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Conversation: 724-004

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Start Date: 15-May-1972 4:06 PM

End Date: 15-May-1972 4:54 PM

Participants:

Nixon, Richard M. (President)Kendall, Donald McI.Flanigan, Peter M.[Unknown person(s)]Bull, Stephen B.

Recording Device: Oval Office

Full Tape Conversation Start Time: 02:06:11

Full Tape Conversation End Time: 02:54:28

724a.mp3

724b.mp3

724c.mp3

NARA Description:

On May 15, 1972, President Richard M. Nixon, Donald McI. Kendall, Peter M. Flanigan, unknown person(s), and Stephen B. Bull met in the Oval Office of the White House from 4:06 pm to 4:54 pm. The Oval Office taping system captured this recording, which is known as Conversation 724-004 of the White House Tapes.

Nixon Library Finding Aid:

Conversation No. 724-4

Date: May 15, 1972
Time: 4:06-4:54 pm
Location: Oval Office

The President met with Donald McI. Kendall and Peter M. Flanigan.
                                        20

                NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. Jan-02)                   Conv. No. 724-3 (cont.)


Greetings

Trip to Soviet Union
      -Flanigan’s attendance

Soviet Union
     -Vodka Agreement
     -Pepsi Agreement
     -Trade
          -Pepsi for Vodka
          -Alexei N. Kosygin
                -Vodka sales in US
     -Most Favored Nation [MFN] status
          -Effect on price
     -Summit
          -President's departure
          -Itinerary
                -Austria
                -Moscow
          -Leonid I. Brezhnev
          -Kosygin
                -Presence at talks
                -Economic expertise
                      -Compared to Brezhnev
     -Leadership
          -Nature
          -Kosygin
          -Brezhnev
          -Nikolai V. Podgorny
     -Trade
          -Nikolai S. Patolichev
                -Meeting with the President
                -Kendall's meeting with Patolichev and Yuri [?] Ivanov
                -Identified
                -Kendall’s view
                -Other meetings
     -Vladimir Alkhimov
          -Identified
     -Alexei Manzhulo
          -Identified
     -An unknown person
     -Kendall's advice
                                         21

                NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. Jan-02)                Conv. No. 724-4 (cont.)

           -Previous efforts
           -Importance of personal relationships
                 -Continuity
                 -Specialization
     -President's previous speech on the blockade
           -Support for the President's position
                 -Business
                 -Labor
                       -Frank E. Fitzsimmons
                       -George Meany
                       -Leonard Woodcock
                 -Business
                       -Telegrams
                       -Influences
                             -New York Times
                             -Washington Post
                             -Chet Huntley
                             -David Brinkley
                             -Walter L. Cronkite, Jr.
                       -The President’s view
                       -Rusty Young
     -Trade
           -Brezhnev
           -Soviet economic, political, and social objectives
           -US position
           -Soviet as bargainers

Vietnam
     -William P. Rogers
           -Speaking ability
                -Business Council speech
                     -Kendall’s assessment
                     -Content
                     -Paul Ostend [?]
                     -Assessment
                     -Feedback

Soviet Union
     -1959 compared with 1972
          -Differences
               -Consumer goods
               -Marketing opportunities for Pepsico
                     -Eastern Europe compared with Western Europe
                                            22

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                    Tape Subject Log
                                      (rev. Jan-02)           Conv. No. 724-4 (cont.)

                               -Romania
                               -Yugoslavia
                               -Czechoslovakia
                               -Hungary
                               -Poland
                          -Agreement to market bicycles
                               -Montgomery Ward
          -President's trip
                -Stop in Poland

An unknown person entered at an unknown time after 4:06 pm.

     Refreshment order

The unknown person left at an unknown time before 4:48 pm.

     Pepsi-Cola

     Soviet Union
          -Trade
               -Pepsico
                    -Soviet assessment
                    -Technology
                          -Japanese
                          -German
                          -US
                    -Soviet attitude
                          -Patolichev
                          -Alkhimov
                          -Manzhulo
               -Other countries' experiences
                    -French
                    -German
                    -Japanese
               -Commercial transactions
                    -Kendall’s view
                    -Credit
               -Negotiations
                    -Kendall’s view
                    -International Brotherhood of Teamsters
                          -Kendall’s experience
                    -Brezhnev
                    -Eisaku Sato
                                  23

           NIXON PRESIDENTIAL MATERIALS STAFF

                          Tape Subject Log
                            (rev. Jan-02)                   Conv. No. 724-4 (cont.)

            -Ivanov
                  -Identified
                  -David Rockefeller
                        -Ivanov’s view
      -Relations with US
            -Alkhimov's comments
            -Change
-Philosophy of spreading communism
      -Chile
      -Cuba
      -Political persuasion
      -Alkhimov
-Summit
      -Preparations
-Military
      -Alkhimov's comments
      -Influenced by US expenditure
      -Supply of North Vietnam
            -Competition with People’s Republic of China [PRC]
      -Mikhail Suslov
-Economic interests
      -Growing power
-Summit
      -Effect on the President's Vietnam actions
      -Follow-up negotiating team
            -Business issues
                  -Grain
                  -Lend-Lease
                  -Kama River
            -Composition
                  -White House
                  -State Department
                  -Commerce Department
                  -Agriculture Department
            -Rotating chairmanship
            -Continuity
            -Problems
                  -Bureaucracy
                        -Williston Scott's level
                  -Department Secretary level
                        -Stature
                        -Peter G. Peterson
                        -Rogers
                                               24

                      NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. Jan-02)          Conv. No. 724-4 (cont.)

                                -Earl L. Butz
                     -Personal relationships
                          -Alkhimov's comments
                          -Continuity
                          -Importance
                     -Kendall’s view

Stephen B. Bull entered at an unknown time after 4:06 pm.

     President's schedule
          -George P. Shultz
          -Caspar W. Weinberger

Bull left at an unknown time before 4:46 pm.

     Soviet Union
          -Trade
               -Summit
                     -Follow-up negotiating team
                           -Jewish team members
                                -Henry A. Kissinger
                                      -Soviet attitude
                                -Soviet attitude
                                -Nathaniel Samuels
                                -Limitation of numbers
                                      -Kissinger
                                            -Soviet attitude
          -Ambassador from US
               -Change
                     -Jacob D. Beam
                           -New post
                           -Health
          -Agriculture
               -Credits on consumables
                     -Refusal
                     -Flanigan
               -Credits on capital goods
                     -Acceptance
                           -Reason
               -Grain
                     -Length of commitment
          -Commercial credit
               -Level
                                             25

                    NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                       (rev. Jan-02)             Conv. No. 724-4 (cont.)

                    -Fixed
                    -Export-Import [Ex-Im] Bank
                    -Establishment
                    -International Monetary Fund [IMF]
                    -Advice from Kendall
                          -Amount
         -MFN status
              -Necessity
         -Trade with US
              -Importance
                    -Poltical impact
                          -Kendall's opinion
                          -President's and Kissinger's opinion
              -Role of new Ambassador
         -Maurice H. Stans
              -Trip to Soviet Union
                    -Communications
                          -The President
                          -Peterson
                          -Flanigan
                          -Butz
                          -The President
                          -Peterson
                                -Criticism
              -A party
              -Peterson


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

BEGIN WITHDRAWN ITEM NO. 2
[Personal Returnable]
[Duration: 3m 52s ]


END WITHDRAWN ITEM NO. 2

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


    George C. Wallace
        -Assassination attempt
              -Condition
                                      26

               NIXON PRESIDENTIAL MATERIALS STAFF

                               Tape Subject Log
                                 (rev. Jan-02)         Conv. No. 724-4 (cont.)

          -Attacker(s)

Support for the President
    -Businessmen
           -Kendall
           -Flanigan
           -William S. Renchard
           -Stans
                 -Service as Secretary of Commerce
                       -The President’s view
           -Complaints of elite
                 -Exceptions
                       -Young
                       -Frederick Weyerhauser
                       -Kendall
    -Labor leaders
           -Fitzsimmons
           -Meany
           -The President’s view
           -Election support
    -Businessmen
           -Compared with labor leaders
           -The President’s view
    -Need to build new establishment
           -Difficulty
           -James M. Roche
                 -Assessment of hippie culture
                 -Replacement of General Motors [GM]
                       -Richard Gerstenberg
           -The President’s view
                 -Harvard Business School
    -Problems
           -Chairman for San Francisco
                 -Number called
           -Chairman for Los Angeles
                 -Forest Shumway
                       -The President’s view
    -Future
           -Liberal-labor hegemony
           -Need for businessmen to unite
                 -Kendall as exception
    -Business Council
           -Membership
                                        27

                NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. Jan-02)                Conv. No. 724-4 (cont.)

          -The President’s view
          -Fair-weather support
          -Number of supporters of the President
     -Robert H. Abplanalp
          -Attitude of other businessmen
          -Amount of holdings
          -Source of fortune
          -Attitude toward businessmen
     -Kendall
          -Background
     -Businessmen
          -Prospects of support for the President
          -Roche
          -Business Council
                -President's appearances when Vice President
                      -Follow-up
                -President's expectations for future

US establishment
     -Businessmen
     -Press
           -Time
           -Newsweek
           -Life
           -Three major television networks
           -Ownership
                 -Jewish
           -Philosophy
                 -Left-leaning
           -Los Angeles Times
     -Education leaders
           -Ivy League professors and presidents
                 -Position on Vietnam
           -Larger colleges
     -Social class
           -The President’s view
                 -Exceptions
                       -Kendall
                       -Flanigan
           -The President’s view
     -President's treatment of establishment
           -Kendall's attitude
           -Business Council
                                                  28

                        NIXON PRESIDENTIAL MATERIALS STAFF

                                        Tape Subject Log
                                          (rev. Jan-02)         Conv. No. 724-4 (cont.)

                        -Flanigan's suggestions
                        -President's attitude
             -Problems
                  -Texas chairman for the President
                        -William P. Clements, Jr.
                              -Kendall’s view
                              -John B. Connally
                              -Desire for David Packard's job
                              -Connally
                  -Lawyers
                        -Compared to businessmen
                              -The President’s view
             -Business leaders
                  -Kendall's efforts
                        -President's appreciation
                  -The President’s view
                        -Abplanalp
                  -President's invitations

     Pepsi

Henry A. Kissinger entered at 4:46 pm.

             -PRC
             -Women in PRC and Hong Kong
                  -The President’s view
             -Soviet market

     Soviet Union
          -Trade with US
               -Centralization of US decision making
                     -Role of lesser figures

     President's schedule
          -Golf with Joe Wolf

Kendall and Flanigan left at 4:48 pm.

     Soviet Union
          -Kissinger's meeting with Anatoliy F. Dobrynin

     Wallace
          -Shooting
                                       29

                NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. Jan-02)                  Conv. No. 724-4 (cont.)

          -Assailant
               -Suspected George S. McGovern supporter
     -Violence

Soviet Union
     -Captured Soviet spy
          -Appeals
          -Deportation
               -Richard G. Kleindienst position
               -Federal Bureau of Investigation [FBI] and Justice Department
               -Kissinger's recommendation
                     -Exchange
          -[Forename unknown] Malekov [?] release
               -Conditions
     -Trade
          -Kendall's meeting with Nikolai S. Patolichev
               -Effect of meeting with the President
                     -Kendall’s view
          -US policy
               -Kendall knowledge
               -Flanigan
                     -Knowledge
                     -Kissinger’s view
                     -Haldeman's recommendations
                     -The President’s view
               -Decision making
                     -High level
                     -President's meeting with Brezhnev
               -Responsibility for Flanigan
               -Agriculture credits
                     -Butz
                     -Flanigan
                     -Peterson
                     -Duration
                           -Kendall's recommendation
                           -Kissinger's recommendation
               -Benefits
                     -Lower level bureaucrats
                     -High level officials
               -Negotiating team
                     -Kendall's recommendation
                     -Kendall's impressions
                           -Peterson
                                              30

                       NIXON PRESIDENTIAL MATERIALS STAFF

                                    Tape Subject Log
                                      (rev. Jan-02)                 Conv. No. 724-4 (cont.)

                                 -Butz
                                 -Flanigan
                                 -Samuels
                                 -[Forename unknown] Dean
                           -Peterson
                                 -Kissinger’s view
                      -Decision on credits and MFN status
                           -Timing
                           -Reasons
                -Fragility
           -Soviet spy
                -Importance
                      -The President’s view

     Vietnam
          -Military action
                -Bastogne-Birmingham Road
                     -Reoccupation
                     -Previous reporting
                     -Current headline
                           -Washington Star

     Kissinger's schedule
          -East Room reception

Kissinger left at 4:54 pm.