Conversation No. 66-2

Date: July 23, 1971
Time: 3:11 pm - 6:45 pm
Location: Cabinet Room

The President met with John B. Connally, John D. Ehrlichman, George P. Shultz, Caspar W.
(“Cap”) Weinberger, Kenneth R. Cole, Jr., and Edwin L. Harper; H. R. (“Bob”) Haldeman
entered at an unknown time after the meeting was in progress
[Recording begins while the conversation is in progress]

     The economy
          -Income tax rates
          -Sales taxes

     The automobile industry
          -California, Michigan, Ohio

     Unemployment in the United States
                                        3

                    NIXON PRESIDENTIAL MATERIALS STAFF

                               Tape Subject Log
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     -Texas
     -Pennsylvania
     -New Jersey
     -New York
     -Ohio
     -Indiana
     -Illinois
     -Wisconsin
     -The South
           -Louisiana
     -Texas
     -California
     -The West
           -Mexican-American unemployment
                 -California, Texas, Arizona, New Mexico
     -California
     -Washington state
           -Aerospace workers
           -Daniel J. Evans
           -Supersonic Transport [SST]
           -Emergency unemployment benefits
           -Highway money
     -National rate compared to local rates
     -California, New Jersey
     -Washington state
     -Oregon
     -New Jersey
           -Newark
           -Elizabeth
           -Jersey City
           -New York
     -Projected 1972 employment rate
           -Third-quarter, 1971
           -Tax breaks
           -Tax credit
           -Forthcoming 1972 presidential election

Balanced budget (1973)
     -Taxes, spending, deficits
     -John F. Kennedy administration action
     -Full employment deficit
     -Tax increases
                                         4

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     -Tax credits
     -Investment tax credits

Inflation
      -Reduction
      -National Commission on Productivity
      -Fiscal and monetary policy
      -Anti-trust actions
      -Import sanctions
      -Manpower training

Wage-board pay raise bill
    -Congressional action
    -Presidential veto

Crime in the United States
    -Rise in rate
    -Age breakdown of criminals
    -Violent crimes
           -Arrests
           -Criminals under the age of twenty
    -Federal crime legislation
           -Gun control of “Saturday night specials”
                 -Gun lobby
                       -National Rifle Association
                       -Richard S. Schweiker
                       -Hand gun control
           -Metropolitan criminal justice centers program
                 -Washington, DC
                 -American cities
           -Prison reform
                 -Cost
                 -Proposal
           -Hand gun control issue
                 -Richard G. Kleindienst
                 -Potential congressional action
    -Crowded court dockets
           -Speedy trials
           -New judgeships
           -Chief Justice Warren E. Burger
           -New York City
                 -Narcotics cases
                                       5

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/08)



                      -Use of special courts
          -Pre-indictment probation
          -New judgeships
                -Circuit rider concept
          -DC courts
                -Judge David L. Bazelon
          -Burger
          -Juvenile delinquency programs
                -Justice Department
                -Law Enforcement Assistance Administration [LEAA]
                -Department of Health, Education and Welfare [HEW]
                -Transfer of program responsibility

Privacy issue
     -Office of Management and Budget [OMB] study on confidential information
     -Domestic Council
     -Possible presidential statement

Juvenile crime
     -Statistics
     -The District of Columbia
     -Drug-related nature of crimes
     -HEW personnel
     -DC schools
           -Absentee rate
     -California

Crime
    -Key states, cities
    -Political issue
    -Rate and percentage of population
    -Prevention
    -Increase in police
          -LEAA
    -J. Edgar Hoover
    -Crime decrease
          -Houston, Texas
          -DC
          -Types of crimes
    -Non-permissive judges
          -[Forename unknown] Gerstein of New York
    -LEAA expenditures
                                          6

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/08)



     -White House Chiefs of Police meeting
     -Hoover, Federal Bureau of Investigation [FBI]
     -Drug problem
     -Burger
     -DC

Drugs
     -Addict numbers
     -US servicemen in Vietnam
     -Drug program
           -Administration
     -International drug traffic
     -Elmo Roper poll
           -Nation’s problems
                 -Drugs
                 -Vietnam
           -Date of poll, field of poll
     -Relationship between drugs and crime
           -Regional differences
     -Crime rates
           -Impact of crime as an issue
                 -Effect of news reports
     -Administration efforts
           -Media efforts at discrediting administration
           -Comparison to Franklin D. Roosevelt
           -Democratic opponents
                 -Stand on crime-related issues
                       -Hubert H. Humphrey
                       -Edmund S. Muskie
                       -Edward M. (“Ted”) Kennedy
                       -George S. McGovern
                       -Henry M. (“Scoop”) Jackson
     -Perceptions of anti-crime image
           -John N. Mitchell
           -Hoover
           -Deportation of Charles (“Lucky”) Luciano
     -US-Turkish relations
           -Drug agreement
     -Public relations image
           -May Day demonstrations
           -Support of Hoover
     -Timothy Leary
                                        7

                    NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/08)



     -Cost of heroin habits
     -Organized crime
          -”Godfather” movie
                 -Popularity of book
          -Administration efforts against organized crime
          -Italian vote
                 -Joseph Colombo

Veterans’ issues
     -Vietnam
     -Veterans’ Administration [VA] care of veterans
     -World War II, Korean War
     -Veterans of Foreign Wars [VFW], American Legion
     -Vietnam era
           -Problems of returning veterans
                 -Special treatment
                 -Unemployment
                 -Cultural shock
                 -Perceptions of drug use
                       -Effect on employment
                 -GI bill
                 -Medical care
                       -VA hospitals
                 -Jobs for veterans
                 -Comprehensive GI bill of rights
                 -Outreach effort for the disadvantaged
           -Military pay
                 -Recomputation of retired veterans pay
     -Veterans
           -Number of voting age for November 1972
                 -Ohio
                 -New Jersey
                 -Illinois
                 -California
     -Southerners
           -Career military people
           -Comparison to World War II period
           -Florida
           -Compared with New York, Texas, California
     -Veterans programs
           -Legislative efforts
           -Singling out of Vietnam veterans
                                         8

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/08)




Environment
     -Public perceptions
           -Survey, Durham, North Carolina
           -Pollution
           -Balance between jobs and environmental protection
     -Air pollution laws
           Environmental Protection Agency [EPA]
     -Pollution
           -Marginal industries
           -Agricultural areas
           -Air, water pollution
           -Clean Air Act
     -Problems (1972)
           -California
                 -Santa Barbara, Los Angeles
           -Florida
                 -Everglades
           -Great Lakes
           -Four Corners Power Plant
           -Alaska
                 -Aleutian Islands
                 -Pipeline

Agriculture
     -Perceptions by farmers
     -Farm income
     -Problems (1972)
           -Corn blight
           -Wheat
                 -Effect of drought
           -Commodities
                 -Oranges
                 -Wool
                 -Rice
                 -Potatoes
                 -Hogs
     -Support for the President in the Midwest
     -Indiana, Illinois, Ohio, Iowa
     -Corn blight
     -Farm Bill
     -Exports
                                        9

                    NIXON PRESIDENTIAL MATERIALS STAFF

                               Tape Subject Log
                                 (rev. 10/08)



     -Surpluses
     -Rural development
     -Agriculture Act (1970)
     -Proposal to appoint an agricultural ambassador
          -Exports
     -Farm Labor bill
          -Political implications
     -Farm prices and effect on Consumer Price Index [CPI]

Education
    -Accountability
          -Costs
    -Expenditures
          -States
                -Southern states
                -California, key states
          -Elementary education, higher education
    -Real estate taxes
          -Mississippi
    -Property taxes
          -Office of Economic Opportunity [OEO] experiment
                -National Education Association [NEA]
    -Nonpublic elementary, secondary schools
          -Regional differences
          -Catholic school enrollment
                -California
                -New York
                -Illinois
          -Tax credits
    -College credit
          -Middle income families
          -Student loan assistance program
    -Federal education aid
          -Poll results
    -Impact of issues on constituents
    -Nonpublic schools
          -Constitutional amendment
          -Use of public funds
    -Busing
    -Nonpublic school aid
          -Political implications
                -Impact on Pennsylvania election
                                       10

                    NIXON PRESIDENTIAL MATERIALS STAFF

                               Tape Subject Log
                                 (rev. 10/08)



               -New York, Illinois, Pennsylvania, New Jersey, California, Louisiana,
                   Texas
     -Busing
          -Supreme Court
          -Constitutional amendment
          -San Francisco
                -Chinese-Americans
          -Fourteenth Amendment repeal
     -Parochial school aid
          -Federal funding
          -School closings

American elderly
    -Administration efforts
    -Perception of indifference
    -Housing
          -Shortages
    -White House Conference on Aging
    -Social Security increases
    -Medicare
          -Prescription drugs coverage
    -Nursing home standards
          -Elliot L. Richardson
          -Federal strike force
    -White House Conference proposals
          -Housing, transportation, jobs
          -Compared to the Great Society
                -Hot lunch program
          -Senior citizen community centers
    -Older Americans Act
          -Foster Grandparents program
    -Projected voting trends
          -Florida
          -Illinois
          -Local problems
          -Midwest
    -Health
    -Political support
          -Comparison to other voting blocs
          -The President’s administration
    -House Resolution [HR] 1
          -Welfare
                                         11

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/08)



                 -Public perceptions
     -Association of Retired Persons (Chicago)
     -Jobs and social security
     -Problems
           -Nursing homes
           -Exploitation
                 -Doctors
           -Increased longevity
           -Comparison to minorities
           -Political implications
     -White House conference
     -Administration support
     -Pension vesting
           -Collective versus individual handling
           -Job mobility
                 -Alan Greenspan’s comments
           -Costs

Employment
    -International trade
    -Job loss
    -Mobility, job transfers
    -Political implications
    -Costs
    -Regulation of industry

Private school amendment
     -Preparation of draft
           -Ehrlichman, Weinberger

Health
     -Costs
     -Medical personnel
          -Throughout the United States
               -Florida
               -Texas
               -California
                     -Chiropractors
               -Midwest
               -Rural areas
               -California
                     -Suburban nature of communities
                                            12

                         NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                       (rev. 10/08)



                    -Texas
                         -Small-town areas
         -Legislation
              -Administration sponsorship
                    -Key congressmen
                         -Domestic Council
                         -Wilbur D. Mills
                               -Support for administration
                               -Credit on issues
                               -Political aspirations
                                     -Muskie, E. M. Kennedy, Humphrey
                         -Jackson
                         -Peter G. Peterson, David M. Kennedy
                               -Shoe industry
                         -Mills
                               -Approach to foreign policy
                               -Political strategy
                                     -Handling of Mills on domestic and foreign policy issues
                               -Importance
                               -Revenue sharing
                               -Taxation
                               -Political strategy
                                     -Possible Democratic presidential nomination
                                     -Democratic party factions

    Health issues
         -Various insurance programs
               -Private health insurance


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BEGIN WITHDRAWN ITEM NO. 1
[Personal Returnable]
[Duration: 51s ]


END WITHDRAWN ITEM NO. 1

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                                        13

                    NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/08)



          -Key states
                -Texas
          -Cancer lobby
          -Heart lobby, kidney lobby
                -Dr. Michael E. DeBakey
          -The President’s appearance at convention of cardiologists
          -Heart problems
          -Possible budget
     -Cancer
          -Public reaction
          -Victims
          -Stewart J. O. Alsop
                -Communication with the President
          -Leukemia
                -Chemotherapy
          -Indiana cancer clinic’s work on tumors
                -Dr. Lee Clark

Important issues in 1972
    -Jobs
           -Florida
           -North Carolina
           -Virginia
    -Taxes
    -Crime
    -Drugs
    -Veterans
    -Agriculture
    -Environment
    -Education
    -Health
           -California
    -California
           -Aerospace industry
    -Mexican-Americans
           -California
           -Texas
           -Chicago, Illinois
    -Minority employment in motion pictures, television and commercials
           -Media influence
           -Hispanic actors
                 -Movie “Carnal Knowledge”
                                        14

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/08)



     -Open housing, desegregation
          -Southern states and California
     -Textiles
          -Missouri, North Carolina, Virginia
     -Wisconsin
          -William Proxmire
          -Government waste, consumer issues

Key states
     -Pennsylvania

Issues
     -National compared with local interest
     -Regional approach
           -Administration position
     -Style
     -Packaging
           -Public relations
           -Edward L. Morgan’s handling of revenue sharing
     -Responsive issues
           -Fund expenditures
     -Cost of living
     -Public opinion on government expenditure increases
           -Housing, Medicare, environment, education, health care, crime and law
                 enforcement, water and air pollution, cancer research
           -Decreases recommended for space, Vietnam War, defense, foreign aid
           -Tax relief
           -Decrease
                 -Space programs
                 -Vietnam war
                 -Foreign aid
           -Welfare
                 -Poll results
                 -Survey results
     -Decreased federal expenditures
           -Political consequences
                 -Tax cut
                 -Jobs
                 -Cost of living
           -Speech writers
                 -Repetition of phrases
     -Need for regional emphasis on issues for maximum effect
                                          15

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/08)




Vietnam
     -Drug issue
     -North Dakota

Political speeches, speech writing
      -Drug issue
            -Crime, boredom
      -Unemployment
            -Detroit
                 -Support of athletic teams
                       -Detroit Tigers
                       -University of Michigan

Sir Kenneth Clark
     -Civilisation book and film series
           -Character of America
                 -American boredom
                 -Accomplishments
                 -Goals
                      -Peace

Administration public relations efforts
    -New era
          -Peace, prosperity
    -Roper poll results
    -Negatives
          -Vietnam war
          -Drugs
          -US economy
                -Retail sales
                -Public opinion
                -Prosperity and opportunity
    -American future
          -Public opinion
    -Depressants
          -Vietnam War
          -Drugs
          -The news media
                -Compared to earlier administrations
                -Left-wing character
                -Television
                                         16

                     NIXON PRESIDENTIAL MATERIALS STAFF

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                                  (rev. 10/08)



                     -Emphasis on the negatives
          -Teachers
                -Comparison to the President’s teachers
          -Ministers
                -Quakers
                      -Draft evaders
          -Colleges
                -Smith
                      -Attendance by Julie Nixon Eisenhower
                -Finch
                      -Attendance by Tricia Nixon Cox
          -Churches
                -Catholic
                      -Immigrants
                            -Irish, Italians, Poles
                -Hardhats
                -Protestants
                      -Quakers
                      -Fundamentalists
                            -Faith in the American system
     -Leaders
          -Influence
          -Negative attitude
          -Administration efforts
                -Need for confidence, pride in accomplishments
                -Foreign policy
                -Economic policy
          -Influence
          -The administration
                -Positive influence

The President’s July 24, 1971 schedule

The Administration’s public relations efforts
     -Period of peace
           -Unemployment
           -Younger generation
                -Future
                -Challenges
           -Present-day America
                -Optimism
                      -Peace, communication, jobs
                                              17

                           NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/08)



                -Defense spending
                     -Effect on employment
                     -Vietnam War
           -Economic competition in the world
                -Germany, Japan, Western Europe


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     People’s Republic of China [PRC]

[To listen to the segment (15s) declassified on 02/28/2002, please refer to RC# E-541.]

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                -The Marshall Plan
           -Challenge of peace
           -The news media
                -The President’s July 6, 1971 Kansas City speech
                -Resistance
                -Reporters
                      -Compared to muckrakers
                            -Robber barons
           -Leader class
                -Businessmen, educators, media, politicians, ministers
                -Belief in America
                      -Purpose
           -Government programs
                -Revenue sharing, health
                -New directions
                      -OEO appropriations veto
           -Peace issue
           -New directions
                -Lyndon B. Johnson and the Great Society
                      -Programs
           -The establishment
                -Revolt against the “Establishment”
                -Liberals
                                              18

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BEGIN WITHDRAWN ITEM NO. 3
[National Security]
[Duration: 3s ]


     PEOPLE’S REPUBLIC OF CHINA


END WITHDRAWN ITEM NO. 3

[To listen to the segment (3m26s) declassified on 02/28/2002, please refer to RC# E-541.]

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           -The liberal establishment
                -Reaction to the President
                      -Comparison to reaction to Barry M. Goldwater

     Forthcoming meeting of the President and Connally
          -July 24, 1971

     Presentation

     The President’s schedule

The President, et al. left at 6:45 pm