uh, our continued, uh,
consultations will have credibility and so that i will have complete have none of my options closed right yeah just put out something a memorandum to that effect all right sir good will do all right

NARA Description

On September 16, 1971, President Richard M. Nixon and George P. Shultz talked on the telephone from 11:48 am to 11:50 am. The White House Telephone taping system captured this recording, which is known as Conversation 009-040 of the White House Tapes.

Nixon Library Finding Aid

Conversation No. 9-40

Date: September 16, 1971
Time: 11:48 am - 11:50 am
Location: White House Telephone

The President talked with George Shultz.

[See Conversation No. 278-57]

     Economic policy
         -Wage and price freeze
         -Question of announcement
         -Maurice H. Stans
         -Phase II
              -Idea of productivity
              -Government
                    -Wage and price controls
                          -Compared to tri-partite board
         -Administration position
         -Announcement
              -Wage and price controls
         -Stans
         -Announcement
              -Ronald L. Ziegler
         -Cost of Living Council
              -John B. Connally
         -Shultz memorandum

Also recorded on September 16, 1971

  • 278-057 11:48 AM · 3 min — President Richard M. Nixon and George P. Shultz met in the President's office in the Old Executive Office Building from 11:48 am to 11:50 am.
  • 009-041 11:50 AM · 5 sec — President Richard M. Nixon and the White House operator talked on the telephone at an unknown time between 11:50 am and 1:45 pm.
  • 278-058 11:50 AM · 33 sec — President Richard M. Nixon and Henry A. Kissinger met in the President's office in the Old Executive Office Building at an unknown time between 11:50 am and 1:45 pm.
  • 278-059 11:50 AM · 7 min — President Richard M. Nixon and H. R. ("Bob") Haldeman met in the President's office in the Old Executive Office Building at an unknown time between 11:50 am and 1:45 pm.
  • 278-060 11:50 AM · 35 sec — President Richard M. Nixon and Manolo Sanchez met in the President's office in the Old Executive Office Building at an unknown time between 11:50 am and 1:45 pm.
  • 278-061 11:50 AM · 6 sec — President Richard M. Nixon and the White House operator met in the President's office in the Old Executive Office Building at an unknown time between 11:50 am and 1:45 pm.
  • 278-062 11:50 AM · 26 sec — President Richard M. Nixon and unknown person(s) met in the President's office in the Old Executive Office Building at an unknown time between 11:50 am and 1:45 pm.
  • 278-063 11:50 AM · 10 sec — President Richard M. Nixon and Manolo Sanchez met in the President's office in the Old Executive Office Building at an unknown time between 11:50 am and 1:45 pm.

All 52 conversations from September 16, 1971 →

Cite this conversation

Conversation 009-040, September 16, 1971. White House Tapes, Richard Nixon Presidential Library and Museum, National Archives. Audio and AI transcript via Easy Nixon, https://www.easynixon.org/tapes/009-040 (accessed October 12, 2026).