Conversation 274-024

TapeTape 274StartMonday, August 16, 1971 at 3:53 PMEndMonday, August 16, 1971 at 4:16 PMTape start time00:31:16Tape end time00:53:02ParticipantsNixon, Richard M. (President);  Haldeman, H. R. ("Bob");  Sanchez, Manolo;  White House operator;  Flanigan, Peter M.;  Chapin, Dwight L.;  Butterfield, Alexander P.Recording deviceOld Executive Office Building

On August 16, 1971, President Richard M. Nixon, H. R. ("Bob") Haldeman, Manolo Sanchez, White House operator, Peter M. Flanigan, Dwight L. Chapin, and Alexander P. Butterfield met in the President's office in the Old Executive Office Building from 3:53 pm to 4:16 pm. The Old Executive Office Building taping system captured this recording, which is known as Conversation 274-024 of the White House Tapes.

Conversation No. 274-24

Date: August 16, 1971
Time: 3:53 pm - 4:16 pm
Location: Executive Office Building

The President met with H. R. (“Bob”) Haldeman.

     Call to Idanell (“Nellie”) Connally
           -John B. Connally's press conference
           -Connally
                 -Breakfast
                 -Rest

     The President's schedule
          -Golf
                -Transportation
                -Ronald L. Ziegler
                -Press
                -William P. Rogers

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BEGIN WITHDRAWN ITEM NO. 2
[Personal Returnable]
[Duration: 4s ]

END WITHDRAWN ITEM NO. 2

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                -Time
                -Clubs

     Economy
         -Evening Star story about President’s initiatives
              -Workers
              -Stock exchange
              -Wage and price curves

               -Dollar floating
               -Tax reductions
               -Government employees
               -George P. Shultz
                     -Another story
               -Speech text
               -Arthur F. Burns
               -Wilbur D. Mills
               -Extent of coverage
               -Pictures
               -Political effects
                     -People's Republic of China [PRC]
                           -Forthcoming visit
                     -Edmund S. Muskie
                     -Edward M. Kennedy
                     -PRC
                     -George Meany
                           -American Federation of Labor-Congress of Industrial Organizations
                                  [AFL-CIO]
                     -John Kenneth Galbraith
                     -Dallas
                     -Muskie
                     -Henry M. ("Scoop") Jackson
                     -George S. McGovern
                           -Criticism
                                  -Wage and price freeze
                                        -Lyndon B. Johnson
                                  -Dollar floating
                                  -Jobs
                                  -Big business
               -Congress
               -International money market
               -Wage and price freeze
               -Stock market reaction
               -Business community reaction
               -Congress
                     -Historical precedents

Manolo Sanchez entered at an unknown time after 3:53 pm.

     Delivery of something

Sanchez left at an unknown time before 4:06 pm.

     Economy
         -Evening Star story
              -Vance Hartke
                   -Congress
                   -View of President’s program
                          -Investment tax credit

Sanchez entered at an unknown time after 3:53 pm.

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BEGIN WITHDRAWN ITEM NO. 3
[Personal Returnable]
[Duration: 58s ]

END WITHDRAWN ITEM NO. 3

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     Economy
         -Evening Star story
              -PRC

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BEGIN WITHDRAWN ITEM NO. 4
[Personal Returnable]
[Duration: 2s ]

END WITHDRAWN ITEM NO. 4

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Sanchez left at an unknown time before 4:06 pm.

     Stock market
          -Record
               -Volume and gain
          -Nixon dinner

     The President's schedule
          -New York
               -President’s possible visit to stock market

     Stock Market
          -Peter M. Flanigan
          -Bernard J. (“Bunny”) Lasker

Haldeman talked with the White House operator at an unknown time between 3:53 pm and 4:06
pm.

[Conversation No. 274-24A]

     Request for a call to Flanigan

[End of telephone conversation]

     The President's schedule
          -New York
               -President’s possible visit to stock market

Haldeman talked with Flanigan at an unknown time between 3:53 pm and 4:06 pm.

[Conversation No. 274-24B]

     Flanigan's location

[End of telephone conversation]

     Economy
         -Stock market
              -The President's schedule
                   -Announcement

                          -Stock exchange visit
                     -New York
                     -Speech

Haldeman talked with the White House operator at an unknown time between 3:53 pm and 4:06
pm.

[Conversation No. 274-24C]

     Request for a call to Dwight L. Chapin

[End of telephone conversation]

     Stock market visit
          -Invitation

Haldeman talked with Chapin at an unknown time between 3:53 pm and 4:06 pm.

[Conversation No. 274-24D]

     The President's schedule
          -New York
               -Announcement
                      -Time of departure

Alexander P. Butterfield entered at an unknown time between 3:53 pm and 4:06 pm.

     Letter to President of Guinea

Butterfield left at an unknown time between 3:53 pm and 4:06 pm.

                     -Stock market
                     -Time

[End of telephone conversation]

     Stock market visit

     The President's schedule
          -Meeting with legislation leaders, August 17, 1971

          -Mayor Klaus Schutz of West Berlin
              -Possible meeting

     Japan
          -Textile negotiations
               -Peter G. Peterson
               -Flanigan
               -Shultz and Peterson
                     -Statement
                     -Rogers
               -President’s involvement
               -Meeting with Roger Milliken
                     -Harry S. Dent
                     -Peterson and John N. Mitchell
                     -Mitchell

     Economy
         -Stock market
              -Record volume

     Japan
          -Textile negotiations
               -Plan
               -Camp David meeting
                     -Quotas
               -President’s efforts
               -Flanigan
                     -Milliken
                     -Textile board meeting
               -Timing
                     -President’s schedule
                           -Forthcoming meeting with [Emperor of Japan] Hirohito

Haldeman left at 4:16 pm.

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.

I'm working out that Rogers could play as the golf learning tree.
And so he could come to us and I could bring him out to the development office.
And also he comes and he gave my name.
And this is the name of the person I'm working on.
He's been involved in this in eight months.
And I play with him.
And I play with him.
And I play with him.
You could say it in all of the years.
Why don't you say all of the years?
Okay, fine.
I apologize.
But she needs it.
And I said, you know, you're so proud of her.
She's great.
And I said, I remember her being a friend.
She said, well, obviously, you know, too.
And I said, well, she's proud.
And I said, well, she's great.
And I said, well, she's great.
And she said, I can't deal with it.
And I said, well, she's great.
And I said, well, she's great.
And I said, well, she's great.
I don't mind.
Okay, just go from here and go with you.
So really, I'm kind of on stand up.
Did you see that star?
It's really kind of fascinating because I don't recall ever seeing that much in this picture.
Every line on this front page has an impact on the workers, stock exchange, wage price curves,
revised policy, highlights, dollar growth, tax reductions, personal reaction of government employees.
The entire front page is that story.
And you get this entire page.
There it is on the next story.
The entire page.
Here we go.
You know what's the best thing about it?
That's there.
Yeah.
This is the duty of that.
George Shultz pointed that out.
By doing this, we kill that.
He said we don't know what this is going to do.
And there was that page.
There's this page, the text of the message.
And there's that European...
In fact, that confirms what we're known as Congress Ready to Act.
And it says, well, don't master this.
It's a total story on Nixon's taking the advice of his critics in front of the opposition.
And this is a carryover from page one.
So you've got one, two, three, four solid pages of this story.
What does this say?
You know, the pictures... Well, I realize it turned out better than I thought.
I did a picture on TV last night.
I thought you looked a bit like Peter, the director's firecracker.
No, it didn't show.
You only wiped once.
What's the... Well, as you see, the title of the film, Master Blunts the Opposition, which is kind of a good...
It's a pure political story.
But he says that Nixon's statement of vice is as superior as critics, and while it will be weeks or months before outcome is known, he seems to have glimpsed the most cutting-edge and forthcoming campaign.
That is the most obvious political effect of the Sunday night surprise package.
The real core of the book, I think, depends on whether the game plan works better than the one I just described.
Almost all of the President's potential opponents and many of his allies argue that the economy is broken by inflation, stagnation, and common problems.
I'm repeating the decisive fact against the people this year.
That has not changed.
If the President's actions do not work, his future will be in danger.
If the very fact the actions were decisive will work in the President's favor, the domestic political effect, and probably in the world opinion as well.
In that sense, Nixon proved parallel to his recent announcement that he would visit China.
In a single statement, he reversed long-standing U.S. foreign policy, and the reaction was highly favorable.
Later, he came clear that, fortunately, it was possible for China to remain stable because of the possibility of failure.
In that case, too, many of Nixon's political bonds already had announced their desire to open work on relations with China, and some had attempted to visit them.
Thus, in the period of one month, the President has placed himself in the position of co-opting the ground of such opponents as Muskie and Kennedy.
The United States Senate is a very strong president, and the president holds and now shares positions similar to those of China and the Euro-U.S. President.
To varying degrees, he has adopted the positions of such traditional opponents as the relatively conservative, like George Meade, the head of the ACLCIO, and the liberal, like John Kenneth Godfrey, the heart of the economics.
Four days before Nixon's announcement, a procession of potential Democratic candidates appeared at the NFL's Seattle State Convention in Dallas.
Each laid its heaviest emphasis on economic questions and attacked Nixon.
It must have used the Dallas Convention to unveil a horrible economic plan that included the wage price guideline for a less decisive action than that taken Sunday by Nixon.
Senator William Jackson, who stated his potential presidential campaign on a belief the economy would overshadow Vietnam until the Dallas Convention, that Nixon should scrap his economic game plan.
The President did so last night.
Neither Muskie nor Jackson had any comment after the President's speech.
One who did respond quickly but negatively was Senator George McGovern, who only announced Democratic candidate.
He gave some indication of the criticism Nixon can expect from a dissident Congresswoman in terms of their rate.
McGovern did not criticize the way Price received such a suggestion.
It should have been taken by Johnson four years ago.
McGovern did criticize voting for Gallup, a back-door devaluation unworthy of a great nation.
The governor said the next approach would be... What do you think of that back towards the government?
I don't think it's going to matter.
People don't know what they're talking about.
I don't think, no.
That hasn't taken hold.
I think so much positive overrides it.
Some people don't worry about that, but it isn't getting to be part of the issue.
That's the beauty of doing all this.
The government said Nixon's approach to creating new jobs and accelerating investment tax credit is 10% of the one here.
It looks like another handout for big business, which will only trickle down slowly to the working man when they will not reach the small business man environment at all.
That's bullshit.
It goes to small business, too.
The government's decided to house the small business man, some of his work for big business.
I don't think he's got any kind of investment.
The countless comments show the greatest vulnerability of the President's kind of plan.
The Congress must go along with about half the measures of the effect that he is precisely fixing to have.
In Nixon's paper is the fact that Congress will not return for three more weeks, and meat on the President's actions stabilizing the dollar will have worthiest effect on the international money markets.
The effectiveness of that action, as well as of the wage crisis, can then be looked at on the basis of your experience.
The initial response of the stock markets and the business community is good.
Nixon's chances of gaining favorable congressional action for the rest of the program will be excellent.
Past attempts at such drastic economic steps have come at times of war or great depression.
Congress has responded quickly and favorably.
Nixon is testing his will against the Congress of the opposite party at a time when the emergency of the situation is less evident, if no less real.
And as you know, that was the war of the Depression, the Great War of the Great Depression.
It's kind of an interesting point.
We'll have that planned, and then have, you know, the headline down here, the Congressional story, Congress seem ready to act.
There you have it.
Okay, another one is Hartford said, thanks Congress for reconvening immediately to address the South Korea crisis.
Ellis said the plan is excellent.
But at least the investment price doesn't look good.
President Trump has been waiting too long to think strongly of the estimated funds, though it may not go far enough in some respects.
You're gonna have trouble better than that.
The reason being that there's words that say,
China, you know, there's only so much you can say and so much that it takes some fairly intelligent kind of speculation.
This, you've got the separate stories on each item and all that.
No reaction.
Whew.
All-time record on both volume and gain.
And of course the other all-time record gain was the Nixon dinner game.
Yeah.
With that in mind, I'm not at all sure that this is the right way to go.
And so, if you weren't going anyway, it would be a bad idea.
Yeah.
But the fact that you are going anyway, it's just a matter of going out a couple hours early.
You have to leave by 1.30.
We're going to stop.
Jesus Christ, I think people will watch.
If they get out and run to the paper, they're going to be completely buried.
They're going to be covered with wine.
It's rather hard to see.
It's funny because when we were at it, there were people calling me, you know, out here in the paper.
So, it's not possible.
OK, thank you.
Tomorrow may be a down day, it's a risk, but we wouldn't have to announce it.
We can wait until tomorrow.
We can wait until tomorrow and have them call you tomorrow and say if you need a picture.
The other thing you can do is look before you do this.
and not announce the stock exchange, just go up, and you're going to have the water person privately to work on your stage.
And then you're there.
Then if you want to do the stock exchange, you can just say stop by at home.
Make sure you do that.
I don't want to stop by the chamber, please.
I want to stop by without being invited.
So we have to arrange the invitation just before taking off.
It's not bad to get out of here.
What?
It's not a bad idea to get out of here.
I want to work on that.
Arrange the invitation just before taking off.
Please don't do that.
Situation.
Do I get
Okay, let's set it apart at 1.30.
Letter to the guinean president.
All right, we'll work it out.
Good.
We'll leave here at 1.30.
That'll get you to the narrow path at 3 o'clock.
uh don't don't put out anything on that all we want publicly just departing on the basis that you're going on up in new york you know if you work up there then if the other thing works out
Right.
Put out the other departure.
I'm going to change the parking instead of the 130.
Work on that for the purpose of getting to the market, whatever that gets us.
Yeah, needs some kind of work out there.
It's not a bad idea, but the market is cold, so you've got to move on already, don't you?
Unless the bottom drops out of it, I don't see how it can.
There's no way it can drop the bottom.
Not until we're meeting with the legislative leaders in the morning.
Is it possible to react to none of that?
You got me at 10.30.
One day at the 10.
Bob?
We've got you.
Shanks is asking if you can see me.
I don't know if you want to be able to see me, but I'm going to try.
Who?
Mayor, she was the last one in.
Well, of course I'm not going to see it.
Okay.
All right.
He's going to be in Washington getting on it.
No, he's getting on it.
I'm just not going to see it.
Okay.
I don't think he can count.
Peterson, the greatest question.
He's got to get his textile.
I don't think he can count.
I think you want a little deep planning to describe anything.
I want to find planning to screw that down a little so that I can find Schultz and Peterson to work on it while I'm gone and get me a very one-page option is what the hell we're going to say.
And I want to be sure it's clear for projects this time.
I like that.
I will not see him.
I will under no circumstances see him.
I don't want to get into this.
I cannot be in a position to say that.
You just got to tell John.
I don't want to get into this sort of thing.
That was a good break, Bob.
It sure was.
Pretty sure it was, though.
the record, buying the record.
You see, that's putting the two together.
Even 30, even 30 would have been good, but breaking the record all the time, makes it a hell of a story.
That would be a front-page story.
It would be on every network.
It's a front-page story.
Stocks soar up, makes them lose.
That's before the market.
That's the way.
And that tells people that they think it's good.
That's it.
People do pay attention to that, but I still believe in it.
It's stock market vote.
Volume and increased revenue vote.
I'll text you back.
I think that he's in the moment, and I don't want to, I wanted to tell the interviewer he's got a plan now, and he'll do it as a bumper, but if I let it out for him, I'm scared he can't make it.
But if I did not want to have him come out of that meeting in the United States to impose force, I just can't say that.
I've got to be worried.
He said to me something, he's old enough here, gentlemen, and we're going to find a way to get him out.
You're reassuring them on their argument.
was that in order for him to keep his credibility with the textile people, he asked me to be a part of the textile board meeting tomorrow at 2.
Oh, God, if we're going to tell him good news, why?
Why do you think we're going to tell him very good news if he doesn't?
Let's get it planned.
If I go to this soon, maybe have them go straight around with us.
Maybe we don't get what they want.
So they go out, raise hell, and we're prepared to move.
I know that we cannot move before .