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Conversation: 772-008

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Start Date: 7-Sep-1972 10:41 AM

End Date: 7-Sep-1972 12:22 PM

Participants:

Nixon, Richard M. (President)Shultz, George P.Bull, Stephen B.Ehrlichman, John D.[Unknown person(s)]Connally, John B.Roosevelt, JamesRoosevelt, John

Recording Device: Oval Office

772-008.mp3

772-008a.mp3

NARA Description:

On September 7, 1972, President Richard M. Nixon, George P. Shultz, Stephen B. Bull, John D. Ehrlichman, unknown person(s), John B. Connally, James Roosevelt, and John Roosevelt met in the Oval Office of the White House from 10:41 am to 12:22 pm. The Oval Office taping system captured this recording, which is known as Conversation 772-008 of the White House Tapes.

Nixon Library Finding Aid:

Conversation No. 772-8

Date: September 7, 1972
Time: 10:41 am - 12:22 pm.
Location: Oval Office

The President met with George P. Shultz and Stephen B. Bull.

Bull left at an unknown time before 11:48am.

             Greetings

             Secret Service protection for Edward M. Kennedy
                 -Shultz's role
                 -Alexander P. Butterfield's role
                 -Details concerning coverage
                      -Campaign activities
                      -Type of coverage
                 -Rationale
                 -Federal Bureau of Investigation [FBI]
                      -Security for Israelis during visits to US
                 -Legal implications of coverage
                      -Eugene T. Rossides
                      -The President’s instructions
                 -Threatening letters to Kennedy
                      -Public figure
                 -The President’s order
                      -Termination of detail
                 -Butterfield’s role

John D. Ehrlichman entered at an unknown time after 10:41 am.

                     -Details of coverage
                         -Shultz
                              -Legal details of coverage
                 -Other public figures and Secret Service protection
                                   11

         NIXON PRESIDENTIAL MATERIALS STAFF

                          Tape Subject Log
                            (rev. Oct-06)

    -John E. Schmitz and Thomas J. Anderson
        -Coverage by Secret Service
              -Advisory committee ruling
                  -George C. Wallace
                  -George H. Gallup and Louis P. Harris polls
                  -Vote percentage
                  -H.R. (”Bob”) Haldeman's recommendation
                  -Dr. Benjamin (McLane) Spock
                       -Secret Service reactions
                         -Type of crowds
    -Shultz's upcoming conversation with Kennedy
        -Threats received
              -Secret Service protection
        -Threats
              -Mail
              -Amount in comparison to other public officials
              -Mail
    -Kennedy's request

Presidential gifts to Shultz from the President
    -Watch
         -Four leaf clover
    -Gift from Shultz to the President
         -Watch
         -Monetary bills
              -Shultz's signature
              -Specific identifying dates
              -Highlights of the President's career

1972 Presidential Campaign
    -Secret Service protection
        -Kennedy
             -Campaigning with George S. McGovern
                  -Effect on crowds
        -McGovern
             -Increase of communications within Secret Service staff
        -Type of communications network
             -Shultz's analysis
                  -Republican National Convention
                  -Testifying before committee
    -Candidates and primary candidates
        -Organization of schedule by Secret Service
                                 12

         NIXON PRESIDENTIAL MATERIALS STAFF

                         Tape Subject Log
                           (rev. Oct-06)

    -Secret Service
        -James J. Rowley
        -Meetings with Shultz
             -Screening individuals
        -Director of Secret Service
             -Replacement

International economic policies
     -Reform
         -International Monetary Fund [IMF]
         -Previous meeting in San Clemente
              -US policy
         -Milton Friedman
         -Meetings between Shultz, Arthur F. Burns, Herbert Stein, William P.
         Rogers and Peter M. Flanigan
         -John B. Connally
              -Discussion with Shultz
         -Henry A. Kissinger
              -Foreign policy and monetary affairs
              -Actions by Shultz
         -Shultz and Connally
              -Convertibility issues
                   -The President’s view
         -International bureaucracy
              -Wall Street role
                   -Effect
         -Meeting between Shultz and Friedman
         -US attitude toward foreign countries
              -The President’s view
                   -Domestic concerns
     -Formulated plan by Shultz and Friedman
         -Smithsonian Agreement convertibility rates
              -Central values
              -Percentages
              -Problems
                   -Changing central value
                       -French Franc
                       -Japanese Yen
                       -Disappearance of reserves
                         -Problem of August 15, 1971
         -Need for flexibility
         -National reserves
                           13

    NIXON PRESIDENTIAL MATERIALS STAFF

                   Tape Subject Log
                     (rev. Oct-06)

         -Importance of monitoring reserve condition
              -Currency fluctuations
              -Indication of central rate
              -Decreasing reserves
                   -Actions by country
                     -Changing central rate
              -Accumulating reserves
                   -Japan
                     -Trade and exchange rate
              -Principle of symmetry
                   -Importance of adjustments
    -Central value link with movement of reserves
         -Currency convertibility
              -Effect on reserves
                   -Results
                   -Shultz’s view
    -Automatic actions in system
         -Possible effect
              -Currency speculation
              -Possible solutions
                   -Rules in zones
                   -Provisions other than exchange rate changes
    -Monetary system responsibilities
         -Connally’s view
              -Europe
         -Japan and exports
              -Import surcharge
    -Adjustment process and exchange rate
-Administration of General Agreement on Tariff and Trade [GATT]
    -Relationship between IMF and GATT
         -Shultz’s view
    -Burns
         -Connally’s concept
-US position
    -Basic system of currency convertibility
    -Floating currency option
         -Canada
-Floating currency
    -“Clean float”
         -Market forces
         -Intervention
              -Reserves
                             14

    NIXON PRESIDENTIAL MATERIALS STAFF

                     Tape Subject Log
                       (rev. Oct-06)

                  -Revaluation
-Unit rule
    -Group of countries forming monetary union
         -Europe
              -Common market
              -Provision by US
-The President’s appearance before the IMF
    -Stein
         -Draft speech of points
    -Three points
         -Importance of peace
         -Economic expansion
              -Inflation
         -Resolution of international trade and currency issues
              -The President’s actions
-Recommendations by the Secretary of Treasury
-Basic plan for US
    -Connally
    -Kissinger
    -Burns
    -Flanigan
    -Rogers
         -The President’s statement before IMF
-World markets
    -US position
         -US markets
         -The President’s view
         -Effects
              -Stability
                   -Intervention
         -Possible reaction abroad
-US plan
    -US domestic considerations
         -Hobart Rowen’s view
         -Edward Dale
              -The President’s view
         -Favorability
         -Press conference
              -Wall Street Journal
                   -Briefings
         -Burns
         -The President's decision
                                 15

         NIXON PRESIDENTIAL MATERIALS STAFF

                         Tape Subject Log
                           (rev. Oct-06)

             -Financial people
                  -Former Secretaries of Treasury
                  -Academic economists
                      -Pierre Rinfret
                      -Friedman
                  -Leaks
-Exchange rates
    -US position
        -Smithsonian Agreement rate
             -1972 election
        -International economic situation
             -Kissinger
             -Other countries in relationship with US
                  -France
                      -Increase in price of gold
                        -Possible effect on markets and Great
                         Britain
                  -West Germany
                      -Alden W. Clausen
                        -Burns
                      -Helmut Schmidt
                        -Common Market actions
                  -Great Britain
                  -Formation of gold bloc by Europeans
                      -Official price compared with higher price
                        -US reaction
                          -Position on monetary reform
-Gold
    -US position
        -Role of gold in world markets
        -Rate of supply and rate of demand within industry
        -Buying and selling outside of market
             -Long term monetary reform discussions
    -Raising price by common market
        -US position
             -Effect on France
        -Selling of gold by US
             -Effect on France
    -US industries
        -Buying and selling gold
    -Gold market in Europe
                                16

        NIXON PRESIDENTIAL MATERIALS STAFF

                        Tape Subject Log
                          (rev. Oct-06)


US economic policies
    -Forthcoming IMF meeting
         -The President's statement to the IMF
              -Shultz’s view
    -Wage and price issue
         -Automobile companies
         -Stein, Donald H. Rumsfeld
              -Plan for wage and price issue
              -1973 collective bargaining negotiations
         -Consumer Price Index [CPI]
              -Rowen’s view
              -Collective bargaining
              -Pay Board
              -Price Commission
         -Forthcoming Labor-Management meeting
              -Timing
                   -1972 election
              -Economy, preview budget, future outlook
              -Announcement by the President
                   -Christmas season
                   -Retention of economic control boards and commissions
                   -Continuation of economic control measures
                        -Internal Revenue Service [IRS]
                   -Cost of Living Council [COLC]
                        -Structure
              -Construction industry effort as entity
                   -Secretary of Labor
              -Health industry
              -COLC
                   -Individual cases
              -Structure of formal control
                   -Changes
              -Freemarket situation
    -First part of the President's administration
         -Authority to impose wage and price controls
              -Shultz’s view
              -Time period framework
                   -Congress
         -Korean War period
              -Wage and price problem
                            17

    NIXON PRESIDENTIAL MATERIALS STAFF

                    Tape Subject Log
                      (rev. Oct-06)

            -Lack of control
-Freeze
    -Wage and price control
         -The President's actions
-COLC
    -The President’s view
         -Future problems
    -Actual effect
    -Labor
    -Business
-New Commission on Industrial Peace
    -George Meany
         -Speech
         -Press confrontation
-COLC
    -Controls
         -Further controls
         -The President’s view
    -Legislation
-Labor contracts
    -Price contracts
    -Stipulations
         -Possible change in mechanism
-Income taxes
    -Treasury Department
         -Connally
         -Short form for income tax filing
              -Timing
                  -Requests for public comments
              -Effect
         -Sears, Roebuck and Company
              -Support
                  -Connally
    -Minimum taxes
         -The President’s policies
              -1969
         -Rationale
         -Congress's reaction
         -Revenue gains
              -Shultz’s view
         -Tax increase
                           18

    NIXON PRESIDENTIAL MATERIALS STAFF

                   Tape Subject Log
                     (rev. Oct-06)

             -Tax shelters
        -The President’s proposal
    -Property taxes
        -Importance
        -Increase in taxes
    -Value added tax [VAT] and income tax
    -Minimum tax
        -Alcohol tax
             -Dollar basis
    -Property tax
        -Homeowners
             -Elderly homeowner
                  -Lower incomes
                  -Potential benefits
                  -Effect
                  -Amounts
    -Plan for elderly
        -Tax forms
        -Shultz’s view
             -Education financing
    -Revenue sharing legislation
        -Piggyback concepts
             -Need for incentives
                  -Education financing
    -Escalation idea
        -Connally
        -Friedman
        -Government revenue increases
             -Use
                  -Spending
                  -Shultz’s view
        -Friedman
             -Government size
                  -Relationship of government size to tax amount
                    -Presidents and Chairmen of Ways and Means Committee
-Systematic system
    -Annual process
        -Tax system
    -Wilbur D. Mills
-Budget
    -Tax cut
                                                19

                      NIXON PRESIDENTIAL MATERIALS STAFF

                                       Tape Subject Log
                                         (rev. Oct-06)

                 -Personal income
                     -Amount of money
                          -Effect of rate of inflation
                               -Percent of increase in taxes
                 -Growth of economy
                     -Productivity
                     -Inflation
                 -Federal tax increase
                     -Increase of economy
                          -Workforce
                     -Increase of productivity
                     -Increase of inflation
                 -Capital income basis
                 -Real income
                     -Increase in percentage
                          -Reasons
                     -Amount of money growth per year
                     -Higher incomes and higher tax brackets
                     -Inflation
                 -Rate of tax increase

Bull entered at an unknown time after 10:41 am.

             The President's schedule
                 -Forthcoming meeting with Connally, James Roosevelt and
                  John A. Roosevelt

Bull left at an unknown time before 11:48 am.

             US economic policies
                 -Connally
                 -The President’s view
                 -Taxes on alcohol
                     -Percentage of drinkers in US
                          -Christian Scientists, [Church of Jesus Christ of Latter Day Saints],
                          Mormons
                 -Property taxes
                     -$50,000 or more tax bracket
                          -$25,000 tax bracket
                     -Minimum taxes
                          -Connally
                           20

    NIXON PRESIDENTIAL MATERIALS STAFF

                    Tape Subject Log
                      (rev. Oct-06)

              -Possible effect
     -Tax reform
         -Property tax
     -Poor
         -Reductions
     -Elderly
     -Poor
         -Office of Economic Opportunity [OEO] bill
-Blue collar workers
     -Effect of taxes
         -The President’s view
-Friedman's plan
     -The President’s view
         -Reduction of government spending
              -Percent of budget
                   -Effect
                     -National debt
                     -Inflation
                       -Social Security
         -Size of government
              -White House staff
              -Government agency staffs
                   -Reductions
         -Government programs
              -Limit
         -Friedman’s plan
              -Government spending
-Four year plan
     -Goals
-Taxes
     -Alcohol
     -Minimum tax
         -Connally
         -Poor compared to rich
              -The President’s previous speech
                   -Patrick J. Buchanan
-Piggyback idea
     -The President’s view
     -Tax increases
     -Administrative means
         -State compared with government needs
                                             21

                      NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. Oct-06)


An unknown person entered at an unknown time after 10:41 am.

             Connally
                -The President’s schedule
                -Connally, James Roosevelt and John Roosevelt

The unknown person left at an unknown time before 11:48 am.

             US economic policies
                 -Discussion between Ehrlichman, Shultz and Connally
                 -Minimum tax
                 -Congress
                     -Actions in 1969
                 -Administration's opposition to tax loopholes
                 -Capital gains taxes
                     -The President’s view
                     -Charles G. ("Bebe") Rebozo
                          -Stock
                              -Source of money
                     -Application of tax rate
                          -Effect
                 -Taxes
                     -Social purpose

Connally, James Roosevelt, and John Roosevelt entered at 11:48 am.

             Greetings
                 -California

             Introductions

             Discussion of economics
                 -Ehrlichman and Shultz
                     -Date of upcoming meeting

Ehrlichman and Shultz left at 11:50 am.

             US foreign economic policies
                 -IMF meeting
                     -Speech and appearance by the President
                                               22

                       NIXON PRESIDENTIAL MATERIALS STAFF

                                         Tape Subject Log
                                           (rev. Oct-06)

                 -Current economic plan
                     -Former Secretaries of Treasury
                          -Forthcoming meeting with the President
                               -Connally
                                 -Shultz
                                 -Haldeman
                 -Press story on wage and price controls
                 -Connally
                     -Burns

             Oliver F. (“Ollie”) Atkins
                 -Photographs
                 -Press photographs
                      -Seating arrangements

Members of the press entered at 11:51 a.m.

             [General conversation]

             Earl Warren
                  -Press article

Members of the press left at 11:52 am.

             Julie Nixon Eisenhower

             Franklin D. Roosevelt
                 -Movie Crusade in Europe
                      -Dwight D. Eisenhower
                 -Franklin Roosevelt's Declaration of War speech
                      -The President’s recollection
                 -Speech on drawing the first draft number
                 -Television
                      -Compared to radio
                 -Appearance
                      -The President’s view
                 -Speaking ability
                 -Type of voice
                      -Connally
                 -Type of manner
                 -George S. McGovern
                                              23

                   NIXON PRESIDENTIAL MATERIALS STAFF

                                   Tape Subject Log
                                     (rev. Oct-06)

                  -1932 compared to 1972
                  -New York Times
              -The office of the presidency
                  -Effect on Franklin Roosevelt
                  -Pictures of Roosevelt at beginning of presidency and at end
                  -Public knowledge of Roosevelt's health
                  -Roosevelt's voice
              -Health
                  -1944 Presidential campaign
                       -Picture of Roosevelt
                            -Brooklyn, New York
                                 -Weather
                                 -Sons
                  -Train trip
                       -San Diego
                       -San Clemente
              -Roosevelt's trip
                  -Southern Pacific Railroad
                       -The President’s residence at San Clemente
                            -Henry Hamilton Cotton
              -Poker
                  -The President's preference
                  -Wild cards


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

BEGIN WITHDRAWN ITEM NO. 4
[Personal returnable]
[Duration: 3m 59s     ]


END WITHDRAWN ITEM NO. 4

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


          Possible roles for the Roosevelts
              -US bicentennial celebration
                   -Tourism
                        -Europe
                                  24

        NIXON PRESIDENTIAL MATERIALS STAFF

                         Tape Subject Log
                           (rev. Oct-06)

               -Japan
                   -Tourist trade in Hawaii, Guam, Pacific Islands
                        -Japan influence
          -West German tourists
    -The President's conversation with Connally
          -The two Roosevelt sons
               -Possible ambassador positions
          -State Department officials
               -The President’s view
          -Duties as an ambassador
               -Responsibilities to the President
               -Africa
    -1st term appointments
          -1972 election
    -The President's conversation with Lyndon B. Johnson
          -Use of celebrities
               -Dwight Eisenhower First Family
               -Austria
    -Forthcoming conversation with Connally
          -Ambassadorships
    -Other Presidential appointments

Presidential appointments
    -McGovern
         -1972 election
    -Possible commission appointment
         -Conversation between Ehrlichman and James Roosevelt
              -Domestic Council
              -Legislation
              -Committee relationships
                  -Partisanship
                  -Rogers C.B. Morton
         -Ehrlichman

US Bicentennial celebration
   -International situation
   -Domestic affairs
        -Current situation
             -Local counties
   -Philadelphia
   -World's Fair
                            25

    NIXON PRESIDENTIAL MATERIALS STAFF

                    Tape Subject Log
                      (rev. Oct-06)

    -Old buildings in San Francisco
-Type of celebration
-Great Britain
-US democracy
    -Duration of government
-Press coverage
    -Television programs
-John and James Roosevelt
    -Bipartisanship
-The Atlantic Charter
    -International application
         -Wording of the Declaration of Independence
         -Unified political philosophy
         -Effects of words
-[Thomas] Woodrow Wilson
    -World War I
         -Fourteen Points proposal
              -Wording
                   -Effect
-Planning
    -Timing
         -1972 election
    -Intellectuals
-Eisenhower Fellowship Foundation
    -John Roosevelt
         -Trustee
    -Individuals' participation
    -Assistance to foreign government
         -Turkey
              -Prime Minister
    -Eisenhower
         -Latin America
    -Tom McKay[?]
         -Robert B. Anderson
    -Eisenhower Library
         -Johnson Library
-Roosevelt Presidential Library
    -Condition of house
         -Visit by the President
-Eisenhower
    -Invitation to Roosevelts' children
                                          26

                   NIXON PRESIDENTIAL MATERIALS STAFF

                                    Tape Subject Log
                                      (rev. Oct-06)

                       -Time
                       -Duration of meeting
                       -Roosevelt's sons
                           -Comment on meeting


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

BEGIN WITHDRAWN ITEM NO. 5
[Personal returnable]
[Duration: 3m       ]


END WITHDRAWN ITEM NO. 5

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


          The President's Labor Day speech
              -National Commission for Industrial Peace
                  -John Roosevelt's interest
                       -Member of Labor committee
                       -Idea of consultant
                       -English people and Labor Party
                  -1972 election

          Labor issues
             -Compulsory arbitration
             -Pay Board
             -Collective bargaining
                   -Grievances
             -Teacher's strike
                   -New York City

          Presidential gifts
              -Cufflinks
                   -Presidential seal
                   -Wives

          [General conversation]
                                              27

                      NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. Oct-06)

Connally, Roosevelt, and Roosevelt left at 12:22 pm.