52–1

Conversation No. 52-1

Date: April 8, 1971
Time: 10:40 am - 12:17 pm
Location: Cabinet Room

The President met with William P. Rogers, John B. Connally, Clifford M. Hardin, Maurice H.
Stans, James D. Hodgson, George P. Shultz, Paul W. McCracken, Henry A. Kissinger, Carl J.
Gilbert, David M. Kennedy, Rocco C. Siciliano, Deane R. Hinton, Donald A. Webster, C. Fred
Bergsten, and Peter G. Peterson
[Recording begins while the conversation is in progress]

Domestic briefing for administration wives
-Revenue sharing

Photograph of Council on International Economic Policy [CIEP] members
-Kissinger
-Location
-John D. Ehrlichman
-Timing

CIEP
-Origins
-Connally
-Purposes
-Jurisdiction
-Peterson’s role
-Hardin
-Rogers
-Procedures
-Membership
-Melvin R. Laird’s memo
-Limitation
-Kennedy’s role
-Trade policy
-Special assignments

Photographic session
-Timing

Foreign economics
-Adlai E. Stevenson, III
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Review of trends
-Options for United States
-Gross National Product shares
-United States
-European community
-Communist nations
-Underdeveloped countries
-Developed countries
-Japan
-United Kingdom
-Soviet Union
-Communist nations
-Eastern Europe
-China
-Reserves
-United States’ share
-European Economic Community
-Japan
-United Kingdom
-Soviet Union
-Exports
-United States
-European Economic Community
-United Kingdom
-Japan
-United Kingdom
-Underdeveloped nations
-Reserves
-Oil-producing countries
-Exports
-United States
-Importance
-Canada
-Foreign economics
-United States’ share

United States’ balance of trade
-Commerce Department study
-Categories
-Technological areas
-Non-technological areas
-Agriculture
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Agriculture
-Drop in workers
-Output increase
-Technological exports
-Aircraft
-Computers
-Nuclear reactors
-Motor vehicles
-Telecommunications
-Japanese advances
-Non-technology
-Categories
-Exports versus imports
-Growth in underdeveloped countries
-Motion picture industry
-California
-Connally
-Favorable industry
-Possible study
-Foreign share of non-technology
-Japanese competition
-Shoes
-Penetration
-Share of United States’ market
-Trade by country
-Canada
-Shift
-Agriculture
-Automobiles
-Negative
-American investment
-European Economic Community
-Franco Maria Malfatti
-Technology
-Agriculture
 4

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



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Japan

[To listen to the segment (12m12s) declassified on 02/28/2002, please refer to RC# E-513.]

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Monetary issues
-Connally and Paul A. Volcker
-Income from United States’ companies abroad
-Growth
-Balance of payments
-United States’ investments abroad
-Liquidity problem
-Connally, Volcker concern
-Balance of payments
-Gilbert
-Current items
-United States’ assets abroad
-Strengths
-Vulnerabilities
-Underdeveloped countries
-Population problems
-Per capita growth
-United States’ per capita growth
-Increase of private investments
-Raw materials


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Japan

[To listen to the segment (6s) declassified on 02/28/2002, please refer to RC# E-513.]

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-United States’ investment abroad
-Increase
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Canada
-Europe


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Japan

[To listen to the segment (15s) declassified on 02/28/2002, please refer to RC# E-513.]

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-Compared to domestic investment
-Concerns
-United States’ companies

Multinational corporations
-International Telephone and Telegraph
-Labor union concerns
-Trade implications
-Involvement of United States’ companies
-Commerce Department study

Productivity question
-Labor costs
-United Kingdom
-West Germany
-Japan
-Wage increases

Raw materials
-United States’ consumption
-Future imports

Research and Development
-Importance
-Great Britain’s program
-Need for encouragement

Japan
-Low-cost encouragement of development
 6

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Article on Japan, Incorporated
-Policy questions
-Government involvement in international business
-Export promotion
-Cooperation
-People’s Republic of China, Taiwan
-Raw materials
-Agreement with Australia
-Labor
-Shultz
-Tied to productivity increases
-Absence of strikes
-Conglomerates
-Sony Com [?]
-Compared to United States’ companies


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Foreign Investment

[To listen to the segment (34s) declassified on 02/28/2002, please refer to RC# E-513.]

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Justice Department
-Anti-trust question
-Conglomerates
-United States’ policy compared with Japan’s
-Difficulties for United States’ companies
-Attitude towards big business
-Rogers
-President’s discussions with Connally
-Anti-trust Division
-Sherman Act
-Anti-trust laws
-Need for study
-Foreign policy implications

Business attitudes
-View of government-business relations in Japan
 7

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Conglomerates
-President’s discussions with Connally
-Justice Department
-International trade
-View of administration policies
-Changes in business methods
-Balance of payments problem
-View of anti-trust enforcement

Justice Department
-Policies
-Rogers
-Anti-trust Division study
-Richard W. McLaren
-Anti-trust laws
-Possible need of change
-Small franchises
-Anti-trust Division
-Burger King
-Patents
-Need for anti-trust study
-McLaren

International trade
-Steel companies
-Voluntary export controls
-Cartels
-California banks
-Connally’s conversation with unknown banker
-Possible anti-trust suits
-World position of United States

Trade and legislative strategy
-Textiles and shoes
-Import quota bill
-Viable alternative
-1969 legislation
-Foreign economic initiative
-European Economic Community
-Japan
-Canada
-Trade
 8

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Textiles and shoes
-Planning
-Need for adjustment assistance program
-Liberal policy
-Early warning system
-Stans and Hodgson
-Anti-trust aspects
-Acquisitions
-Vertical integration
-Overseas issues
-Incentives for investment
-Retraining
-Peterson’s conversation with John H. Burns
-Community assistance
-Management assistance
-Policy questions
-Domestic and foreign competition
-Need for differentiation
-Complexity of process
-Need for experimentation
-Liberal trade policies
-Need for stronger constituencies
-Reaction to fears
-Soybean people
-Clifford M. Hardin
-Need to build constituencies
-Industries
-Consumers
-Industrial tariffs
-Common market
-Agriculture
-Price support question
-Political rationale


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New Zealand

[To listen to the segment (35s) declassified on 02/28/2002, please refer to RC# E-513.]

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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)




-Non-tariff barriers
-Trade and investment restrictions
-Japan
-Economic blocs
-United States’ policy considerations
-Most-favored nation agreements
-Implications
-Monetary unions
-European Economic Community
-Trade
-Income and employment
-Agriculture in Europe
-Common Market
-Sicco L. Mansholt
-Increase in efficiency
-Higher demand for products
-Self-sufficiency
-Population in Europe

Foreign investment
-United States’ exports compared to United States’ investments abroad
-Policy considerations
-International corporations
-Possible international investment code
-Connally
-Tax and anti-trust provisions
-Transfer of technology
-Monitoring of agreements
-International corporations
-Views of organized labor

International monetary policy
-Connally’s and Volcker’s role
-Balance of payments policy
-European monetary union

Competitive position of United States
-Inflation and productivity
-Stimulation of research and development
-Effect of space program
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Technology and the industrial sector

Raw materials and energy position of United States
-President’s forthcoming plan
-Stans’ efforts
-Need for research and development
-Foreign policy aspects


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Middle East

[To listen to the segment (16s) declassified on 02/28/2002, please refer to RC# E-513.]

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-Nuclear reactors
-Supersonic Transport

Export promotion
-Financing and tax strategies
-Japan
-New United States government/business relations
-Anti-trust aspects
-New business relationships
-Japanese made
-Connally’s paper
-Cooperation with United States’ allies in economic spheres
-United States’ economic interests and foreign policy

Photo session
-Vice President Spiro T. Agnew

Kennedy’s forthcoming trip
-Japan
-Europe
-CIEP members

Subject discussed at meeting
-Priorities
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NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/08)



-Proposals

Franco Mario Malfatti

Photo session
-Stephen B. Bull


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[Unintelligible]

Malfatti entered at 12:00 pm


[To listen to the segment (4m14s) declassified on 02/28/2002, please refer to RC# E-513.]

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The President, et al. left at 12:17 pm