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Conversation 016-126

TapeTape 16StartSunday, December 19, 1971 at 7:55 PMEndSunday, December 19, 1971 at 8:01 PMTape start time04:38:54Tape end time04:43:42ParticipantsNixon, Richard M. (President);  Connally, John B.Recording deviceWhite House Telephone
AudioNARA Description

On December 19, 1971, President Richard M. Nixon and John B. Connally talked on the telephone from 7:55 pm to 8:01 pm. The White House Telephone taping system captured this recording, which is known as Conversation 016-126 of the White House Tapes.

Nixon Library Finding Aid
Conversation No. 16-126

Date: December 19, 1971
Time: 7:55 pm - 8:01 pm
Location: White House Telephone

The President talked with John B. Connally.

     President’s schedule
           -H. R. (“Bob”) Haldeman
           -Connally’s schedule
                -Plane from Bermuda
                -Connally’s anniversary
                -Anthony Barber [?]
                -Press
                      -Ronald L. Ziegler

     Monetary Agreement
         -Praise for Connally
         -Press reaction
               -Jobs

     Money supply
         -Milton Friedman
              -Concerned
         -Proposed meeting with Arthur F. Burns at the Quadriad
              -Charls E. Walker
              -Open Market Committee
                    -Burns meeting
                         -Increase in money supply
              -Connally influence on Burns
              -George P. Shultz
         -Burns
              -Reaction to meeting
                    -Cooperative
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 Do not cite this transcript as authoritative.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.
Yes, sir.
Well, how are you feeling now?
You recovered?
Pretty well.
I haven't done one single thing all day except mess around.
What I wanted to tell you, John, was this, that I was talking to Bob.
I would like to arrange that immediately after the dinner down there that we have the plane so you come back to Washington that night.
How would that be?
Well, I want you to be there for your anniversary, though.
Well, whatever suits you.
The plane will be there.
well whatever you want whatever you want you just in other words if the evening is early you just might as well get on come on well i think it'd be better though i guess spending the night perhaps the british should be your favorite i think that's right i think they would feel like if i just got left yeah and we'll be through you know we won't have i talked to tony last night
So we know we're not going to have a whole lot to talk about, so I don't think they'll feel bad if I leave the next day.
Well, I told the president what Iran reported to you, that this whole agreement could not have been possible without your leadership.
And it was really one of the most superb jobs and negotiations we've ever had.
And we're very proud of it that you've done it.
Hell of an achievement.
Well, you're more than generous.
I don't think that's true.
I know it's true.
The way you ground them down and finally cajole them.
And, you know, it's a way to work it out.
Well, it was difficult.
It was tiring.
It was hard on everybody, I must say that.
It's playing well, don't you think?
Yes, sir.
I think it is.
We, as I told you, we were going to low-key it, so...
We've got some stories in the papers today at least that, you know, that indicate we gave a lot, which is all right.
It's not necessarily stiffening, but we, and particularly while these finance ministers were all still here, we had Crowe and Brackenbach and what he's done.
Later on, we can talk about the fact that it means jobs and that's a whole stability and all the rest.
One other thing I want to mention to you briefly that we can talk about at a later time.
I had a note from Friedman.
He's very concerned about the money supply thing.
Yes.
He says that the $500 million went up, but Arthur took it down $300 million when we took it down to next.
I really think, John, we've got to, you and I, have got to sit down with Arthur.
Maybe we've got to do it in the quadriads so that it's on the record.
How do you feel?
I think we probably do have to in the quadriads, but I think...
In the meantime, we do it every time we see him.
I think he just got to, because he told me and he told Charlie Walker that in separate meetings that he had met with the Open Market Committee, that they were tough, but that he'd finally persuaded them to do what he wanted them to do.
It indicated to me that the money supply was going to increase.
Now, this was 10 days ago.
Well, I wonder if, well, you can't do it tomorrow, I guess, but sometimes.
sometime in the next couple of days if you would continue to express your concern about Arnold.
Would you do that?
Yes, sir.
I sure will.
You can influence him where Schultz and others cannot, you see.
Well, I think I can have some influence on him.
How did he play in this game?
Very well, very well.
He had some fixed ideas.
And outside of a couple of things, we got along marvelously well.
He cooperated well.
He sat there.
He was patient.
Did he believe the agreement with Goodman?
Yes.
Oh, yes.
Oh, he thinks it's superb.
He thinks it's magnificent.
And he thinks it's better than we had any right to expect, better than he ever thought we would get.
And, of course, he would have given more for a number of reasons, not the least of which is that...
that philosophically he would have given a little bit more.
But he's tickled a bit.
And extremely complimentary.
Was last night.
Okay.
All right.
Well, we'll see you tomorrow, huh?
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