Conversation No. 475-18

Date: April 8, 1971
Time: 12:17 pm - 1:00 pm
Location: Oval Office                                                   Conv. No. 475-17 (cont.)

The President met with Franco Mario Malfatti, Peter G. Peterson, C. Fred Bergsten, Neil A.
Seidenman, David M. Kennedy, William P. Rogers, John B. Connally, Clifford M. Hardin,
Maurice H. Stans, James D. Hodgson, George P. Shultz, Paul W. McCracken, Henry A.
Kissinger, Carl J. Gilbert, Rocco C. Siciliano, Deane R. Hinton, and Donald A. Webster; the
White House photographer was present at the beginning of the meeting

      [General conversation]

     US position on trade issues
         -Malfatti’s conversations with Rogers and other US officials
         -President and Malfatti’s remarks
         -Political opposition in US to liberalized trade policies
               -Need for support
         -Protectionism in Congress
               -Rise since the President was a Congressman
         -Importance of citrus, textiles to US trade
               -Symbolism
         -European Economic Community’s [EEC]
               -Support for expansion to include Great Britain
               -Support for more open trade policies
         -Rising protectionism in the US
         -Need for more liberalized policies from other countries
         -Trade bills sent to Congress
               -Chances of success
         -EEC’s trading policies
         -Political realities
               -State Department
         -Possible protectionism in the US
               -Need for mutual movement
         -Japan
               -US and Europe
               -EEC’s experience
                                        26

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                   (rev. 9/08)



US and EEC’s positions
     -Goals
          -Removing trade barriers
          -Resolving political difficulties
               -Malfatti, Peterson, Kennedy, Rogers, and Stans

Integration of European economies
      -President’s message on foreign policy of the US
            -European unification
      -Economic and monetary union
      -Enlargement of the EEC
      -Political difficulties
      -Customs union
      -Desire for economic integration
      -Discussion of political powers
            -Awareness of EEC countries
      -Georges J. R. Pompidou
      -Recent pronouncements on European government
      -Willy Brandt and Edward R. G. Heath
      -Limitations of European community
      -Negotiations for enlargement
            -Size
                  -Six or ten countries

EEC
      -Malfatti as President of European community
      -Council of Ministers
      -Technical and financial matters
      -Negotiations for enlargement
      -Concern for promoting free trade

US - EEC trade problems
     -Two sets
           -Domestic political difficulties
           -International
                 -Broad, long-term
     -Citrus
           -Possible technical solution
           -Malfatti’s conversation with Prime Minister Emilio Colombo
           -Preferential agreements
                 -Tunisia, Spain, and Israel
     -Shoes
                                              27

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                         (rev. 9/08)



                -Italy’s current situation
          -Other problems
                -”Explosion” of trade with Japan
          -Developing countries
          -Discussions among six foreign affairs ministers
          -Possible discussions over free trade
          -”Nixon Round”
          -”Nixon-Malfatti Round”                                 Conv. No. 475-18 (cont.)
          -Trade barriers
          -Strategy towards developing countries
          -Practical solutions
          -Improving atmosphere
          -Economic integration between US and EEC
          -US agricultural exports

Stephen B. Bull entered at an unknown time after 12:17 pm

     Malfatti’s schedule
          -Upcoming luncheon

Bull left at an unknown time before 1:00 pm

     US - EEC trade relations
          -Peterson’s role
          -Small problems obstacle
          -Congressional concerns regarding citrus, tobacco, etc.
          -Forthcoming announcement of Kennedy’s trip to Europe, Asia

     Kennedy’s trip
         -Itinerary
               -Asia
               -Japan
               -Hong Kong
               -Taiwan
               -Europe
                     -Timing
               -Bert Russell
               -Spain and Italy
                     -Shoes

     US - EEC trade relations
          -Trade concessions by EEC
                                               28

                             NIXON PRESIDENTIAL MATERIALS STAFF

                                       Tape Subject Log
                                          (rev. 9/08)



                  -President’s relations with Congress
                  -Possible Congressional reaction
            -Political considerations
                  -Kennedy’s trip to Brussels, Belgium
                  -Malfatti’s meetings with colleagues at The Hague, Netherlands
            -Avoidance of protectionism
                  -Negative results
            -Improvement of Political atmosphere                        Conv. No. 475-18 (cont.)
            -Promotion of free trade
            -Importance of gesture
            -Peterson
                  -Paper on US Senate’s concerns
            -Protectionism
                  -US political problems
                  -Public versus private statements
                  -Textiles
                        -General Agreement on Tariffs and Trade [GATT]
                              -Multilateral needs

      Malfatti’s luncheon
           -Schedule

      [General conversation]
           -Brussels

Malfatti, et al. left at 1:00 pm