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Conversation: 510-005

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Start Date: 2-Jun-1971 4:38 PM

End Date: 2-Jun-1971 5:42 PM

Participants:

Nixon, Richard M. (President)Connally, John B.Butterfield, Alexander P.Sanchez, ManoloEhrlichman, John D.

Recording Device: Oval Office

Full Tape Conversation Start Time: 01:07:47

Full Tape Conversation End Time: 02:15:01

510a.mp3

510b.mp3

NARA Description:

On June 2, 1971, President Richard M. Nixon, John B. Connally, Alexander P. Butterfield, Manolo Sanchez, and John D. Ehrlichman met in the Oval Office of the White House from 4:38 pm to 5:42 pm. The Oval Office taping system captured this recording, which is known as Conversation 510-005 of the White House Tapes.

Nixon Library Finding Aid:

Conversation No. 510-5

Date: June 2, 1971
Time: 4:38 pm - 5:42 pm
Location: Oval Office

The President met with John B. Connally and Alexander P. Butterfield at 4:38 pm

     Connally's schedule
         -John W. Byrnes
                                              11

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/08)



     Explorers

Butterfield left at an unknown time before 5:42 pm


     Boy Scouts
          -Connally's experience
          -President's experience                              Conv. 510-4 (cont.)

     Connally's previous Congressional testimony
         -John D. Ehrlichman's opinion
         -Revenue sharing
         -Members
                -James C. Corman
                -Sam M. Gibbons
                -John C. Watts
                -Joe D. Waggonner
                -James A. Burke
         -United States Postal Service [USPS]

     Revenue sharing
         -Wilbur D. Mills
         -Gerald R. Ford

Manolo Sanchez entered at an unknown time after 4:38 pm

     Refreshments

     Heroin


******************************************************************************

BEGIN WITHDRAWN ITEM NO. 7
[Privacy]
[Duration: 5s ]


END WITHDRAWN ITEM NO. 7

******************************************************************************
                                              12

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                        Tape Subject Log
                                          (rev. 10/08)




Sanchez left at an unknown time before 5:42 pm

          -Seizures

     Eugene T. Rossides
         -Role with Treasury Department
               -Assistant Secretary for Enforcement, Tariff and Trade Affairs,
                                                                       Conv. No.
                                                                               and510-5
                                                                                  Operations
                                                                                        (cont.)

[The President talked with Ehrlichman at an unknown time between 4:38 pm and 5:42 pm]

[Conversation No. 510-5A]

     Forthcoming drug abuse meeting
          -Attendees
               -Connally
               -Rossides
               -Number
          -Location

[End of telephone conversation]

              -Melvin R. Laird
              -Service Secretaries
              -Joints Chiefs of Staff
              -John N. Mitchell
          -Connally's schedule

     Drugs
          -Administration's forthcoming actions
               -Dr. Jerome H. Jaffe
               -Interdepartmental cooperation
                     -Department of State
                     -Department of Defense
                     -Department of the Treasury
                     -Department of Health, Education and Welfare [HEW]
                           -Employees
          -Abuse in Vietnam
          -Turkey
               -Connally's forthcoming conversation with John N. Irwin, II
                     -William P. Rogers
               -Possible economic arrangement with United States
                                              13

                            NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/08)




[The President talked with Ehrlichman at an unknown time between 4:38 pm and 5:32 pm]

[Conversation No. 510-5B]

          -Forthcoming meeting
               -Henry A. Kissinger
          -Possible US economic arrangement                         Conv. No. 510-5 (cont.)
               -State Department
               -Problems
               -Possible meetings

[End of telephone conversation]

               -Cost
          -Seizures of heroin by US agents
               -Locations
          -Possible jail sentences for pushers
          -Recent seizures of heroin
               -Producers
               -Effect
               -Investigation
                      -Awards for Customs agents

     International economy
           -Effect on US economy
           -President’s forthcoming press conference
           -Formation and development of EEC
                 -Kissinger
                 -Future prospects
           -Britain, Japan, Australia
           -EEC
                                             14

                         NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                       (rev. 10/08)



******************************************************************************

BEGIN WITHDRAWN ITEM NO. 2
[National Security]
[Duration: 21s ]


    JAPAN                                                     Conv. No. 510-5 (cont.)


END WITHDRAWN ITEM NO. 2

******************************************************************************


         -Canada
         -Mexico, South America
              -Differences with United States


******************************************************************************

BEGIN WITHDRAWN ITEM NO. 8
[National Security]
[Duration: 27s ]


    MONETARY POLICY


END WITHDRAWN ITEM NO. 8

******************************************************************************


         -Japanese exports
         -Effect of allowing currencies to float
              -Businessmen
              -Time before Bretton Woods agreement
         -Need to improve US trading position
         -Willy Brandt's forthcoming visit to United States
              -West German contribution to defense
                                        15

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/08)




     -Maintenance of US worldwide military commitments
     -Effect of US tourism
     -Charitable contributions by Americans
     -US investments abroad
     -Balance of payments deficits
          -Canada, Japan, EEC
                 -Agricultural commodities                     Conv. No. 510-5 (cont.)
          -Jobs
     -World bank loan to Bolivia
          -Connally's conversation with Robert Wyrostek [?]
          -Expropriation of US property
          -Pipeline to Argentina
          -Peter G. Peterson, Rogers
          -Kissinger
          -Connally's forthcoming lunch with Robert S. Mcnamara June 3
                 -Expropriation of property
     -Chile
          -Salvador Allende
          -Economic policy

National economy
     -Connally's conversation with Arthur F. Burns
     -Status of dollar
           -Status of economy
     -Inflation
     -Productivity
     -Congress's possible actions
     -Public service jobs bill
           -Ehrlichman's possible conversation with Connally
           -Administration's bill
           -Possible effects on unemployment
     -Unemployment
           -Political considerations
           -Public service jobs bill
     -Inflation
     -Wholesale price index
           -Food
     -Unemployment, inflation
     -Burns' views
     -Inflation
     -Possible wage-price freeze
                                        16

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/08)




International situation
      -Vietnam
           -Peace negotiations
      -US-Union of Soviet Socialist Republics [USSR] relations
      -Anti-Ballistic Missiles Treaty [ABM]
      -Effect on Berlin negotiations                             Conv. No. 510-5 (cont.)
      -US-People’s Republic of China [PRC] relations

National issues
     -Possible issue in 1972 election
     -Long-range concerns
     -1968 campaign
           -Lyndon B. Johnson
           -Hubert H. Humphrey
     -Administration's possible actions
           -Democrats' possible nominee
                 -Edmund S. Muskie
                 -Hubert H. Humphrey
                 -Edward M. (“Ted”) Kennedy
                 -Henry M. (“Scoop”) Jackson
                 -Wilbur D. Mills
                 -Jackson
     -Foreign policy
     -National economy
     -Permissiveness
     -Administration's possible actions
           -George P. Shultz
           -Ehrlichman
     -Importance of President's re-election
           -Connally's instructions to staff
     Treasury Department
           -Government reorganization
                 -Charles E. Walker
                 -Shultz

National economy
     -Possible Wage-Price Board
           -Effect
           -Timing
           -Inflation
                                        17

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/08)



           -Wage and Price freeze
           -Unemployment
           -US industry and business
     -Interest rates
     -Connally's speech to bankers in Europe
           -David Rockefeller's reaction
           -Interest rates
           -Burns' reaction                                    Conv. No. 510-5 (cont.)
     -Interest rates
     -Wage and price freeze
           -Burns
           -Timing and implementation
     -Public service jobs bill
           -Welfare recipients
           -Connally’s upcoming conversation with Ehrlichman
     -Value-added tax
     -Property tax relief
           -Revenue sharing
           -Need for reduction
                 -Political effect
                 -Federal income tax credits
     -Popular reaction toward taxation
     -Action on President's domestic policy initiatives
     -Predictions of economists
     -Need for movement
           -Pierre Rinfret's position
     -Indicators
     -California
           -Size and importance
     -Savings
     -Inventories
     -Stock market
     -Issues
           -Foreign affairs
                 -Kissinger, Rogers
                 -Japan, Chile
                 -Administration’s possible actions

May Day Demonstrations
    -Ronald L. Ziegler's briefings
    -Questions at President's previous press conference
                                            18

                           NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/08)



     President's demeanor in press conferences
          -Possible response to May Day questions
          -Public's reaction

     Cabinet
          -Connally's reputation
              -Mitchell
              -Rogers                                           Conv. No. 510-5 (cont.)
              -Laird
              -George W. Romney
              -John A. Volpe
              -Maurice H. Stans
              -Elliot L. Richardson
              -Clifford M. Hardin
              -Walter J. Hickel

     President's demeanor during crises
          -May Day demonstrations
          -Cambodia
          -Attacks on enemies

     Connally's schedule

Connally left at 5:42 pm