Conversation No. 773-17

Date: September 8, 1972
Time: 12:22 pm - 1:05 pm
Location: Oval Office

The President met with John D. Ehrlichman.

             Greetings

             Political meeting
                  -John N. Mitchell

             Tax issue
                 -Statement
                      -The President’s view
                      -Knowledge
                 -Conversation between Ehrlichman and John B. Connally
                      -The President’s view
                      -Arthur F. Burns
                 -Idea of political decision
                              30

    NIXON PRESIDENTIAL MATERIALS STAFF

                      Tape Subject Log
                        (rev. Oct-06)

-Wealthy
-Property tax
    -Elderly
-Tax increase
    -Tax reform
          -Ronald L. Ziegler
               -Herbert G. Klein
               -Pierre E.M. Salinger
               -James C. Hagerty
          -The President’s view
-George P. Shultz, Milton Friedman
    -Changes
          -Proposal
-Tax credits
    -Individuals
    -Local government
    -Idea of deductions
          -Confusion
-Long term goals proposal
    -Reduction of property taxes
-Fixed income
    -Tax credit
    -Phase II
-Political viewpoint
    -Shultz
          -Taxing the wealthy
               -The President’s view
               -Results
               -Poll indicators
               -The President's analysis
                    -Type of issue
    -Minimum tax
    -Growth of government
          -Friedman
          -Reduction of growth
               -Methods
                    -Direction of expenses
                         -National priorities
                    -Inflation growth, real growth
                    -Controlled expenditures
                         -Goals
                                 31

        NIXON PRESIDENTIAL MATERIALS STAFF

                       Tape Subject Log
                         (rev. Oct-06)

                            -Time duration
                        -Counties and states
                            -Revenue sharing
    -Tax credit
        -Duration
        -Direct relationship with government
             -Year
                 -Education system
        -Aiding the educators
             -School bonds
        -Shultz’s view
             -Elderly and pensions
             -Effect of tax credit on local government
                 -Raising property taxes
                       -Revenue sharing
        -The President's position
             -Shultz
             -Type of issue
        -Proposed position on issue
             -Tax payers
    -Possible meeting between the President and Richard G. Merriam
        -Advisory Commission on Intergovernmental Relations [ACIR]
        -Value added tax [VAT]
        -Timing
        -Issue on tax credit
             -Timetable
        -Results of meeting
             -Outlook
             -Publicity

Watergate
   -Lawrence F. O'Brien, Jr.
        -Income
            -Dates
            -Harold R. Hughes
        -Adjusted gross income
            -Income sources
            -Ducor industries
            -Dates
            -Sources
            -Knowledge
                               32

        NIXON PRESIDENTIAL MATERIALS STAFF

                        Tape Subject Log
                          (rev. Oct-06)

           -Release
           -Gary Hart
           -Press story by Herman M. (“Hank”)Greenspun
                -Release of information
           -Idea of placing information
                -Hart
           -Greenspun
    -Democrats
       -Possible allegations against F. Donald Nixon
           -The President’s view
           -Story
                -Date

Water quality bill
   -Shultz
   -Forthcoming vote
        -Patrick J. Buchanan
             -Veto
   -Effect
        -Inflation
   -Funding
        -John C. Whitaker
   -Final version of bill
        -Forthcoming negotiations
        -Whitaker’s view
             -Office of Management and Budget [OMB]
             -Conservatives
   -Result of vote
   -Budget
   -Funding control

US economic policies
    -Tax issue
        -Pressure from Congress
             -Present position
        -Ehrlichman’s view
        -Food prices
             -George S. McGovern
        -Wholesale Price Index
             -Consumer Price Index [CPI]
             -Actual meaning
                                33

        NIXON PRESIDENTIAL MATERIALS STAFF

                        Tape Subject Log
                          (rev. Oct-06)

                -The President’s view
                    -Public effect
            -Shultz
            -Handling of bureaucrats

Herbert G. Kalmbach
    -Robert D. (“Bobby”) Baker
    -Need for information
        -Ehrlichman’s efforts
        -The President’s instructions
        -Involvement of Democrats
            -O'Brien
    -The President's conversation on the Sequoia
        -Richard G. Kleindienst
        -H.R. (“Bob”) Haldeman
        -US attorney in Louisiana
            -Senate race
                  -John McKeithen
                  -Republican
        -Politics
        -Kleindienst
            -Right wing compared with left wing on staff
            -Baltimore attorney
            -Connally
    -Conversation between Kalmbach and Ehrlichman

James Roosevelt and John A. Roosevelt
   -Federal Communications Commission [FCC]
   -Nicholas Johnson
       -Possible resignation
   -Labor Commission
       -Labor Committee
   -James Roosevelt
       -Travel to Europe
            -US bicentennial celebration
            -David J. Mahoney, Jr.
       -Conversation with Ehrlichman
            -Kenneth W. Cole, Jr.
            -Slogans
                 -Franklin D. Roosevelt and Winston Churchill and Atlantic
                 Charter
                                          34

                  NIXON PRESIDENTIAL MATERIALS STAFF

                                  Tape Subject Log
                                    (rev. Oct-06)

                               -Idea of Nixon charter
                                   -Comparison to Declaration of Independence


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BEGIN WITHDRAWN ITEM NO. 2
[Personal returnable]
[Duration: 2m 6s      ]


END WITHDRAWN ITEM NO. 2

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          Watergate
             -O’Brien
             -Team of investigators
                  -Federal Bureau of Investigation [FBI]
             -Story
                  -Prices
                  -Republicans and Democrats
                       -The President’s view
                       -Impact on average person
                       -Impact of intellectuals
                       -Impact on the President's image
                  -The President’s view
                  -Ehrlichman's analysis
                       -Clark MacGregor

          Campaign issues
             -Republican National Committee
                 -Fundraising
                      -Robert J. Dole
                          -Strategy
                               -Democratic funding services
                               -Combined meeting
             -Forthcoming Cabinet meeting
                 -Topics
                      -Vietnam War
                          35

    NIXON PRESIDENTIAL MATERIALS STAFF

                   Tape Subject Log
                     (rev. Oct-06)

            -William P. Rogers
            -Louis P. Harris poll
                 -Adminstration policy
   -Charles W. Colson
   -Melvin R. Laird
       -Strategy for 1972 campaign
   -Legislative leaders
   -Colson
   -Laird
   -Rogers
   -The President’s position
       -Campaign strategy
   -Topics to be discussed
       -US–Soviet Union grain deal
            -McGovern
                 -Adminstration response
                 -Ehrlichman's analysis
                     -Farmers of America
                 -George Meany
       -Taxes
       -Watergate
            -Defense
            -Peter G. Peterson
                 -Public responses to accusations
            -Maurice H. Stans
            -Labor people's reactions
            -Businessmen's reactions
            -Labor relations
            -McGovern
            -Nixon compared with McGovern
            -Henry Kimelman
                 -Joseph W. Alsop
-McGovern
   -Discrepancies in budget
       -Alsop
       -Gifts
            -Professor [name unknown] [Pomerantz?] from
            Harvard University
                 -Kimelman
                                           36

                   NIXON PRESIDENTIAL MATERIALS STAFF

                                   Tape Subject Log
                                     (rev. Oct-06)

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

BEGIN WITHDRAWN ITEM NO. 3
[Personal returnable]
[Duration: 12m 3s     ]


END WITHDRAWN ITEM NO. 3

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


          Public relations
              -Earl L. Butz's handling of grain deal charge
                   -MacGregor
                        -Handling
                            -Watergate issue
                                -Questions to Ehrlichman
                                     -Responses

          Watergate
             -Deposition
                  -Information about Ehrlichman's conversation with
                   Colson
                       -E. Howard Hunt, Jr.
                       -Watergate break-in
                           -Call from Secret Service to Ehrlichman
                               -Five people caught breaking into Democrat
                                National Committee
                                    -Hunt
                                        -White House staffer
                               -Time of call

          Tax issue

          Water pollution bill
             -William E. Timmons
             -Funding
                  -The President’s view
                  -Possible veto
                                                37

                      NIXON PRESIDENTIAL MATERIALS STAFF

                                        Tape Subject Log
                                          (rev. Oct-06)

             Taxes
                 -Conservatives
                 -Shultz and Burns
                     -Forthcoming meeting
                          -Ehrlichman’s forthcoming conversation with Connally

The President and Ehrlichman left at 1:05 pm.