128–2

Conversation No. 128-2

Date: July 10, 1973
Time: Unknown between 10:24 am and 10:48 pm
Location: Cabinet Room

George P. Shultz met with Herbert Stein, Roy L. Ash, John B. Connally, Melvin R. Laird, Bryce
N. Harlow, General Alexander M. Haig, Jr., John T. Dunlop, Anne L. Armstrong, William E.
Timmons, Ronald L. Ziegler, Peter M. Flanigan, and Arthur F. Burns
[Recording begins while the conversation is in progress]

[General conversation/Unintelligible]

The President entered at 3:17 pm

Forthcoming Japanese meeting
-US delegates
-Shultz, William P. Rogers, Earl L. Butz, Peter J. Brennan, Stein, William D.
Eberle, Burns

President’s schedule
-Kakeui Tanaka

Henry A. Kissinger’s schedule
-People’s Republic of China [PRC]


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Japan
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



[To listen to the segment (43s) declassified on 02/28/2002, please refer to RC# E-633.]

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National economy
-President’s forthcoming speech
-Export controls
-Balance of payments

Shultz’s schedule
-Forthcoming Japanese meeting
-Rogers
-Korea
-Forthcoming meeting of twenty Finance Ministers
-Valery Giscard d’Estaing, Helmut H. W. Schmidt
-Bohemian Grove, California

National economy
-Shultz’s July 10, 1973, paper
-Strength of dollar
-US intervention in markets
-Phase IV
-Pre-notification
-Problems
-Pass-throughs
-Agriculture
-Butz’s view
-Effect on supply
-Export controls
-Soybeans
-Duration
-Effects
-Trade negotiations
-Soybean farmers
-Balance of payments


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European trade
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



[To listen to the segment (51s) declassified on 02/28/2002, please refer to RC# E-633.]

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-Freeze
-Agriculture
-Butz’s view
-Effect on farmers
-Export controls
-Effect on future crop supply
-Hugh Scott’s view
-1946 food issues
-Effect on farmers
-Food
-Meat supplies
-Corn and soybeans
-Cattle
-Export controls
-Corn
-Effect on consumers
-Basic foodstuffs
-Possible congressional action
-Administration policy
-Supply
-Duration
-Effects
-Export controls
-Agricultural products
-Effect on meat supplies
-President’s policy
-Size of corn crop
-Duration
-Effect on supply
-Food
-Importance of supply
-Profit margins of retail chains
-Supplies
-Controls
-Pass-throughs
-Red meat
-Food
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Fruits and vegetables
-Removal
-Possible effects
-Previous congressional briefing
-Supplies
-Congress
-Effect on farmers
-Congress
-Pork, beef, and chickens
-Pork producers
-Compared to beef and chicken producers
-Poultry industry
-Beef producers
-Cycle
-Possible pass-throughs
-Effect
-Prices
-Supply
-Long-term
-Strategy
-President’s June 13, 1973, program
-Administration policy
-Decision
-Political considerations
-Economic considerations
-Food
-Food Industry Advisory Committee recommendations
-Donald S. Perkins
-Stages
-Agricultural products
-Goals
-Meat
-Removal of price ceilings
-Gary L. Seevers
-Problems
-Possible price increases
-Controls
-Effect on supplies
-Red meat
-Meat
-Increase of corn prices
-Effect
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Chickens
-Meat producers’ beliefs
-Price increases
-Non-meat products
-Effect on consumers
-Non-meat products
-Effect on other products
-Meat supply
-Effect of prices
-Future

Price freeze
-Federal budget
-Phase IV
-Schedule
-Views of Labor-Management Advisory Committee
-Controls
-Effect on producers
-Options
-Wage and price controls
-Congress
-American Federation of Labor-Congress of Industrial Organizations [AFL-
CIO]
-Phase IV
-De-controlling specific industries
-Lumber and public utilities
-Phase II
-Enforcement of agreements
-Problems
-Controlling specific industries
-Enforcement
-General Electric Company [GE]
-Lumber industry
-Price ceilings
-Problems
-Sectors
-Pass-throughs
-Phase II
-Compared to Phase IV
-Controlling profits
-Enforcement
-GE and General Motors [GM]
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Pre-notification
-Follow-up
-Enforcement
-Sectors
-Costs compared to price
-De-control sectors
-Schedule
-Duration
-Schedule
-Wage control
-Possible legislation
-Potential problems
-Interest groups
-Export controls
-Extent
-Reasons
-Food
-Meat
-Export controls
-Effect
-Balance of payments
-Argentina’s example
-Goal
-Percentage of disposable income
-1972 Increase in disposable income
-Goals
-Export controls
-Timing of removal
-Administration policy
-Connally’s view
-Meat supplies
-Food prices
-Exports
-Rationing
-Effect
-Balance of payments
-Prices
-Wage and price controls
-Connally’s view
-Balanced federal budget
-Inflation
-Problems
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Possible taxes
-Phase IV
-Toughness
-Possible effects
-Charles H. Percy
-Inflation
-Compared to Phase II
-Profit margins
-Effect on business
-Freeze
-Effects on Stock Market and foreign exchange markets
-Prospects for future
-Controls
-Intent
-Developing reaction
-Business
-Effects
-Removal
-Phase IV
-Toughness
-Effects on industry
-Control by product line
-Balanced federal budget
-Possible tax legislation
-Phase II comparison
-Corporate profits
-Removal of controls
-Export controls
-Agriculture
-Profits
-World trade
-Connally’s view
-US food production
-Domestic food prices
-Pending farm legislation
-Harlow, Butz
-President’s view
-Political considerations
-Congress
-Timmons, Laird
-Soviet grain sales
-Possible grain purchases by PRC
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-US, Canada, Australia
-International commodity prices
-Agricultural exports
-Acres involved
-Phase IV
-Possible reaction by Labor-Management Advisory Council
-Selective de-control
-Conditions
-Phase II
-Industry sectors
-Factors
-Past actions
-Prices
-Public opinion
-Textiles
-Controls
-Shultz’s view
-Problems
-Inflation
-Budget
-Monetary policy
-Public opinion
-Federal budget
-Deficit
-Balanced budget
-Phase IV
-Toughness
-Recommendations
-Effect
-Federal budget
-Balanced budget
-Administration’s position on inflation
-President’s possible actions
-Harlow’s view
-Political considerations
-Business
-Duration
-Public perception
-Democrats’ possible reaction
-Federal budget
-Defense
-Reductions
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Administration’s policy
-Presidential statements
-Strategy
-Taxes
-Surcharge
-Gasoline tax surcharge
-Excise tax
-Potential revenue amounts
-Income tax cuts
-Credibility
-Taxes
-Possible congressional action
-Spending cuts
-Defense
-Amounts
-Administration’s proposal
-Congress
-Edmund S. Muskie
-Reductions
-Size
-Balanced budget
-Spending cuts
-Defense
-Asset sales
-Cost of Living Council [COLC] action
-Spending controls
-Legislation
-Presidential vetoes
-Savings
-Personnel cuts
-Issues
-Options
-Federal stockpile
-Pending legislation
-Status
-Offshore leases
-John G. Tower
-Asset sales
-Size
-Reduction
-Possible congressional action
-Control
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-President’s role
-Possible congressional action
-Projected revenues
-Phase IV
-Need for timely definition
-Freeze
-Problems

The President left at 5:18 pm

[General conversation/Unintelligible]

Recording was cut off at an unknown time before 10:48 pm