Conversation 570-004

TapeTape 570StartSaturday, September 11, 1971 at 12:07 PMEndSaturday, September 11, 1971 at 12:53 PMTape start time01:05:43Tape end time01:52:02ParticipantsNixon, Richard M. (President);  Connally, John B.;  Burns, Arthur F.;  Warren, Gerald L.;  Bull, Stephen B.Recording deviceOval Office

On September 11, 1971, President Richard M. Nixon, John B. Connally, Arthur F. Burns, Gerald L. Warren, and Stephen B. Bull met in the Oval Office of the White House from 12:07 pm to 12:53 pm. The Oval Office taping system captured this recording, which is known as Conversation 570-004 of the White House Tapes.

Conversation No. 570-4

Date: September 11, 1971
Time: 12:07 pm - 12:53 pm
Location: Oval Office

The President met with John B. Connally and Arthur F. Burns: this recording began at an
unknown time while the meeting was in progress.

     Press briefing
           -Economic briefings
                 -Governors
                 -Cost of Living Council [COLC]
                 -Special interest groups
                       -Consumers
                       -COLC
           -Meeting with Connally
                 -Interest groups
                 -Date

Gerald L. Warren entered at 12:10 pm.

     Press
             -Reporters
             -Briefing arrangements

Warren left at 12:11 pm.

     US economy
          -COLC
              -Progress

          -Phase II
          -Various options
                -Business groups
                -Agriculture groups
                -Congress
          -Planning
                -Direction of administration
                -Announcement
          -Commitment to course of economic action
                -Follow-up plan
                      -Speech
                -Question of voluntary action
                -Sanctions
     -General principles
          -Freeze
                -Thaw concept
     -Herbert Stein, Arnold R. Weber
     -Action by the administration
          -Congress

International economy
      -European markets
      -Dual exchange
           -Free market
                 -Free exchange market
                       -Sanctions
                       -Investments
                             -Promotions
                             -Trading
                 -Exchange rate
                       -US
      -Europe
      -Japan
      -France
      -Belgium
      -Switzerland
      -Great Britain
      -Burns's forthcoming trip to Europe
           -West Germany
                 -Position in world economy
                 -Burn’s strategy

          -New controls
              -Capital
              -List of countries

Connally left at an unknown time after 12:07 pm.

     US-Japanese relations
          -Meeting with Burns
          -Recent visit
               -Dinner
          -Currency revaluation
          -Tax
               -Percent
                     -Exports of US
                           -Total percentage
          -Wider exchange
          -Tourism
               -Number of Japanese tourists in Hawaii
                     -Comparison to US tourists in Japan
               -Guam
               -Hawaii
                     -Number of Japanese tourists
                           -Comparison to mainland US tourists to Hawaii
                                 -Expense
                     -Visitors from US mainland
                     -Japanese
                           -Number

Connally entered at an unknown time before 12:53 am.

     International economy
           -Projected action by other countries
                 -Export business
                 -Politics
                       -Possible problems
           -International monetary system
                 -US responsibility
           -Hypothetical situation
                 -Realignment
                 -Effects on other countries

                -Price of gold
                      -Possibility of price fluctuations
          -Position of other countries
                -Possibility of reduction of official price of gold in foreign currency
          -Realignment of currency
                -Exports
                -Imports
                -Effect of political situation in other countries
          -Price fluctuations
                -Percentage
                -Dollars per ounce

US economic policy
     -The President's conversation with Connally and Burns
           -Paul A. Volcker
           -Politicians
           -Connally’s breakfast with unknown person
           -The President's knowledge of economics
                 -Role of experts
                 -Price of gold
                 -Floating exchange rate
                 -Two tiers
                 -Standard depreciation rate [SDR]
           -Experts
                 -Connally, Burns
                 -Paul W. McCracken, George P. Shultz
                       -Technical aspects
     -Election in November, 1972
     -US responsibility to the world
     -Impression of office of the Presidency
           -Past twenty-five year history of the US
           -[Welfare] role
           -US interests
     -US interests
           -Attitude toward US by foreign countries
                 -1960's
                 -Dwight D. Eisenhower administration
                 -Vietnam War
           -Japan
                 -The President's conversation with Finance Minister Takeo Fukuda
                       -Okinawa reversion issue

                       -Senate ratification
                 -Eisaku Sato
          -Textile issue
          -Exchange rate of Japanese yen
          -Friendship with the US
                 -Peace
          -Attitude of US population
                 -Handling of issues
                       -Textiles
                       -Okinawa
                 -Japanese national defense
                 -Investment, Trade balance, exchange rates
                       -Perceptions
     -Great Britain
          -Price of gold
                 -Exchange
          -Call to the President from Connally
                 -San Clemente
          -Edward R.G. Heath
          -British interests
                 -Rolls-Royce
                 -Lockheed bailout
-Handling of international economic relations
     -Henry A. Kissinger
     -Great Britain
     -West Germany
          -Willy Brandt
          -Berlin Agreement
                 -State Department
                 -Kissinger
                 -Anatoliy F. Dobrynin
                 -Ambassador [David] Kenneth Rush
                 -The President’s role
                       -Meeting with Christian Democrat [Rainer C. Barzel]
                       -Berlin
                             -Access
                       -Relations between East and West Germany
                 -Brandt
                       -Agreement and political views
                 -Okinawa reversion
                 -Sato

                           -Relations with the US
                           -US options
               -French
                      -Georges J.R. Pompidou
                      -Possible meeting
                      -US-French relations
                           -State Department
                           -Gen. Charles A.J.M. De Gaulle
                                  -Funeral
               -Italy
               -Netherlands, Belgium
          -US interests
               -The President’s speech before Congress, September 9, 1971
               -European markets
               -Japanese market
               -US needs
                      -Possible effects
                      -Possible strategy
               -The President's record
                      -Greek-Turkish bill
                      -Marshall Plan
                      -[Christian A.] Herter Committee
                      -Reciprocal trade
                      -Foreign aid
                      -World responsibility
                      -People’s Republic of China [PRC] trip
               -Political atmosphere
                      -Type of politics

Stephen B. Bull entered at an unknown time after 12:07 pm.

     Charles G. ("Bebe") Rebozo
          -H. R. (“Bob”) Haldeman
          -Thelma C. (“Pat”) Nixon
          -Camp David

Bull left at an unknown time before 12:53 pm.

     US economic policy
          -US interests
               -International role

      -Attitude of American people
            -Perceptions
-Connally's knowledge
-Burns's expertise
      -Monetary policy
-Political nature of issue
-Monetary policy
      -Views of bureaucracy
            -State Department
            -Treasury Department
            -Federal Reserve Board [FRB]
            -Council of Economic Advisors [CEA]
-American people
      -Isolationist tendencies
      -Perceptions
            -Middle East
            -Vietnam War
      -Reaction to import surcharge
            -Attitude of American people
                  -Wage and price freeze
                  -The President’s September 9, 1971 speech
-The President's administration
      -Responsibility to American people
-Political background
      -West Germany
-Anecdote
      -Israel
            -Comparison to Japan and Germany
-Europe
      -Troop withdrawal
            -US responsibility
-Surcharge
      -Price
      -Present time
            -Time of year
      -Effect of surcharge
-Responsibility
-Effects of US economics on world
      -Action
      -World peace

US foreign policy
     -International order
           -The President’s talk before the Academy of Political Science
           -US relations with other countries
                 -Monetary issue
     -Trade
           -Reaction
                 -Restrictions
     -US relations with foreign countries
           -Strategy
     -State Department
     -Responsibilities of other countries
           -Japan
     -Responsibilities of US leadership
           -Previous examples of Roman and British Empires
           -Political opponents
                 -Role compared to officeholders
     -Isolationism
           -Mansfield amendment
           -Vietnam
           -Europe
     -The President's role
     -US interests and priorities
           -US responsibility
           -Drain on resources
           -US role
                 -Position in world
           -Aid to US
           -Japan
                 -Surplus
                 -Reserves
                 -Connally’s conversation with the Finance Minister
           -British
           -Fixed exchange rate for the US
                 -Tariff Agreements
                 -Non-tariff Agreements
                 -US relations with free world
                       -US position
                             -International Monetary Fund [IMF]
     -Japan
           -Prices

          -US responsibilities
               -Return to old system
                     -Opposition by President
               -Import surcharge
          -Previous meetings with Takeo Fukuda, Kakuei Tanaka
               -US relations
          -The President's strategy
               -Connally and Burns
                     -Trips to Europe
                     -CEA
                     -Contemplation of problem
               -Policy directions
               -Bureaucracy
                     -State Department
                           -Phillip H. Trezise
               -Responsibilities and roles
                     -New ideas
                     -Asia
                     -Vietnam
                     -People's Republic of China [PRC]
                     -Soviet Union
               -Bargaining

     Cabinet meeting

Connally and Burns left at 12:53 pm.

This transcript was generated automatically by AI and has not been reviewed for accuracy. Do not cite this transcript as authoritative. Consult the Finding Aid above for verified information.

I'd like for you to go out and pray.
I'm so afraid to be here.
I want to keep out of the business where they put me in the middle of a bunch of governors.
Right.
And I can't hear, so this is worth, worth the time now.
Right.
But I, if you want to, if you mentioned the consumer group, I think we just need to do that in the long run.
I think we probably ought to respond to a group that we will also be meeting with them.
So I'm obviously ready.
And the cost of living council will be meeting with the governors and mayors and county officials and various other interested groups in this period.
and that we, and how would you, if you were going to phrase it?
Well, I just say that as we go to meet with the President this morning, the President has made it clear that he will start our convention at 2 p.m. by the end of this month, the end of this month, and that he would hope that thereafter, he would have available the program to the American people approximately a month before the expiration date, the peak date, etc., by 2.
Uh, Jerry, uh, told the, uh, your press people that, uh, Jerry will go out with your, uh, uh, uh, and, uh, uh, I want to talk to you.
Right.
I'll send out a tweet.
Sorry.
I'll do that.
Okay, fine.
Thank you.
It'll be great.
Thank you.
I would say, too, that the council has made a great deal of progress in terms of thinking about Phase 2.
They outlined various options to us this morning, and they gave additional direction to them.
And we, of course, are awaiting the advice of the other groups
the business group, the agriculture group, just the idea that we have a plan and we know what the hell we're doing is very good.
Do you think so, Arthur, that we are planning to get that across the three days before?
It will be an effective follow-up.
It will be an effective follow-up.
follow-up of this that we are committed to.
I stated in the speech that the commitment to be effective in this problem is fully shared by all members of the council.
Effective in the follow-up on this, and that's what we're trying to do.
Will it be monitored?
I don't think you could possibly have any sort of work without a certain sanction somewhere in the background.
No, I don't.
You just have to make these people know.
Do you agree?
You know, I'd say, okay, how far I've been, I've laid down certain general principles.
Number one,
Phase two will set up machinery for a gradual move, a gradual transition from the present freeze to restore the free market.
I'm going to be full-blown on the first day.
However, do you like the thaw idea?
Well, we can rephrase the thaw.
I haven't thought of this, but it just comes to me.
We discussed it very briefly this morning.
It's very, very, very tricky.
There are many options.
You'll get stuck as long as you try hungry.
Now, number two, the point you mentioned in the background.
the restoration of the movies in Minnesota.
We've got to get more.
And number three, we've got to have some sanctions.
I have a thought, too, on this with the people of...
I think it's very...
The science is very bump-down policy.
But I think the whole idea
I'm all, I'm all, I'm for, to be honest, it's tough to have the thing you mentioned to me that I'm talking about.
We've got to have the impression continually that if I die, we are, we know what we're doing, and we're going to do it.
That's what the people got to think more than any other question.
That was the importance of your address to the Congress, not just the fact that you were up there leading the Congress.
Because I didn't say they knew, actually.
Well, no.
Well, about the briefs.
That's right.
Well, let's talk about the, uh, the other business, the media problems and so on.
I see where the Europeans are getting up on this this morning.
Is that right, John?
I assume so.
I haven't seen the paper, but I assume that's true.
You know, I, uh, I, uh, I, uh, I, uh, I, uh, I, uh,
Something is developing in the outside world that I want you to discuss.
This is done by my study.
I don't know if you didn't know it by heart, but it's still developing.
Here's what I see developing.
A dual exchange system.
Here's what it means.
You have a free market.
as far as free exchange markets as far as commercial transactions are concerned.
I'm sorry, a free market as far as investment, tourism, etc.
transactions are concerned.
A controlled market as far as commercial trade transactions are concerned.
Now the objective
change rate close to the European economy.
Now the Europeans and the Japanese, now they will be in that way.
The French have, the Belgians have, the Swiss are doing it in the early or midway to the left, and I think a strong trend in that direction will be going.
The Germans will hold out.
If they go this way, that definitely will be the last.
One of my reasons for going to Europe promptly is, I want to control the Germans, and I've been promised to be made to do that.
Not to enter the skies.
I think it's worth the evidence of the others, but if they go this way,
Then what we are expecting to realize when we're changing Bridgetown, is how sure they just need to stay.
In other words, as I understand it, all your trading activities, they want to go after the same old assets.
Is that a secret?
No, the secret is...
The secret you are...
Here's a listing of the new controls that are expanding on all of the trucks.
This may be a very quick listing, but I think you'll like that so much.
And this is a warning.
No.
Mr. Rhodes, can you step out of the way?
Sure, I'll be right back.
I'm already reading that.
No, right here.
He said it's the back of his head.
The back of his head.
The Japanese, they were talking to us.
They were here.
I don't know.
I don't know either, so I'm trying.
Yeah.
Yeah.
The, uh, that kind of meeting there isn't, uh, you know, I mean, it's these big, clean recessions that do a damn thing.
I didn't expect them to, but I gave them dinner and horsed around on the ground.
They didn't have a whole lot to talk about.
I'll figure it out.
The other thing is a revaluation of 8%, pardon me, plus a tax of 5% on export to the U.S., which practically speaking is 13%, plus wider exchange demand, which contains another 3%.
Take all the initiatives you did yesterday, last night, to fund the cost of tourism.
There were more Japanese tourists that went to the United States last year, including, of course, Guam and Hawaii.
They flew out of part of the United States.
And then Japan and American tourists came to pursue Japan.
It's a small little straw in the wind.
But do you guys like to check the others?
I think they're right.
You see, when you include Guam, see, Guam is part of America.
And Hawaii, the Japanese go there for the tens of thousands.
And, you know, Americans are the ones that flew to Japan.
I don't know why, but they ought to.
Just because it costs so much.
The Americans would go to Hawaii, but you see with the Japanese, they're going to go to Hawaii, they're going to be pushed, they're going to be blocked, they're going to be pushed.
They, uh, you ought to take that out on the Japanese.
Oh, no, no, no.
There she did it.
I closed it shut up.
You know, we ought to listen to them.
They're not polite as a pair of ones, you know what I'm saying?
I agree, sir.
I just thought I had a lot to say.
Well, no question, Mr. President, about all these countries.
They're going to be trying to blame us for everything.
They're going to be lacking us.
And they're going to be taking actions, frankly, that are calculated to protect their export business against us.
And, you know, they had a lot of us to put our house in order.
Well, what about their racism, Mr. President?
It's incredible.
This is, um, well, I'm just going to say this.
I think I know what this is all about.
You know, they're not raising any, you know, questions.
No.
They're raising political questions.
You know, let me explain that.
Just as we have our problems here, they have their business interests, they have their political problems, they have their pride, etc.
And rightly or wrongly, they feel that we are largely and entirely responsible for the breakdown of the international monetary system.
Now, they are very sensitive, some more than others, on the question of the price of gold.
Gold, since you have a realignment of currencies, but the price of gold remains unchanged.
Realignment of currencies.
And the price of gold remains at very high levels.
That would mean, as far as other countries are concerned, the price of gold, in terms of their currency, would have to go down.
So they find themselves in this awful position.
They have to go to their bargains.
and ask for a reduction in the official price of gold in their currency.
Stone just would be in trouble here.
Next, the real amount of currency.
I don't live in the seaport, and I'm very spoiled.
I'm spoiled because I have all the more imports than imports.
And what they're saying is, you in America have to lead us part of the way.
And what they're saying is, let the price of gold go up something between the area of 5 to 10 percent.
In other words, $35 amounts to $37 or $38.
And if we don't do that, they can't solve their political problems at all.
They're going to subside, and there will be no real life left to say anything.
Let me try to get you a little feeler here now.
And I want to talk to you and John.
And I don't want to go beyond this.
I don't want to go to poker.
I don't want to do anybody's effect.
Just talk as politicians.
First, let me begin by saying that you know me well enough.
I am in areas where I am not.
expert i take advice of experts so i would be the last to know what the hell this is all about on the price of gold and floating exchange and two tiers and sdr et cetera et cetera et cetera so i begin with that proposition i'm going to have to rely on you obviously john and his experts and so forth et cetera et cetera to in this field as to what the technical things are
On the other hand, between now and the time we have our American election in November after, there must be one paramount consideration, and that paramount consideration is not
the responsibility of the U.S. and the world, but it isn't an outgoing policy.
It isn't the fact that foreigners are going to feel bad that we have done this or that or the other thing, or that they're going to be coming.
The main thing is that we have to create the impression that the President of the United States finally had walked by us after 25 years of blood and sweat and tears and knows
$150 million is looking after its interests.
They don't think that the United States has looked after its interests enough during the 60s.
They didn't feel that we were looking after their interests in the Eisenhower years, although we gave them a lot of money.
They didn't think so, and then because of the damn war and a lot of other things, they were looking after interests.
Now, I think a couple of things to do, just to sort of put it in a political context.
Take the Japanese.
You could have said at the end of the day, you know, Mr. Sotomayor, we're very pleased about, you know, so pleased about what you're going to look at.
I'm very hopeful that you're going to look at it.
And I said, yes, we're going to look at it.
I said, you're welcome, Mr. Department.
We did have this before your election, too.
And he grinned, he grinned, and I said, now, of course, they're going to get through the Senate and so forth, and we will, and they'll be lost.
We will not.
But here we take that stinking little business on textiles.
They haven't done a damn thing.
Now, here we take that he had all the rest of the advantage.
Now, the point is that I can say is that when I
Well, we want Japanese-American friendship.
We do.
We want it to be our friends.
We can be strong.
We can be strong.
We'll have peaceful competition.
That's good for both.
That's good.
But as far as the American people today are concerned, the American people are who, regarding Japan,
I really fed up here.
They're fed up about Texas.
They say, well, we gave, and I said, we gave back Otonawa.
We keep up the defenses.
We pay for them.
They pay one tenth of one percent for defense.
And here they are.
They hold, they keep our investments from coming into the damn place.
That's good.
They're going to invest in jobs.
They're going to invest in jobs.
I think our best friend in general, which has got to be a British, because of that, best friend of ours wanted to walk one or two feet.
So I told him,
I'll never, I'll never forget that.
I'll never forget that.
I'll never forget that.
I'll never forget that.
I'll never forget that.
I'll never forget that.
I'll never forget that.
and they sunk us, and they threw us in this pan-walkie thing, which we won the one vote.
About that, I told Christopher this, and Henry is, so we've got to bring him into this conference at a proper time, because what I really say, or you'll understand, John, as I say, this is why it's so important to stop looking at any experts.
All the experts, and you're an expert too, will naturally
thinking as they should.
What is the responsible statesman like thing to do?
Hey, I want to be the responsible statesman like thing, but not now.
Right now, we've got to do what the people of the United States think.
They want to think their president is out fighting for them, not the British.
It's yours, it's your own choice.
You may ask for a warranty tax, but us, us are the Germans.
We'll be around.
I heard that Berlin and Reagan would never have been put through unless we had a weekend.
I can tell you, surprisingly, what really happened on that.
And keep this to yourself because it is not a safe environment for people to be in.
Consider, since now, any interaction secret over the last meeting with Bill Reagan,
and worked out the odds and ends of that family agreement.
I then finally rushed our ambassador, hell of an ambassador, with great skill, got through the floor.
But let me tell you how much I really regret what I did.
I got in the opposition leaders, you know, the leaders of the Christian Democratic Party in here, and whatever it's called,
And he was a full whistle on the ground.
And I told him for two months ago, I said, I would not break a ground down on the issue of foreign policy.
Now, let's see how this leaps around.
It means everything.
It means, I mean, if they don't make the Berlin Agreement, then they don't have the treaty with the Russians.
And if they don't make the Berlin Agreement, they don't have this tremendously...
but it's important that they have access to Berlin and also some degree of lessen the tension between East and Western and so forth.
But let's leave out the reasons, let's say this.
The Berlin Agreement was as important or even more important to Brahm and his political future as Okinawa, frankly, was to Sato.
So, at this point, with them,
We, they owe us a lot.
And they owe us a hell of a big one.
And what we, I don't know how the Germans are going to act.
Now let's take the French.
The French are selfish bastards.
You know.
They're experts.
They're experts.
And Tom, who knows it all, knows it all.
He said, all the four of you.
He said, well, as you know, John is a real expert in steel.
And I would hope that you either both of you have a private talk with him, because he might, I think the French would probably be hating us over there.
And we will not see him on this track.
Sometimes I want you to do it because he's very proud of his expertise.
I want him to believe me.
We've played their game on several things.
We've got all the nice things.
This is a part of the thing that we've done.
We saved France.
We saved France.
Get over it.
Where are we going to be without the United States?
Now.
Not now.
Of course, they are playing our game.
And when you think of the men, no, and the Belgians and the rest, all those people, Arthur, would be nothing without us.
Now we've come down to the United States.
Did you know, and I can just tell you, in a way it's rather disturbing, because it shows you what we have here.
We have a real bear at the table.
And that speech the other day that almost truly roared, went up.
And it's the same roar when I said it was time for the American to look after its own interests.
And I didn't damn about that.
I just, I didn't understand.
What happened?
Well, I was like, hey, did you notice that?
And I came back and said, what I'm getting at is, we face here a political problem.
Very basic things.
What I want you and John to do, if you could talk this over between yourselves and work on it, we have got to work out something that should be as responsible as we can be.
But between now and next year, we have got to take a position.
Which is, we can sell the American people, thank God the President of the United States finally is telling the Europeans and the Japanese what we're looking after, not the Spanish.
We've got to do that, and if it raises a little hell for a while in the international monetary parts, so be it.
We'll take care of that at a later time, but it's very important that we do that.
In order to play that game, we could perhaps play, I'm glad you're seeing the Germans separately.
I think that's a good idea, you know, to split them up.
Don't let them get together.
Don't let them get together.
But I think the players ought to know that I am taking, I mean, I...
They think of me, actually, as being a guy.
Well, I'm a partner, you know, and as John was, I supported the Greek-Turkish one.
I supported the Marshall Plan.
I was on the Herder Committee.
I supported reciprocal trade.
You know, I've been supporting the NAF, foreign aid, and all the rest.
I believe in world responsibility, and I've taken all these risks, and I've given them all the rest, and they're going to be the best of all of them.
It's a very great significance to them.
Darn it.
They must not think that they now have a soft touch here.
We have got to play a very hard game that we've got to take of our politics.
Oh.
That's all right.
Hey, listen.
Why don't you have him stay in one of the other offices so he can talk to Paul.
He doesn't expect to see me right now.
He might catch them this time soon to see if he can shoot one of them.
Go up to him.
Now, what I'm really trying to do is I'm just trying to give you my feeling and guidance so that you can have a mind.
And I'm expecting you two men, both of whom are, in addition to me, you're both politicians and you're both friends.
The stakes are too high here.
We cannot let, we cannot let, and I'm going to speak quite candidly about the parts of it,
We cannot let some of those irresponsible people that are running around the country now take it for the fact that we compare to hell a lot of hard problems that we're trying to handle as well as we can.
And that means frankly flag this international event to the hill to look at it.
Now, if we have to forget, for example, too soon, we back down, and we decide we're going to repassive the dollar, and we're going to do this, and we're going to be responsible, and we're going to be good neighbors, and we're going to grin and bear it all evening.
The American people are going to say, what the hell?
We thought we had a President finally who was going to stand up for us.
Now, that's where it's at.
Now, I don't know whether you hear this or not.
I do, I do.
I do, Mr. President.
I'm looking at the problem.
I agree with you.
I think at some point, I'm the less pertinent in the monetary field.
Arthur is.
Arthur is more concerned, probably so, in the strict monetary field.
But I'm in no hurry, very frankly.
I think we ought to continue.
I don't think we ought to be that moment.
as, uh, as some in the, uh, in the administration and some in the Treasury want to be.
Uh, I think we ought to, uh, we ought to say it's a political problem.
It's not a moral problem.
It's not, it's not a monetary problem.
It's a political problem.
I, I, let me say this, sir.
Most of the bureaucracy wants to be responsible.
They ought to create what we have.
And they want something like it to succeed.
That's true.
The bureaucracy has failed.
I don't expect that.
It's true of the bureaucracy.
It's true of the bureaucracy, I'm sure.
And maybe in your shop.
It's true of the bureaucracy, I'm sure.
Maybe in the council.
See, I don't know if I can talk to them.
But there are, of course, various approaches.
My point is that right now, we're in a period where the United States, the people of this country,
are, could, could very well turn dangerously isolationist, unless they felt their president was looking after their agents.
And we must not let this happen.
For example, John, I don't do the right thing in places like the Mideast.
I don't have to do the right thing.
Vietnam has practically done, thank God, but there are lots of other places we could agree on.
We may not be able to do some of those things, but they think we are not standing up for our interests in the other areas.
So that's why this new policy is beautiful.
They think that you and I have a very important strategy, and it would mean a hell of a lot.
such an active person.
You know, I thought, to be a good person, most people have to wait to price it, because they know about that, right?
But a hell of a lot of people said, well, thank God I had an important surgeon.
Even though it's sophisticated, it didn't mean a lot to a lot of people.
To them, they said, thank God, we're finally keeping these dead corners out.
Yet the American people have their way.
You remember the latter part of my speech that we have to rule all around ourselves.
We must compete and all that.
I believe that very, very deeply.
But if the American people have their way, they build a wall around themselves today.
That's what we have done.
We have, in other words, true responsibility, doctor, is for us for a while to never talk.
I know you do.
But I have to.
That's what I came to say.
Mr. President, for background purposes, what I can tell you that I've heard now is very important, especially in my talks with the chairman here, in this political matter, which is the story going on in the history of the United States.
Israel should declare war against the United States.
Why?
It's idiotic.
I mean, we're a small country.
We lost our friends too.
We're going to be slaughtered and so on.
It's true.
I once heard that he wasn't looking after us the way he looked after the Japanese and the Germans.
Yeah, yeah, yeah, yeah.
Well, what a case to be in.
I'll tell you, Kirby, one thing you didn't mention, Mr. President, you don't have to pull all the troops out, but if you just pull all the defendants out, which is our cause, and it's done before, I think we'll be subdued at any time.
And I'm not sure that that's something you should have considered.
But if you pull the troops out, they all say that, you know, it's all our fault, we ought to take care of our business, we ought to manage our business, and so forth.
Well, that's cost us considerable, but if that's all it was, I think we're just costing our nation, not only Germany, but all of Europe.
Well, you know, I can't use that, but, you know.
Suppose I was back home for a town and myself serving for me.
I think I've got to notice your presence.
or surcharge to be billed.
I've got a plan, a lot of people have plans.
I've got the plan to work with the man.
But there will be a price.
The price will be when I have to give the surcharge.
Do you see us doing that in all the elections?
It would be a hell of a high price.
The import surcharge is such a nervous appeal, aren't it?
You know, that by God, I bless the man, I bless me, that my own view is that I don't see anything at the present time that doesn't make it.
I just, I'd say it's very hard, very hard.
That's really what you've got to say.
Do you agree?
I don't know.
Many of my state people tell me they're going to give it up and this and that and the other thing.
They're going to give it up this year or the first year.
The hell with that.
No, sir.
We can't do that.
I agree with you.
I just said it.
And then the airport surcharges.
So what happens if we tell them?
Then of course, of course the other side of that card is they start to retaliate with a curse.
That's what they do.
Well, I feel, I feel the responsibility as far as to you to describe the words to the other side.
So the first one is pure.
I know, I know you.
I know you.
I know you ask the question.
Thank you, thank you.
We, uh, and, uh, and I do get some thought here, personally.
And you, and you, and you must, personally.
There is a certain dignity.
Look, you have fought for a world in peace.
I'd like to hand you down a history as the president who brought peace to mankind.
You have been quite courageously handled.
successfully so far.
Now, in the fight for a international order, in a sense, I remember your call before the academy to look at the science, which I had a project,
There is a danger.
I can't give you an exact number, but I gave you this piece for symbolic reasons.
This is a little piece of paper.
There is a danger that it will be way too long working out and arranging with other countries on money, trade, etc.
that a process of retaliation
increasing protectionism or restrictionism may be underway for the next few years.
This may be a blot on your personal history.
You've got to be aware of that.
Now, I accept what you've said completely.
We will act afterwards.
Well, I think what we have to do, Arthur, is on a case-by-case basis see what they can do to us and what we can do to them.
And the thing that, of course, impresses me about it is that when these things are brought here to me by the establishment, the State Department, of course, the bureaucrats and the establishment,
They point out why the United States must be responsible for climate change, because we're based in all rights.
I have yet to find any other country that's responsible.
Are the Japanese being responsible?
I don't think so.
Look, I think in other words, they're grown up now.
There was a time, I think 25 years, 15, 10 years ago, the United States was the biggest in these rivers.
So we, as a parent, must be responsible.
They're all grown up now.
If you don't listen to Brother Duncan, you can go back in history.
Responsibility is the ordeal of leadership.
The Romans had it.
The British had it.
Now we can have it.
Now how do we play it if we have options?
Right.
And what you have said is within the spirit of that basic concept.
You see, the ethical behavior, Arthur, of which we speak of responsibility,
We also have to realize that our political opponents have the luxury of being irresponsible.
And basically I see growing among them
Just waiting to pounce.
We agree with them for the moment by what we've done with this thing.
Waiting to pounce.
A new isolationist, just as sure as we've said, no question about it, just as sure as we've suggested that Mansfield Amendment be one of this time, we'll lose it the next time.
Vietnam is only a figment of what I mean, but they want to get out of Europe, effectively they want to get out of the world.
That is the problem.
Now, I am one of the best at monitoring that.
I tend to let this happen.
I've got to at least appeal to enough of the so-called irresponsible elements in order to be responsible.
That's the dilemma, you see.
Well, I will take my perception of that as part of it.
I don't think it's irresponsible to look after the interests of the United States first.
I don't think that's irresponsible at all.
Now, we owe responsibility to other nations, but we do it, provided we're strong enough to bear the burdens of leadership.
Now, we weren't strong enough, but we did.
But we drained our resources.
We drained our strength.
We can no longer carry this across.
We've got to have a little help.
That's all we're saying to people.
This is not being completely selfish.
There's not a nation in the world that I've seen that's come forward with any ideas of how they're going to do anything to help us.
All they say to us now is, well, you're a blame.
You're a blame.
This is what's happened to us.
This is what's happened.
They said, well, we've got political problems.
They said, well, they didn't tell us they've got to have $2.3 to $2.4 billion surplus each year in order to...
as a cushion, as a reserve, or 1% of their GNP.
So I said to the finance minister last night, you tell us after lunch how we get that 1%.
Our GNP is a reserve and our problems are all over.
If we had 10 billion dollars in here, for 10 million a year, we'd be in good shape.
That'd be fine as a cushion in our trade camps.
But the breach, all of them, this story is very symbolic of what's happened.
Now, the idea is that we have to tailor the outcome.
What they want to do, Mr. President, is get us back into the fix-and-change race without making the changes that are necessary in their tariffs and their non-tariff agreements, and without pursuing any share of the burden of defense of the free world.
And they want to get us right back in the same trap with a fixed rate, with the United States getting, again,
the bullwark of support, the International Monetary Fund, and then if they don't like it 30 days later, they'll be back here, be back here, and get the advantage.
Don't listen to these idiots.
We'll go through this whole process all over again.
I've got an exception.
You can describe them.
They're not all like that.
They're probably not.
They're not even Japanese.
They, uh... On the other hand, John,
I'm April.
And I'm getting, getting, you know, the private advices that I'm getting from some of their officials, and maybe yours, maybe Miss Meany's.
That's what my point is.
I think we ought to talk to them and smoke them out.
It is important to smoke.
We should talk.
We should talk responsibly.
Oh, we want to get a passage.
We want to run for a passage.
Yeah, the president's got to look here.
On the other hand, we've got a very, very, very great problem.
And we intend to, we just don't want to go back.
The president doesn't want to go back to the old system.
I just put it that way.
We don't want to go back to the old system.
And what about the unfortunate change?
Well, what do you got to offer?
What's in it for us?
I put it right that way.
It's cold turkey.
Well, John did that for the purpose of cleaning this morning.
Were you there with him, John?
Yeah.
Did you have a hold of him for the purpose of cleaning?
Oh, the property officer, Bill Rogers.
Thank God.
We met with, uh, two guys who, uh, who could, uh, you all had a long day.
It's an honor.
Thank you, John.
But, uh,
I understand all this.
They're working out their problems, and we're going to have to be outgoing.
And in our public utterances, we're going to have to be for understanding.
We're going to have to be responsible, and we're going to have to be outgoing, and so forth.
But in the private conversation, we've got to say to them that we've had enough.
Let me ask you to do this, the two of you.
I don't want to talk to the two of you.
I don't like to go beyond.
I'd like to talk to the two of you.
to have a very close conversation.
The two of you can keep it as it stands.
John is in our group, right?
Do what the recommendations are.
Actually, the council should.
But you're the key.
Now, I'd like for the two of you to
to really mull over this problem that I presented.
Mull it over.
And to keep in the very closest contact on the thing so that we don't go off in different directions.
And whenever you feel that there's something that we've got to decide, I want to get into that thing because I think on this one, this is terribly important that we have to act on.
The second thing, I want the two of you to resist, and may I strongly urge your view on this.
The bureaucracy, and our group can't say, is this the bureaucracy state?
I'm not talking about Bill, he's more expert in this than I am.
But after all, all the other fellows are there, and they're fine fellows, precise and that much.
They're all part of the same group.
And so, hear them out.
But remember, you've got, we've got a special responsibility here to build something new.
I feel something's going to be better.
And I don't know what it is.
You've probably got some ideas and challenge, make them all for some men.
But right now, I know that we must not sell tea.
We've taken this terrible risk.
And I do not want to live in either chaotic situation.
Believe me, I don't want after trying to settle things in Asia, Vietnam, China, the Russian threat.
I agree with you.
I don't want to do that.
On the other hand, I think a little bit of, I mean, I think some degree of bargaining on our part is concerned, perhaps, as a reporter.
But he said he can't.
Is that fair now?
Clear.
Okay.
Keep the money, and I'll get mine.
Don't envy me for trips.
I can talk to this traveler.
Uh, I'll cover nothing but this, uh, meeting on the land that we just, uh, braved by tonight, right?
If I were to have a mystery of us, I'm sorry to miss the cat at the meeting.
Well, let's stay together.
That's good.
I was hoping you would be ready.
That's all right.
Good to see you.
Andrew, thanks a lot.
Yeah, thank you.