Nixon White House Tapes › Tape 566 › Conversation 566-001

Nixon, Haldeman & Connally on New Economic Policy and Wage and price controls

Tuesday, August 17, 1971 · 9:44 AM–10:39 AM ET · Oval Office

ParticipantsButterfield, Alexander P.; Haldeman, H. R. ("Bob"); Nixon, Richard M. (President); [Unknown person(s)]; Colson, Charles W.; Bull, Stephen B.; Connally, John B.Conversation566-001 on Tape 566 (tape position 00:13:08–01:10:59)StartTuesday, August 17, 1971 at 9:44 AMEndTuesday, August 17, 1971 at 10:39 AMRecording deviceOval OfficeSourceNixon Library record for 566-001 ↗

President Nixon met with his senior advisors, including John B. Connally and H.R. Haldeman, to formulate a strategy for promoting his newly announced "New Economic Policy" and to address political fallout. The participants discussed the necessity of maintaining a unified, aggressive message, specifically targeting Democratic critics like Hubert Humphrey and labor leaders who might oppose the administration's wage and price freeze. Connally was tasked with representing the administration's economic message to the media and Congressional leaders, while the group emphasized the importance of framing these economic measures as essential for bipartisan national interest and international monetary stability.

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13:12Are you sure you don't know about the mustard?
13:13No.
13:13I'm going to be fresh.
13:14All right.
13:14We should have the birthday mustard with the calisthenics.
13:15Yeah.
13:15It's happening.
13:16We're going to check it now.
13:16Make sure we...
13:16It's a nice one, isn't it?
13:52The president gave you a Sapphire yesterday.
13:53Sapphire was back in his office redoing the whole speech based on the president's comments on those two drafts.
13:56While Price is down the hall working on redoing the candidate.
13:58I didn't know until 10 of 8.
13:58Sapphire called me and said, hey, what do you think of the presentation?
14:19because other people are all here.
14:20Oh, I did tell him.
14:20I'm surprised he was the only advice, because he doesn't know what to get out of it.
14:22He's been working on it from the beginning.
14:22Yeah.
14:23So of course, I sent the president stuff.
14:23He had sent Sapphire to work with, plus Sapphire's new doctors.
14:25The president said he wanted my aid.
14:25And he got it out in a year.
14:26And so that's what that was.
14:27That was the message.
14:27I didn't know.
14:50He, when I called him, he had called me and I didn't get the message, so when I called back, when I called later, he said, well, he'd been trying to reach me and find out about that, that you had gone and hurt someone, and he had the sentence.
14:55But earlier, I just, I just, I just, I just, I just, I just, I just, I just,
15:14Yes, he did.
15:14And I gave him to him.
15:15And I handed him to him and he started breathing again until he cooked him in his hand.
15:17That was both of the Robert's speeches.
15:17They had the two speeches.
15:18There's a little book here.
16:06Oh, I don't want to hear that.
16:36I mean, I read a lot.
17:03When we had you originally, we should have arrived at the helipad in Wall Street at 7 o'clock, 710, which would be after the traffic, after the traffic.
17:14We'd get you to the hotel at 730 and give you an hour before you go down to the hotel.
17:42Back to the two o'clock.
17:43Well, we'll see Henry, too.
17:43Well, that's it.
17:44I've got to do that.
17:44They've got two of these features that are under the bar.
17:45So I'm going to have to say.
18:10Just do it again.
19:31Let's go.
20:00Then they did what's important.
20:452.30 is about the latest you can leave in this traffic.
20:46You can go at 2.30 or 5.30.
22:12Of course, if I had to see somebody, I had to see them, you know.
22:14Sure.
22:14Let's try to put the lean heart on the happy ending.
22:48I went to the, uh, did you mind, to the, uh, leadership meeting.
22:50You have to do it again.
23:31County specifically said he had to have Walker.
23:32So he's written Walker, but that's .
24:09He said he knew it had a familiar ring, but he spent tracking and tracking and he finally tracked it down.
24:11That was Levin's program.
24:32And the people, there was a reform, middle class reform that suspended the communist theory and brought in an incentive program on a limited period of time.
24:35And the people who practiced it were called NEPs, N-E-P. And when Trotsky was kicked out, I said, we need to work.
24:37We've never gotten any of our words across.
24:38We've done this.
24:38We've done this.
24:39We're not going to cross.
24:39So I wouldn't worry about it.
24:40Stop and kill them all.
25:08It's the biggest change in economic policy.
25:50It's inevitable because he's the only other president that did any of that crap.
25:52Or remembering that he doesn't like the same thing, or that the same thing he used to get into the biggest social programs in 40 years.
25:55It's actually incredible.
25:55I think this is not
26:20He looked at the paper this morning.
26:21He saw how people know it's him.
26:21See, open in this paper, that's all there is.
26:22As you can't sit in that cover sheet.
26:23It's doubtful that the declaration of God will get as much coverage.
26:24I really doubt it.
26:25I think it might have gotten rushed.
26:26It would have been far more people would have been right with this subject than there are now.
26:46to make it cover so many different things.
26:47But it should have done it.
26:48God, it's an incredible call.
26:48I'm going to blow this up.
26:49The only other item that I don't think anybody is the Productivity Commission meeting on September 21st, which George is moving ahead on now.
26:52He says now, in his view, it's got
27:13because you can't bring those people together and not get into it.
27:14And what he likes to do is make it a two-day meeting.
27:15So as to give it that kind of emphasis from George, he built it up quite a bit.
27:17He thinks it would be a good move for us to do.
27:18But the idea is that you would see him at some point in a meeting and then probably have a reception for him or something like that.
27:21But include ways, consciously include ways to talk to her rather than
27:48I was the third to see a can of vodka.
27:49A White House state circuit that I was seen uncomfortable watching on TV.
27:50Of course, we always say, they just made it up.
27:51They don't really make up the exact place.
27:52You know what I mean?
27:52It just doesn't go.
27:53Who the hell is this around here that has to do that sort of thing?
27:54I just, I could not think of a rap like that.
27:55We saw it in Chicago.
28:17My God, I have a strong eye.
28:18Because that is what I need to do.
28:18It's what I'm trying to do.
28:19I'm trying to say, up and down the damn wall, that'll do it.
28:20You see, he reads that, and he thinks it's a little bleep in the white office, and he's trying to undermine it.
28:22You know?
28:22Now, God damn it, Bill.
28:23That's a terrible thing for somebody to say, isn't it?
28:24Well, plus it's a terrible thing if it's like saying, saying, Washington also must really feel terrible now, or something like that.
28:27God damn it, Bill.
28:27You should shut up.
28:46How can you get that fucking staff together and talk to each other?
28:47Can you do that?
28:48Yep.
28:48Have you done it?
28:48Yep.
28:48On this mission?
28:49Yes.
28:49And I'll do it again if I listen.
28:49Yeah, they listen.
28:50The big staff.
28:50The problem is I don't get the right people, I'm sure.
28:51No, I'm not sure.
28:51Because there's enough people.
28:52There's so many anti-ethnic people.
28:53And it comes up and just...
29:11We don't want to be the more they get the more chance they're sharing his staff.
29:13Well, get around dirty.
29:13Why not?
29:13I'm going to show this.
29:14I'm going to stay on it.
29:14I don't understand.
29:39One thing I would like to get back to is regarding the initiative.
30:02I think that you ought to have somebody still in that way of trying to, other than Ron, who feels oppressing and all that kind of thing.
30:06Basically, if it's about what he said, Ron is the man to do it.
30:07If it's about where you can't say anything about me,
30:30You know what I mean?
30:38are highly enthusiastic, but you know, this was when we, when Gerard interviewed us today, and put him on the phone with Donald, and he does it just on his injury.
30:42He's trying to get a point.
30:42I said, God damn, tell him it was right.
30:43Right, right, right, that's what I mean.
30:44Gerard, you know, you better get him off of that.
30:45I know he doesn't need to be happy then, but he is not the man to report it, except for his hard moves.
30:47Then he's the only man to do it.
30:47He's the only man to
31:10moved, which is like what a 3-0 record in the line of report moved.
31:11And you kind of get a recline that's just bad.
31:12Worse.
31:12Worse.
31:13Worse.
31:13It really is.
31:13They have much better reclines there as well.
31:14So apparently they're very interesting.
31:15They don't get many lines.
31:15He just can't bring himself to go overboard.
31:16Right.
31:16Right.
31:16Who could do it?
31:17Scali.
31:17Oh, Scali can do it damn well.
31:17Dave Moore does it well.
31:18And Scali is the most believable.
31:38Why don't you get any men out here dating on this trip?
31:39See, that's what Ron does.
31:40He says, let's put a skeleton to that sort of meeting like that.
31:41Have you go over to the Winston State Department?
31:42Have you go over to the girls' station?
31:43Have you go over to the things where he can go out and report a move?
31:44Or will he?
31:44I don't think he has to.
31:45No, he will, because he gets excited about it.
32:04Scali is, you know, he's got, he's emotional anyway.
32:05He runs, you know, he's a psychiatrist, a chiropractor, perhaps.
32:07Well, you can even blow that out of his damn right at times.
32:08Well, it's especially good coming from a guy who has the credentials that Scali's got.
32:31I don't know what report you're getting, but they're having, it seems to me, and I know they don't expect too many, but it seems to me that any half-assed advance ought to get more than $600,000.
32:57And, you know, I mean, I think this probably proves why you can't just let these people who aren't really advancing.
32:59Could something be done, or you might not?
33:00Remember, I asked you about the anti-advance.
33:22You know, that's what I wondered about, if our people, our people know how to do it.
33:24It's a technique, and with her, it's, you just can't put it in the paper for free.
33:26It's a very different thing.
33:26Then you should have some human experience, and she shakes hands with people.
33:28She has a phone call.
33:28The phone can be very good with her, too.
33:29I wonder if you...
34:08You want to change the department today about 1230?
34:35I don't know.
34:36I don't know.
34:36I don't know.
35:28He's coming back.
35:28He's coming back.
35:28He's coming back.
35:29He's coming back.
35:29He's coming back.
36:15They said, I didn't quite understand that thing.
36:16Smith said they're history.
36:16They've got you so far off that they think that some of the lefties are in there or something.
36:48They see, I'm sure they see China as a, you know, the little professional sister fucking trade association, and the guys that have the vested interest in it and gotta give money, they see China as it may be a chance to revive them.
36:53Get more people stirred up again.
36:54They're gonna have a hell of a time selling you as a communist defeater and then just drag on in China.
36:56Although they've done it before, you know, because you're,
37:18Well, what is it about him?
37:45We have a number of, a number of things going on in the spread of the buggy.
37:48We're going to have to see if that turns off.
37:49Before this meeting, we're going to have to have this meeting come in at 20 after 10, for it's, uh, maybe 10.
37:53All right.
37:53Good to put it in.
37:54Good to see it.
37:54Okay.
37:54Uh, some of the leaders who are here, we haven't been very well getting space in the newspaper, but if you want to think of that, it's going to be a damn poor chance.
38:12Television was terrible.
38:13We only took 98% of the available time listening.
38:14The, uh, some of the in-depth, uh, in, uh, some of it was the television, uh, play, which was very, I think, very well.
38:16I think it was very insomniac, actually.
38:17The only thing is, though, only everything is building positively, and, uh, there, our people have been so much more on than, than their people have been.
38:38And there aren't any there equally, except the only thing that's building this thing, it looks like it's going to set and do really well, is pick up from means that are not available to pick up.
38:42Yeah, let's do the work.
38:43I want to talk about that.
38:43I guess I'm surprised our people didn't have to do that.
39:05Who was the one that was for it?
39:06Now, the only way to really get at this sort of thing is by attack.
39:08You don't get at it by a half-assed statement by Schultz or Strachan or anything else.
39:10You do this to mean, uh, this is dishonest, hypocritical.
39:11That's the way to call it.
39:12Get somebody that's dishonest, hypocritical.
39:13What is he?
39:13He's just a partisan immigrant.
39:34And why does he, he said he was for this, and here we've done it.
39:36Now, what's what's matters is because he's a Democrat, I think he needs to be really a solid, and also the Democrat version, and be the white guy.
39:39There's no reason to let that line second.
39:40Why doesn't it occur to a lot of our people that it's a trap, doesn't that happen?
39:43Yeah, it's a trap.
39:43That's a trap, you know.
39:44George Shultz, George Shultz talked about going in Thursday to the AFL-CIO meeting and just raising hell with them, and
40:04He gets stung now, he gets stung now.
40:05That's not true.
40:05Oh, sure.
40:06Oh, that would get a hell of a lot.
40:06He won't lose anybody attacking him now.
40:07Yeah.
40:07No, I mean, that's not, he's not.
40:08He's probably waiting to check.
40:08Yeah, but if he goes in there swinging, he can come out and get to the cameras.
40:10That's right.
40:10And they'll all be there watching for him.
40:34I think you ought to attack the Democrats like Humphrey and others, Humphrey and Thurman, and there, you know, it's obvious now.
40:37Here's, we've gone further than that curve.
40:38It's obvious now.
41:03They're unmasked.
41:03But it turns out that they didn't give a damn about killing him.
41:05They were only interested
41:12The only man, if you haven't got any writers, that's the trouble, Chuck.
41:14Get Buchanan to write something on this.
41:15Now, if Buchanan is great at that,
41:35It's stuff that I can't use for the people.
41:36You know, those agonist speeches, and they weren't bad.
41:37You want to get vicious?
41:38I can get vicious with these guys.
41:39I would attack the Democrats.
41:39That would keep their heads below water.
41:40Don't you think so?
41:41Yes, sir.
41:41I know that we haven't got people making statements for hundreds of years, but isn't it interesting to pause these statements?
41:44By our side, we just get the clutter out in one paragraph.
42:01The Republican politicians cannot get in the news unless they go out on all
42:28and the other side is not.
42:28I've seen Jerry at a meeting today.
42:29If Jerry would do this, and he could, there's no reason how Jerry can't come out on one like this and just say, all right, in fact, these guys.
42:32But Jerry, he's got a lot of discussion.
42:33He can hit the critics.
42:34The way he can do it is, I pray, is a bipartisan show of the chair of Wilberman's.
42:36This is a sharp contrast.
42:52to the, not the law, but to the shocking, almost unbelievable partisanship.
42:55They are far different than those who put a party above them.
42:56After all, who here, out in the presence of China, should put a party above them?
42:58Make it legal?
42:59They didn't.
42:59Make them then deny it.
43:00Well, we were approved.
43:00That's the way to get at it.
43:01Here they are.
43:19We're trying to get some of the people who come out of here today to get before cameras.
43:24There won't be a briefing, but we'll get them individually.
43:28Ken Ballou is talking to some of them now to get good, strong statements.
43:31Wallace Bennett is...
43:48I remember I dealt with Frank McClendon, and I noticed an aesthetical eye mark, and it was something I was probably the only thing the president really understood, and that's over in my olden words, over here, he went, Jesus Christ, who was that?
43:53Frank McClendon, who's the, the, the, the, the, the, the, the, the, the, the, the, the, the,
44:17Yeah.
44:17Typical of the way they look.
44:19They're all debt collectors.
44:22Who are the people that are bringing up the rear?
44:23Who are the people that are pissing on them?
44:24Who are the people that are...
44:25They're Republicans.
45:03I just would say in this context, I'm one of the great advocates of attacking oldest.
45:04I concur with that.
45:05I do think this story has two ways to unfold.
45:06One is enormous support, and that's a wrong public sentiment for what you did, or immediate controversy over it.
45:09Oh, I agree with that.
45:09Let me say that.
45:10I agree with that.
45:32on our side, but it will become controversy if you allow the Democratic attacks, too little and too late, the Republicans pissing on it, to get big.
45:35That's all I mean.
45:35I'm just attacking men.
45:36I'm just attacking men.
45:36As I said, force them to hold the water.
45:37But there's something, see?
45:38But don't assume, Chuck, do not assume that it's just going to be enormous.
45:39It doesn't happen that way.
45:40You've got to kick a ball like me.
46:07We can take the buzz off of me, and I'm not at all engrossed in doing that.
46:36We gotta keep labor in mind.
47:01It's had an enormous impact, and it's shown this country right to its foundations.
47:03And if we want to continue with policy, not the country, the world, we must continue with policy.
47:05But we've got to tackle it.
47:05Yes, we know that.
47:05Chuck, I know the media so well.
47:06I know the media so well.
47:07I can see in the offices of Time and Newsweek
47:32I have to say this, Mr. President, it is for the first time
47:42in the past two years, grudging admiration on the part of your enemies.
47:43It's not the first time that you get grudging admiration.
47:45Well, all the time.
47:46Every goal we make lasts about 17 seconds, and then they figure out how we find our way out.
47:48There's more than I've seen of that.
47:49There's a few in the bike races.
47:50Oh, yeah, but it's bullshit.
47:51Grudging admiration all the time.
47:52It was grudging admiration all the time.
48:11The only theory I would say to you, Mr. President,
48:32a point at which even people who hate us, ideologically hate us, every other way hate us, have got to get on a bandwagon.
48:41And I just think there's a little bit of that going on right now.
48:45Some of the negativism that you get, these guys are a little bit afraid of it.
48:50I think you've swept a hell of a lot of people off their feet with this.
48:56It's not polyamory.
48:57Right.
49:06Well, it's not going to get any better, but we all know, we all know the chart that they're in.
49:08It's basically, you know, it's a battle.
49:09Oh, sure it is.
49:09And they look upon it, uh, you know, I was interested to know the way they really did it, how they were ready to refuse.
49:11That's part of the point.
49:12Well, they replayed it.
49:12They replayed it very well.
49:13Did they?
49:37That doesn't hold the fact that we have to keep the heat under them.
49:39If they find any hole, they start tearing us apart if they will.
49:41We've just got to keep our pressure on all the way.
49:42The main thing that will happen is the country general just responds.
49:44Nothing moves along.
49:45Nothing will stop the police.
49:45Your housing figure today is going to give it a hell of a joke.
49:47The whole damn country.
49:47Of course, Chelsea sits here at the damn housing.
50:06He didn't have to do it.
50:06It was all going to work anyway.
50:07Yeah, well, he's right.
50:07I think it was.
50:07But we did have to do it.
50:08He's wrong.
50:08He knows he's wrong.
50:09He's got a concept.
50:09He knows Milton Friedman's wrong, and Milton Friedman knows he's wrong.
50:10Yeah, but Milton Friedman was very positive.
50:11He wasn't.
50:11He really was good.
50:12And why is this?
50:12They just needed
50:50Well, I'll tell you why they shot more than China's for them.
50:52I don't believe they, China shot them and it appealed to their own ideological instincts.
50:59But I don't think they thought it was a bread and butter, nut cutting, win or lose, do or die issue.
51:03This one they did.
51:05And if they feel you pulled the rug out on this one successfully,
51:15The President has a long, you know, that's something 30 years from now will make a difference.
51:17It won't change anything today.
51:17The President will help, and China will help for the reason that they're doing it now.
51:19And peace and leadership.
51:20You put the two together, Mr. President, and that's...
51:42as we move people out that we're working on.
51:43Forget about the tendency now, and that's the thing, there's a strong, we really gotta work on it with everybody.
51:45We really gotta have someone sit down with them right before they go out.
51:46Each guy, McCracken and all those guys especially, because the tendency now is going to be to talk about
52:04your tuition at the higher price or the lower price if you already have your deposit and it's all low.
52:06That's the most of my work.
52:07Which is the very thing we don't want to do?
52:07Which don't matter.
52:08We don't want to do it?
52:08We don't.
52:08I'm sure as hell don't.
52:09The main thing is the broad suite.
52:23But when our guys are talking, they should not be allowing themselves to get into the airship.
52:25They should rush off of it.
52:26They'd ask one of the vice presidents on television.
52:27He ought to just say, is he off?
52:27Yes, sir.
52:28I don't know what, you know, that's, he'll spend their time.
52:29He can just, at first, you're going to work that out, the OEB setting up the mechanics for that.
52:31The important thing here is that we've got a hold of this.
52:32Get right back to the positive.
52:33And he can turn every question around.
52:53We've got the Vice President on Sunday.
52:54We've got different people.
52:55We've got Conley who can do the station.
52:56Again?
52:57Yes, sir.
52:57He did the goddamn thing.
52:58He's never done the station, and it's a different audience.
52:59Oh, the morning show.
53:00Morning show.
53:00Jesus Christ.
53:00Sorry.
53:01Well, make sure they treat him right with some of the dishes.
53:02They will.
53:02That program is better controlled than most.
53:23Yeah.
53:44He did a background yesterday, a script of the columnist with Conley, and I wasn't there, but I'm told he did a superb job, and he...
53:54has been holding and did a good job until also with the sub-cabinet or something like that.
53:56Right.
53:56And the only thing I want to do is get them out front, okay?
53:58Were there some conservatives in that columnist group?
53:59Yes, sir.
53:59Because that's, Arthurs will carry a lot of weight with the conservatives.
54:01Yes, and we've got a problem with them for some degree because of recent saying.
54:03Well, but Arthurs did.
54:03I know, but they, you're right about the problem.
54:05They
54:25He had an accident.
54:26The only thing I wanted to do was get him out of the car earlier, but... We may use him, but don't worry about Arthur.
54:28He's going to leave the incident with Arthur.
54:29I'm not a guy.
54:29We might have an accident with this one.
54:30No.
54:30This is right at the bottom.
54:31There's a problem.
54:31There's something wrong.
54:32It shouldn't be done.
54:55I agree with you.
54:55I don't want a negative, partisan party.
55:15And the best way to hit it, Mr. President, frankly, is if they're out of step with the great mood of the American people.
55:18The thing that we want... And also, if I had hit the Democrats, I'd concrete and must...
55:36You might say that you all said it, and then they can deny it.
55:42Well, the piece in the Sarah last night, that huge article on how they had reacted, they were stunned, couldn't say anything, had nothing to say.
55:49That will take over.
55:50The thing that has to come out of it, it is terribly important to the success of this, and it's terribly important to the leadership in this,
55:58And it is happening, and we've got to encourage it.
56:01It's this feeling of lift, all this lift, this feeling of lift.
56:08Well, Chuck's got a hell of a song, too.
56:10Oh, yeah.
56:11For example, all the people that I talked to yesterday, they said it's fresh air, they're relieved.
56:16It's exhilaration.
56:17It goes beyond that.
56:18They're just... Everybody's been...
56:25Sir, there's been this artificial sealant that squeezed everybody down.
56:26All of a sudden, you open it.
56:27Now they're cracked open.
56:28And there was something holding them down, except the artificial sealant.
56:29Before this, the war was holding them down.
56:30We started cutting that out of the way.
56:31And then this came along.
56:32This is when we began.
56:45This thing is hot.
56:46Now you've got this off.
56:46Now there really isn't anything to hold it back.
56:47There aren't any other big things.
56:48The peace and the economy, there are no bigger issues.
56:49Because the primaries were handling well.
56:50A lot of the drivers were handling well.
56:51They can do a lot of crime and drugs and pollution and black people.
56:53You've got a lot of little issues that they can worry about.
56:54But the question is, you've got the war and the economy.
56:55What if there's something else?
57:18But on the other side, we'll be the same.
57:19You've got to write off some statements anyway.
57:20Not, you know, some of this and this and that.
57:21So, we need to find out who's out of suspense.
57:21Hi, how are you?
57:22I'm great.
57:22How are you, sir?
57:22Are you going to sleep tonight?
57:23Yes, sir.
57:23I've got to sleep tonight.
57:24Well, we were just talking about the, uh, the, uh, the, uh, the, uh, the, uh, the, uh, the, uh, the, uh, the, uh,
57:55I wasn't good to meet you.
57:55There hasn't been a press conference since this time of year.
57:56As they said, even though I'm so smirky.
58:22I think it's a hell of an audience.
58:23I think really there that I think the meeting at Housewives
58:51There's one point of pain that I'd like to see from you.
59:22I'll wait for the person.
59:22We don't need the, you know, they're trying to, they keep saying, we made a delay to say, why didn't we control illustrates?
59:25Well, we know why we didn't.
59:25But I think that, frankly, maybe you ought to find a way to demagogue us along that and say that you sent a letter to all banks or something.
59:49as I understand it, you can't control it.
59:49You can't hold it in the right place.
59:50You can't do the job alone.
59:51Yes, sir.
59:51I think that's the point.
59:51First, the law will not allow us to.
59:52What I'm getting at is, I will not let them get away with the idea that we're letting banks control the labor costs, because it's unfair.
59:55You know, and some legislators are coming down for it, I understand.
59:56Yes, sir.
1:00:18But you know how to do that?
1:00:18Yes.
1:00:18Don't make mistakes now.
1:00:19We can't do it.
1:00:19You can do it indirectly.
1:00:20You can break the pro-life through the faith.
1:00:43No question, sir.
1:00:43We can all spirit this.
1:00:44I'll write to American Factors Associates.
1:00:45I'll write to all the factors that are out.
1:00:45I urge the spirit of this.
1:00:46We have urged corporations to limit it to us.
1:00:47We are urging that.
1:01:10I tried to call you last night.
1:01:11This is San Susi.
1:01:11So I said that.
1:01:11Now, I just got word from Mr. Gordon that you didn't go to the San Susi.
1:01:13He's going to the Reeve-Gauchy.
1:01:14That's right.
1:01:14Well, anyway, I was so glad to hear that.
1:01:15This is going to be a lot of fun.
1:01:15If we could get them to wait for that morning.
1:01:39But the main thing is to make, the main thing is to have it make news.
1:01:41Well, maybe the president should say, I congratulate the, I should put on a statement, I congratulate the auto industry for their spirit.
1:01:44That's my little line.
1:01:44For the strong set they've taken and got on the spirit track.
1:01:46You see what I'm getting at?
1:01:46It's a uniform of voluntary cooperation, John, it's a secret agreement.
1:02:11I was asking Aaron Ellis what really has happened in these last couple of days.
1:02:13And I heard that you both could, and we didn't know.
1:02:14I'm not sure.
1:02:14I read it, but maybe it's not right to do it now.
1:02:15And the funny thing is, what has happened is it's changed the spirit of the country.
1:02:17What do you think?
1:02:18What's your judgment?
1:02:33You've got the reins in your hands.
1:02:33You're in the driver's seat.
1:02:34It's that simple.
1:02:34And you don't want to leave it.
1:02:35It's frequently the most important.
1:02:36Or you're leaving them so long as you're leaving them.
1:02:37Unfortunately, this is true.
1:02:37This is why these demagogues and these socialists are not going to leave people in the socialist direction.
1:02:40If they're strong enough, they can leave them.
1:02:40Now, on this meeting today, I don't know if she's in the plan.
1:02:42I thought I heard this before.
1:03:12I said, now the key to this program is that it's universal.
1:03:14It is vitally important that it all go together.
1:03:15I have acted where I could act.
1:03:15But now the key is for the Congress to act where it can act.
1:03:16And for the country to know now that the Congress
1:03:40investing and so forth will be made now rather than delayed by the Congress Act.
1:03:41So first we need fast action, but second, if we could have an earnest money or blah, blah, blah, we're not satisfied.
1:03:44And that we, and I want to emphasize that we do, this is a bipartisan request, credit is for everybody.
1:03:46If it works, we all get credit, if it doesn't work,
1:04:11the kind of basis we need or support or something like that.
1:04:13Let me interject one of the thoughts.
1:04:14Did you say, John, that you discussed our international situation with respect to new exchange rates and the stabilization of the whole international monetary situation depends on carrying out our commission program?
1:04:20Right.
1:04:21In other words, we've got to succeed in making the American economy
1:04:41or we can't, or we can't carry out our national negotiations.
1:04:43Right.
1:04:43Right.
1:04:43Okay.
1:04:43And then I would turn, I would turn to you.
1:04:45Or what do you want me to do?
1:04:45Well, you want me to just go out and say it, or do you want me to just pick it up?
1:04:47No, I, well, I will, I'll just, I don't, I won't get into each other.
1:04:49You can go ahead and say I'm on the tax front, and here is what we want to do, or maybe you can go ahead
1:05:12Well, that's what I meant.
1:05:28that this truck is going to be sent for you or me or somebody.
1:05:30That we need action.
1:05:30Oh, yes.
1:05:30And also, not only do we need hearings.
1:05:31Oh, the other thing I think needs to get across is that we have to, that we want this action to be taken.
1:05:46but that it must be taken expeditiously and responsibly to both bodies.
1:05:48That we, of course, are not demanding and don't dot an I across the G, but we thought this through.
1:05:50And for the amount of tax relief to be increased so that it exceeds the budget then would be a mistake.
1:05:52What I'm getting at is I think we've got to try to get them committed to the fact that they aren't going to just
1:06:14Just sandbag this thing by loading it and putting a Christmas tree on it.
1:06:16Do you think that would be all right?
1:06:24There's only one other point.
1:06:25This is Michael.
1:06:25I'll make a speech and finish my conversation and go, but I notice laborers get it all on the basis of, well, we did so much for business.
1:06:29When you do something for the American industry, this may not be the time to talk about it.
1:06:31Who do you do it for?
1:06:31Who gets the money?
1:06:32If you talk to the American industry, the American business, it's not the department that makes the money, it's the company that makes the money.
1:06:35It's the first people to get a bite of the workers.
1:06:53They're the ones who get the big share written before anybody else gets any of that.
1:06:54Then I'd ask for the stockholders, and they're the big corporations.
1:06:56There are tens of thousands and millions of them.
1:06:57So when you talk about doing something for business, who are you doing it for?
1:06:58You're doing it for the average man, to be sure.
1:06:59So this is, I don't know if this is the place to say it, but in most cases, that's how they might get the stage on that stuff.
1:07:02Well, I think that's right, Harry.
1:07:18But not as well.
1:07:18But the point is that basically, as far as business is concerned, putting it another way, when you do anything for business, well, the percent that so-called businessmen get out of it is very small, out of that whole pot.
1:07:22Half of it goes to the government, which means enabling us to buy food stamps.
1:07:24They're cleaning up the ghettos.
1:07:50including funds and all that.
1:07:51One creates real jobs, except only out of God.
1:07:52There's no such thing as business, I'd say.
1:07:53That's a black piece of paper.
1:07:53It's a corporation.
1:07:54The only thing that's big business is maybe $20,000.
1:07:55That means just stockholders, a little higher half of the stockholders, and the rest goes to wingers and jobs and stuff.
1:07:57And then it turns to the
1:08:16That's millions of people, not thousands.
1:08:17And what are you talking about, Mr. Snowden?
1:08:18Three seats for $3,000 to get it all.
1:08:18The cover, the stockholders, and the workmen in the fast-fishing plant.
1:08:20Somehow we've got to save this track and bring it to keep Southern Miss out.
1:08:21We've got a wheel in the street where most of the people are driving, sharing the range, but the does have to go in for this.
1:08:40One technical point you may get into it or may want to figure out how to avoid, and that is that you've got parks and are holding joint economic committee hearings starting Thursday.
1:08:44You don't have them here.
1:08:44You have the
1:08:58But the point is, these people would like to be told, I would think, that you're going to refer your legislation to their committee, sir.
1:09:01Oh, I don't know.
1:09:01Oh, I don't know.
1:09:39We've got your son, as it sure is, off the track.
1:09:40But, uh, like I say, I'm gonna get it going on the cars.
1:09:41I mean, better go park, stop our auto completely.
1:09:54Nothing could be worse.
1:09:54It's not going to be worse.
1:09:55For God's sake, how do you... You don't... You want to say that this is supposed to be... Oh, I understand.
1:09:57Don't say it's supposed to be.
1:09:57It's supposed to be.
1:09:58It's something else.
1:09:58It's supposed to be.
1:09:58It's supposed to be.
1:10:24The other person on the left row, do you have any questions?
1:10:25I've just had a meeting.
1:10:26I've just had a meeting.
1:10:26I've just had a meeting.
1:10:27I've just had a meeting.
1:10:27I've just had a meeting.
1:10:28I've just had a meeting.
1:10:53I don't know.
1:10:53I don't know.
1:11:30Thank you.

On August 17, 1971, Alexander P. Butterfield, H. R. ("Bob") Haldeman, President Richard M. Nixon, unknown person(s), Charles W. Colson, Stephen B. Bull, and John B. Connally met in the Oval Office of the White House at an unknown time between 9:44 am and 10:39 am. The Oval Office taping system captured this recording, which is known as Conversation 566-001 of the White House Tapes.

Conversation No. 566-1

Date: August 17, 1971
Time: Unknown between 9:44 am and 10:39 am
Location: Oval Office

Alexander P. Butterfield met with H. R. (“Bob”) Haldeman.

     President’s schedule
          -Telephone call to Roman L. Hruska
                -Birthday greetings
                -Hruska’s location
                      -Helsinki, Finland

     President's speeches
          -Drafts
                 -Patrick J. Buchanan and John J. McLaughlin
                       -William Safire
                 -Raymond K. Price, Jr.
                       -Buchanan
                 -Safire
                 -Deadline
                       -Price’s call to Haldeman
                 -Book
                       -Rockford College speech
                             -“The Roots of American Discontent”

     President's schedule
          -Meeting with Arthur A. Shenfield, August 16, 1971

The President entered at an unknown time after 9:44 am.

     Item for the President’s signature
           -Ireland

     President's schedule
          -[Emperor of Japan] Hirohito
                 -Timing of announcement
          -New York City
                 -Departure
                      -Traffic
                      -Itinerary

                           -Wall Street
                                 -Traffic
                           -Hotel
                           -Dinner
                           -Return
                 -Henry A. Kissinger
                 -Speech drafts

Butterfield left at 9:49 am.

     [Pause]

                 -Departure
                 -Kissinger
                       -Cables
                 -Departure
                       -Traffic
                 -Staff
                       -John D. Ehrlichman, George P. Shultz, Peter G. Peterson
                             -Speech drafts
                 -John B. Connally

     National economy
          -Textiles
                -Peterson
                      -Connally

     President's schedule
          -Congressional leaders
                 -Connally
                 -Shultz
                 -Connally
                      -Paul A. Volcker
                      -Charls E. Walker
                 -Volcker
          -Interruptions
                 -Kissinger

National economy
     -President's economic program
           -Phrase "New Economic Policy"
                 -Shultz’s point
                       -Vladimir I. Lenin
                       -Leon Trotsky
                       -Josef V. Stalin
           -Compared to Franklin D. Roosevelt's program
                 -Shultz’s point
                       -Connally
                       -Success of New Deal
                 -Safire
                 -Connally
                 -Sam Whiting
           -Media coverage
                 -News summary
                 -Buchanan
     -September 21, 1971 Productivity Commission meeting
           -Shultz
                 -Agenda
                       -Wage and price freeze
                       -Length of meeting

White House staff
     -News article concerning unknown White House aide
           -Spiro T. Agnew
                 -Shultz
                 -Haldeman's meeting with White House staff
                 -Possible reaction
                       -Staff
                 -Handling of subject, August 16, 1971
     -Ronald L. Ziegler's role and capabilities
           -Connally
           -Herbert G. Klein
     -John A. Scali
     -Richard A. Moore
     -Scali’s role and capabilities

Thelma C. (“Pat”) Nixon's schedule
     -News summary
     -Size of crowds

          -Staff work
                -Women
          -Activities
                -Handshaking
                -Telephone calls

     President's schedule
          -Barber

The President talked with an unknown person at an unknown time between 9:49 am and 10:05
am.

[Conversation No. 566-1A]

     Request for Charles W. Colson’s presence

[End of telephone conversation]

     White House staff
          -Unknown person's conversation with Dan Rather
              -Donald H. Rumsfeld
                    -Location
                         -Illinois

     John Birch Society
          -Relationship with President
                -[Howard K.?] Smith
          -California
          -Views concerning the President's policy toward the People's Republic of China
               [PRC]
                -Dwight D. Eisenhower
                -John Foster Dulles

Colson and Stephen B. Bull entered at 10:05 am.

     President's schedule
          -Connally

Bull left at an unknown time before 10:25 am.

     National economy

-President's program
      -Television coverage, August 15, 1971
      -George Meany
            -Response
                  -Position on wage and price freeze
                  -Administration's possible attacks
                        -Shultz, Paul W. McCracken
                        -Partnership
                        -Democrats
                              -Marvin Mandel
                        -Shultz's suggestion
                              -American Federation of Labor-Congress of Industrial
                                    Organizations [AFL-CIO] meeting
                                    -Possible news coverage
      -Possible attacks on Democrats
            -Hubert H. Humphrey and George S. McGovern
            -Partisanship
                  -PRC initiative
                  -Vietnam
            -Tone
                  -Buchanan
                  -Franklyn C. (“Lyn”) Nofziger
                  -Buchanan
                        -Agnew
      -Media coverage
      -Possible attacks on Democrats
            -Forthcoming meeting
                  -Gerard R. Ford
            -Bipartisanship
                  -Wilbur D. Mills
            -President's policy toward PRC
            -Forthcoming meeting
                  -Kenneth E. BeLieu's efforts
                        -Wallace F. Bennett
      -Comments
            -Frank McGlinn, Finance chairman, Pennsylvania Republican Party
            -William Proxmire
            -Mills
            -Republicans
                  -PRC initiative
                  -Clark MacGregor

-Possible responses
      -Public support
      -Controversy
      -Price
      -Tone of Administration
-Possible administration attacks
      -Democrats
      -Republicans
      -Meany
      -Peter J. Brennan
            -Press conference
      -Frank E. Fitzsimmons
      -Leonard Woodcock
-Impact
-News media
      -Time, Newsweek, Columbia Broadcasting System [CBS], American
             Broadcasting Corporation [ABC], National Broadcasting
             Corporation [NBC]
-President's opponents' reaction
      -PRC initiative
-Media coverage of Connally
-Public reaction
      -Housing figure
-Shultz
-Milton Friedman's views
-Effect
      -News media
            -PRC initiative
-Leadership
-Briefings by administration spokesmen
      -McCracken
      -Specifics
      -Agnew
            -Forthcoming television appearance
                  -Possible comments
                       -Office of Emergency Preparedness [OEP]
      -Connally
            -Today Show
      -Arthur F. Burns
            -Reaction
                  -Conversation with the President

                           -Backgrounder
                                 -Columnists
                                       -Column
                           -Sub-Cabinet
                                 -State Department
                           -Conservatives
                                 -Friedman
                     -Agnew
                     -Connally
                -Possible administration attacks
                     -Possible strategy
                           -Mood of the American people
                                 -PRC initiative
                     -Hubert H. Humphrey, Edmund S. Muskie, Edward M. Kennedy
                -Washington Star article, August 16, 1971
                -Public reaction
                     -National issues
                           -Vietnam
                           -PRC
                           -Economy
                           -Crime and drugs
                           -Pollution
                           -Blacks

Connally entered at 10:25 am.

                -Connally's press conference, August 16, 1971
                    -Media reaction
                -Connally's forthcoming "Today" show appearance
                    -Audience
                           -Households
                    -Labor unions' reaction
                           -Connally's possible response
                                 -Letter to banks
                                       -Interest rates
                                             -Credit Control Act
                                 -Statement
                                       -Credit Control Act
                                             -Federal Reserve Board [FRB]
                           -Connally's possible letter to American Bankers Association
                                 -Leroy Hall

                -Auto industry
                      -Possible statement
                            -President’s attempt to call Connally, August 16, 1971
                                  -Connally’s location
                            -McCracken
                            -The President’s role
                -Public reaction
                      -Voluntary cooperation
                      -Stock market
                      -Leadership
                -President's forthcoming meeting with Congressmen, August 17, 1971
                      -Congressional action
                            -Economic action
                                  -Timing
                      -Bipartisanship effort
                      -International monetary situation
                            -Negotiations on exchange rates
                            -Stabilization
                      -Connally's role
                            -Taxes
                                  -John S. Nolan, Walker
                                  -Mills
                                        -Forthcoming hearings
                                  -Relief
                                        -Budget
                      -Business
                            -Beneficiaries
                                  -Labor
                                  -Government
                                  -Workers
                                  -Stockholders
                                  -Average American
                                  -Mills’s view
                      -Proxmire
                            -Hearings
                                  -Referring legislation

The President and Connally left and Butterfield entered at 10:35 am.

     President's speeches
          -Safire

           -George W. Romney
           -Roosevelt
                 -The President’s and Connally’s view
           -Ehrlichman
                 -John F. Osborne
                 -Agnew

Butterfield left at 10:38 am.

Haldeman, Colson and the President left at 10:39 am.
  • 070-001 10:39 AM · 2 hr 13 min — President Richard M. Nixon, Vice President Spiro T. Agnew, and bipartisan Congressional leaders, including Michael J. ("Mike") Mansfield, Robert P. Griffin, Milton R. Young, Allen J. Ellender, John J. Sparkman, John G. Tower, Wallace F. Bennett, Russell B. Long, Gerald R. Ford, Leslie C. Arends, William B. Widnall, Wilbur D. Mills, John W. Byrnes, John B. Connally, Charls E. Walker, Paul W. McCracken, Arthur F. Burns, George P. Shultz, John D. Ehrlichman, Ronald L. Ziegler, Peter G. Peterson, William L. Safire, and Kenneth E. BeLieu, met in the Cabinet Room of the White House from 10:39 am to 12:54 pm.
  • 566-021 10:39 AM · 39 sec — United States Secret Service agents met in the Oval Office of the White House at an unknown time between 10:39 am and 12:55 pm.
  • 070-002 12:54 PM · 8 min — a White House tour group met in the Cabinet Room of the White House at an unknown time between 12:54 pm and 11:59 pm.
  • 566-002 12:55 PM · 15 min — Stephen B. Bull, Roger Robb, Dr. James R. Schlesinger, Cora Schlesinger, Charles Schlesinger, Ann Schlesinger, William Schlesinger, Emily Schlesinger, Thomas Schlesinger, Clara Schlesinger, Laura Martin, William O. Doub, Joseph Doub, Albert Doub, Albert A. Doub, Mrs. Albert A. Doub, Mrs. George M. Radcliffe, George M. Radcliffe, President Richard M. Nixon, Alexander P. Butterfield, Gerald R. Ford, and Robert P. Griffin met in the Oval Office of the White House from 12:55 pm to 1:10 pm.
  • 566-003 1:10 PM · 3 min — Gerald R. Ford, Robert P. Griffin, President Richard M. Nixon, and Stephen B. Bull met in the Oval Office of the White House from 1:10 pm to 1:14 pm.
  • 566-004 1:14 PM · 17 min — President Richard M. Nixon, Charles O. Finley, and Dick Williams met in the Oval Office of the White House at an unknown time between 1:14 pm and 1:29 pm.
  • 566-005 1:14 PM · 13 sec — President Richard M. Nixon and Stephen B. Bull met in the Oval Office of the White House at an unknown time between 1:14 pm and 1:29 pm.
  • 566-006 1:29 PM · 30 sec — President Richard M. Nixon and Alexander P. Butterfield met in the Oval Office of the White House from 1:29 pm to 1:32 pm.

Conversation 566-001, August 17, 1971. White House Tapes, Richard Nixon Presidential Library and Museum, National Archives. Audio and AI transcript via Easy Nixon, https://www.easynixon.org/tapes/566-001 (accessed October 12, 2026).