Conversation: 849-001
Prev: 848-020 Next: 849-002Start Date: 5-Feb-1973 4:52 PM
End Date: 5-Feb-1973 6:09 PM
Participants:
Nixon, Richard M. (President); Shultz, George P.; Stein, Herbert; Ash, Roy L.; Ehrlichman, John D.;Recording Device: Oval Office
NARA Description:
On February 5, 1973, President Richard M. Nixon, George P. Shultz, Herbert Stein, Roy L. Ash, and John D. Ehrlichman met in the Oval Office of the White House from 4:52 pm to 6:09 pm. The Oval Office taping system captured this recording, which is known as Conversation 849-001 of the White House Tapes.
Nixon Library Finding Aid:
Conversation No. 849-1
Date: February 5, 1973
Time: 4:52 pm - 6:09 pm
Location: Oval Office
The President met with George P. Shultz, Herbert Stein, Roy L. Ash, and John D. Ehrlichman;
this recording began at an unknown time while the conversation was in progress.
Child
-Richard K. Moore [?]
Gun violence
-Press
-Race of assailant
-Impact
-Relationship
Ash
-Previous meeting
-Appropriations Committee
-George H. Mahon
-Fiscal responsibility
-Compared to President
-Deficit
-Tax increase
-Necessity
-Election
-Election promise
-Impact on policy
-Voters
US economy
-Meeting of the Quadriad
-Timing
-Budget
-2-
NIXON PRESIDENTIAL LIBRARY AND MUSEUM
Tape Subject Log
(rev. Sep.-09)
Conversation No. 849-1 (cont’d)
-William McChesney Martin, Jr.
-Projections on inflation
-Accuracy
-Budget
-Cuts
-Phase III
-Arthur F. Burns
-International monetary solution
-Inflation
-Martin
-Arthur M. Okun
-Economics
-Social values
-Martin’s view
-Speech
-Money supply
-Rate of inflation
-Ambitious goal to lower
Manolo Sanchez entered at an unknown time after 4:52 pm.
Refreshments
-Iced tea
Agriculture
-Inflation rate
-Effect on tariff reduction
Sanchez left at an unknown time before 6:09 pm.
-Achievability
-Increase in prices
-Food
-Increase in production of wheat, con, soybeans
-Annual rate
-Farm prices
-3-
NIXON PRESIDENTIAL LIBRARY AND MUSEUM
Tape Subject Log
(rev. Sep.-09)
Conversation No. 849-1 (cont’d)
-Retail prices
US economy
-Phase III
-Reporting
-Wage and price control
-Confusion
-Phase II
-Stock Market
-Labor
-Budget
-Cuts
-Expenditures
-Monetary supply
-Burns
-Federal Reserve
-Control
-Monetarists
-Monitoring
-Credit crunch
-Fears
-Burns
-Budget
-Treasury Department
-Shultz’s statement
-Effectiveness
-Interest
-Jawboning
-Banks
-Impact
-Prime rate
-Shultz’s statement
-Jawboning
-Effective rate
-Interest rates
-banks
-4-
NIXON PRESIDENTIAL LIBRARY AND MUSEUM
Tape Subject Log
(rev. Sep.-09)
Conversation No. 849-1 (cont’d)
-Nervousness
-Control
-Internal Revenue Service [IRS]
Business attitudes
-1960s
-Comparison with poor, blacks
-Dependence on government
-Phase I, Phase II
-Labor battles
-Phase III
-Commitment to free enterprise
-Fear
-Vietnam settlement
-Market fluctuations
-Benefits of peace
-Short term compared to long term
-Uncertainty
-Dependence on government
-Business compared to black and poor
-Consciousness
-Realization by business
-Smaller businesses
-Government expenditures
-Effect of domestic programs
-Weaning
-Business compared to blacks and poor
-Principles
-Reaction by business
-Jobs
-Budget role
-Turnaround
-Wage and price role
-Resemblance to past policies
-Fear of downturn
-Forecast
-5-
NIXON PRESIDENTIAL LIBRARY AND MUSEUM
Tape Subject Log
(rev. Sep.-09)
Conversation No. 849-1 (cont’d)
-Budget
-Turnaround
-Policy
-Phase III
-Concerns
-Close observers
-Confidence
-Meeting with California Chamber of Congress
-Roger [surname unknown]
-Fred Harvey [?]
-View of controls
-Need for clarification of federal rules
-Operational business people compared to financial people
-Stock market
-Interest rates
-Impact of international monetary fluctuations
-Impact of domestic economic fluctuations
-Shultz’s preferences
-Burns’s view
-Confidence
-Investment
-Stock market
-Economic downturn
-Resources
-Rate of growth
Budget
-Ehrlichman’s interview with US News and World Reports
-Henry M. (“Scoop”) Jackson
-Social programs
-The administration’s economic policy
-Full employment benefit
-Economic growth
-Government spending
-Jackson’s interview on “Issues and Answers”
-Economic worries
-6-
NIXON PRESIDENTIAL LIBRARY AND MUSEUM
Tape Subject Log
(rev. Sep.-09)
Conversation No. 849-1 (cont’d)
-Balance
-Phase III
-Congressional approval
-Monetary policy
-“Boom-bust”
-Managing inflation
-Jackson
-Effect
-Interest rates
-Money shortages
-Phase III
-Chamber of Commerce meeting
-Number in attendance
-Brookings Institution
-American Enterprise Institute [AEI]
-Acceptance of the administration’s position
-Congress
-Budget
-Spending
-Public support
-economists
-Congressional reaction
-Newspaper coverage
-Appropriations Committee
-News magazines coverage
-Legislation
-Veto
-Sustain “nose count”
-President’s veto list
-Congressional leaders
-Phase III
Congressional relations
-Testimony
-Stein
-Joint Economic Committee
-7-
NIXON PRESIDENTIAL LIBRARY AND MUSEUM
Tape Subject Log
(rev. Sep.-09)
Conversation No. 849-1 (cont’d)
-Ash, Shultz
-Appropriations Committee
-Amount of time
-Compared to other administrations
-Cabinet officers
Criticism of administration’s economic policy
-Shultz’s view
-Martin
-Okun
-The President’s consideration
-Stein
-Okun
-Criticism
-Meeting with Council of Economic Advisors
-Phase III
-Inflation
-Yearly comparison
-John F. Kennedy and Lyndon B. Johnson administrations
-Council of Economic Advisors Chairmen
-Okun, Gardner Ackley, Walter T. Heller
-Support for Phase III
-Priorities
-Social policy
-Unidentified name
-Okun
-Martin
-Predictions on expenditures
-Accuracy
-Federal Reserve policy
-Money supply
-Burns
-Election impact
-Discount rates
-Inflation
-Tighter money
-8-
NIXON PRESIDENTIAL LIBRARY AND MUSEUM
Tape Subject Log
(rev. Sep.-09)
Conversation No. 849-1 (cont’d)
-Interest rates
-Burns
-Dividends
-Burns
-Testimony
-Statement
-Testimony
-Predictions
-Support for Phase III
-Shultz
-European trip
-Testimony
-Impact of statement
-Meeting with the President
-Meeting with the President
-Scheduling
-Stephen B. Bull
-European situation
-Testimony
-Questions
-Edward R. G. Heath
-Assessment of world trade
-European Economic Community [EEC]
-Anthony P. L. Barber
-Hussein ibn Talal [Hussein, King of Jordan]
John T. Dunlop
-Cost of Living Council [COLC]
-Director
-Confirmation
-Reactions
-Senate
-House of Representatives
-Problems
-Legal requirements
-Donald H. Rumsfeld
-9-
NIXON PRESIDENTIAL LIBRARY AND MUSEUM
Tape Subject Log
(rev. Sep.-09)
Conversation No. 849-1 (cont’d)
-NATO
-Swearing-in
-Comments on Phase III
-Precedent
-Recess
International economic issues
-Responses
-Marina Von N. Whitman
-Devaluation of dollar
-Industry sensitivity to dollar
-Compared to consumers
-Decisions
-trade
-Talking paper
-Unity of message
-Wilbur D. Mills
-Russell B. Long
-George Meany
-Business groups
-Meany
-Meeting in Florida
American Federation of Labor-Congress of Industrial Organzations [AFL-CIO]
-Executive Council meeting
-Shultz’s attendance
-Peter J. Brennan
-Shultz’s possible conversation with Meany
-Brennan’s attendance
-Shultz’s meeting with Brennan
-Transportation spokesman
-Brennan
-William P. Rogers
-Conversation with Meany
-Golf
-Trade
-10-
NIXON PRESIDENTIAL LIBRARY AND MUSEUM
Tape Subject Log
(rev. Sep.-09)
Conversation No. 849-1 (cont’d)
-Frank E. Fitzsimmons
-Executive Council meeting
-Foreign policy briefing
-Favorable response
-The President
-Scheduling
-Support for the President
Strikes
-The President’s conversation with Albert E. Sindlinger
-Avoidance of major strike
-Bargaining situations
-General Electric [GE]
-Rubber [?]
-Teamsters
-Construction
-Auto workers
-Labor-Management Advisory Committee
-Phase III
-Meetings
-Statement on wages
-Call for moderation
-GE
-Meeting with Reginald H. Jones
-Willie J. Usery’s meeting with the union
-Negotiations
-Auto
-Compared to GE
-Trucking
-Fitzsimmons
-Chicago local
-Phase II
James R. (“Jimmy”) Hoffa’s case
-Fitzsimmons
-News stories
-11-
NIXON PRESIDENTIAL LIBRARY AND MUSEUM
Tape Subject Log
(rev. Sep.-09)
Conversation No. 849-1 (cont’d)
-Union activity
-Restrictions
-Violations
-Problem for Fitzsimmons
-Assertiveness
-Ehrlichman’s help
-The President’s recollection of order
-Fitzsimmons
-Brennan
-Charles W. Colson
-Fitzsimmons
-Cooperation with the administration
-Hoffa’s criticism
-Effect on Fitzsimmon’s relationship with the administration
-Chicago local
-Meeting with the President
-Cooperation
Strikes
-Sindlinger’s comments
-Collective bargaining
-Avoidance
-Labor-Management Advisory Committee
-Commission on Industrial Peace
-Commission on Industrial Peace
-Membership
-James D. Hodgson
-Arthur Goldberg
-Letter to the President
-Vietnam
-Court appointment
-Labor-Management Advisory Committee
-Core
-Transportation
-Farm labor
-Cesar Chavez
-12-
NIXON PRESIDENTIAL LIBRARY AND MUSEUM
Tape Subject Log
(rev. Sep.-09)
Conversation No. 849-1 (cont’d)
-Fitzsimmons
-Business with growers
Economic advisers
-Future meeting
-News summaries
-Policy premises
-Steadfastness
-Successes
-Stein
-Shultz
-COLC
-Wage and Price Commission
-Predictions
-Phase II
-Economic record
-Uncertainty
-Strengths
-Associations with groups
-Speeches [?]
-Confidence
-Stock Market
-Compared to rest of US
Business Council
-Support for the President
-1972 election
-Harry S. Dent
-Address to Council
-Foreign policy
-Ehrlichman
-Stein, Ash, Shultz
-Announcement of Phase III
-Wage & price controls
-Business leaders meeting with Shultz [?]
-Access to the President
-13-
NIXON PRESIDENTIAL LIBRARY AND MUSEUM
Tape Subject Log
(rev. Sep.-09)
Conversation No. 849-1 (cont’d)
-David Packard [?]
-Dent’s role
-International trade
-Dinner speeches
-Phase III
-Board of Directors
The Administration’s economic record
-Economic advisers
-International trade
-Heath
-Great Britain
-Japan
-trade bill
-Burke-Hartke Bill
-Theory compared to action
-Balance of payments
-Heath’s opinion
-Japan
-Inflation
-US Dollar
-West Germany
-Controls
-Japan
-Deputy Secretary
-Multinational corporations
-Pittsburgh company
-Turmoil
-Package
-Burns’s view
-Meeting
-Rogers
-US policy
-Steadfastness
-Statistics
-Trade and prices
-14-
NIXON PRESIDENTIAL LIBRARY AND MUSEUM
Tape Subject Log
(rev. Sep.-09)
Conversation No. 849-1 (cont’d)
-Importance
-Prices
-Rises
-Public relations
-Phase II
-Trade
-Trade
-Psychology
-Legislation
-Strength
-Presentation
-Flooding the markets [Anti-Dumping ?]
-Safeguards
-Projectionism
-Public relations
-Psychology
-Change perceptions
-Compared to full employment budget concept
-Balance of payments
-Facet of international business
-Stein
-Deficit
-US Dollar
-“Benign neglect”
-Full employment budget compared to Actual Budget
-Stein’s view
-Brookings Institution
-President’s view
-Inflation
-Compared to 1968
-Release of figures
-Timing
-Trade balance
-Turbulence in markets
-Food prices
-15-
NIXON PRESIDENTIAL LIBRARY AND MUSEUM
Tape Subject Log
(rev. Sep.-09)
Conversation No. 849-1 (cont’d)
The President’s schedule
The President’s economic advisers
-Teamwork
-Qualifications
-Ash
-Compared to Caspar W. (“Cap”) Weinberger
-International business background
-Shultz
-Stein
-Candor
-Advice for the President
-Meetings with the President
-Ehrlichman
-Frequency
-Congressional relations
-William Proxmire
Trade
-Speeches by the President and Shultz
-International Monetary Fund [IMF] meeting
-Strategy
-Implementation
-Connection between trade and monetary situation
-Policy continuity
-Speech
-Anti-Dumping
-Politics
-Free trade
Ash
-Hours of work
-Private sector
The President’s schedule
-16-
NIXON PRESIDENTIAL LIBRARY AND MUSEUM
Tape Subject Log
(rev. Sep.-09)
Conversation No. 849-1 (cont’d)
Shultz, Stein, Ash and Ehrlichman left at 6:09 pm.