Conversation: 706-005
Prev: 706-004 Next: 706-006Start Date: Tuesday, April 11, 1972 8:06 PM
End Date: Tuesday, April 11, 1972 10:05 PM
Participants:
Nixon, Richard M. (President); Peterson, Peter G.; Ehrlichman, John D.; Flanigan, Peter M.; Cole, Kenneth R., Jr.; Bull, Stephen B.; Sanchez, Manolo; Burns, Arthur F.; Shultz, George P.; Connally, John B.; Malek, Frederic V.Recording Device: Oval Office
Full Tape Conversation Start Time: 03:14:58
Full Tape Conversation End Time: 05:13:53
NARA Description:
On April 11, 1972, President Richard M. Nixon, Peter G. Peterson, John D. Ehrlichman, Peter M. Flanigan, Kenneth R. Cole, Jr., Stephen B. Bull, Manolo Sanchez, Arthur F. Burns, George P. Shultz, John B. Connally, and Frederic V. Malek met in the Oval Office of the White House from 3:06 pm to 5:05 pm. The Oval Office taping system captured this recording, which is known as Conversation 706-005 of the White House Tapes.
Nixon Library Finding Aid:
Conversation No. 706-5
Date: April 11, 1972
Time: 3:06 pm - 5:05 pm
Location: Oval Office
The President met with Peter G. Peterson, John D. Ehrlichman, Peter M. Flanigan, Kenneth R.
Cole, Jr. and Stephen B. Bull; the White House photographer was present at the beginning of the
meeting.
Greetings
John B. Connally
-Forthcoming meeting with the President
-Delay
Bull left at an unknown time before 3:48 pm.
Commerce Department
-Undersecretary
37
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-James T. Lynn
Economy
-Foreign trade
-Commercial attaches
-Legislation before Congress
Manolo Sanchez entered at an unknown time after 3:06 pm.
Refreshment
Sanchez left at an unknown time before 3:48 pm.
Economic issues
-Commercial attaches
-Problems with pending legislation
-Foreign trade
-Foreign Service officers
-Indoctrination on economic issues
-State Department
-Lack of leadership on economic issues
-Undersecretaries
-Textiles
-Agriculture
-Foreign trade
-Leadership
-Attaches
US-Soviet Union relations
-Henry A. Kissinger
-Flanigan
-Trade
-Linkage
-Soviet needs
-Commercial deals
-Raw materials
-Capital demands
-Oil and gas
-Scope
-Return
-Soviet debts
38
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-Gradual increase
-Export-Import [Ex-Im]
-Most favored nation status [MFN]
-Raw materials
-Aleksei N. Kosygin
-US credits
-Soviet gains
-Resources
-Capital demands of Soviets
-Anatoliy F. Dobrynin
-Conversations with Peterson
-Peterson's meeting with Soviet Trade Minister, Nikolay S. Patolichev
-Arrangements
-Ex-Im and MFN status
-Talks
-Issues
-Ex-Im agreements
-Credits
-MFN status
-1972 election
-Congress
Foreign trade
-Poland
-Yugoslavia and Rumania
-US attitudes
-Kissinger
-Poland
-The President's forthcoming trip
-Poland, Yugoslavia and Rumania
-Visits to US
-Eastern European nations
-Contacts with US
-Soviet trade
-Peterson memorandum
-Recommendations
-Donald McI. Kendall
-Benefits to US
-US businessmen
-Sales
-Credit and investment guarantees
39
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
Energy
-Flanigan
-Ehrlichman
-Problems
-Long-range view
-Politics
Economy
-Maritime Administration
-Andrew E. Gibson
-Study of imports
-Maritime implications
-Energy
-Oil imports
-Percentage
-Maritime fleet
-Projected size
-Supertankers
-Japanese
-Economic advantages
-Dock facilities
-Political problems
-Delaware
-Problems
-Subsidies
-Domestic problems
-Incentives
-Environment
-Supertankers
-Ports of call
-Canada and the Bahamas
-Docking problems
-Japan
-Australia
-Recommendations
-George P. Shultz
-Budget problems
-Investment areas
-Welfare
-Hard and soft goods
40
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-Investments
-Welfare
-Summer youth programs
-Maurice H. Stans
-Day care centers
-Office of Economic Opportunity [OEO]
-Democratic political pressures
-Conflicts between business and welfare
-Energy
-Supertankers
-Shultz
-Docking problem
-Pacific Northwest
-Local resistance
-Maine
-Gulf states
-Louisiana and Texas
-Off-shore leasing
Energy
-Alaska
-Political problems
-Environment
-Costs to consumers
-Domestic ownership
-Petersons' job
-Budget
-Shultz
-Monitoring issue
-Cole
-Business representation
-Environment
-1972 election
-Public awareness
-Increase
-Publicity
-Business community
-Rogers C. B. Morton
-Testimony
-News summary
-Power shortages
41
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-Gibson
-Power stations
-Construction
-Objections
-Compared with Vietnam War
-Peterson's role
-1972 election
-Stans
-Links to liberals
Foreign trade
-US competitiveness
-Information gathering
-Steel output
-Japanese
-Japanese
-Strategic industries
-Studies
-Machine tools, steel
-Depreciation, write-offs
-Study program
-Commerce Department
-Connally
-Depreciation policies
-Strategic industries
-Foreign government support
-US tax reform bill
-Congress
-Connally
-1969 talk with the President at San Clemente
-Cattle
-Reform
-Connally's role
-Study program
-Depreciation policies
-Problems
-Housing
-ADR
-Investment tax credit
-German and Japanese policies
-Successes
42
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-New jobs
-Speech
-Publicity for reform
-Study for Congress
-Investment tax credit
-Japanese
-Responsiveness
-Tax reforms
-Criticism
-Rich compared to poor
-Jobs
-Treasury conservatism
-Internal Revenue Service [IRS]
-Peterson's meeting with Connally
-Tax lawyers
Technology
-Industrial technology
-Study by Commerce Department
-Patents
-US government ownership
-Commercial production
-Review of policies
-Costs
-Research and development [R&D]
-Nonexclusive provisions
-Patent policies
-State of the Union address
-Incentives for technology
-Cost sharing
-Government patents
-Commercial production
-Government R&D
-Roadblocks
-William M. Magruder
-Commerce Department
-Aggressiveness
-Salesmanship
-1972 election
-Business
-Jobs
43
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-Prices
-Job creation
-R&D
-Emphasis on jobs
-Environment
-Necessity to sell
-Ehrlichman, Charles W. Colson and H. R. (“Bob”) Haldeman
-Image of business
-Administration's image
-International Telephone and Telegraph [ITT]
Environment
-National Industrial Pollution group
-Comments
-Growth
-Club of Rome study
-Quality of life programs
-Costs
-Office of Management and Budget [OMB]
-Health, welfare, mass transit
-Long-range costs
-Source of funds
-Projections
-Economic growth
-Zero-growth advocates
Economy
-Productivity Commission
-Shultz
-I[lworth] W[ilbur] Abel and Leonard Woodcock
-Membership
-Popular appeal
-Advertising Council
-Identification of the President with campaign
-Cost-wage push
-Range of problems
-Germany and France
-Productivity
-The President’s August 15, 1971 statement
-Popular appeal
-International problem
44
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-Bargaining system
-Phase II
-Businessmen's doubts
-Strikes
-Costs
-Strikers
-Benefits
-Food chains
-Meeting with Connally
-Bargaining system
-Reform
-Post-election changes
-Shultz's ideas
-Dangers
-Pre-election attacks against labor
-Minority economic development
-Appeal to voters
-Political appeal
-"Bridge to dignity"
-Problems
-Peterson’s speeches
-Chicago
-New York
-Lack of knowledge in public
-Bold steps
-Prominent blacks to sell program
-Stars
-Athletes
-Dinner
-New York
-Inner cities
-Deterioration
-Economic stimulation
-Unknown person's suggestion
-Focus on business
-1969 campaign theme
-[Forename unknown] Messig [sp?]
-Stans
-Productivity
-Peterson's recommendations
-Advertising Council
45
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-Wage-cost push
-Pre-election actions
-Peterson's meeting with Connally
-Date and location
Connally, Arthur F. Burns, Shultz and Frederic V. Malek entered at 3:48 pm.
Greetings
Connally
-Health
Economy
-Connally's meeting with Peterson
-International competition
-Productivity
-Environment
Peterson, Ehrlichman, Flanigan and Cole left at 3:49 pm.
[General conversation]
Federal Reserve Board [FRB]
-Vacancy
-Number
-Sherman J. Maisel
-Andrew F. Brimmer
-Ambassadorship
-Removal
-Black ambassadors
-Position security
-Election
-Rogers
-United Nations [UN]
-Secretary General
-Confirmation
-European post
-African post
Jerome H. Holland
-Background
46
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-College
-Football
-Tenure
-Post
-Future
FRB
-Vacancy
-Candidates
-Names
-Districts and regions
-California
-Candidates
-List
-Jeffrey M. Bucher
-Ward C. Krebs
-Bucher and Krebs
-Origins
-Age
-Selection
-Criteria
-Compared with Supreme Court
-Age of justices
-Lewis F. Powell, Jr.
-William H. Rehnquist
-Youth
-Length of term
-Age
-Compared with Supreme Court justices
-Earl Warren
-Warren E. Burger
-Harry A. Blackmun
-Powell
-Bucher
-Aspirations
-Short-term
-Banking job
-Experience on board
-Krebs
-Duration of term
-Criteria
47
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-Banking background
-Krebs
-Experience in banking
-Bucher
-Youth
-Requirements
-Judgment
-Maturity
-Longevity
-Bucher
-Other positions in second term
-Krebs
-Bucher
-Longevity on board
-Burns's influence
-[John E. Sheehan]
-Bucher
-Potential
-Krebs
-Interview with Burns
-Compared with Bucher
-Bucher
-Harry J. Volk
-Asa V. Call and Charles D. (“Tex”) Thornton
-United California Bank
-Bank of America
-Security First National Bnak
-United California Bank
-Volk
-Prudential Insurance Company
-Robert H. Volk
-Burns's preference
-Ernest C. Arbuckle
-David Packard's work
-Background
-Stanford University
-Present position
-Krebs
-Candidate selection
-E. Penn James's and Malek's work
-Brimmer case
48
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-James L. Robertson
-Possible resignation
-Robert C. Holland
-Position on board
-Political affiliations
-Respect in banking world
-Appointment
-Replacement for Robertson
-Pension
-Rules
-Age
-Robertson
-Meeting with the President
-Sheehan's swearing-in
-Possible retirement
-Populism
-Support for small banks
-Appointments
-Future make-up
-Candidates
-Krebs
-Bucher
-Youth
-Work with Burns
-Compatibility
-The President’s talk with Burger
-Conflicts within board
-Number of dissents
-Alfred Hayes
-Work with Burns
-Hayes's staff
-Candidates for vacancy
-Names
-Criteria
Malek left at 4:13 pm.
Budget
-Information for the President
-Money supply and interest rates
-Wage and prices
49
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-Deficit
-Decrease
Environment
-Commerce Department study
-Peterson
-Costs
-Quality of life programs
-Relation to economic growth
-Population
-World
-Daniel P. (“Pat”) Moynihan
-US
-Stabilization
-The President's meeting with Peterson
-Oil imports
-US needs
-Supertankers
-Docking facilities
-Local resistance
-Texas
-Quality of life programs
-Family assistance
-Day care centers
-Costs
-Budget
-Environmental field
-Regulatory activity
-Proposition in California
-Loss of jobs if passed
-Edgar F. Kaiser
-Steel plants
-Peterson
-Political implications
-Need for economic growth
Economy
-Welfare programs
-Family Assistance Program [FAP]
-Education and health programs
-Summer youth programs
50
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-FRB
-Peterson
-Charles H. Percy
-Change of attitude
-Stans
-National Association of Businessmen [NAB]
-Optimism
-The President's meeting with Gordon E. Metcalf and John D. Harper
-Prices and stocks
-Rate
Burns and Shultz left at 4:20 pm.
Connally
-Health
-Illness
-Gen. Walter R. Tkach
*****************************************************************
BEGIN WITHDRAWN ITEM NO. 9
[Personal Returnable]
[Duration: 3m 40s ]
END WITHDRAWN ITEM NO. 9
*****************************************************************
Connally's schedule
-Trip to Texas
-Stansville [?]
-Dinner honoring Texas Supreme Court Chief Justice
-Speech
-Time off
Manolo Sanchez entered at an unknown time after 4:20 pm.
Refreshment
51
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-Tea
-Effects
-Type
Sanchez left at an unknown time before 4:46 pm.
Connally
-Reports
-World situation
-Trip to Camp David
-Idanell B. (“Nellie”) Connally
-The President's Canadian speech
-Transportation
-Rest
-Camp David
-Golf
-Work ethic
-Speech
-Health
*****************************************************************
BEGIN WITHDRAWN ITEM NO. 11
[Personal Returnable]
[Duration: 1m 1s ]
END WITHDRAWN ITEM NO. 11
*****************************************************************
-Work ethic
The President's schedule
-Vietnam
-Reports
-News summary
-Critical decisions
-Conversation with Haldeman
52
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
Vietnam
-Kissinger
-Air Force
-Naval gunfire
-North Vietnamese offensive
-Victory
-Impact on Soviet Summit
-Cancellation
-Impact on foreign policy
-India, Middle East and Europe
-Soviet Union
Treaty on biological warfare
-Effect
-Great power restraint
-The President's remarks at signing ceremony
-Arms control
-Great powers restraint
-Soviet's views on Summit
-Dobrynin
Vietnam
-Navy
-Fleet
-Shelling of roads in North Vietnam
-B-52 strikes
-Polls
-Critics
-Edward M. Kennedy
-Foreign policy
*****************************************************************
BEGIN WITHDRAWN ITEM NO. 13
[Personal returnable]
[Duration: 24s ]
END WITHDRAWN ITEM NO. 13
53
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
*****************************************************************
Economy
-Interest rates
-Burns's policies
-Burns's work
-Interest rates
-Money supply
-European problems
-Paul A. Volcker's meetings
-Press conferences
-The President's Canadian trip
-Trade negotiations
-Great Lakes agreement
-The President's speech draft
-Connally's review
-Pierre E. Trudeau
-Reelection
-Quebec
-Separatism
-Trudeau
-Reelection campaign
-Connally's speech in Chicago to national broadcasters
-Reaction
-Business leaders
-Location
-Continental Plaza Hotel
-Tourist Bureau
-Dallas and Houston
-Format
-Agenda
-Foreign policy, taxes, loopholes, productivity
-Taxes
-Loopholes
-Definition
-Major reforms
-Republican initiatives
-Eisenhower and the President
-Democratic interests
54
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-George C. Wallace
-Loopholes
-Creation of jobs
-Home mortgage interests
-Abolition
-Opposition
-Purpose of loophole
-Municipal bonds
-Support of cities
-Abolition
-Failures
-Charitable contributions
-Abolition
-Impact
-Capital gains
-Dow-Jones Industrial Average
-Depletion allowance
-Energy crisis
-Abolition
-Disadvantages
-Casualty losses
-Estate taxes
-Peterson
-US competitive position
-Depreciation allowance
-Japanese and West German example
-Change of position
-Support for loopholes
*****************************************************************
BEGIN WITHDRAWN ITEM NO. 15
[Personal returnable]
[Duration: 6m 11s ]
END WITHDRAWN ITEM NO. 15
*****************************************************************
55
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-ITT case
-Relations with ITT
-Vance Hartke
Taxation
-Overwithholding
-News summary
-Agents of Internal Revenue Service [IRS]
-Correction of problem
-Timing
-Public campaign
-W-4 exemptions
-Mailings
-Shultz
-Tax returns
-IRS aid to average taxpayer
-Publicity
-Announcement of task force
-IRS agents
-Number
-Customs Bureau in Florida
-Agents
-Sufficient number for job
-Number for searches
-Financing problems
-Customs Bureau
-Agents
-Increase
-Port officers
-Value of inspections
-Specific case
-[Recent heroin seizure]
-Budget and personnel cuts
-Customs
-IRS
-Agents
-Help for returns
-Political benefits
-Personnel available
-Returns
56
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-Johnnie M. Walters
-Survey of small professional preparers
-H&R Block
-Fraudulency rate
-Costs of delinquency
ITT case
-Edmund S. Muskie charge
-Corporate taxes
-Validity of claim
Economic policies
-Food prices
-Administration's actions
-Albert E. Sindlinger poll
-Support
-Offensive stance
-Sindlinger's conversation with Colson
-Administration statements
-Wholesale price index
-Graham Purcell's hearings
-News coverage
-Administration's image
-Farmers
-Middlemen
-Retailers
-Safeway
-Need for discussions
-Profits
-Actions before election
-Freeze on food prices
-Effect
-Risks
-Farm vote
-Packers and producers
-Current state of economy
-Unemployment
-Level
-Figures
-State in October
-Inflation
57
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-Agitation of issue
-Housewives
-Networks
-Public statements
-Frequency
-Connally
-White House staffers
-Marina von N. Whitman
-Mood of nation
-Florida
-Youth
-Tricia Nixon Cox's assessment
-Harvard University
-Nostalgia
-Stability and leadership
-Kennedy and Muskie
-Lack of support
-Unemployment
-Figures
-Analysis
-Youth
-New workers
-Creation of jobs
-Positive perspective
-Social changes
-Wives and youth
-Entrance into labor force
-Job seekers
Bull entered at an unknown time after 4:20 pm.
The President's meeting with Kissinger
Bull left at an unknown time before 5:05 pm.
Vietnam
-North Vietnamese offensive
-Aggression
-Analysis
-Compared with Laos and Cambodia
-US public reaction
58
NIXON PRESIDENTIAL MATERIALS STAFF
Tape Subject Log
(rev. 10/06)
Conv. No. 706-5 (cont.)
-Bombing of North Vietnam
-US troops
-Hanoi and Haiphong
-Bombing of other cities and railroads
-US countermeasures
-US choices
-Consequences of failure
-Credibility of foreign policy
The President and Connally left at 5:05 pm.