Nixon White House Tapes › Tape 490 › Conversation 490-024
Nixon, Shultz & Burns on Economic policy and Inflation
Tuesday, May 4, 1971 · 3:07 PM–6:19 PM ET · Oval Office
AI Summary
President Nixon convened an extensive afternoon meeting in the Oval Office with his key economic advisors, including George Shultz, John Connally, Arthur Burns, and Paul Volcker, to deliberate on pressing fiscal and monetary policy issues. The discussion focused on addressing the nation's ongoing economic instability, involving high-level strategy sessions with administration officials and cabinet members. These deliberations were critical in shaping the Nixon administration's approach to inflation and international monetary concerns, ultimately informing the direction of domestic economic policy.
Audio
Audio for this conversation has not been released by the National Archives.
Transcript (AI-generated)
No transcript is available because the audio has not been released.
NARA Description
On May 4, 1971, President Richard M. Nixon, Manolo Sanchez, John D. Ehrlichman, George P. Shultz, unknown person(s), Ronald L. Ziegler, H. R. ("Bob") Haldeman, White House operator, Stephen B. Bull, Walter E. Washington, Arthur F. Burns, Paul W. McCracken, Paul A. Volcker, Richard G. Kleindienst, and John B. Connally met in the Oval Office of the White House from 3:07 pm to 6:19 pm. The Oval Office taping system captured this recording, which is known as Conversation 490-024 of the White House Tapes.
Nixon Library Finding Aid
Conversation No. 490-24
Date: May 4, 1971
Time: 3:07 pm - 6:19 pm
Location: Oval Office
The President met with Manolo Sanchez and John D. Ehrlichman and George P. Shultz.
President's schedule
Sanchez left at 3:07 pm.
-Meeting with Lt. Col. Robert J. McCormick and John B. Connally
-[Lockheed case]
-Timing
Riot report
-Bomb
-Radio
-John W. Dean, III
[Transcript #1: A transcript of the following portion of this conversation was prepared under
court order from December 1978 through March 1979 for Special Access 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.]
[End of transcript]
An unknown person entered and left at an unknown time during the transcribed portion.
President's schedule
-Connally
-Upcoming Quadriad meeting
Fred J. Borch
-Letter to President
-Connally
"Salute to Agriculture", May 7, 1971
-John C. Whitaker
-Clifford M. Hardin
-Dr. Norman E. Borlaug
-Hardin's role
Ronald L. Ziegler entered at 3:17 pm.
[Transcript #2: A transcript of the following portion of this conversation was prepared under
court order from December 1978 through March 1979 for Special Access 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.]
[End of transcript]
Ziegler left at 3:19 pm.
Revenue sharing
-Administration efforts
-Gerald R. Ford
-Shultz's conversation with Wilbur D. Mills
-General revenue sharing
-Vice President Spiro T. Agnew
-Speeches
-Democrats
-Congress
-Cities
-Mayors
-County officials
-Administration efforts
-Mills
-Administration's program
-Formulas
-Need factor
-Per capita income
-Shultz's conversation with Mills
-Congressional hearings
-Administration program
-H.R.1
-Cities
-Meeting
-John W. Byrnes
-Mills
-Byrnes
-Ford’s role
-The President’s view
-Mills
-Administration strategy
-Loss of revenue
-Welfare reform
-Possible effect on revenue sharing
-Congressional liaison staff
-Edwin L. Harper and Richard P. Nathan
-Ford, Mills, and Byrnes
-Richard K. Cook and Clark MacGregor
-Ford
-Mayors
-Congress
-Mills
-Possible motivation
-General revenue sharing
-Welfare reform
-Shultz's possible conversation with Byrnes
-Ford
-Role
-MacGregor
-William E. Timmons
-Possible administration initiative
-Congress
-Democrats
-Edmund S. Muskie
-Hubert H. Humphrey
-Edward M. (“Ted”) Kennedy
-George S. McGovern
-Possible alternative strategy
-Senate Government Operations Committee
-Muskie
-MacGregor's views
-Senate
-Mills
-Byrnes
-General revenue sharing
-Prospects
-Mayors
-Public comments
-Support for the President
-House Ways and Means Committee
-Public relations efforts
-Mills
-Possible administration exploitation of issue
-Mayors
-Shultz's possible meeting with Ford and Byrnes
-Shultz’s previous meeting with Byrnes
-Labor negotiation
-Tax compromise
-Strategy
-MacGregor
-Cook
-Mills’ relations with MacGregor
Mills
-Mills’ activities
-Possible Presidential candidacy
-Ways and Means Committee
-Speeches
George H. Mahon
Revenue sharing
Budget
-Expenditure ceilings
-Mahon
-Carl B. Albert
-Funds
-Supplemental appropriations
-1971, 1972 budgets
-Mahon
-Congressional action
-Effect on President
-President's possible position
-Shultz's conversation with Mahon
-Problems
-Frank T. Bow
-Debt ceiling
-Views
-President's position
Shultz's meeting with Steven D. Bechtel
-George Meany
Meany
-National Commission on Productivity
-Views on Kennedy, Humphrey, Muskie
-Views on President's foreign and economic policies
-Henry M. (“Scoop”) Jackson
-Bechtel's views
-James P. Mitchell
-Administration cooperation with Meany
-Lyndon B. Johnson
-Support for President's foreign policies
-Humphrey, Kennedy, Muskie
-Vietnam
-Possible meeting with President
-Schedule
Breeder reactor
-Chet Holifield's letter to President
-Press account
Minimum wage
-James D. Hodgson
-John B. Connally
-Level
-Administration position
-Mills’ proposal
-Labor proposal
-Dent bill
-Impact
-Differential
-18 and 19 year olds
-Industrial and agricultural workers
-Hodgson's proposal
-Agriculture Department
-Connally's view
-Farm bureaus
-Hearings
-Hodgson
-Possible administration position
-Possible announcement
-Timing
-Differential
-Teenagers
-Agriculture
-Youth unemployment
-Teenagers
-Youth unemployment
-Administration efforts
Welfare reform
-Committee
-States
-Benefit level
-Department of Health, Education, and Welfare [HEW] proposal
-State option
-Relief rolls
-Political impact
-Prospects
-Work requirements
-State contributions
-Administration position
-Federal regulations
-HEW
-HEW proposal
-John G. Veneman and Elliot L. Richardson
-Jerome M. Rosow
-Administration liaison staff
-Brynes’ position
-President's August 1970 statements
[The President talked with H.R. (“Bob”) Haldeman at an unknown time between 3:19 pm and
4:10 pm]
[Conversation No. 490-24A]
Poll on welfare
-Figures
-Questions
[End of telephone conversation]
Welfare reform
-Administration position
-Residence requirements
-Arizona
Haldeman entered at an unknown time after 3:19 pm.
Poll on welfare
-Questions
-Work requirements
-Availability of work
-Menial labor
-Cutting costs
-Reducing welfare to cut taxes
Welfare reform
-Political issue
-Administration program
-Family assistance plan
-Goals
-Political issue
-Purpose
-Present proposals
-Administration program
-Public relations
-HEW
-Bill
-Structure
-Jurisdiction
-Department of Labor
-HEW
-States
-Benefit level responsibility
-Options
-HEW proposal
-Benefit level
-President’s view
-California
-New York
-California delegation
-Congress
-Governor
-Republicans and Democrats
-HEW proposal
-Residency requirements
-Arizona
-New York
-Supreme Court decision
-Federal assistance
-State increments
-Eligibility rules
-Committee
-Ronald W. Reagan
-Nelson A. Rockefeller
-State delegation
-Cities and mayors
-Political issue
-Benefits
-Public opinion
-Mills’ view
-Russell B. Long
-Support for Administration’s efforts
-Liberals
-Conservatives
-Public opinion
-Purpose
-Rolls
-Political impact
-President’s previous speech
-Benefit levels
-Effect on states
-Federal program
-President's position
Revenue sharing
-President’s meeting with Republican leadership, May 4, 1971
-William B. Widnall
-Age
-Towns
-Sewers and water
-Size
-Rural development assistance
-Ehrlichman's possible call to Widnall
-Possible meeting with the President
-George W. Romney
-Agnew
-Harper
-Bergen County
-Republicans
Desalinization
-Edward E. David, Jr.
-Report
-Costs
-Rogers C.B. Morton
-Energy
-President's World War II experience
-Green Island
-South Pacific Combat Air Transport Command [SCAT]
-Fungus
-Edward Teller’s view
-Nuclear energy
-Peaceful uses
-David
-Possible study
-Interior Department, Office of Saline Water
-Walter J. Hickel
-Chung-Ming Wong
-David
-Possible administrative initiatives
-Long range plan
-Howard E. Baker, Jr.
-Lewis L. Strauss
-Middle East
-Power
-Nuclear power plants
-California
-North Africa
-Middle East
-Wastelands
-Population
-Chung-Ming Wong’s travels
-Saudi Arabia
-Possible administration initiatives
-Costs
-Interior Department
-Role
-Possible reorganization
-Breeder reactor
-National Aeronautics and Space Administration [NASA]
-Possible name change
-James C. Fletcher
-Interior Department
Mayor Richard J. Daley
-Relations with administration
[Transcript #3: A transcript of the following portion of this conversation was prepared under
court order from December 1978 through March 1979 for Special Access 8, Ronald V. Dellums,
et al. v. James M. Powell, et al., No. 71-2271. The National Archives andConv.
Records
No. 490-24 (cont.)
Administration produced this transcript. The National Archives does not guarantee its accuracy.]
[End of transcript]
Haldeman left at 4:10 pm.
Dr. Benjamin (McLane) Spock
-Work
-Babies
-Money
Daley
-Schedule
-David M. Kennedy
-Possible meeting with President
Mayors
-Democrats
-Ted Kennedy
-Resources
-Peter F. Flaherty
-Pittsburgh
-Public service employment bill
-Revenue sharing
Public service employment bill
-President's conversation with Robert J. Dole
-Administration's position
[Transcript #4: A transcript of the following portion of this conversation was prepared under
court order from December 1978 through March 1979 for Special Access 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.]
[End of transcript]
President's schedule
[The President talked with the White House operator at an unknown time between 4:10 pm and
4:20 pm]
[Conversation No. 490-24B]
[See Conversation No. 2-73]
[End of telephone conversation]
Walter E. Washington
-Effect of demonstrations on tourism
White House grounds
-Shrubs
Stephen B. Bull entered at an unknown time after 4:10 pm
President's schedule
-Last meeting with Meany
-Date
Bull left at an unknown time before 4:20 pm.
-Lockheed
-SST
Lockheed
-Labor
[The President talked with Washington between 4:20 pm and 4:22 pm]
[Conversation No. 490-24C]
[See Conversation No. 2-74]
[End of telephone conversation]
Bull entered at an unknown time after 4:22 pm.
President's schedule
-Last meeting with Meany
-Date
-Meany
-Henry A. Kissinger
-Lockheed
-Hodgson
-Willie J. Usery, Jr.
-Scheduling
-Lockheed
-Hodgson
Bull left at an unknown time before 4:27 pm.
-Jobs
Employment
-Figures
-Release
-Meany
President's schedule
-Upcoming Quadriad meeting
[The President talked with an unknown person at an unknown time between 4:22 pm and 4:27
pm]
[Conversation No. 490-24D]
Breakfast
-Meeting with Meany
-Date
-Lockheed
-Shultz and Usery
-Hodgson
[End of telephone conversation]
[The President talked with the White House operator at an unknown time between 4:22 pm and
4:27 pm]
[Conversation No. 490-24E]
[See Conversation No. 2-75]
[End of telephone conversation]
Ehrlichman left at 4:28 pm.
Arthur F. Burns, Paul W. McCracken, Paul A. Volcker, and Bull entered at 4:29 pm.
Connally's schedule
McCracken's trip to Alaska
Bull left at 4:29 pm.
Burns’ letter to President
-Los Angeles
[The President talked with Richard G. Kleindienst between 4:29 pm and 4:31 pm]
[Conversation No. 490-24F]
[See Conversation No. 2-76]
[End of telephone conversation]
Connally's schedule
International monetary system
-Connally's schedule
-US interest rates
-Short-term capital
-Speculation
-Flow
-Markets
-Federal Republic of Germany [West Germany]
-Exchange rates
-Conditions in West Germany
-Political situation
-Coalition government
-Elections
-Schleswig-Holstein
-Inflation
-Economic situation
-Business indicator
-Inflation
-Exchange rates
-Central Bank
-Discount rate
-International capital flows
-Inflation
-European Economic Community [EEC]
-Meeting
-Karl Schiller
-Views on European monetary policies
-Possible floating of currencies
-Eurodollar market
-EEC views
-France
-Leak
-Market response
-West Germany
-Economic situation
-Economic research bureaus
-Floating Deutsche mark
-Possible initiatives
-Internal politics
-Exchange rates
-Special taxes
-Incomes policy
-Inflation rate
-Gross National Product [GNP]
-Consumer Price Index [CPI]
-Wages
-Inflation concerns
-Historical experience
******************************************************************************
[Previous National Security (B) withdrawal reviewed under MDR guidelines case number
LPRN-T-MDR-2014-024. Segment declassified on 04/05/2019. Archivist: MAS]
[National Security]
[490-024-w002]
[Duration: 11s]
International monetary system
-West Germany
-Taxes
-Dialogue with US
-Fiscal policies
******************************************************************************
International monetary system
-West Germany
-Incomes policy
-Corporations
-Borrowing from foreign markets
-Exchange rates
-Economic options
-Possible impact of West German policies
-Swiss Franc, Dutch Guilder, Belgian Franc
-French Franc
-Japanese Yen
-Dollar
-Move toward other currencies
-1969 situation
-Speculation
-Dollar outflow
-United Kingdom Pound, French Franc
-Weakness of dollar
-[Switzerland, the Netherlands, and Belgium]
-Gold
-West Germany
-Attitude toward dollar
-Floating currencies
-Possible US position
-French position
-Possible West German position
-Timing of possible decision
-Possible US responses to floating currency
-Persuading West Germany
-German policy
-Effect on speculation
-US responsibility for situation
-US concern for monetary system
-Stance toward other currencies
-Floating dollar
-Gold policy
-Negotiations
-Dangers for US
-Depreciation
-Speculative movements
-Stocks and bonds
-Value of Dollar
-Uncertainty
-US balance of payments
-Outlook
-Views
-Protection of dollar
-Risk of borrowing
-Exchange protection
-Devaluation
-Arrangements
-Financial commitments
-Confidence
-Pessimism
-Optimism
-Domestic programs
-Connally
-Need for economic strategy
-Possible West German initiatives
-Political situation
-Views of foreign markets and governments
-Revaluation of foreign currencies
-Ambivalence
-Speculation
-Academic theses
-”Benign neglect”
-US balance of payments
-Complexity
-Exchange rates
-Burns’ meetings with business groups
-Foreign competition
-Business views
-Need for long view
-Short-term problems
-Temporary solutions
-Capital controls
-Germans
-Readjustment
-Yen, Guilder, Franc, German mark
-Relation to dollar
-Ongoing problems
-US objectives
-US exports and imports
-Uncertainties
-Possible effect on US economy of devaluation
-Exchange market
-Hard currency
-Savings bank
-Stock and bond markets
-Liquidations
-Stock Market performance, May 4, 1971
-Drop
-Business activity
-Financial markets
-Long-term effects
-Exports and imports
-Demand
-Dollar
-Capital controls
-Balance of payments
-Aid
-Competitive position
-Protectionism
-Industries
-Steel
-Textiles
-Shoes
-Foreign reaction
-Devaluation of dollar
-Possible West German activity
-Effect on common market
-Agricultural policy
-Exchange rate
-European integration
-Financial impact
-Common market
-Depreciation of dollar
-Capital imports
-Possible benefits
-Exchange rate
-Parities
-Competitive advantage
-Confidence in US economy
-Inflation
-Stability
-Growth
-Risks
-Common market
-Possible protectionism
******************************************************************************
[Previous National Security (B) withdrawal reviewed under MDR guidelines case number
LPRN-T-MDR-2014-024. Segment declassified on 04/05/2019. Archivist: MAS]
[National Security]
[490-024-w003]
[Duration: 1m 2s]
International monetary system
-Possible West German activity
-West German government
-Public statements
-US strategy
******************************************************************************
International monetary system
-Possible effect on US economy
-US balance of payments
-Capital outflows
-West Germany
-Economy
-Duration of “boom”
-US balance of payments
-Short-term capital out flows
-Manageability
-Deficit
-Amount
-Possible US position
-Economy
-West Germany
-Political situation
-Unemployment
-Finances
-Willy Brandt
-Ludwig Erhard
-Fiscal policies
-Social democrats
John B. Connally entered at 5:15 pm.
-Compared to 1970 situation
-British and French
-Estimation of crisis
-Possible US options
-Volcker's conversation with Pierre-Paul Schweitzer
-Possible West German policy
-Inflation
-Election
-Fiscal and incomes policy
-Controls
-Exchange rates
-Speculation
-Timing of possible announcement
-Possible US negotiating position
-Brandt
-Contacting Karl Schiller's ministry
-Undersecretary
******************************************************************************
[Previous National Security (B) withdrawal reviewed under MDR guidelines case number
LPRN-T-MDR-2014-024. Segment declassified on 04/05/2019. Archivist: MAS]
[National Security]
[490-024-w004]
[Duration: 3m 30s]
International monetary system
-Possible US negotiating position
-Paul [unknown last name]
-Leaks
-Leaks
-French
-Reasons
-Compared to German reasons
-Berlin
-Willy Brandt government
-Importance of survival
-US-Union of Soviet Socialist Republics [USSR] negotiations
-Possible settlement
-Impact on treaty with Union of Soviet Socialist Republics [USSR]
-Negotiations
-Survival of Willy Brandt government
-US cooperation
-Work with Union of Soviet Socialist Republics
Conv. [USSR]
No. 490-24 (cont.)
-Concessions involving Berlin
-Treaty with Union of Soviet Socialist Republics [USSR]
-Willy Brandt
-US commitment
-Union of Soviet Socialist Republics [USSR]
-Pressure
-Willy Brandt
-Reluctance to take action to embarrass US
-The President’s opinion
******************************************************************************
International monetary system
-Berlin
-Effect on monetary system
-Possible West German statement
-Burns’ trip to West Germany
-Central Bank
-Karl Klasen
-Klasen's role
-Brandt
-West Germany
-Political situation
Bull and an unknown man entered at an unknown time after 5:15 pm.
Quadriad meeting
-Schedule
-Publicity
-Photo
-Press
Bull and the unknown man left at an unknown time before 6:19 pm.
International Monetary System
-Possible US negotiating position
-Possible West German initiative
-Reserves
-Possible US responses to West German monetary system
-Statement
-Cooperation on international monetary system
-Domestic considerations
-Treasury Department
-Absorbing dollars
-Funding central bank balances in US
-Interest rates
-Stimulus
-Fiscal devices
-Easy credit
-Domestic considerations
-Secretary of the Treasury
-Responsible steps
-Interest rates
-Necessity
-Revaluation of German mark
-President’s possible call to Germans
-Timing
-Possible US position
-Political difficulties
-Effect of floating German mark
-Domestic problems abroad
-Possible German revaluation
-Possible influx of dollars into central bank
-Possible International Conference
-Previous meeting on problem
-Monetary policy
-Weakness of dollar
-Crisis
-Negotiations
-Difficulties
-Floating rate
-Risks
-Domestic repercussions
-Common market
-Revaluation of German mark
-Effect on US position
-Rebuilding of monetary system
-West Germany
-Political situation
-Revaluation of German mark
-Inflation
-Possible impact of West Germany monetary
-Stock market
-Compared to earlier situation
-Weakness of dollar
-Fundamental questions
-Uncertainties
-Dislocations in financial markets
-US balance of payments
-Trade
-Outlook
-Compared with 1964
-Pressures for protectionism
-Controls
-Investment
-Possible US statement
-West Germany
-Fiscal situation
-Readjustments
-Fundamental issues
-Possible US initiatives
-Rates of exchange
-Difficulties for US
-Shifts of money
-Possible credit problems and bankruptcies
-Risks for US
-Trade
-US trade imbalance
-Germans, Japanese, Canadians
-Long-term solutions
-Devaluation of dollar
-Trade
-Relative prices
-Exchange rates
-Monetary aspect of problem
-Dollar
-Revaluation
-Expectations
-Possible US responses to West German monetary policy
-Floating currencies
-Negotiations
-Suspension of gold payments
-Dangers
-New monetary systems
-International Conference
-Possible US statement
-West Germany
-Possible position
-Possible call to West Germans
******************************************************************************
[Previous National Security (B) withdrawal reviewed under MDR guidelines case number
LPRN-T-MDR-2014-024. Segment declassified on 04/05/2019. Archivist: MAS]
[National Security]
[490-024-w005]
[Duration: 3s]
International monetary system
-Possible US responses to West German monetary policy
-Possible telephone call to West Germans
-Berlin
******************************************************************************
International monetary system
-Possible US responses to West German monetary policy
-Possible telephone call to West Germans
-Possible US posture
-Possible Treasury statement
-State Department
-Tactical differences
-Press inquiries
-Burns
-Public statements
-Volcker's forthcoming call to Schiller
-Burns’ forthcoming call to Klasen
-Brandt
******************************************************************************
[Previous National Security (B) withdrawal reviewed under MDR guidelines case number
LPRN-T-MDR-2014-024. Segment declassified on 04/05/2019. Archivist: MAS]
[National Security]
[490-024-w006]
[Duration: 3s]
International monetary system
-Possible US responses to West German monetary policy
-Willy Brandt
-Berlin
******************************************************************************
International monetary system
-Possible US responses to West German monetary policy
-Possible Treasury statement
-Timing
-Press inquiries
-New York Times
-Content
-Press inquiries
-Calls to West Germans
-Possible leaks by journalists
-Possible flood of dollars into German central bank
-Revaluation of German mark
-Possible West German statement
-Exchange rates
-Possible calls to West Germans
-Theme
-Continuity
-Possible West German posture
-Fundamental issues
-Weekend meeting
-Possible US statement
-Content
-Objectives
-Exchange rates
-Fixed
-Japanese
-Germans
-Revaluation of currencies
-Japan
-Germany
-Other countries
-Effect on gold prices
-Rise
The conversation was cut off at an unknown time before 6:19 pm.Also recorded on May 4, 1971
- 490-020 2:05 PM · 3 sec — President Richard M. Nixon and Manolo Sanchez met in the Oval Office of the White House at 2:05 pm.
- 490-021 2:05 PM · 3 min — President Richard M. Nixon, Stephen B. Bull, and Alexander P. Butterfield met in the Oval Office of the White House from 2:05 pm to 2:12 pm.
- 490-022 2:14 PM · 50 min — President Richard M. Nixon, Ronald L. Ziegler, H. R. ("Bob") Haldeman, unknown person(s), and Stephen B. Bull met in the Oval Office of the White House from 2:14 pm to 3:06 pm.
- 490-023 3:06 PM · 13 sec — President Richard M. Nixon and Stephen B. Bull met in the Oval Office of the White House at 3:06 pm.
- 002-073 4:10 PM · 5 sec — President Richard M. Nixon and the White House operator talked on the telephone at an unknown time between 4:10 pm and 4:20 pm.
- 002-074 4:20 PM · 3 min — President Richard M. Nixon and Walter E. Washington talked on the telephone from 4:20 pm to 4:22 pm.
- 002-075 4:22 PM · 5 sec — President Richard M. Nixon and the White House operator talked on the telephone at an unknown time between 4:22 pm and 4:27 pm.
- 002-076 4:29 PM · 4 min — President Richard M. Nixon and Richard G. Kleindienst talked on the telephone from 4:29 pm to 4:31 pm.
Cite this conversation
Conversation 490-024, 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/490-024 (accessed October 12, 2026).