Nixon White House Tapes › Tape 567 › Conversation 567-009

Nixon, Santamaria & Nachmanoff on Alliance for Progress and Import Surcharge

Saturday, September 4, 1971 · 10:09 AM–10:47 AM ET · Oval Office

ParticipantsNixon, Richard M. (President); Santamaria, Carlos Sanz de; Nachmanoff, Arnold; White House photographer; Sanchez, ManoloConversation567-009 on Tape 567 (tape position 01:19:19–01:58:02)StartSaturday, September 4, 1971 at 10:09 AMEndSaturday, September 4, 1971 at 10:47 AMRecording deviceOval OfficeSourceNixon Library record for 567-009 ↗

President Nixon met with Carlos Sanz de Santamaria of the Inter-American Committee of the Alliance for Progress to address Latin American concerns regarding recent U.S. economic measures, specifically the 10% import surcharge and foreign aid cuts. Nixon clarified that these policies were temporary, necessary for balance-of-payments corrections, and targeted at major industrial competitors rather than Latin American nations, which he described as "innocent bystanders." The discussion concluded with Nixon directing Santamaria to coordinate further with Treasury Secretary John Connally and Peter G. Peterson to solidify long-term diplomatic and economic cooperation for the coming decade.

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1:19:39Good morning.
1:19:41Good morning, sir.
1:19:44Good morning, sir.
1:19:47Good morning, sir.
1:19:49Good morning, sir.
1:20:10Well, your mind is still roused?
1:20:10You think I'm worried?
1:20:11I bet you have a big deal to do with me, wouldn't I?
1:20:12I don't know.
1:20:12It's worth it.
1:20:12It's worth it.
1:20:13I'll be back in a few minutes.
1:21:22All right, gentlemen, let's go right out of the way, please.
1:21:24All right.
1:21:24Second shift here.
1:21:24Second shift.
1:21:25If you're busy, I said we can take you to work.
1:21:26There you go.
1:21:26We can take you to work.
1:21:26We can take you to work.
1:21:27We can take you to work.
1:21:52Thank you very much.
1:21:54And before you speak, I would like to make your message in the 19th, 17th of August, which gave me tremendous courage to continue this fight and the alliance and your decision to continue your existence in your government.
1:22:16And of course, your kindness.
1:22:18Today, I want to talk to you on two specific things.
1:22:23One, the long-term relations that I see them now, and second, the immediate problems.
1:22:35I think that I start by the second part, because I think it's more urgent.
1:22:41Sure.
1:22:41We have measures that we go to today that are really very, very long-term.
1:22:46In my opinion, they're very positive about COVID.
1:22:51And it is demonstrated now in the world context that you were right in the process.
1:22:59Because J.M.
1:23:00is now a minister of the United States.
1:23:06He's 6.5%.
1:23:07So Germany and the rest, therefore, .
1:23:09And he is, my opinion, I like to convey that to the meeting of ministers
1:23:15that the equilibrium and the healthy economy of the United States is extremely important for the American development.
1:23:24Therefore, this part is definitely my personal position.
1:23:29The two aspects that this project has to do, one, is to test that there are some countries, more so than others, for instance, Mexico, Argentina, and some others.
1:23:45of course the 10% reduction on foreign aid if it affects Latin America or the advance, because Congress didn't accept your proposals, your message, and not accepting your proposals, they cut the aid program severely.
1:24:05And this cut already had 10%, still more.
1:24:11The first part, it's, I think it's,
1:24:15In Latin America, they were, I might say, stressed and in some cases, because they have done all their best to continue the policy that you, Mr. President, suggested last year.
1:24:33of trade, not aid, and for the reasons that I understand and I hear and I know what is happening to Europe and this country.
1:24:40But it's not so easy, you know?
1:24:41But for instance, your sector states have mentioned in the Costa Rica, I'm going to propose, as soon as I come back, the provincial treatment as the Europeans have done.
1:24:56And the conversations with the ministers have been not so efficient.
1:25:02to trade as they had hoped.
1:25:05So, I see here two different elements.
1:25:09One is the real facts which are not so great.
1:25:13Second, there is an element of injustice in the measures we have laid for Latin America, because Latin America is the only country that has had no, any damage to the boundaries of the U.S. trade.
1:25:29And second,
1:25:32It's the only continent that carries their reserves in dollars.
1:25:40Therefore, it is difficult for them to accept that they should be punished in a certain way.
1:25:54So, this is the immediate part.
1:25:59I think that the political risk
1:26:02both for mundane or non-families, that we may think more deeply and more in live data.
1:26:08It is far more crazy to present that the benefits of professional development we have from this.
1:26:18I understand.
1:26:20First of all, you have .
1:26:23At the end, these are discriminatory in the case for the poorer countries and for the poorer people.
1:26:32People who are more distressed in Argentina, in Mexico, in all the countries that I've spoken to, is those people who have small factories.
1:26:43They have created and bought equipment here, and now they don't know where to send it.
1:26:50which is exactly the fact that your country is going to buy less or more of this 10% of their people.
1:27:01Therefore, the element of personal opinion is quite serious.
1:27:06So, it seems to me, I'm going to propose that we ask the Spiderman Commission
1:27:17that after you have the possibilities of solving the problem, I would like to be able to tell them that I know that you are aware of the damage that these measures might have, that I think that anywhere you seek any type of possibilities to alleviate any harm that might have occurred to those who were killed,
1:27:39I know, which is your attitude, very positive, Matthew.
1:27:41Otherwise, you'd be talking to your doctor.
1:27:44So I think that is, I think the political risk of being extremely the application of these measures that aren't just for Latin America, but for the rest of the nation, there's not any to correct this under the regulations with the dollar.
1:28:04I'm aware of the case of Venezuela.
1:28:06I think I know, I don't know.
1:28:09In general, all of them are much below.
1:28:12Therefore, the basic point of what we are talking is changing government from buying gold.
1:28:19It's no problem.
1:28:20It's no problem.
1:28:21It's because we're pressuring people to charge 10% because they know that they have been already paid cut from your proposal to the countries.
1:28:30And they weren't aware of that.
1:28:32If you've got 10% more, it's so meaningful to the United States economies that we've heard that.
1:28:39This is the first part.
1:28:40My hope is that in an act that will tell why this came to be so important, and it is an occasion that I would suggest you feel it convenient to utilize this occasion for this.
1:28:56We are going to, today, they have in the Latin Americas, in Buenos Aires, precisely stolen the measures that the United States has imposed.
1:29:06I don't know if it's time to come out.
1:29:07The finance minister is very busy.
1:29:10Some of the finance ministers are not there.
1:29:13It was conveyed of all four by Argentina.
1:29:17They're meeting today.
1:29:17I spoke by phone yesterday night.
1:29:19He invited me to go.
1:29:21Of course, I was late because he didn't see her.
1:29:27But apparently, in three different countries, Mexico, Puerto Rico at night,
1:29:34Mexico, Argentina, and Brazil, all three said not this way to do in Panama, that we know each other in the United States.
1:29:45Now, from there we go to Panama next Tuesday.
1:29:49We have three days of TENICA.
1:29:50You go to Panama Tuesday?
1:29:52Yes.
1:29:53You will not be back here.
1:29:54I go to Panama Tuesday, and on Tuesday we start with the TENICA group.
1:30:03And then, the ministers will be asked, all of them, when we reach Alabama, on the 13th of the start, who will be there?
1:30:12Yes, who will be there?
1:30:15Well, that being said, Walker, Matt Samuels will be second.
1:30:20Oh, I agree.
1:30:21I believe there'll be an assistant secretary level.
1:30:26I believe Walker.
1:30:28Eddie?
1:30:28Yeah.
1:30:28Oh, yeah, Eddie, of course.
1:30:30Just after that, the same group of ministers talked about that to the caucus, the Latin American caucus, for preparing the International Monetary Fund meeting.
1:30:41And then they come to Washington at the end of the month.
1:30:45So this is a conversation that I suppose that if you can, Mr. President, I know it is difficult and I don't pretend to tell you that.
1:30:54I understand that the measures very well that they are taking, but it is a moment
1:30:59perhaps would give some hope to Latin America about these two or three elements.
1:31:07First, that you are aware that some of these issues might harm, and it is not your purpose because you are aware that it wasn't your fault for Latin America.
1:31:16Second, that you are going to study the immediate future, that you have said that these measures are permissioned, that you might be interested in trying to seek systems
1:31:27of avoiding harm to Latin America because you insist in giving Latin America a special treatment that you have.
1:31:34I think it's a good moment to do that.
1:31:38If you think it's convenient for your policy, and if it would be a political gesture, it should be extremely convenient.
1:31:46Now, I feel that there are some positive elements in what I see in Latin America changing dramatically.
1:31:55That's very true.
1:31:58Well, for instance, let me mention a few cases.
1:32:00The new government of Mexico State, right, Gerardo?
1:32:04Yeah.
1:32:04The new political government of Warsaw.
1:32:08Yeah.
1:32:08The three last elections of China, one from the university, was won by a group which are not the Marxists.
1:32:21One, the election in Barbados, over there, was won by one who is not the Marxists.
1:32:26And thirdly,
1:32:27As far as I know, in the labor unions of one of the coal companies, Turkey Kamata, which is already nationalized, and under the list, the election of people of the labor union was won by different groups, which are not the Marxist groups.
1:32:46Therefore, I think that even Peru is taking a route to more calcium than they were before they were sold.
1:32:56I suppose that there
1:32:58to think that it's true, including certain parts of this.
1:33:03So I hope, I would hope that a gesture, a positive gesture by your president, in the way you think it would permit you to do it, so you would realize that these four meetings are being held at present.
1:33:20It would permit you to have a good opportunity for doing it again in force.
1:33:25In a way, you should think of me for Latin America.
1:33:30And if you'll permit me, I talk to you as a friend, as you know, much more than an opposite of the American officer.
1:33:37I'm just telling you what I did, because my work here this year has been precisely to improve the experience of many more countries in Latin America.
1:33:46It is that you should utilize these observations to show, again, your interest for Latin America.
1:33:52It is not necessarily that you precisely
1:33:55I am aware that this virus, I heard it, and being aware of that, and being aware that it has contributed in proportion to the welfare balance of patients and the goal that we've been researching all these years.
1:34:18I would like to see the solutions that might come as soon as we can, slowly, or just in the back, or in front of where everything already is.
1:34:27This is practically already short-run.
1:34:28I must tell you this, but I have the feeling that Latin America is really distressed and in conflict with these measures, because they don't know what's going to happen to them.
1:34:43But it really is.
1:34:45How much of that part is real?
1:34:48Nobody knows until these events come.
1:34:51But part is also the lack of saying, well, President Nixon told us that we're going to trade and now nothing is made.
1:35:02I think that it's an important moment for you, Mr. President, to regain political posture, political height in Latin America, which is very, very important.
1:35:15Now, in the long run, I think that what you have said in 2017 and your declarations to the Congress are sufficiently important to come to them, to back to them, to demonstrate that you will continue your special relationship with that dynamic that is of your own spontaneous.
1:35:37You are being, of course, complicated in the war situation, in your own internal situation,
1:35:44I think that doesn't make me understand it.
1:35:46And perhaps it would be convenient for the near future, after all these meetings take place, to have a new analysis of how we would prospect the next 10 years of relations between your country and Latin America.
1:36:05Because Latin America is changing very fast, and I would like to see some way of coordinating
1:36:12of the United States to this new situation that America is having.
1:36:17I've known it very well, and I think it's, the measures are profitable for the economy.
1:36:25I would say, but I would also suggest, Mr. President, that we ask you to try to contain issues that would impede the harm that they might have, whether real or just imagined, or partly and partly effective.
1:36:43And finally, I'd like to hear from you, which is what I've told you, or I'd like to... Well, let me say that your first meeting is down that way, Tuesday, or whatever.
1:37:00Wednesday morning, we're going to have the first Seattle meeting.
1:37:06And then, from Seattle, will be one day, the Seattle, Seattle is my group, the object of Seattle, in this case, is simply to add the agenda that was approved with the program of the innovation to the United States.
1:37:24And then, the next day, that will be Thursday, you will have the first meetings of the technical group, and at the end of the week, the meetings will arrive there.
1:37:36He had to be paid for it.
1:37:39Well, you have made some notes, if you would, of some things which I'd like you to discuss with Dr. Kessinger and Mr. Peterson.
1:37:51And also, what Morrisworth would become, as you said, so that Dr. Sanford and all of us are on the same wavelength.
1:38:05Because it would be Friday, really, when we would go through the window to discuss it.
1:38:08But Friday, that's the public statement.
1:38:10That's how you make it.
1:38:12And our people will be there.
1:38:17First, looking at the action that was taken, as you have implied, it was taken because of some very grave problems in balance of payments and international monetary dislocations.
1:38:31We had to do it for that reason.
1:38:35Second, that those problems, I would be the first to recognize, were not caused in any part by Latin America.
1:38:45Third, however, in acting to deal with those problems so that it would not appear that we were discriminating against one nation or another, you can gather which ones, the major nations, we had to make it across the board.
1:39:00And also, with regard to the surcharge,
1:39:03it would have been a violation that can, unless it had been across the board.
1:39:12Now, looking first at the surcharge, that is temporary.
1:39:16I said that at the time, and that is temporary, and the surcharge will be re-evaluated as
1:39:33the exchange rates and other problems that we have with certain countries to become adjusted.
1:39:44To put it more broadly, for your information, the nations that caused the trouble were not Latin America and not the Muslim countries in other parts of the world.
1:39:58The nation we had the trouble were our great competitors, the Japanese and the European community.
1:40:05Japanese, the Germans, et cetera, et cetera, et cetera.
1:40:09This doesn't mean they're bad people.
1:40:11We appreciate that.
1:40:12But on the other hand, the time has come, as I put it out in a speech in Chicago yesterday, that there was a time 25 years ago when the United States had to help Japan, had to help Germany, had to help England, had to help France because they were on their feet.
1:40:26Now they're on their feet, they're competing.
1:40:29And we now have to compete equally.
1:40:32And we have to get the system worked around so that we don't have this continued outflow, this unfavorable balance of payments, due in great part to inalienable exchange rates and due also to non-tariff barriers in some instances that have been applied.
1:40:53So we are now in a period of negotiation with those major countries.
1:41:02to try to develop a relationship which will allow us to compete equitably.
1:41:14And as those negotiations proceed, the surcharge, of course, would then become no longer necessary.
1:41:26Now I can't say how temporary
1:41:31I would not know yet.
1:41:32It depends on the process of progress and negotiations.
1:41:36But there is any question the surcharge is temporary.
1:41:40I do not oppose it otherwise.
1:41:42I do not believe that the United States built a wall around itself.
1:41:49Great mistake.
1:41:49A great mistake, of course, is totally irrelevant to dealing with Latin America.
1:41:56We need no wall at all.
1:41:58We need, of course, to provide more assistance so that Latin America can be a better manager.
1:42:02I mean, the more wealthy countries in Latin America, well, Mexico is an example, is a better trading partner than those like Bolivia that have nothing.
1:42:13We know that.
1:42:14I want the countries of Latin America to develop economically because the more they have, the better partners they are in trading.
1:42:20So we're for that.
1:42:22So the surcharge will be temporary.
1:42:24That is my philosophy.
1:42:26I do not believe
1:42:27First, I do not believe in the United States increasing territory.
1:42:32I want to see it moved out.
1:42:35Second, with regard to the aid program, we have to make some budget cuts with the congressional temper in this country without putting in what we thought was a modest cut in foreign aid.
1:42:55the Congress would have run away with it.
1:42:57The Congress is very much against foreign aid at the present time.
1:43:04They're more tolerant to Latin America than most places.
1:43:06I mean, there's a strong feeling of friendship, even in the Congress, Democrats and Republicans, for the alliance and for Latin America.
1:43:14But they counted up things even last time, as you pointed out.
1:43:19So we put the 10% in there so as to keep, just to give,
1:43:24Well, what we thought was that he's having cuts down to the employees' pay, I mean, or his health actor pay increases the rest, and some of our programs for the cities and so forth.
1:43:34If we haven't put this minimum cut before, hey, everybody drew off their hand and said, well, about four days, it's always a living quarter.
1:43:42That was the reason for that.
1:43:46Third, with regard to that, however, and this gets to short range and long range,
1:43:53The commitment that I have made when I first came, before I came into office, after I came into office, even this year, with regard to a continuing program of support of the alliance that that commitment is part of.
1:44:16I believe in that.
1:44:17And as this temporary problem recedes,
1:44:22as it passes, and if we can build congressional support for it, the United States can be counted upon to be an assistance.
1:44:33You can be sure of that.
1:44:35I mean, you can be sure of this as long as I am here.
1:44:40My policy will not be to continue to chop away little by little by Latin America.
1:44:46Latin America's, our programs and assistance aid loans, et cetera, for Latin America.
1:44:53The same as with regard to trade, that the trade problem is important.
1:44:58Our attitudes have not changed here.
1:45:03We feel that Latin America should have, remember after the rock formation, I said, does have and should have a special relationship with the United States.
1:45:13Secretary Connolly feels as if you haven't talked to him.
1:45:16No, I have not.
1:45:19Did you leave today?
1:45:20Did he go?
1:45:20He's in Texas.
1:45:23When you come back, you come back, I want you to, if you will, go in and have a talk with him.
1:45:34By himself, just the two of you.
1:45:36He's the taxidermist.
1:45:38I know what you mean.
1:45:39I mean to respond to the funeral.
1:45:42He has some ideas on this subject, long-range ideas.
1:45:46I'd like you to talk to him before, with regard, because this is a treasure.
1:45:54The Treasury will have great influence on this, more influence than the state at this time, because they don't state them before the Treasury's gonna get the money.
1:46:01And because the finance minister, he's a very powerful man.
1:46:04Now, we come to the immediate problem of what you can say and what can be said at your conference.
1:46:16I think until our people get down there for the
1:46:25I think you and your conversations should say that you had a talk with me that I have pointed out that the measures that have been taken here were not taken, were not directed against
1:46:52Well, I put my speech against any country.
1:46:54Well, basically, basically, we're not directed at all against Latin America.
1:46:59Latin America was not the problem that caused us to take these actions.
1:47:04Let's begin with that proposition.
1:47:07It was not.
1:47:08Second, that as far as the surcharge is concerned, and particularly as far as Latin America is concerned, it is temporary.
1:47:16And Latin America need not be concerned about its long range of activities.
1:47:22Third, with regard to the foreign aid, that also is a necessary budget adjustment that we have made at this time.
1:47:31But that looking down the road, that the American interest in and commitment to a continuing daily program for Latin America is still just as firm as it ever was.
1:47:47And also that we will welcome
1:47:51we would welcome from our friends in America and the ministers that meet there, they're addressing themselves to the long-range problems.
1:48:00What should the relationship of the United States be to the alliance for the next 10 years?
1:48:08I like the idea of our looking forward 10 years.
1:48:11I've got Mr. Peterson now, who is very interested in this.
1:48:15I think if the ambassador has the time, and if Peterson is in town,
1:48:22I'd like for him to give him this same briefing.
1:48:26Would you do that, Pete?
1:48:28He is the head of our new Council of Interagents.
1:48:30I'm very apologetic.
1:48:32He knows all these things.
1:48:34He knows the problem is about the Japanese, and it's about the drugs, and it's about the...
1:48:43They are very good friends, but they're just competing very little to the moment and causing some problems.
1:48:50So you weren't defending them all these years?
1:48:52Sure, sure, exactly.
1:48:55But he understands your problems.
1:48:58And I'd like for you to give him your thinking.
1:49:01Maybe you don't.
1:49:02Maybe you haven't formalized it yourself and are in a long-range situation to be.
1:49:11But...
1:49:13and escape feelings about the situation.
1:49:16So, as I would sum it up, I would like for you, you personally, everybody to ask you, you know, you've seen the President, you tell him, look, you say you can count on him.
1:49:28You just say that.
1:49:29Count on him.
1:49:31You can.
1:49:32I mean, I'm a friend of Latin America.
1:49:34I understand it, not only because of friendship,
1:49:38But more than that, that because of our common interests, because of where we are, because our economies happen to fit together, we're not repetitive, basically.
1:49:47We more fit together.
1:49:49That we have to develop this working relationship.
1:49:53Also, the future of Latin America concerns me greatly.
1:49:56I don't want to see Latin America feeling that it's sort of out in the field and forgotten.
1:50:02So that all these revolutionary forces with Iraq
1:50:07and we will have this in mind.
1:50:09You can say, and then you can also point out the fact that, as I said, that these measures are temporary, that not directed against Latin America, but that we have to apply them across the board for legal reasons, and just as soon as we can work out these various problems that exist, that it is my desire to
1:50:37not to have, say, a wall around the United States.
1:50:42Because I am basically one that is committed to more trade rather than less.
1:50:51And where we are able to afford to a program of more cooperation and assistance with Latin America, because building it up is good for us as opposed to
1:51:02Now, that's my philosophy.
1:51:04Thank you.
1:51:04I'm very encouraged by what you say, Mr. President.
1:51:06I'm very happy to see that we are not in the trend that they see so many Americans now, almost Americans, that we take what they call constructive disengagement when they talk about it.
1:51:19Well, a lot of Americans at the present time are taking in my view a very foolish view.
1:51:26As I pointed out last night in my speech, they say,
1:51:36The nations that we helped, and they really referred to the great industrial nations after World War II are now beating us in competition.
1:51:44They've got our textiles, and they're ahead of us in airplanes, and they're ahead of us in glassware and so forth and so on.
1:51:52So what we've got to do is now have quotas and have some tariff barriers and the rest, and live within ourselves because we're the greatest market in the world.
1:52:02That's a short-range policy and a disastrous long-range policy.
1:52:06Because when any country lives as an idol, when it ceases to try to compete with the rest of the world, when it ceases to try, as I say, to be first, and every country must try to be first in something, in everything, then it ceases to be a great country.
1:52:23And so I do not, I will, I am going to fight against that tendency.
1:52:29or the United States, and some of our labor unions feel that way, some of our businessmen feel that way, they say, well, we just can't compete anymore, so we've got to be protected.
1:52:41We must not let this happen, because America can compete.
1:52:45There's no question about it.
1:52:47We're still very rich and very strong.
1:52:49That's right.
1:52:50And I intend to continue, but we had to do, this is a shock treatment.
1:52:56We had to wait a price for ages.
1:52:58We had to
1:52:59We had to stop the outflow of our balance of payments, which is, of course, comparing the value of the dollar.
1:53:06And we had to jolt the other countries into revaluing their currencies so that we had a fair deal.
1:53:11We had to get some action on the non-tariff barriers, so we took this action.
1:53:17Now we're in the process of talking about the situation.
1:53:23Latin America is like a bystander, innocent bystander.
1:53:29with some of the stray flack that hit you.
1:53:34But if it's not directed against you, and your long range prospects are just as firm today as they were before the action was taken.
1:53:45That's very good.
1:53:46That's really the position.
1:53:48I'm sure that when I go out, most probably they will ask me, but they don't.
1:53:54I prefer not to say things or things to you here, because I prefer
1:53:59There's more work to tell down there.
1:54:01Therefore, I would suggest that you sort of come out and say that we have coordinated a wide range of subjects from immediate measures that have been taken in Africa and the long run of the international cooperation between us and the United States.
1:54:22And both sides have had a very positive response.
1:54:27a positive reassurance of my commitment to a long-range program of cooperation with the alliance and the field of trade with Latin America, and awareness that some of these measures might or that never go away, and that you brought to my attention that some of these measures would revolve on Latin America, even though Latin America was not the cause
1:54:55of our having to take the pictures.
1:54:58I was aware that you stated a very good word, the massive bystander of what's in it.
1:55:01Yeah, the innocent bystander.
1:55:03He wasn't even buying the standard.
1:55:05Innocent bystander.
1:55:06All right.
1:55:07We're a little bit behind because...
1:55:08I thank you very much for your courtesy and kindness in receiving me.
1:55:13Okay.
1:55:13I think he's most important to all of you.
1:55:15Yes, well, as soon as you come in, and at this point, I think it would be well, you sit in with Peterson to do what's good and report to Canyon, too.
1:55:26Would I ask, Mr. Martin, because I'm leaving today, I would like to remake this conversation for my own benefit as well.
1:55:38Sure.
1:55:39And send me with anyone from my office.
1:55:41You make a cover.
1:55:42Oh, sure.
1:55:42So I can know exactly what you think is convenient for me to say to the university staff.
1:55:47Sure, sure.
1:55:47Because I have already a distinction here.
1:55:49I'm going to suggest to try to ask, you know, I'm waiting on the temperature, etc.,
1:55:55but I say after this.
1:55:58I have spoken with the president and I say this.
1:56:02You should be free though, let me suggest to play a little game here.
1:56:07You go a little further.
1:56:09You might even, I have no objection to your asking us to wait for a second.
1:56:18You might, but you would have more independent decisions.
1:56:23And so she said, well, deal with that.
1:56:24And so you talked to me about it.
1:56:25And I said, well, it is temporary.
1:56:26We can't make sure that we're considering it.
1:56:28But I think it's very important.
1:56:29I know the politics of Latin America, the politics of America.
1:56:39And you've got to be an actor.
1:56:41Everybody else is.
1:56:42Thank you very much.
1:56:44You're very kind.
1:56:45You hit a complete record of what you have.
1:56:49Mr.
1:56:49Banner, as you personally are working to this thing, we want to...
1:56:59work with our friend.
1:57:00And he called very happy because, as I told you, he was very worried.
1:57:03But you know why?
1:57:04He has his back.
1:57:04He has his back.
1:57:06It's not worthwhile.
1:57:08But he can't go and have it taken down, no.
1:57:11Now, the 10% velocity warning, we have to just leave that bird.
1:57:16It's basically just a realistic action.
1:57:19But that is not something that is...
1:57:24That's not being done on a case-by-case basis.
1:57:25It's not across the board.
1:57:25It's much more important that you say, well, I'm looking at 10% surcharge, which is what I want.
1:57:27But it is going to be so tempered, so...
1:57:28The longer you have these measures, the more different the credit would be to the way...
1:57:42Mr. President, thank you very much.
1:57:43Thank you very much.
1:57:43Thank you.

On September 4, 1971, President Richard M. Nixon, Carlos Sanz de Santamaria, Arnold Nachmanoff, White House photographer, and Manolo Sanchez met in the Oval Office of the White House from 10:09 am to 10:47 am. The Oval Office taping system captured this recording, which is known as Conversation 567-009 of the White House Tapes.

Conversation No. 567-9

Date: September 4, 1971
Time: 10:09 am - 10:47 am
Location: Oval Office

The President met with Carlos Sanz de Santamaria and Arnold Nachmanoff; the White House
photographer and members of the press were present at the beginning of the meeting.

     Greetings

     Seating arrangements

     Photograph session

Manolo Sanchez entered at an unknown time after 10:09 am.

     Colombian coffee

Sanchez left at an unknown time before 10:47 am.

     Alliance for progress
          -The President's August 17, 1971 statement on tenth anniversary

     Latin America
           -US economic action
                -Effect of US economy's status on Latin America
                -10% surcharge and foreign aid reduction
                     -Effect
                            -Mexico, Argentina
                -Aid cuts by US Congress
                -Trade situation
                     - Preferential treatment
                            -Statement by William P. Rogers
                            -Compared to Europe
                            -Latin America trade ministers

Sanchez entered at an unknown time after 10:09 am.

                 -Dollar reserves
                 -Effect
                 -Awareness
                 -People of Latin America

Sanchez left at an unknown time before 10:42 am.

                 -Forthcoming Conference in Panama
                 -Long term effect
                 -10% surcharge

          -Buenos Aires meeting
                -Study of proposals
          -Mexico, Argentina, Brazil
          -Forthcoming Panama conference
                -Attendance
                      -Technical group
                      -Finance ministers
                      -US delegation
                      -Paul A. Volcker
                      -Nathaniel Samuels
                      -Assistant Secretary of Department of the Treasury
                            -Charls E. Walker
                                 -Possible attendance
          -Forthcoming meetings
                -International Monetary Fund [IMF]
                -Washington, DC
          -Status of Latin America
                -New governments
                      -Mexico
                      -Chile
                            -Elections
                                 -Marxists
                                       -Labor unions
                      -Peru
                -Economy
                -Impact for the administration

US-Latin American relations
    -Forthcoming decade
          -Study

Schedule of Inter-American Committee of the Alliance for Progress [CIAP] meeting
     -Panama conference
     -Economic ministers
     -Santamaria's possible meeting with Henry A. Kissinger, Peter G. Peterson, John B.
          Connally
     -Public statement

US economic action
     -Balance of payments and international monetary dislocation
          -Position of Latin American countries

     -Across the board nature of action
          -Surcharge
                -General Agreement on Tariffs and Trade [GATT]
     -Surcharge
          -Duration
          -Reevaluation
     -Relations with other countries
          -Latin America
          -Japan, European Economic Community [EEC]
          -President’s speech in Chicago, September 3, 1971
                -Former US aid to Japan, Germany, Great Britain, France
     -Competition
          -Unfavorable balance of payments
                -Exchange rates
                      -Tariff barriers
     -Negotiations with major countries
          -Development of relationship
                -Competitive practices
                      -Surcharge
          -Duration of surcharge
          -US-Latin relations
                -Mexico
                      -Amount of trade
                -Bolivia
          -Duration of surcharge
          -Quotas
          -Increase of tariff rates

Latin America
      -Aid program
           -Budget cuts
                 -Type of cut
           -Mood of country
           -Mood of Congress
                 -Foreign aid
                 -Attitudes toward Latin America
                       -Friendship
                 -Amount of budget cuts
                 -Type of budget cuts
                       -Government pay increases
      -US commitment

          -Program of support of alliance for progress
                -Congressional support
                -Relations
                      -Aid and loans
                      -Trade
                      -Rockefeller Commission
                      -Nature of relations
                -Meeting with Connally
                      -Scheduling
                      -Connally’s views
                      -Treasury Department's role
                           -State Department
     -Panama conference
          -Santamaria's possible comments
                -Meeting with the President
                -Sources of US action
                -Relations between US and Latin America
                -Surcharge duration
                -Foreign aid cuts
     -Aid programs
     -US-Latin relations
          -Peterson
                -Future meeting with Santamaria
                -New position
                      -Chair, Council on International Economic Policy [CIEP]
                -Knowledge
                      -US relations with Japan, Germany
          -Policies
     -Future of Latin America
          -Stability

US economic policies
     -Duration of budget measures
     -Relationship between Latin America and the US
     -Peace
     -Trade
     -Negotiations
          -Constructive disengagement
     -Trade competition
          -Current attitudes
                -Protectionism

                          -Textiles, airplanes, glassware
                          -Quotas, tariff barriers
          -Wage and price freeze
               -Unfavorable balance of payments
                     -Revaluation
          -Impact on Latin America

     Latin America
           -Statements on US attitudes by Santamaria
                 -Santamaria's meeting with the President
                      -President’s commitments
                             -Cooperations with Alliance for Progress
                             -Trade in Latin America
                      -US economic actions
                             -Impact on Latin America
                             -Cause
           -Peterson
                 -Possible meeting with Santamaria
           -Relations with the US
                 -Possible statements
                      -Surcharge
                 -Duration of surcharge
                 -Foreign aid
                      -US actions
                      -Aid reduction
                      -Surcharge

Santamaria and Nachmanoff left at 10:47 am.
  • 567-001 8:46 AM · 2 min — President Richard M. Nixon and Stephen B. Bull met in the Oval Office of the White House at an unknown time between 8:46 am and 8:53 am.
  • 567-002 8:46 AM · 2 min — President Richard M. Nixon and Stephen B. Bull met in the Oval Office of the White House at an unknown time between 8:46 am and 8:53 am.
  • 567-003 8:46 AM · 17 sec — President Richard M. Nixon and Manolo Sanchez met in the Oval Office of the White House at an unknown time between 8:46 am and 8:53 am.
  • 567-008 8:53 AM · 1 hr 10 min — President Richard M. Nixon, George P. Shultz, and John N. Mitchell met in the Oval Office of the White House from 8:53 am to 10:09 am.
  • 567-010 10:47 AM · 27 min — President Richard M. Nixon, George P. Shultz, Stephen B. Bull, Arnold R. Weber, Gen. George A. Lincoln, Paul W. McCracken, and White House photographer met in the Oval Office of the White House from 10:47 am to 11:14 am.
  • 567-011 11:14 AM · 31 sec — President Richard M. Nixon and Stephen B. Bull met in the Oval Office of the White House at an unknown time between 11:14 am and 11:17 am.
  • 567-012 11:14 AM · 3 min — President Richard M. Nixon, Alexander P. Butterfield, and Stephen B. Bull met in the Oval Office of the White House at an unknown time between 11:14 am and 11:49 am.
  • 567-013 11:14 AM · 4 min — United States Secret Service agents met in the Oval Office of the White House at an unknown time between 11:14 am and 11:49 am.

Conversation 567-009, September 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/567-009 (accessed October 12, 2026).