Conversation No. 387-7

Date: December 5, 1972
Time: 10:15 am - 11:38 am
Location: Executive Office Building

The President met with George P. Shultz and John D. Ehrlichman. The White House
photographer was present at the beginning of the meeting.

       Greetings

       Economy
            -Cost of living
            -Wage and price controls
                  -Shultz’s message from the President
                  -Arthur F. Burns
                  -Shultz’s conversations with John B. Connally, Burns, and Pierre Rinfret
                  -Public relations [PR]
                          -30-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                   Tape Subject Log
                     (rev. July-08)

                                            Conversation No. 387-7 (cont’d)

       -Food prices
              -Burns
              -Congressional relations
              -Meat import quotas suspension
              -Increase of oil import quotas
              -Rice
-Guidelines
-Construction industry
-Medical care
-Food prices
-Government action
-Food prices
       -The President’s conversation with Gerald R. Ford
       -Meat import quotas suspension
              -Earl L. Butz
              -Cattlemen
       -Structure of controls
-Inflation
       -Big companies and unions
-Food prices
-Medical care
-Food prices
       -Rinfret
              -Construction industry
-Shultz’s memorandum
       -Donald F. Rumsfeld
       -Burns
              -Conversation with Shultz
-Food prices
       -Quotas
       -Price Commission
       -Term-limit price controls
-Internal Revenue Service [IRS]
       -Enforcement
-PR
       -Decontrol
       -Inflation fight continuation
       -Controls change
       -Phase III
              -Inflation fight “continues”
                        -31-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                 Tape Subject Log
                   (rev. July-08)

                                        Conversation No. 387-7 (cont’d)

      -Substance
      -Decontrol
-Cost of Living Council [COLC]
      -John T. Dunlop
             -Conversation with Shultz
                   -Rumsfeld
             -Labor unions
-Food prices
      -Rinfret
-Rinfret’s support
      -1972 campaign
-Labor relations
      -George Meany, Frank E. Fitzsimmons, Leonard Woodcock
             -Disputes
                   -Settlement
                   -Strikes
      -Peter J. Brennan
-Milton Friedman’s view
      -Tightened controls
      -April 1973
      -End of controls
-Psychological effect
-Labor relations
      -Avoiding conflict
      -Business council
      -Frederick B. Dent
             -Confirmation
                   -Profit system
      -Consultations
             -Meany
                   -Brennan
             -Fitzsimmons
      -Productivity Commission
             -Meany
             -John H. (“Jack”) Lyons
             -Phase II
             -Dunlop
             -Peter G. Peterson
      -Meany’s view
             -Industry labor-management groups
                                        -32-

            NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                Tape Subject Log
                                  (rev. July-08)

                                                          Conversation No. 387-7 (cont’d)

                              -Steel
                                   -I[lorwith] W[ilbur] Abel
                 -Shultz’s role
                       -Brennan
                 -Confirmation
                       -Dent, Brennan
            -Timing
                 -State of the Union address
                 -1973 Inauguration
                 -Pre-January 1, 1973
                       -Christmas
                 -Congressional reconvention
                 -Christmas
                 -Productivity Commission meeting

Commission on Industrial Peace
    -Dent, Brennan
    -Timing
    -Membership
          -Names
          -Size
          -Experience
          -George S. McGovern supporters
          -Labor relations
                -Woodcock
                      -Productivity Commission
                -Netrual intellects
          -Business
          -Professors
          -1972 election
                -McGovern supporters
                      -Economists
                             -Newspaper advertisement
          -Rinfret
                -PR
                -Conversation with Shultz
                -Interest in administration position
                      -Visibility, status, perquisites, access to the President
    -Importance
          -The President’s view
                                    -33-

          NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                             Tape Subject Log
                               (rev. July-08)

                                                       Conversation No. 387-7 (cont’d)

          -Meany’s view
          -Labor-management relations
     -Membership
          -Charles W. Colson’s lists
                -Business, labor
                      -Donald McI Kendall
          -Frederic V. Malek
          -Roy L. Ash
          -Labor, management
     -Congressional relations
          -Philip M. Landrum – Robert P. Griffin Act
          -Farm labor bill

Economy
     -Wage and price controls
         -Timing
               -Christmas
                      -Sales
         -PR
               -Inflation
               -Budget
               -Inflation
                      -Phases
               -Phase III
               -Continuation of law
               -Method
               -Speculation
               -Phase III
               -Budget
                      -Spending ceiling
               -Phase III
                      -Christmas
               -Continuation of law
               -Inflation fight continuation
               -Congressional relations
               -Comprehensiveness
                      -Voluntarism
         -Labor relations
               -Meany, Fitzsimmons, Brennan, Dent
                      -Shultz’s role
                                    -34-

           NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                              Tape Subject Log
                                (rev. July-08)

                                                       Conversation No. 387-7 (cont’d)

           -John B. Connally’s view
                 -Politics, psychology
           -Labor relations
                 -Business
                        -Conflict
                        -Pay Board, Price Commission
                               -Meany
                 -Colson’s role
                        -Politics
                        -Conflict
           -Announcement
                 -Timing

Revenue sharing
     -Issuance of first check
           -Timing
           -Congressional relations
                 -Treasury Department briefing
           -Announcement
     -Information update
           -Customer and tax packets
     -Congressional relations
           -Democrats
                 -House of Representatives
                 -Senate
           -Republicans
           -Southern Democrats
     -James E. Smith
     -Charles H. Percy
     -Amounts
           -Change
                 -Data
           -New York City
                 -Suburban areas
           -Chicago
           -Indianapolis
                 -Richard G. Lugar
           -Los Angeles County
                 -Samuel W. Yorty
     -Congressional relations
                                    -35-

           NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                             Tape Subject Log
                               (rev. July-08)

                                                    Conversation No. 387-7 (cont’d)


Second term reorganization
     -Treasury Department
           -Charls E. Walker and Eugene T. Rossides
                 -Announcement
                       -Timing
                             -Ronald L. Ziegler
                                   -Department of Housing and Urban Development
                                    [HUD]
     -Walker
           -Congressional relations
           -Lobbying activities
                 -Relations with administration
           -Possible meeting with the President
                 -Handshake
                 -Expression of gratitude
                 -Photograph session
     -Treasury Department
           -William E. Simon
                 -Announcement
                 -Solomon Brothers
                       -Resignation
                             -Conflict of interest
                                   -Fraud
           -Edward L. Morgan
                 -Rossides
           -Edwin S. Cohen

Congressional relations
     -Shultz’s possible trip to Arkansas
           -Wilbur D. Mills
           -Russell B. Long
           -Shultz’s conversation with Mills
                 -House Ways and Means Committee agenda
                        -Trade
                        -Taxes
                        -Health
                        -Pension portability
                        -Unemployment insurance
                        -Tax credits for private schools
                                       -36-

            NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                               Tape Subject Log
                                 (rev. July-08)

                                                         Conversation No. 387-7 (cont’d)

                        -Property taxes, tax reform
                        -Health
                        -Trade
                              -Most Favored Nation [MFN] status
                              -General Agreement on Tariffs and Trade [GATT]
                              -Restrictions
                                     -MFN
                                           -Soviet Union
                                     -Compared to liberalization
                                     -GATT
                                     -Europe
                              -Oil prices
                              -Liberalization
      -International monetary relations
            -Tariff reduction
                  -Presidential discretion
            -General resolution
                  -Treasury Department
                  -Deals
                        -Ratification
                              -Effect on negotiations
                  -Concessions

International economic relations
      -Trade
            -Countervailing duty legislation
                  -Michelin
                  -Canada
                        -Announcement
                        -State Department
                  -Japanese
                        -Electronics
                  -South Koreans
                        -Sneakers [tennis shoes]
                              -Surplus
                              -Henry A. Kissinger
                                    -Politics
                              -William J. Casey
                        -Japan
                              -Economic, political, military considerations
                                -37-

      NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                         Tape Subject Log
                           (rev. July-08)

                                                 Conversation No. 387-7 (cont’d)

                       -Kissinger
                       -“QT”
            -Canada
                  -Jobs
                  -Auto pact
                         -Negotiations
                               -Agreement
                                    -Cancellation
                                    -Duration
                               -Michelin
            -Latin America
                  -Expropriations
                         -Peru
                               -Company worries
                                    -David Packard
                               -New government
                                    -January 1973
                                    -Settlement
                                    -Loans
                                    -National Security Council [NSC]
                  -Chile
                         -Hardline
-Multilateral organizations
     -Latin America
     -World Bank
            -Robert S. McNamara
                  -Replacement
     -Inter-American Development Bank [IADB]
            -Pledge
                  -Emilio Garrastazu Medici of Brazil
                  -Increments
            -Congressional relations
                  -Appropriations
                         -Continuing resolution
     -Review
     -Compared to bilateral agreements
            -US relations
                  -Control
     -Latin America
            -IADB
                                    -38-

           NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                             Tape Subject Log
                               (rev. July-08)

                                                    Conversation No. 387-7 (cont’d)

           -Asian Development Bank
           -IADB
           -United Nations [UN]
                 -Budget cuts
                      -Effect
                      -UN Development Program
                            -Rudolph A. Peterson
           -US foreign policy
           -World Bank
                 -McNamara
           -Latin America
                 -IADB

Second term reorganization
     -Peter G. Peterson
           -H. R. (“Bob”) Haldeman
           -Ambassadorship to North Atlantic Treaty Organization [NATO]
                 -Donald H. Rumsfeld
                 -David M. Kennedy
                 -Need for full-time person
                 -Cabinet rank
                        -“Super ambassador”
                        -Rumsfeld
                        -UN ambassadorship
           -Job performance
                 -Soviet Union
           -Departure
           -Leaks
                 -Washington Post
                        -Dent
                        -James T. Lynn
                        -Ehrlichman
           -Departure
                 -Means
                        -Kissinger’s view
                        -Living abroad
                              -Personal reasons
           -Possible trip
                 -East-West negotiations
                        -Soviet Union, Poland
                     -39-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

               Tape Subject Log
                 (rev. July-08)

                                     Conversation No. 387-7 (cont’d)

               -Report
   -European Economic Community [EEC], Soviet Union, Poland
   -Role as President’s special representative
   -Poland
   -EEC
   -Japan
   -East-West trade
   -Moscow
   -US-Soviet Union gas deal
         -Kissinger
   -Soviet Union
         -US-Soviet Union summit
   -Europe, Japan
   -East-West trade
   -US-Soviet Union gas deal
         -Peter M. Flanigan
         -Connally
         -Commerce Department
         -Shultz
         -Kissinger
         -White House
               -Connally
               -Kissinger
                     -Armand Hammer
                     -Economics
         -Companies’ interests
               -Government guarantees
                     -Export-Import [Ex-Im] Bank
         -Connally
         -Commerce Department
   -Soviet Union
         -Connally
   -Europe, Japan
   -East-West trade
   -Role as President’s special representative
   -EEC, Japan
   -Recommendations
   -Speeches, press conferences
   -Contacts
         -Shultz, Flanigan, Kissinger
                                                -40-

                   NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                      Tape Subject Log
                                        (rev. July-08)

                                                               Conversation No. 387-7 (cont’d)

             -Rumsfeld
                   -Ambassadorship to NATO
             -Peterson’s possible trip
                   -EEC-NATO ambassadorship
                         -[Joseph A. Greenwald]
                               -State Department
                         -Feasibility
                         -Rumsfeld
                               -Departure
                   -US economic representation in industrial countries
                         -William J. Casey
                               -Rogers
                         -Soviet Union
                         -Maurice H. Stans
                         -Europe
                         -Japan
                         -Asian countries
                         -Latin America
                               -Brazil
                               -Mexico
                         -Japan
                         -Philippines
                         -Indonesia
                         -Casey
                               -State Department
                   -East-West trade
                         -US-Soviet Union summit
                   -US economic representation
                         -Public statements
                   -Purpose
                         -Recommendations on broad policy
                               -EEC, Asia
                   -European community

Stephen B. Bull entered at an unknown time after 10:15 am.

       The President’s schedule

Bull left at an unknown time before 11:38 am.
                                    -41-

           NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                             Tape Subject Log
                               (rev. July-08)

                                                    Conversation No. 387-7 (cont’d)

Second term reorganization
     -Peterson’s possible trip
           -Recommendations
           -EEC-NATO ambassadorship
           -James D. Hodgson
           -US economic representation
           -US policy
                 -Cartels, anti-trust
                 -Report
           -Duration
           -Timing
                 -Confirmation of Secretary of Commerce
                 -Spring 1973
           -Announcement
                 -Speculation
           -Sally (Hornbogen) Peterson
           -Travel
                 -Presidential plane
                       -Kennedy
                 -Commercial
                 -Special plane
                       -Europe
                              -Paris
                 -Attache planes
                 -Japan, Indonesia
           -NATO
           -US economic representation
           -Consultations
                 -Rogers
                 -[David] Kenneth Rush
                 -Casey
                 -State Department
                 -Shultz
                 -Kissinger
                 -Flanigan
           -Role as President’s special representative
                 -Ambassadorship
     -Ehrlichman’s schedule
           -Meeting with Warren E. Burger
                 -Robert H. Bork
                                             -42-

                   NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                      Tape Subject Log
                                        (rev. July-08)

                                                              Conversation No. 387-7 (cont’d)

                              -Experience
                                    -Erwin N. Griswold
                                    -Richard G. Kleindienst
                                    -Charles S. Rhyne
                         -Supreme Court
                              -Age
                                    -Paul Klein [?] [sp?]
                                    -McGovern
                              -John B. Davis, Jr. [?]
                              -L[ouis] Patrick Gray, III
                              -Clifford P. Case

Shultz and Ehrlichman left at 11:38 am.