Nixon White House Tapes › Topic
Nixon Tapes on Balance of Payments
16 conversations · frequently with Nixon, Peterson, Connally, Ehrlichman
President Nixon and Treasury Secretary John Connally discussed economic policy and the need for better coordination with Federal Reserve Chairman Arthur Burns. Connally reported on a private meeting with Burns, during which he advised the Chairman to maintain closer cooperation with the administration and avoid public statements that undermined the President's economic program. They agreed to hold the administration's current economic course until April 15, while exploring ways to manage public perception and push back against international criticism of U.S. monetary and balance-of-payments policies.
President Nixon met with Peter G. Peterson and other advisors to discuss international trade strategy, specifically regarding textile and footwear import negotiations with Japan, Italy, and Spain. Peterson briefed the President on the necessity of a stronger, more centralized economic leadership structure, including the role of the Council for International Economic Policy, to address balance of payments and currency exchange issues. The conversation also touched upon the implementation of an effective domestic industrial adjustment program and the organizational needs of federal volunteer agencies, with Nixon emphasizing the importance of utilizing strong leadership and personal political involvement to achieve these policy goals.
President Nixon consulted with Federal Reserve Chairman Arthur F. Burns regarding a recent cabinet briefing on international economic policy delivered by Peter G. Peterson. Nixon tasked Burns with reviewing the briefing materials and requested an independent analysis of how antiquated U.S. antitrust laws affect the competitiveness of domestic industries, particularly the struggling aviation sector, against state-subsidized foreign entities. Following the discussion, Peterson joined the call to coordinate a time for Burns to review the presentation materials and further discuss these economic strategies.
President Nixon, John Ehrlichman, and Arthur Burns held this discussion to coordinate economic strategy and review the administration's political management of upcoming challenges. They focused on strengthening the partnership between Burns and John Connally, particularly regarding balance-of-payments policies, interest rates, and the political handling of potential steel industry inflation. Nixon also sought Burns’ perspective on international concerns, including the Berlin negotiations and German political stability, before Burns departed for a diplomatic trip to Europe.
President Nixon and Secretary of the Treasury John Connally coordinated the release of an official U.S. statement regarding international monetary policy in response to speculative currency movement in West Germany. The discussion focused on maintaining existing exchange parities and reasserting U.S. commitment to international economic stability and balance of payments objectives. Connally confirmed that the statement would be issued regardless of ongoing efforts to reach German officials.
President Nixon met with his Cabinet and Republican Congressional leaders to coordinate the administration's legislative agenda, specifically addressing the ongoing national railroad strike and the upcoming Congressional vote on the military draft. The discussion also focused on foreign policy, with Secretary of Defense Melvin Laird and Henry Kissinger providing briefings on the status of NATO, the credibility of U.S. military commitments in Europe, and the implications of recent Soviet statements regarding mutual force reductions. The President urged the Congressional leaders to maintain a firm stance against unilateral U.S. force withdrawals while emphasizing the need to handle these matters through stable, negotiated frameworks rather than disruptive legislative amendments.
President Nixon met with a group of business editors to discuss the long-term competitive standing of the U.S. economy and the administration's strategic domestic and international policy goals. Key topics included the challenges of maintaining U.S. economic superiority against rising competition from Japan and Europe, the importance of labor-management relations, and the necessity of re-evaluating antitrust and tax policies. Nixon emphasized a preference for liberal trade policies while stressing that the U.S. must adopt a long-term pragmatic vision to ensure future competitiveness.
President Nixon and Press Secretary Ronald Ziegler met to prepare for an upcoming press conference by reviewing potential inquiries regarding the President's meeting with West German Chancellor Willy Brandt. The discussion centered on foreign policy and economic issues, including Berlin negotiations, Mutual and Balanced Force Reduction (MBFR), NATO relations, and international monetary policy. Nixon commended Secretary of State William P. Rogers for his briefing work, and Ziegler concluded the session to prepare for his own press briefing.
President Nixon met with Peter G. Peterson to discuss broad economic strategies, focusing on trade imbalances with Japan, long-range economic planning, and the need for a tougher, more assertive administrative posture. They addressed the potential for unilateral trade actions to address deficits and debated the utility of government-backed industrial R&D projects to foster job growth. Additionally, they reviewed international trade negotiations, the status of U.S.-Soviet economic relations, and the recruitment of personnel for economic policy roles.
President Nixon and Peter G. Peterson met to discuss the deteriorating U.S. balance of payments and the potential for a bold, secret economic initiative to address rising unemployment and trade deficits. Peterson argued that traditional economic measures were insufficient and politically risky, instead proposing a temporary import surcharge and export rebate system to stimulate the economy. The President authorized Peterson to coordinate with John Connally, George Shultz, and Paul McCracken to develop a confidential plan, while emphasizing the need for absolute secrecy to prevent market instability.
President Nixon met with Carlos Sanz de Santamaria of the Inter-American Committee of the Alliance for Progress to address Latin American concerns regarding recent U.S. economic measures, specifically the 10% import surcharge and foreign aid cuts. Nixon clarified that these policies were temporary, necessary for balance-of-payments corrections, and targeted at major industrial competitors rather than Latin American nations, which he described as "innocent bystanders." The discussion concluded with Nixon directing Santamaria to coordinate further with Treasury Secretary John Connally and Peter G. Peterson to solidify long-term diplomatic and economic cooperation for the coming decade.
President Nixon met with the Council on International Economic Policy (CIEP) and key economic advisors to discuss the administration's post-August 15 New Economic Policy (NEP) and future international trade strategy. Peter G. Peterson led a presentation analyzing the shortcomings of global liberal trading systems and the challenges posed by foreign competitors like Japan, while other officials addressed the domestic economic impact, labor relations, and the status of ongoing monetary negotiations. The President emphasized the need for a firm but diplomatic approach toward Japan and directed his team to maintain the offensive on domestic economic policy while keeping options flexible regarding international monetary reform.
President Nixon, Vice President Agnew, and members of his Cabinet met to coordinate a unified administration strategy ahead of critical International Monetary Fund (IMF) meetings and ongoing global trade negotiations. The discussion emphasized the necessity of maintaining the recently imposed 10% import surcharge and a firm bargaining stance to address the nation's economic balance of payments and reshape the international monetary system. Nixon and his advisors agreed that while foreign partners would likely criticize U.S. policy, maintaining domestic political support and correcting long-standing trade imbalances remained the administration's primary objective.
President Nixon and Treasury Secretary John Connally speak with Ambassador Walter Annenberg to discuss upcoming diplomatic meetings and the status of international monetary negotiations. Annenberg shares his observations on European perceptions of the U.S. economic position, while Connally emphasizes the American effort to secure a fair deal regarding trade and balance of payments. The participants express mutual admiration and exchange holiday greetings as they prepare for the President's scheduled meeting with Prime Minister Edward Heath in Bermuda.
President Nixon and Congressman Wilbur D. Mills discussed the implementation of a 15% selective tariff surcharge to address international trade imbalances and the perceived failure of the Smithsonian Agreement. Mills argued that such drastic measures were necessary to force international cooperation, noting that he planned to issue a press release to pressure the administration into adopting this stance. Additionally, the pair briefly discussed the looming risk of a domestic milk shortage and potential regulatory adjustments to fluid milk and dairy prices to prevent supply deficits.
President Nixon and Representative Wilbur Mills discussed legislative priorities, specifically the scheduling of Treasury Secretary George Shultz's testimony on tax reform and trade legislation. They agreed on a timeline that would have Shultz testify on taxes on April 30, followed immediately by the start of hearings on trade legislation on May 1. Nixon emphasized the urgency of trade reform to support the dollar and American jobs, while Mills proposed strategies for incentivizing foreign investment to improve the balance of payments.