500–30

Conversation No. 500-30

Date: May 18, 1971
Time: 5:05 pm - 6:34 pm
Location: Oval Office

The President met with George P. Shultz, Herbert G. Klein, Robert Lubar, James W. Michaels,
Lewis H. Young, Robert M. Bleiberg, Joseph E[arly] Evans, [Powhatan] Jack Wooldridge, Jr.,
Raymond J. Brady, Thomas Mulloney, Howard W[entworth] Fleiger, Marsahll Loeb, Lester
Bernstein, and Henry Gemmill; the White House photographer was present at the beginning of
the meeting; discontinuities appear in the original recording.

Greetings

Pictures
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Introductions

Seating arrangements

Purpose of meeting

Foreign policy

Dinner
-Paul W. McCracken, Peter G. Peterson, Maurice H. Stans
-Decatur House

Economic policy
-President's May 18, 1971 meeting with legislative leaders
-Balance of payments, trade policies, quotas
-Future of US
-Impact
-Japanese and European production since World War II
-Edward R.G. Heath
-Labor, trade
-Japan
-East-West relations
-Dollar crisis
-US economic assistance
-US trade policy
-US defense policy
-Japan, Germany, Europe
-Protectionism
-Congressional sentiment, public opinion
-President's experience as Vice President under Dwight D. Eisenhower
-Business Council
-President's experience as Vice President
-Steel
-Japan
-Automobiles
-West Coast sales
-Business Council
-US competitiveness
-Peterson
-Research and development
-Great Britain
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Shultz's role in meeting

Balance of payments
-\"Dollar crisis\"
-Economists' views
-Federal Reserve Board, Department of the Treasury, Council of
Economic Advisors [CEA]
-Milton Friedman's article Conv. No. 500-30 (cont.)
-German economy
-International monetary conference
-Bretton Woods
-Gold
-Arthur F. Burns’ position
-Japan
-Germany
-Administration policy
-Need for clarity of position
-Netherlands
-Switzerland
-Germany
-Belgium
-US interest rates
-Compared with European rates
-Exchange rates
-Fluctuations
-John B. Connally
-US interest rates
-Interest rates
-US policy
-The President’s position

US competitiveness
-Peterson
-Steel industry
-US share of world market
-Exports
-International lending
-Export-Import Bank, Inter-America Development Bank, World Bank
-Germany
-Lutshansa
-US policy
-Effect on US economy
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-Trans World Airlines, American Airlines
-Stimulation of exports
-Boeing
-Subsidy
-Size, effect
-Henry Kearns
-Government subsidies
-Japan Conv. No. 500-30 (cont.)
-American producers
-Kearns
-Office of Management and Budget [OMB]
-Shultz
-Competition
-Japan
-Europe
-Germany
-France
-Latin America
-Africa
-Arms sales
-Melvin R. Laird
-US foreign policy interests
-Western Hemisphere

Inflation
-Monetary policy
-Budgetary policy
-Congressional action
-Full employment, full capacity
-Definition
-Balanced budget
-1958 Eisenhower administration experience
-Government responsibility
-Full employment
-Effect
-Health programs advocated by Senate
-Effect
-President's policy
-Vetoes
-Shultz
-Wage-price policy
-Labor-management
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-Wage-price controls
-Inflation
-Monetary policy
-1968 experience
-Deficits
-Federal Reserve Board monetary policy
-Wage and price controls
Conv. No. 500-30 (cont.)
Steel
-Negotiations
-Steel industry
-Labor
-Wages, prices
-Productivity and investment increases
-Labor relations
-Strike in 1959
-James P. Mitchell
-Roger M. Blough and Conrad Cooper[?]
-Work rules

Organized labor
-Work rules
-Railroad strike
-Bechtel Corporation
-National Commission on Productivity
-Union leaders
-Effect

US economy
-Peterson’s forthcoming report
-Purpose of President's forthcoming speech
-Labor, management
-Current status
-Supersonic Transport [SST] vote, May 19, 1971
-Termination costs for Boeing
-Nuclear power
-Environment
-Tradition
-Competition
-Japan and Germany
-Defense capabilities
-People's Republic of China [PRC]
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-Europe
-Great Britain, Italy, Spain, France
-Germany and Japan
-Economic role
-SST
-Time of flight to Paris
-Importance
-Automobiles Conv. No. 500-30 (cont.)
-Japan
-Costs
-President's meetings with heads of General Motors, Ford and Chrysler
-Airbags, seatbelts
-Effect of safety devices on costs
-American, foreign cars
-Environment
-Safety
-Steel industry
-President's possible role
-Workers
-Future
-Modernization efforts
-Compared with Germany and Japan
-President’s view on competition
-Public opinion
-Computers
-USSR
-Public opinion
-Labor and business leaders
-Future
-Military superiority
-Public opinion
-Labor-management bargains
-Congress
-Proposals regarding labor and management relations
-Wagner Act, Taft-Hartley Act
-Transportation
-Compulsory arbitration
-Railroad strike
-Reasons
-Public opinion
-Peterson
-Business
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-President's meetings
-Leadership
-Labor unions
-Objectives
-Samuel L. Gompers
-Membership
-Great Britain
-Labor-management relations Conv. No. 500-30 (cont.)
-Congress, public opinion
-Taft-Hartley Act passage in 1947
-President's role
-Harry S. Truman's veto
-Effect of public opinion
-Productivity competition
-Antitrust laws
-Connally
-Regulations
-Sherman Anti-trust Act
-International competition
-Review by administration
-Mergers
-Tom Sullivan's statement at previous Quadriad meeting
-Shultz
-University of Chicago background
-Position
-Trends in last thirty to forty years
-Peterson's report
-Possible effects
-Trade policy
-Wage and labor management policy
-Antitrust policy
-Government subsidies for research and development
-Levels
-Desalinization
-Breeder reactor
-Benefits
-Energy costs
-\"New water\"
-Uses
-Program
-Office of Saline Water in Department of the Interior
-President's previous meeting
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-Status of research
-Compared with Japan, Great Britain, Germany, USSR
-Government and private contributions
-Compared with highway program
-Texas, Oklahoma, Southern California
-Possible action
-Highway trust fund
-Legislation in current Congress Conv. No. 500-30 (cont.)
-House Ways and Means Committee
-Welfare reform
-Revenue-sharing
-Health benefits
-Tax reform
-Wilbur D. Mills
-Previous bill
-Review of tax code
-US competitive position
-Use of tax system
-President education
-Duke University Law School
-Charles Lucien baker Lowndes
-View on tax system
-Tuition tax credit
-Views of Treasury Department
-Connally
-Free trade
-US role in the world
-President’s view on protectionism
-Adam Smith
-Public opinion
-Protectionism
-Effect
-Time cover story
-East-West trade
-International monetary policy
-USSR
-Japan
-Textiles
-Eisaku Sato
-Trade policy
-Effect on American companies
-Regulations
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-James M. Roche
-General Motors truck plant
-Orientation towards the West
-Importance
-Negativity ability
-President's legal experience
-Textiles
-Peterson Conv. No. 500-30 (cont.)
-Quotas
-Long-term
-American educational system
-Businessmen
-President’s policies
-Long-term
-Foreign affairs
-Vietnam War, arms policy, PRC initiative
-World War I and World War II
-Effect on Western Europe
-Trade prior to conflicts

Business editors dinner, May 18, 1971
-Decatur House
-Location

Foreign policy
-American people's responsibility
-American people
-President’s view
-Vision
-Practicality
-Pragmatism
-World War II effects
-Monetary policy
-International monetary conference
-Gold prices
-Interest rates
-Federal Reserve Bank
-US unemployment
-Importance of strong US economy
-The President’s policies
-International monetary situation
-Trade policy
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-Labor relations policy
-Tariffs and quotas
-US tax policy
-Antitrust policy

Gifts
-Presidential cufflinks
-Presidential golf balls Conv. No. 500-30 (cont.)
-Presidential seal
-Donald McI. Kendall, Wilson Sporting Goods
-Cufflinks
-Cost
-Seal
-A Group interested in US policy in Israel
-Previous meeting with the President
-Golda Meir
-Relations with US
-Presentation of gifts

Tricia Nixon's wedding
-Preparations in Rose Garden
-White flowers
-Previous White House weddings
-East Room
-Tricia Nixon’s view

Democrats

Decatur House
-Ownership
-Daughters of American Revolution, Society of the Cincinnati

Shultz, et al., left at 6:34 pm.
Previous meeting
-Results

The President talked with the White House operator at 6:34 pm.

[Conversation No. 500-30A]

[See Conversation No. 3-60]
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Klein left at 6:34 pm.