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Conversation: 540-009

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Start Date: 20-Jul-1971 11:09 AM

End Date: 20-Jul-1971 1:21 PM

Participants:

Nixon, Richard M. (President)Baker, StevenEhrlichman, John D.Shultz, George P.

Recording Device: Oval Office

Full Tape Conversation Start Time: 01:10:54

Full Tape Conversation End Time: 03:22:10

540a.mp3

540b.mp3

NARA Description:

On July 20, 1971, President Richard M. Nixon, Steven Baker, John D. Ehrlichman, and George P. Shultz met in the Oval Office of the White House at an unknown time between 11:09 am and 1:21 pm. The Oval Office taping system captured this recording, which is known as Conversation 540-009 of the White House Tapes.

Nixon Library Finding Aid:

Conversation No. 540-9

Date: July 20, 1971
Time: Unknown between 11:09 am and 1:21 pm
Location: Oval Office
                                              13

                           NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/08)




The President met with an unknown person [Stephen B. Bull?].
     George P. Shultz
          -Forthcoming meeting

John D. Ehrlichman entered at 11:09 am; the unknown person [Bull?] left before 1:21 pm.

     The President's trip to the People's Republic of China [PRC]      Conv.No. 540-9 (cont.)
          -Henry A. Kissinger
          -Trip advance preparations
                -Ehrlichman

     School desegregation
         -Department of Health, Education and Welfare [HEW]
               -Edward L. Morgan's handling of issue
               -Elliot L. Richardson
         -Shultz
               -Committees
         -HEW
               -Staff
               -President’s position
               -Leaks
         -Texas
               -Lawsuits
         -Funding
               -Morgan
               -Strategy for delay
                     -Richardson
                     -Edith Green
               -Timing
                     -Congressional adjournment
                           -Forthcoming economic action
         -Shultz, Leonard Garment

     Family assistance
          -Senate Finance Committee
                -John C. Williams role

     The Pentagon Papers

     Family assistance and welfare reform
          -The President's conversation with John B. Connally
                                               14

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                       Tape Subject Log
                                         (rev. 10/08)



               -Effectiveness of issue in political terms
                     -Polls
          -The working poor
               -Daniel P. (“Pat”) Moynihan's theories
                     -Support for the President
               -Voting record
          -Effectiveness of efforts in helping the poor
               -Ehrlichman’s conversation with Richardson        Conv.No. 540-9 (cont.)

Stephen B. Bull (?) entered at an unknown time after 11:09 am.

     Shultz

Bull left at an unknown time before 1:21 pm

     Welfare
          -Psychology
               -The President’s view
               -Effect on recipients of being on welfare
          -Acceptance of charity
          -Growth of welfare psychology
               -Effect on president’s policies
          -The President's family


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BEGIN WITHDRAWN ITEM NO. 1
[Personal-Returnable]
[Duration: 49s ]


END WITHDRAWN ITEM NO. 1

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          -Attitude toward welfare
          -Present system
                -Need for change
                -Impossibility of total abolition of welfare
          -Propose reforms
                                                15

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                       Tape Subject Log
                                         (rev. 10/08)



               -Efforts to put more people on the payroll
               -Premiums on working and penalties on welfare
               -Study of implementation effort
                      -James H. Cavanaugh
                           -HEW
                                 -Richardson
                      -Possible effect of passage of present legislation
          -Possibility of Congressional action                             Conv.No. 540-9 (cont.)
               -Russell B. Long, Abraham A. Ribicoff
          -Cavanaugh study
               -Richardson
          -Ronald W. Reagan's position on welfare reform
               -Recent meeting with Richardson
               -Requested meeting with the President
                      -August 1971

     The Department of Justice
          -Number of staff members with Ivy League background
               -The President's comment to Robert C. Mardian
               -Harvard, Yale, Cornell, Columbia, Penn
               -Statistics
               -Appointees

     The Pentagon Papers
          -Richard H. Ichord
               -Disinclination to pursue matter in his House Internal Security Committee
                     -Possible forthcoming bid for gubernatorial job
                            -Need to appeal to liberal voters
          -F. Edward Herbert, Leslie C. Arends
               -Interest in investigation
                     -Selection of junior member of Congress to handle case
                     -Chance for a special Congressional counsel to make a name for himself
          -White House staff efforts
               -Egil G. (“Bud”) Krogh, Jr.
          -Charles M. Cooke, Jr.'s meetings with Daniel Ellsberg

Stephen B. Bull entered at an unknown time after 11:09 am.

     Unknown Senator
         -Possible meeting with the President

Bull left at an unknown time before 11:46 am.
                                           16

                        NIXON PRESIDENTIAL MATERIALS STAFF

                                   Tape Subject Log
                                     (rev. 10/08)




    The Pentagon Papers case
         -Cooke-Ellsberg contacts
              -Planned polygraph test
                    -Richard G. Kleindienst
                    -Preparations
              -Kleindienst
                    -Richardson                                      Conv.No. 540-9 (cont.)
                          -Questions
                    -Rogers
         -National Security Council [NSC] documents in possession of Sen. Charles Mc.
              Mathias
              -Request for return
                    -Rogers
                    -Ehrlichman
                    -Kleindienst to request return

    F. Donald Nixon
         -F. Donald Nixon, Jr.
              -Conversation with John D. Ehrlichman
              -European trip


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BEGIN WITHDRAWN ITEM NO. 2
[Personal Returnable]
[Duration: 32s ]


END WITHDRAWN ITEM NO. 2

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BEGIN WITHDRAWN ITEM NO. 3
[Privacy]
[Duration: 15s ]


END WITHDRAWN ITEM NO. 3
                                           17

                        NIXON PRESIDENTIAL MATERIALS STAFF

                                   Tape Subject Log
                                     (rev. 10/08)




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

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BEGIN WITHDRAWN ITEM NO. 4
[Personal Returnable]
[Duration: 1m 27s ]                                                 Conv.No. 540-9 (cont.)


END WITHDRAWN ITEM NO. 4

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         -Robert Vesco, Bernard Cornfeld
              -Investigation
              -Edward C. Nixon's conversation with John D. Ehrlichman about presidential
                   library
              -F. Donald Nixon
                   -Business dealings with Gilbert R. J. Straub, Vesco


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BEGIN WITHDRAWN ITEM NO. 5
[Privacy]
[Duration: 1m 8s ]


END WITHDRAWN ITEM NO. 5

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BEGIN WITHDRAWN ITEM NO. 6
[Personal Returnable]
[Duration: 45s ]
                                           18

                        NIXON PRESIDENTIAL MATERIALS STAFF

                                   Tape Subject Log
                                     (rev. 10/08)



END WITHDRAWN ITEM NO. 6

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BEGIN WITHDRAWN ITEM NO. 7
[Privacy]                                                           Conv.No. 540-9 (cont.)
[Duration: 8s ]


END WITHDRAWN ITEM NO. 7

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BEGIN WITHDRAWN ITEM NO. 8
[Personal Returnable]
[Duration: 54s ]


END WITHDRAWN ITEM NO. 8

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    Consumer sentiment
        -Edwin L. Harper's memorandum
             -Shultz

    Republican leaders meeting, July 20, 1971
        -Congressmen's reaction to People’s Republic of China [PRC] briefing
              -Lack of reaction
              -Kissinger's discussion of developments
                    -Norris Cotton's reaction
              -Contrast to Democratic President and leaders scenario
        -Dangers of speculation
              -Vietnam War
                    -Settlement
        -Lack of reaction by leaders
                                                19

                              NIXON PRESIDENTIAL MATERIALS STAFF

                                       Tape Subject Log
                                         (rev. 10/08)



                 -Presidential leadership
                 -Robert J. Dole
                 -Peter H. Dominick
                 -Robert P. Griffin
                 -John B. Anderson
           -President’s role
                 -Richard H. Poff
                 -Ehrlichman, Shultz                                        Conv.No. 540-9 (cont.)

     The Bohemian Grove
          -Invitation for Ehrlichman to speak
          -PRC talking points
                -Kissinger

     The PRC initiative
          -Public reaction
               -Contrast to Congressional leaders meeting

     Congressional liaison
         -Clark MacGregor
               -Congressional support for the President
                     -Democrats
                     -Margaret Chase Smith
                     -Poff

Shultz entered at 11:46 am.

     July 20, 1971 Congressional leaders meeting
           -Lack of reaction by leaders to the President's PRC initiative
                -Kissinger
                -Cotton
           -Complaints about the economy
                -Anderson


     Economic briefing by Shultz
         -Nineteen Republicans up for Congressional re-election
              -Dole
              -Dominick
         -The Vietnam war
              -Impact of war on economy
                     -Peace issue
                                        20

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/08)



     -Current economic conditions
     -Congressmen
          -Briefings by Shultz, John B. Connally
                -Peace issue
                -Griffin
          -Knowledge of economic matters
                -Circulation of columns
                      -Gerald R. Ford, Hugh Scott          Conv.No. 540-9 (cont.)

The economy
     -Public perceptions
           -Polls
           -Consumer sentiment
                 -Influences
           -Action taken on the economy
           -Eliot Janeway
                 -Predictions
     -Predictions for autumn 1971
           -Comparison with the Kennedy administration
     -Griffin
           -Reporting and forecasting
     -Republicans
           -Racists
           -Peter M. Flanigan
                 -Assignment
     -Retailers
           -Retail sales situation
                 -Anderson
     -Inventories
           -Steel
                 -Foreign imports

Public service jobs
     -Funding situation
           -Appropriation
                 -Bill signing
                 -Time needed for passage
                       -Post-Labor Day prediction
                       -Reasons for delay
                             -MacGregor
                             -Distribution of funds
                                   -San Clemente meeting
                                          21

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/08)



                                -Shultz
                            -Appointment of disbursement agent
                                -States, locales
                                -California
                                      -Report by [unintelligible name] [Foy?]
                                      -Reagan's perceptions
Perception of administration
     -Economy                                                      Conv.No. 540-9 (cont.)
     -PRC initiative

Tax reform
     -Connally
          -Wilbur D. Mills bill
     -Proposals
     -Value added tax
     -Mills
          -Tactics
                 -Revenue sharing
                 -Tax credit, tax relief
     -Proposals for tax relief
          -Lack of comment from Connally
     -Effects of tax relief and revenue sharing on the taxpayer
          -Mills

Federal Reserve Board [FRB]
     -Connally’s conversation with the President
           -Arthur F. Burns
     -Burns
           -Request for a meeting with the President
                  -Dwight L. Chapin
           -Quadriad
           -Forthcoming meeting with Shultz
           -Economic prediction
                  -Inflation, recovery
     -Statistics released
     -Burns
           -Connally
           -Milton Friedman
           -Future meetings
           -Money supply
     -Possible vacancy
           -Possible intent of Burns's meeting
                                            22

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                   Tape Subject Log
                                     (rev. 10/08)



           -Candidate for appointment
                -Connally's search
                     -Populist

President of the Steelworkers Union I[lworth] W. Abel
     -Telephone
     -Forthcoming letter to the President
           -Support for possible steel merger             Conv.No. 540-9 (cont.)
                 -Reasons for delay
                       -Investigation
                 -Anti-trust laws
                       -Richard W. McLaren
                       -Administration’s position
           -Abel's views

American Telephone and Telegraph [AT&T]
    -H. I. Romnes
          -Telephone call to the President
          -Labor settlement
          -Possible call from the President
          -Stance on regional wage differentials

Postal settlement
     -Willie J. Usery, Jr.
            -Winton M. (“Red”) Blount
            -Efforts

Wage settlements
    -1972 projections
           -Shultz's forthcoming briefing
           -Railroads

Steel industry
      -Possibility of strike
           -The President’s view
           -James D. Hodgson
           -Businesses view

Longshoremen
    -West Coast strike

Productivity Commission
                                            23

                        NIXON PRESIDENTIAL MATERIALS STAFF

                                    Tape Subject Log
                                      (rev. 10/08)



         -Forthcoming conference in September
         -George Meany
              -Possible forthcoming telephone call from Shultz
              -Stance
         -Tactics towards labor
              -Meany
                    -Partisan action
                          -Coordination with Carl B. Albert            Conv.No. 540-9 (cont.)
                          -Democratic attacks
                                -Effect of the President's PRC announcement

    Timing of the PRC announcement
         -Focus of news media
               -Same day announcement of presidential candidacy by Senator Fred Harris


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BEGIN WITHDRAWN ITEM NO. 10
[Personal Returnable]
[Duration: 49s ]


END WITHDRAWN ITEM NO. 10

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    Forthcoming meeting
         -The President, Ehrlichman, Shultz, Connally, Charles W. Colson
              -Productivity Commission
                    -Meany's recent actions
                          -Possible reaction
                               -Polls
                                      -Public opinion of labor unions
                          -Labor support for the President
                               -Teamsters, construction trades, New York groups
              -Meany
                    -Schedule
              -Usery
              -Colson
              -Connally
                                         24

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/08)



                 -Preparation for meeting
                       -Hodgson, Maurice H. Stans
                 -Political considerations
           -J. Curtis Counts

Office of Management and Budget [OMB]
     -Personnel
           -Arnold R. Weber                                        Conv.No. 540-9 (cont.)
                 -Return to University of Chicago
                 -Replacement
                      -Frank C. Carlucci
                            -Ehrlichman, Caspar W. (“Cap”) Weinberger
                            -Office of Economic Opportunity [OEO]
                                  -Abolition
                                  -Downgrading agency
                                  -Carlucci's replacement as OEO head
                                       -[John O.?] Wilson
                                       -Wesley Hjornevik
     -Carlucci
           -Announcement
           -California Rural Legal Assistance [CRLA] settlement
                 -Alan Cranston

Economic statistics
    -Major statistical agencies
          -Agriculture, Labor, Commerce
          -Consolidation
                -Bureau of Labor Statistics [BLS]
                      -Goldstein [Leon Greenberg (sic)]
                -Hodgson
          -Julius Shiskin
          -Margaret Martin

Executive pay schedule
    -Memorandum to the President from Shultz
    -OMB Deputy director job
          -Ash Council recommendations
          -Pay scale
                -Weinberger
                -Public perception salary increases
                     -Contrast to industry wages
                -Level IV, Level II
                                       25

                    NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/08)



                -Burns, Weinberger
     -Problem of attracting potential job applicants
          -William M. Magruder of the Department of Transportation
          -Conflict with fight against inflation
     -Congressional review
     -Carlucci
          -Level II job
     -Quadrennial executive pay review                          Conv.No. 540-9 (cont.)
          -New commission
                -Timing
     -Ash Council
     -Burns’ conversation with Weinberger

Department of the Treasury
    -Connally's authority
    -Raise in under secretary level
    -The Bureau of Customs
         -Increase in number of slots
                -Krogh
                     -Recommendation on request
                           -Connally, John N. Mitchell
                -Connally's inquiries
                     -Impetus from Eugene T. Rossides

Office of Science and Technology [OST]
     -Deputy for Dr. Edward E. David, Jr.
           -Level IV job
     -Role of office
           -Research and development field
     -Peter G. Peterson, Productivity Commission
           -Research and development efforts
     -Increase in slots
     -Possible restructuring effort

National Urban League
     -Vernon E. Jordan, Jr.
          -Shultz's appearance
               -Whitney M. Young, Jr.
               -Possible speech on civil rights topic
                      -Spiro T. Agnew
                      -The President's comments to Robert J. Brown
                            -African heritage issue
                                          26

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/08)



                                -Agnew’s remarks
                                -African leaders
                                      -Sese Seko Mobutu
                                      -Slavery, cannibalism

Blacks
     -Roy Wilkins' comments
          -National Association for the Advancement of Colored People
                                                                Conv.No.
                                                                      [NAACP]
                                                                         540-9 (cont.)
          -The President's incumbency
     -Agnew's remarks
          -Reaction
               -Black caucus
               -The press
          -Appeal to voters

Africa
     -Mobutu, Jomo Kenyatta
     -African Countries
           -Nature of governments
                -William V.S. Tubman, Kenyatta, Mobutu
                -Compared to Latin America
     -Mobutu
           -Reception of Visitors
                -Agnew

Agnew
    -Press relations
         -Effect of relaxation
                -Recollection of "fat Jap" comment

National Urban League
     -Administration relationship
     -Young
          -President’s eulogy
     -[Unintelligible name]
          -Letter after meeting

Revenue sharing
    -Proposals
          -Mills' efforts
          -John W. Byrnes
          -Nelson A. Rockefeller's plan
                                         27

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/08)



                -Mills
     -General revenue sharing, special revenue sharing

National Urban League
     -Shultz’s forthcoming address
           -Agnew’s comments about blacks
           -The President's eulogy of Young
           -National Urban League leadership                       Conv.No. 540-9 (cont.)
     -Letter from the President
           -Raymond K. Price, Jr., Leonard Garment

Agnew
    -Efforts to restrain Agnew's comments
          -Ehrlichman’s conversation with H.R. (“Bob”) Haldeman
          -Meeting with Mobutu
                -The PRC Initiative
                      -Cable
                            -Kissinger
                            -Release
    -As representative of the President
          -Solidarity with the President's views by the Vice President and Cabinet
                -Walter J. Hickel
    -Nixon as Vice President
          -Dwight D. Eisenhower
                -1956 Suez crisis
                -1956 Hungarian revolution
                -1959 economic action
                      -Burns, John N. Mitchell, the President
                      -Robert O. Anderson
                      -[Unintelligible name]
                      -Stans
    -Credibility
    -Need for restraint
    -Bryce N. Harlow's experiences during Agnew's trip to Korea
    -Staff
          -The President’s view
          -Agnew's relations with his staff and Secret Service
                -Comparison with the President

Staff relations
      -The President
      -The Vice President
                                             28

                         NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                       (rev. 10/08)



               -Dignity of office

    Connally
        -Willingness to speak out
              -Mills
              -July 15, 1971 press conference
                    -Misleading press report of statement on unemployment
                         -Mills                                      Conv.No. 540-9 (cont.)


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BEGIN WITHDRAWN ITEM NO. 14
[Personal Returnable]
[Duration: 2m 17s ]


END WITHDRAWN ITEM NO. 14

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    Paul W. McCracken
         -Requested meeting with the President
              -Plans to return to teaching
                   -Timing
                          -Current state of the economy and possible future action

    The economy
         -Actions of congressmen, senators
              -Connally’s theory
              -Burns
                    -Influence
              -Forthcoming briefings of Administration’s position
                    -Shultz, Connally
                          -William E. Timmons
                                -Timing
                          -Fact sheet
                          -Senators
                                -Joint presentation
                                -Location
                                      -Kissinger's meetings with Anatoliy F. Dobrynin
                                               29

                               NIXON PRESIDENTIAL MATERIALS STAFF

                                         Tape Subject Log
                                           (rev. 10/08)




     Campaign spending reform
          -Status of legislation
     Scheduling
          -Connally meeting
          -Response to Meany

Ehrlichman and Shultz left at 1:21 pm.                               Conv.No. 540-9 (cont.)