Nixon White House Tapes ›Tape 55 › Conversation 055-004
Nixon, Irwin & Connally on Lockheed Corporation and Loan guarantees
Tuesday, May 4, 1971 · 8:04 AM–10:04 AM ET · Cabinet Room
AI Summary
President Nixon met with Vice President Agnew, Treasury Secretary John Connally, and Republican Congressional leaders to address critical economic and legislative challenges. The primary focus was the potential bankruptcy of the Lockheed Corporation and the necessary legislative strategy to secure government loan guarantees to prevent a ripple effect of industrial failures and job losses. Additionally, the group reviewed the administration's legislative priorities, including welfare reform, general and special revenue sharing, and the status of various appropriations bills.
- Lockheed Corporation
- Loan guarantees
- Economy
- Welfare reform
- Revenue sharing
- Congressional relations
- Appropriations
Audio
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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 Do not cite it as authoritative — verify against the audio and the finding aid.
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NARA Description
On May 4, 1971, President Richard M. Nixon, Spiro T. Agnew, and Republican Congressional leaders, including John N. Irwin, II, John B. Connally, Melvin R. Laird, Hugh Scott, Robert P. Griffin, Margaret Chase Smith, Gordon L. Allott, Norris Cotton, Milton R. Young, John G. Tower, Gerald R. Ford, Leslie C. Arends, John B. Anderson, John J. Rhodes, Richard H. Poff, Robert C. ("Bob") Wilson, Barber B. Conable, Jr., Robert T. Stafford, H. Allen Smith, Frank T. Bow, William B. Widnall, George P. Shultz, John D. Ehrlichman, Clark MacGregor, Kenneth R. BeLieu, Herbert G. Klein, Ronald L. Ziegler, Patrick J. Buchanan, and Bryce N. Harlow, met in the Cabinet Room of the White House from 8:04 am to 10:04 am. The Cabinet Room taping system captured this recording, which is known as Conversation 055-004 of the White House Tapes.
Nixon Library Finding Aid
Conversation No. 55-4
Date: May 4, 1971
Time: 8:04 am - 10:04 am
Location: Cabinet Room
The President met with Vice President Spiro T. Agnew, John B. Connally, Hugh Scott, Robert P.
Griffin, Margaret Chase Smith, Gordon L. Allott, Norris Cotton, Milton R. Young, John G.
Tower, Gerald R. Ford, Leslie C. Arends, John B. Anderson, John J. Rhodes, Richard H. Poff,
Robert C. (“Bob”) Wilson, Barber B. Conable, Jr., Robert T. Stafford, H. Allen Smith, Frank T.
Bow, William B. Widnall, George P. Shultz, John D. Ehrlichman, Clark MacGregor, Kenneth R.
BeLieu, Herbert G. Klein, Ronald L. Ziegler, Patrick J. Buchanan, and Bryce N. Harlow
[General conversation/Unintelligible]
[A transcript of the following portion of the conversation was prepared under Court order from
December 1978 through March 1979, for Special Access [SA] 8, Ronald V. Dellums, et al., v.
James M. Powell, et al., No. 71-2271. The National Archives and Records Administration
produced this transcript. The National Archives does not guarantee its accuracy.]
Senate wives lunch
-Patricia R. (“Pat”) Nixon
-Mrs. Thomas G. Abernethy
-Thomas G. Abernethy
-Democrats
Legislative program
-Current situation
-Connally
-Controversies
-Lockheed
-Supersonic Transport [SST]
Economy
-Unemployment
-Defense-related jobs
-Melvin R. Laird
-Pacific Northwest
-California
-SST
-Areas
-Contractors
-Lockheed aircraft problems
-Settlement
-Loss
-Defense Department
-Rolls-Royce bankruptcy
-Airbus companies
-Negotiations
-Great Britain
-Underwrite RB-211
-Rolls-Royce bankruptcy
-Contracts renegotiations
-Great Britain
-Losses
-Price rise
-Delay
-Eastern Airlines
-Trans World Airlines [TWA]
-Delta Airlines
-Air Canada
-Smaller orders
-Banks
-Provisions
-Need of government guarantee
-Additional financing required
-Great Britain
-Airlines
-Possible bankruptcy
-Present program
-Great Britain
-Banks
-Possible government guarantee
-Banks
-Financing
-Airlines
-Cash requirements
-Possible receivership
-Factors involved
-McDonnell-Douglas
-DC-10
-Attitude
-Lockheed
-Potential business for L-1011 and DC-10
-Competition from Europe
-L-1011 engine
-Production expectations
-Government intervention
-McDonnell-Douglas
-Department of Defense
-Consequences of bankruptcy
-Number of subcontractors
-Small business
-Annual payroll
-Employment
-Subcontractors
-Impact
-Ripple effect on economy
-Plants throughout nation
-Consequences of possible receivership
-McDonnell-Douglas
-DC-10
-Employment
-Time lag
-Other airlines
-Investment in L-1011 program
-TWA
-Subcontractors
-Stockholders
-Bankruptcy
-Necessity for loan guarantee
-Administration action
-Congress
-Procedure for message
-Banking and Currency Committee
-Connally’s recommendation
-Commerce Committee
-Procedures
-William B. Widnall
-Wright Patman
-Jurisdiction
-Treasury Department
-Banking and Currency Committee
-Patman
-Banking, Housing, and Urban Affairs Committee
-John J. Sparkman
-David H. Gambrell
-Alan Cranston
-Thomas J. McIntyre
-Prospects
-Banking and Currency Committee
-Patman
-Jurisdiction
-Democratic leadership
-Carl B. Albert
-Possible opposition to Lockheed aid
-”Doves”
-Opposition to government aid to corporations
-Penn Central situation
-McDonnell-Douglas
-General Electric [GE] impact
-SST
-Cranston
-John V. Tunney
-Gambrell
-SST
-Cross currents
-SST
-Hubert H. Humphrey
-Warren G. (“Maggie”) Magnuson
-Henry M. (“Scoop”) Jackson
-Controversy
-Lockheed
-Settlement of C5A
-Appropriations
-Possible action
-Timing
-Administration’s position
-Impending bankruptcy
-Defense program
-Lockheed
-Possible receivership
-Tax losses
-Banks
-Guaranteed loans
-Projections of repayment
-Orders
-Production
-House Appropriations Committee
-Repayment bill on SST and GE
-Lockheed
-GE
-Boeing
-Airlines
-Possible votes
-Public attitude
-Effect on Lockheed loan
-Impact
-Effect on recovery program
-Implications
-Connally
-Loan program
-Legislation
-West Coast
-Employment maintenance approach
-Democrats
-Labor reaction
-Lockheed problem
-Effect of bankruptcy
-Economy
-Ripple effect of insolvency
-Defense contracts
-Experimental
-Lockheed
-Needed for defense
-Environmental impact
-Steel production
-United States’ competitive position
-Japan
-United States’ competitive position
-Airplanes
-Lockheed
-McDonnell-Douglas
-Second position
-Defense contracts
-Cranston
-Tunney
-California
-”Super-doves”
-Gambrell
-Lockheed
-Labor position
-SST
-Edmund S. Muskie
-Humphrey
-Lockheed
-Labor position
-Democrats
-Special interests
-Economic impact of possible Lockheed bankruptcy
-SST
-”Know-nothings”
-Isolationism
-Lockheed
-Effect of Rolls-Royce bankruptcy
-United States’ companies abroad
Legislation
-House
-Suggested order
-Welfare reform
-John W. Byrnes
-Conable
-Ways and Means Committee
-Executive sessions
-Projected action
-Level of payments
-Wilbur D. Mills
-Byrnes
-Revenue sharing
-Proposals
-Timing
-Conference
-Byrnes
-Voting
-Scheduling
-Welfare reform
-Revenue sharing
-Conable
-Mills
-Rules
-Ford
-Connection with welfare reform
-Shultz
-Mills
-Issues
-President’s position
-Federal, state responsibilities
-Payments
-President’s January 2, 1971 meeting with Byrnes and Mills
-Russell B. Long and Wallace F. Bennett
-Welfare reform
-Work requirements
-Welfare reform
-Study by unknown independent organization
-President’s speech at Governors’ conference
-Connally
-Work requirements
-Public reaction
-Work requirement issue
-Ronald W. Reagan
-Nelson A. Rockefeller
-Bill
-Purposes
-Close-rule
-Social Security reform
-Byrnes
-Bill
-One-year residency requirements
-States
-Provisions
-Conable
-Pragmatic
-Mobility of welfare recipients
-States
-New York
-Housing
-Mississippi
-Arizona
-Courts
-Department of Health, Education and Welfare
-Federal involvement
-General revenue sharing bills
-Republican action
-Democratic action
-Committee action
-Bipartisan moves
-Ford’s speech at Williamsburg governors’ meeting
-Republican governors
-Mayors
-Possible Republican-sponsored bill
-Democratic-sponsored bill
-Henry S. Reuss
-Ways and Means Committee inaction
-Possible efforts to bring bill to floor
-Special revenue sharing bills
-Current situation
-Ford and Widnall
-Urban community development
-Manpower revenue sharing
-Education and Labor Committee
-Report on manpower training
-Minority efforts
-Rules Committee
-Manpower revenue sharing
-Educational revenue sharing
-Rural community development special revenue sharing
-Government Operations Committee
-Jurisdictional problems
-Agriculture Committee
-David J. Seltzer
-Law enforcement revenue sharing
-Judiciary committee
-Poff
-Transportation
-Ways and Means Committee
-Trust fund
-Public Works Committee
-Jurisdictional problem
-Senate
-Law enforcement assistance
-Judiciary Committee
-Roman L. Hruska
-Urban community development
-Banking, Housing, and Urban Affairs Committee
-Tower
-Rural development
-Water and sewer provisions
-Hearings
-Proposals
-Education
-Jacob K. Javits
-Tunney
-Hearings
-Claiborne Pell
-House bill
-Transportation
-Commerce Committee
-National Railroad Passenger Corporation/American Track [AMTRAK]
-Winston L. (“Win”) Prouty
-Forum
-Manpower
-Labor Subcommittee
-Hearings
-Democratic proposals
-Finance Committee
-Welfare
-Health legislation
-Hearings
-Bills
-Edward M. (“Ted”) Kennedy
-General revenue sharing
-Possible House action
-Government reorganization plan
-Government Operations Committee
-Hearings
-Action
-John L. McClellan
-Environmental bills
-Public Works Committee
-Water Quality Act of 1965
-Pollution dumping
-Environmental financing
-Banking, Housing, and Urban Affairs Committee
-Finance Committee
-Noise pollution legislation
-Commerce Committee
-Hearings
-Land use policy
-Interior and Insular Affairs Committee
-Protection of mining areas
-Interior and Insular Affairs Committee
-Hearings
-Water conservation
-Interior and Insular Affairs Committee
-Pesticide regulations
-Agriculture Subcommittee
-Report
-Toxic substances
-Commerce Committee
-Draft bill
-Smith
-Kennedy
-John C. Stennis
-Michael Gravel
-Mark O. Hatfield
-Status
-Gravel
-Two-year extension
-Possible vote
Appropriations
-Senate
-Young and Bow
-House activities
-Interior subcommittee
-Hearings complete
-Agriculture subcommittee
-Hearings complete
-Public works subcommittee
-Hearings in progress
-Defense
-Prospective hearings
-Transportation
-Labor
-Department of Health, Education and Welfare
-Department of Housing and Urban Development [HUD]
-Others
-Allott
-Holdup
-Foreign aid
-Education bill
-Clifford P. Case
-Philip A. Hart
-Defense
-Prospective cut
-Allen J. Ellender
-Meetings of committee chairmen
-Michael J. (“Mike”) Mansfield
-Prospects
-Harold E. Hughes
-Selective Service
-House
-Supplemental budget
-Total estimate
-Funding levels
-Foreign aid reduction
-Patman
-Banking and Currency Committee
-International Development Bank
-Third National Bank
-Summer youth program
-Amount
-Bill
-Timing
-Fiscal Year 1971 budget
-Amendments
-Debt limitation
-Fiscal Year 1972 budget
-Limitation on Congress
-Other bills
-Labor bill
-Agriculture, Treasury, Post Office Departments
-Department of Interior
-Department of State
-Department of Justice
-Department of Commerce
-Department of Public Works
-Department of Transportation
-Department of Defense
-F. Edward Hébert
-Foreign aid
-Reorganization
-Foreign Affairs Committee
-Dr. Thomas E. (“Doc”) Morgan
-William S. Mailliard
-Hearings
-Timing
-Extension of existing law
-Prospective bill
-Health program
-Interstate and Foreign Commerce Committee
-Health Manpower Assistance Act
-Health Maintenance Organization Assistance Act
-William L. Springer
-National Health Insurance Partnership Act
-Ways and Means Committee
-Calendar
Legislation
-House
-Reorganization of executive department
-Government Operations Committee
-Chet Holifield
-Proposed hearings
-Reorganization Plan No. 1
-Volunteer agencies
-Impact of outside organizations
-Joseph H. Blatchford
-Peace Corps
-Foreign Affairs Committee
-Jurisdiction
-Ford
-Objections
-Timing
-Environmental program
-Bills
-Probable action
-Democrats
-Wayne N. Aspinall
Appropriations
-House
-Defense
-Military
-Foreign aid
Legislation
-House
-Ways and Means Committee
-Welfare
-Revenue sharing
-Health
-Environmental programs
-Revenue sharing
-Special
-Bills
-Experts
-General revenue sharing
-Opposition
-Public visibility
-Reaction of local governments
-Governors
-Democratic leadership
-Issue for Republicans
-President’s meeting with mayors
-Smith
-James H. J. Tate of Philadelphia
-Governors
-Warren E. Hearnes
-Mayors
-Carl B. Stokes
-Patrick J. Lucey
-Effect of issue on Democratic Party
-Republicans
-Democrats
-Labor
-Tate
-Special and general revenue sharing
-Confusion
-Categorical grants
-Mayors
-Governors
-Popularity
-Democrats
-Distinctions
-General revenue sharing
-Timing
-Decision
-Congressmen
-Mayors
-Ford’s meeting with Peter F. Flaherty
-Need of legislation
-Bill
-Bipartisan moves
-Efforts by governors and mayors
-Mayors
-Richard J. Daley
-Unknown governor
-Mayor
-Tate and Flaherty
-Morgan
-Mills
-Tate and unknown mayor
-Community development revenue sharing
-HUD
-Water and sewer program
-Local governments
-Resources
-Communities
-Population
-Water and sewer grant
-HUD
-Standard metropolitan cities
-Standard Metropolitan Statistical Area [SMSA]
-Special needs
-Water and sewer grant money
-Federal objectives
-Special revenue proposals
-Exclusion of water sewage
-Proposal
-Small towns
-Importance to Republicans
-Counter arguments
-Applications
-Present proposals
-Republican interests
-Cities
-Importance to Republicans
-Unknown town in 1952 campaign
Republican leadership
-Support for President
-Smith’s statement on Lieutenant William L. Calley, Jr.
Anti-War demonstrations
-Need for firmness
-President’s policies
-President’s statement at Los Angeles and San Clemente, May 1, 1971
-Democrats’ positions
******************************************************************************
BEGIN WITHDRAWN ITEM NO. 1
[Personal Returnable]
[Duration: 38s ]
END WITHDRAWN ITEM NO. 1
******************************************************************************
-Present situation
-Democrats
-Demonstrations
-Decisionmaking process
-Vietnam
-Ford
Administration’s policies
-Demonstrations
-Vietnam
-Support for President
-Democrats
-Republican leadership
Democratic leadership
-President’s meeting in California with unnamed prominent Democrat
-House and Senate leadership
-Mansfield
-Senate
-Scott
-House
-Tradition of leadership
-Problems
-George H. Mahon and Mills
-Vote
-Power structure
-Republican minority
-Need for Republican unity in Congress
-Opportunity
-Absence of leadership
-President’s meeting in California with unnamed Democrat
-Republican control of House, 1946-1948
-Harry S Truman’s administration
-Thomas E. Dewey
-Republican national chairman Robert J. Dole
-Republican leadership in House and Senate
-Robert A. Taft, Jr.
-Arends
-Joseph W. Martin, Jr.
-1950 elections
-Mansfield and Carl B. Albert
-Republican leadership contrasted
[General conversation/Unintelligible]
The President, et al. left at 10:04 amAlso recorded on May 4, 1971
- 490-009 7:55 AM · 6 min — President Richard M. Nixon and H. R. ("Bob") Haldeman met in the Oval Office of the White House from 7:55 am to 8:03 am.
- 490-010 8:03 AM · 31 sec — Stephen B. Bull, Alexander P. Butterfield, and unknown person(s) met in the Oval Office of the White House at an unknown time between 8:03 am and 10:04 am.
- 490-011 10:04 AM · 7 min — President Richard M. Nixon, Hugh Scott, Gerald R. Ford, Leslie C. Arends, Clark MacGregor, Herbert G. Klein, and Ronald L. Ziegler met in the Oval Office of the White House from 10:04 am to 10:12 am.
- 490-012 10:12 AM · 18 min — President Richard M. Nixon and H. R. ("Bob") Haldeman met in the Oval Office of the White House from 10:12 am to 10:30 am.
- 055-005 10:30 AM — President Richard M. Nixon and members of the President's Commission on School Finance and the President's Panel on Nonpublic Education, including Neil H. McElroy, William G. Colman, Hilda A. Davis, Dorothy M. L. Ford, Eugene Gonzales, David H. Kurtzman, Rev. William E. McManus, Wendell H. Pierce, William G. Saltonstall, William B. Thompson, Clarence Walton, Ivan E. Zylstra, Norman Karsh, Clint Pace, Terrel H. Bell, John R. Ottina, Caspar W. ("Cap") Weinberger, Joseph B. White, Phillips Grace, Paul H. O'Neill, John D. Ehrlichman, Kenneth R. Cole, Jr., Edward L. Morgan, and Dr. Sidney P. Marland, Jr., met in the Cabinet Room of the White House from 10:30 am to 11:36 am.
- 490-013 10:30 AM · 36 sec — Stephen B. Bull and United States Secret Service agents met in the Oval Office of the White House at an unknown time between 10:30 am and 11:36 am.
- 490-014 11:38 AM · 23 min — President Richard M. Nixon, Adm. Thomas H. Moorer, David Packard, and Alexander M. Haig, Jr. met in the Oval Office of the White House from 11:38 am to 12:03 pm.
- 490-015 12:03 PM · 2 sec — President Richard M. Nixon and Manolo Sanchez met in the Oval Office of the White House at 12:03 pm.
Cite this conversation
Conversation 055-004, May 4, 1971. White House Tapes, Richard Nixon Presidential Library and Museum, National Archives. Audio and AI transcript via Easy Nixon, https://www.easynixon.org/tapes/055-004 (accessed September 18, 2026).