519–11

Conversation No. 519-11

Date: June 14, 1971
Time: 3:02 pm - 3:29 pm
Location: Oval Office

The President met with Stephen B. Bull

Greetings

Bull left and John B. Connally, George P. Shultz, Paul W. McCracken, and Arthur F. Burns
entered at 3:02 pm

Greetings

Weather


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BEGIN WITHDRAWN ITEM NO. 1
[Personal Returnable]
[Duration: 1m 43s ]


END WITHDRAWN ITEM NO. 1

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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



Wedding
-Network coverage
-Columbia Broadcasting System [CBS] citation of various costs
-Dan Rather demeanor
-Edwin P. Newman, Barbara Walters
-Connally interest

McCracken report Conv. No. 519-11 (cont.)
-Economic problems
-Sluggish economy

Manolo Sanchez entered at unknown time after 3:09 pm

Refreshments

Sanchez left at unknown time before 3:29 pm

McCracken report
-Economic problem
-Prices
-Inflation
-Impact on polls
-Polls
-Domestic Council
-Domestic information
-Priority of attack
-Inflation versus unemployment
-Regional difference
-West versus East coasts
-Price reforms
-Level of unemployment
-Wage/price program
-Retail sales
-Seasonal variations
-Psychological impact
-Media coverage of economic stories
-Production figures
-Significance
-Federal Reserve Board
-Commerce Department memoranda
-Production index
-Input
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Trend in personal income figures
-Timing of government measures
-Past measures
-1960 steel strike
-Effect

Connally report
-Optimism Conv. No. 519-11 (cont.)
-Problems
-Inflation
-Interest rate rise
-Early indications
-First Pennsylvania Corporation
-Smaller banks
-Chase Manhattan Bank
-Bank of America
-Prime rates
-Reasons
-Money supply
-Theoretical agreement
-Fear of inflation
-Labor costs
-Gordon M. Metcalf
-Recommendations
-International Monetary Fund [IMF] rules
-Possibilities
-International remedies
-International conference
-Necessity of clear goals
-United Nations
-International situation
-England
-Germany
-France
-Japan
-Common Market talks
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



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BEGIN WITHDRAWN ITEM NO. 2
[National Security]
[Duration: 2m 9s ]


GERMANY Conv. No. 519-11 (cont.)


END WITHDRAWN ITEM NO. 2

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-US budget
-Wage control moves
-Public pressure
-Proposals for a bill
-Council of Economic Advisors [CEA]
-Abuse of economic powers
-Timing of submission to Congress
-Proposed contact with West German leaders
-Willy Brandt
-Egon Bahr
-Rolf Pauls
-Alex Möller
-Karl Schiller
-Construction industry
-Wage/price bill
-Intermediate efforts
-Goals
-Selective nature
-McCracken’s concerns
-Inflation
-Unemployment rate
-President’s concern
-Feasibility of action
-Public relations effect of anti-inflation moves
-Wage and price freeze
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Other ways to accomplish goals
-Cabinet committee
-Problems
-Wage and Price Board
-Advantages
-Political
-Management/labor overtones
-Davis-Bacon Act Conv. No. 519-11 (cont.)
-Trends in wage costs
-Productivity gains and labor costs
-1970
-1971 prospects
-Metals and construction industry wage settlements
-1972 prospects
-Upcoming contract negotiations
-Longshoremen
-General Electric
-Fred J. Borch
-Railroads
-Airlines
-Inflation
-Expansion
-Interest rate rise
-Effect
-Implications
-Interest rates
-Effect of short term rise
-Inventories
-Inflation
-Effect of rate increase
-Revenues
-Deficit
-Expenditure estimates
-Legislation
-Upcoming meeting
-Veto strategy
-Spending
-President’s efforts
-Evaluation of legislative efforts
-Budget manipulation
-Shortcomings of Congressional efforts
-Administration counter
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Budgetary maneuver
-Inflationary fears
-Effect
-Stimulation of economy
-Fiscal measures
-Effect
-Administration “Money Side” efforts
-Internal Revenue Service [IRS] Conv. No. 519-11 (cont.)
-Tax code
-Production of jobs
-Depreciation allowances
-Timing
-”Defensive” posture of administration
-State of economy
-Unemployment
-Upcoming statistics
-Tax reform
-Schedule acceleration
-Fear of inflation
-National debt
-Fiscal reasons
-Unemployment rates
-Alleviation
-Price and wage front
-Energetic advance
-Halt in fiscal expansion
-Effect
-Confidence building
-Interest rates
-Impact next year
-Emergence of a “New World”
-Previous economic problems
-Effect
-Spread of trade unionism to public employees
-Use of strikes
-Effect on other workers
-Changing of strike psychology
-Need for new economic policy/firm action
-Inflation
-Progress
-Unemployment
-Wage/price effect
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Wage Board Employee Bill
-Reincarnation
-President’s action in past
-Content
-President’s future action
-Wage and Price Board
-Wage and price freeze
-Best approach Conv. No. 519-11 (cont.)
-Burns’ view
-Preparatory actions
-Steel industry role
-Role of Cabinet Committee on Economic Policy
-Lifting of wage and price freeze
-Simultaneous caveat
-Necessity of conveying proper attitude to nation
-Willingness to take strong action
-Democratic interference
-Administration response
-Democratic attacks on the deficit
-Amount
-Inflation expectations
-Effect
-Impact on election
-Interest rates
-Money supply
-Connally’s view
-Cabinet Committee on Economic Policy
-Problem of timing
-Need for timely action
-Need for overt action
-McCracken report
-Timing
-Steel negotiations
-President’s action
-Discussions with steel industries
-Credibility
-Need for open options
-Need for wage/price freeze
-Wage and price freeze
-Cessation of President’s powers
-Application for reinstatement from Congress
-Implications for timing of power use
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Extension of power
-Congressional contact
-Contact with steel people
-Unemployment and inflation
-Tax relief bill
-New spending requests
-Deficit control
-Wage and price freeze Conv. No. 519-11 (cont.)
-Shultz’s view

Discussion with steel people
-Shultz’s role
-William F. Hausman [?]
-James D. Hodgson/J[ames] Curtis Counts/Shultz role
-Meeting with President
-Administration position
-Steel problems
-Recognition
-Changes necessary
-Administration help

Labor problems
-Longshoremen’s Union/Postal Workers’ Union
-Post-strike behavior
-Administration contact
-Counts’ role
-Productivity bargain
-Electrical industry
-Steel industry
-Union demands
-Cost of living raise
-Cost problems
-Work orders
-Post-settlement administration strategy
-Wage and price control
-Cost remedies
-Business participation in economic recoveries
-1913-1914
-1933
-Cycle of recessions
-Business concerns
-Profit margins
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Psychology
-Pace of expansion
-Wage and price controls
-Treatment of administration by liberal press
-New York Times
-Lockheed Corporation

Alexander P. Butterfield entered at 3:25 pm Conv. No. 519-11 (cont.)

-President’s schedule

Butterfield left at 3:26 pm

-Quadriad differences
-National Railroad Passenger Corporation/American Track [AMTRAK]
-Contact by aide of President
-[Name unintelligible]
-John A. Volpe
-Discussion with railroad executives

Next Quadriad meeting
-Budget figures
-President’s meeting with Burns

Interest rates
-Comment by Quadriad officers

Connally, Shultz, McCracken, and Burns left at 3:29 pm