120–2

Conversation No. 120-2

Date: May 2, 1973
Time: Unknown between 8:11 am and 9:10 pm
Location: Cabinet Room

George P. Shultz met with Herbert Stein, John T. Dunlop, I[lorwith] W. Abel, Frank E.
Fitzsimmons, Pat Greathouse, Paul Hall, [Joseph] Lane Kirkland, Edward W. Carter, R. Heath
Larry, Oscar A. Lundin, John F. O’Connell, and Walter B. Wriston; the White House
photographer and members of the press were present at the beginning of the meeting
[Recording begins while the conversation is in progress]

Wholesale price index

The President entered at 3:21 pm

Greetings and introductions
-Participants

[General conversation/Unintelligible -- Camera noise]

Economic stabilization
-Work of committees
-Appreciation
-Labor and management
-Dunlop
-Inflation
-Wage and price controls
-Food prices

Labor-Management Advisory Committee
-Meeting in Miami
-Wages
-Dunlop’s figures
-Committee’s efforts
-Action by administration
-Wage and price freeze
-Success
-Problems
-Auto workers and Henry E. Ford, II
-American worker
-Wages
 6

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Need for reassurance

Economic stabilization
-Public understanding
-Rule of committee
-Shultz
-Price freeze
-President’s view
-Attractiveness
-Public support
-Extent
-Wage settlements
-Prices
-Wages
-George Meany
-Steel settlement
-Long-term problem
-Wages
-Upcoming settlements
-Business attitudes
-Meany
-Phase III
-Forthcoming Presidential statement
-Pre-notification
-Problems for management
-President’s justification
-Shultz and Dunlop
-Efforts
-Freeze
-Views of business
-President’s program
-Timing
-Views of business
-Public understanding
-Current controls
-Price increases
-Success
-Long-range solution
-Business perception
-Wages and labor unions
-Impact of inflation
-Economy
 7

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Management
-Cooperation between business and labor
-Business views
-Lack of controls on interest rates and farm prices
-Outlook
-Wage settlements
-Price controls
-Committee
-Statements
-Dunlop’s role
-Investigations
-Kirkland’s suggestions
-Wage settlements
-Phase II
-Employment costs
-Effect on other prices
-Differing views within the committee
-Business community
-Compliance
-Construction industry
-Dunlop’s efforts
-Hall’s view
-Need for time
-Freeze
-Committee’s belief
-Solution
-Rollback
-Dunlop and Shultz’s role
-Public perception
-Dwight D. Eisenhower’s phrase “price-wage spiral
-Phase I
-Presidential authority
-Cost of living figures
-Stein
-Public confidence
-Phase II
-Controls
-Cooperation between labor and business
-Phase III
-Increases
-Forthcoming wage negotiations
-Labor position
 8

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Rollback
-Options
-Freeze
-Outlook for success
-Steel negotiations
-Imports
-Cost of living increase
-1959 negotiations
-President’s role
-Strikes
-Arbitration
-Abel
-Resolution
-Benefits

Labor-Management Advisory Committee
-Efforts
-Productivity
-Statesmanship

National economy
-Performance
-Administration’s actions since 1971
-Phases
-Controls
-Prices
-Grocery prices
-Family budget
-Effect on low-income people
-President’s reasoning

Labor-Management Advisory Committee
-Work with administration
-President’s position on arbitration
-1959 strike
-Australia
-Voluntary participation
-Australia
-Management-labor talks
-Committee’s suggestions
-Need for popular reassurance
-1971
 9

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Recession and inflation
-Effect of administration’s actions
-Economic growth

National economy
-Boom and inflation
-Administration goals
-Inflation
-Jobs
-Brennan’s view
-Effect on economy
-President’s anti-inflation program
-Administration’s goals
-Employment
-Price controls
-Cost of Living Council
-Administration’s goals
-Employment
-Economic growth
-Inflation
-President’s actions
-Work of committee

The President left at 4:13 pm

[Unintelligible]

Recording ends at an unknown time before 9:10 pm
 10

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)