454–4

Conversation No. 454-4

Date: February 19, 1971
Time: 5:08 pm - 6:34 pm
Location: Oval Office

The President met with George P. Shultz, Paul W. McCracken, Arthur F. Burns, John B.
Connally, Ronald L. Ziegler, and Rose Mary Woods; the White House photographer and
members of the press were present at the beginning of the meeting

[General conversation]

The President’s meeting with Young Republicans

[General conversation]

George Black, Jr.
-Great grandchildren
-Forthcoming trip to Africa
-President’s aunt
-Purpose

Ziegler, Woods, and the press left at an unknown time before 6:34 pm

Quadriad
-History
-Dwight D. Eisenhower administration
-Procedure
-Frequency of meetings with the President
-McCracken’s Congressional testimony
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 9/08)



-Revenue sharing
-Meetings with the President
-Purpose
-Full employment budget
-Cooperation
-Format
-Council on International Economic Policy [CIEP]
-Peter G. Peterson Conv. No. 454-3 (cont.)
-International monetary policy
-Meeting with Quadriad

National economy
-Growth
-Inflation
-Growth
-Retail sales
-Unemployment
-Improvement
-Cities
-Effect on individuals
-White collar/Aerospace industry
-Problem
-Importance to nation
-White House meeting
-Administration position
-National Science Foundation [NSF]
-Grants
-Scientists
-University professors
-Administration’s budget
-Administration efforts
-Impact
-Number
-Need for government coordinator
-David Packard
-Administration efforts

Inflation
-Administration efforts
-Business
-Wage concerns
-Steel and oil
 7

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 9/08)



-Labor
-Hubert H. Humphrey and Hugh Scott
-Edmund S. Muskie and George Meany
-Possible wage and price freeze
-Davis-Bacon Act
-Analysis
-Effect
-Governors Conv. No. 454-4 (cont.)
-Impact
-California
-New York
-Nelson A. Rockefeller
-Florida
-Illinois
-Ohio
-Michigan
-President’s position
-Governors
-Effect on steel negotiations
-Shultz’s position
-Federal construction contracts
-Importance of timing
-Effects on construction industry
-Unemployment
-Possible effect on mortgage rates
-Importance
-Unions
-Connally’s view
-Minorities
-Options
-Wage and price freeze
-President’s view
-Construction industry
-Steel
-History
-Effect on wages
-Federal budget deficit
-Administration’s policy
-Lyndon B. Johnson
-The President’s vetoes
-Effect on inflation
-Administration’s policy
 8

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 9/08)



-Spending lid
-Economic forecast
-Full employment budget
-Revenue sharing
-Number of grants
-Administration’s policy
-Relations with Congress
-Effect Conv. No. 454-4 (cont.)
-Washington Post story
-David S. Broder
-Connally’s view
-Administration position
-Walter W. Heller
-Statement in California
-The President’s conversation with Humphrey
-Reform efforts
-Full employment budget
-Possible congressional action
-Edward M. (“Ted”) Kennedy’s health program
-Burns’ view
-Shultz’s view
-Relationship between currency and gold
-Views of business community
-Federal Reserve Board governors
-Fiscal versus monetary policy
-Use of balance of payments
-Effects
-Results of possible failure of the President’s economic policy
-Effect on future
-Liberal spending policies
-John Kenneth Galbraith
-Budget deficits
-Wage and price controls
-Polls
-Policies of the 1960s
-Employment
-Impact of President’s policy

Balance of payments
-Deficits
-Commercial trade
-Foreigners’ concern and aid
 9

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 9/08)



-State of Union message
-President’s budget proposal
-Paul A. Volcker
-Domestic economic policy
-International concerns
-Administration statements
-Possible effect on US economy and policy
-Connally’s visit to Europe Conv. No. 454-4 (cont.)
-Schedule
-International Bankers Association
-Possible meetings with bankers
-Purpose
-US policy
-Domestic political repercussions

Interest rates
-California
-President’s property
-Popular view of interest rates
-The President’s conversation with Samuel W. Yorty
-Effect on housing
-Deposit interest rates
-Money supply
-Compared with the President’s Laos decision
-Recent decline
-Popular opinion
-Need for public relations efforts
-Money supply
-Need for public confidence
-Economic recovery
-Burns’ view
-Inflow of deposits
-Public confidence
-Increase in money supply
-Treasury Department’s role
-Power of Federal Reserve
-Transaction demand
-Savings

The President’s schedule
-Money supply
 10

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 9/08)



Economic policy
-Federal Reserve Board
-Interest rates
-Effects of decisions
-Monetary effect
-Supply and demand
-Effect on economy
-Future meeting on monetary policy Conv. No. 454-4 (cont.)
-Briefing paper
-Future meeting
-Problem
-Uncertainty
-Administration’s policy
-Economists
-Public confidence
-Administration efforts
-Market-oriented policies
-Stock market
-Ripples of influence
-Factors
-Expectations of profit
-Increased productivity

The President’s schedule
-Forthcoming meeting on monetary policy

Wage and price controls
-Press questions
-Connally’s possible response to questions
-Participant’s views

Shultz, McCracken, and Burns left at an unknown time before 6:34 pm

State dinner
-Connally’s observations
-Entertainment

Previous Quadriad meeting
-Monetarists
-Burns
-President’s policies
-McCracken
 11

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 9/08)




Washington Post story
-Connally’s comments
-Administration policy
-Compromises
-Connally’s view
-John A. Burns
Democrats Conv. No. 454-4 (cont.)
-Economic meeting
-Allen J. Ellender
-Comments on the President’s programs
-Revenue sharing
-Government reorganization

Connally left at 6:34 pm