682–2

Conversation No. 682-2

Date: March 10, 1972
Time: 10:06 am - 10:36 am
Location: Oval Office

The President met with John B. Connally.

Greetings

George Meany
-Health
-Pay Board
-Longshoremen
-Productivity
-George P. Shultz

US economy
-Money markets
-Connally’s suggestions
-Exchange of US currency
-International monetary problem
-Tax evasion
-Organized crime
-Drugs

-Amnesty considerations
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)



-Bureau of Engraving and Printing
-New currency
-Electronic means of authentication
-Counterfeiting
-Gangsters
-Drug dealers
-Mafioso
-John A. Volpe
-Tax evaders
-Banks
-Holders of foreign currency
-Exchanges
-Exchanges
-Clifford and Edith Irving case
-$600,000
-US corporations
-Currency holdings overseas

Foreign Economies
-France
-Georges J.R. Pompidou, Valery Giscard D’estaing
-Relations with the US
-Previous money crises
-Devaluation
-US and French differences
-Controls
-Fixed parity
-Philosophy and ideas in the European community
-Pompidou
-American dollar
-Convertibility
-European common currency
-Relations with Great Britain
-Common Market
-Relations with Belgium, Holland, Italy and West Germany
-Relations with the US
-Connally’s view
-Money markets
-Common European currency
-Criticism of the US
-World confidence in the dollar
-Arthur F. Burns
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)



-Paul A. Volcker
-Possible controls
-European community
-Exclusion of US dollar
-Germany
-Great Britain
-Italy
-Belgium, Holland, Switzerland
-Financial structure
-Connally’s view
-Possible European Community regulations and financial controls
-Role of dollar
-Possible exclusion
-Effect on US economy
-Compared to several years ago
-Canada
-Interest rates
-Accumulation of dollars
-Future role
-Possibility of US controls
-Flow of capital
-Short and long term
-European role
-Example given by Connally
-Outflow of capital
-Reduce outflow through controls
-Investment
-Jobs
-Controls
-Prices and wages
-Dollar outflow
-Connally’s forthcoming talks to Shultz, Burns, Herbert Stein
-The Presidents view
-Ramifications of possible leak
-Study groups
-International monetary problems
-Europe
-Political and diplomatic aspects
-US position in world
-Treasury, State and Defense departments
-Monetary maneuvers
-Reluctance of agencies
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)



-British
-Political situation
-Move towards common market
-People’s Republic of China [PRC], Soviet Union
-Europe
-France
-Relations with the US
-Connally’s view
-Danes
-Belgians
-Dutch
-Danes
-British
-Germans
-East-West
Italians
-Role in European Community
-Dealings with the US
-Connally’s work on economics
-Shultz
-Burns
-Convertibility
-Bonn[?]
-Paris
-Henry A. Kissinger
-Canada
-The Presidents forthcoming trip
-Connally’s view
-Trade
-Special Drawings Rights [SDRs]
-State and Defense Departments
-Cabinet participation
-Rogers
-Compared to previous meeting with French
-Connally
-David M. Kennedy
-Protocol visit
-Timing
US economy
-Exchange of all US currency
-People’s concerns
-Staff consideration
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)



-Las Vegas
-Drugs, crime, tax evasion
-American people
-Possible evidence for prosecution
-Internal Revenue Service [IRS] role
-The President’s view
-Politicians
-Example of William E. Borah [?]

Connally’s schedule
-Forthcoming busing meeting

International Telephone and Telegraph [ITT] case
-President’s anti-trust policy
-Press coverage
-Richard Kleindienst
-Vice President Spiro T. Agnew
-John N. Mitchell
-Witnesses
-The President’s experience as an investigator
-House Un-American Activities Committee
-Hearsay
-Alleged phone call from the President
-Mitchell
-Securities and Exchange Commission [SEC] file
-Connally involvement
-Mitchell testimony
-Agnew

Stephen B. Bull entered at an unknown time after 10:06 am.

The President’s schedule
-Meeting with John D. Ehrlichman

Bull left at an unknown time before 10:36 am.

ITT case
-Connally’s advice
-Democrats role
-Convention
-Money
-Kleindienst
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)



-Settling the case
-Unknown man
-John F. Kennedy
-Money involved
-Supreme Court
-Kennedy
-Kleindienst
-Jack N. Anderson
-Richard W. McLaren
-Connally’s advice
-Television
-Kleindienst, McLaren
-Response
-Strategy
-White House
-Agnew
-Possible spokesman
-Brit Hume
-Dita D. Beard
-Agnew
-Divested companies
-Food service
-Sheraton Hotel
-Avis
-Role in convention
-Democrats role
-Contributions

Connally left and Ehrlichman entered at 10:36 am.

Aging issue meeting
-Social Security issue
-Prescription drugs issue
-Medicare
-Document for the President to read
-Cabinet Committee recommendations
-Shultz
-Cost concerns
-Ehrlichman’s talk with Connally
-20% Social Security increase
-Troika
-Elliot L. Richardson and Arthur S. Flemming
 7

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)



-Budget
-Political implications
-Flemming
-Recommendations to the President
-20% Social Security increase
-Possible veto
-Budget
-Conservatives and moderates
-View of deficit
-Political expense
-Aged persons problems

Busing meeting
-Cabinet Committee and lawyers
-Length
-Report to be delivered
-Lawyers present
-[Robert H. Bork]
-Yale University

The President and Ehrlichman left at 10:40 am.