555–9

Conversation No. 555-9

Date: August 5, 1971
Time: 3:23 pm - 4:35 pm
Location: Oval Office

The President met with George W. Romney, John B. Connally, George P. Shultz, John D.
Ehrlichman, Peter M. Flanigan, and Paul W. McCracken.

Press
-Forthcoming Time story
-Connally quotes
-Wilbur D. Mills
-President’s interest in economy
-Lawrence Malkin
-Hedley W. Donovan
-Veracity
-Malkin
 26

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 555-9 (cont.)


-Fortune
-Arthur F. Burns
-Connally quote
-Malkin
-Time
-Hugh S. Sidey
-Editors
-People's Republic of China (PRC) announcement

Housing
-Interest rates for mortgages
-Interagency Meeting
-Current rate
-Impact on home builders
-Construction
-Subsidies
-Raising ceilings
-Economic and political effect
-Recommendations of working group
-Maintain current rate
-Housing starts
-Government National Mortgage Association [GNMA]
-Extension of assistance
-Cost
-Appropriations
-Home Loan Bank Board [HLBB]
-243 Program
-Projected housing starts
-Federal Housing Administration [FHA] - Veterans Administration
[VA]
-Effects
-Home builders and buyers
-Other interest rates
-Consumer Price Index [CPI]
-Political reaction
-Increase of rates
-GNMA authorization
-Discount rate
-Home builders view
-HLBB and 243 Program
-Effects
 27

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 555-9 (cont.)


-Housing production
-Mortgage market
-Housing industry
-Subsidies
-Congress
-Effect of maintaining rate
-Romney’s recommendation
-Prime and other rate
-Timing of possible action
-Federal National Mortgage Association [FNMA], HLBB
-Home builders
-Possible impact of increase
-Amount of increase
-Other interest rates
-Timing of possible action
-Amount of increase
-Home builders
-Increase
-Underwriting
-Inflation
-Congress
-Proposals
-Effect on housing starts
-Effect of increase
-Decline in starts
-Relationship to subsidies
-HLBB, 243 Program
-Maintain current rate
-Eugene S. Cowen’s prediction
-Housing construction
-Possible impact of increase
-Inflation
-Rate
-Maintain current rate
-Cost
-HLBB and 243 Program
-Subsidies
-Congress
-Employment
-Stimulating housing starts
-Relationship to interest rates
 28

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 555-9 (cont.)


-Subsidies
-National Association of Real Estate Boards
-Recommendation
-Mortgage
-Gene Curtis [?]
-Home builders
-Economic health
-Recommendation on increase
-Subsidies
-Bill
-Employment
-Stimulus to economy
-Congress
-Tax cuts
-Reduction of personal exemptions
-Possible actions
-Political consideration
-Jobs
-Psychological impact
-Timing
-Impact on bankers
-Increase in prime rate
-International Telephone and Telegraph [ITT] bond rate
-Maintain current rates
-Timing
-Tandem plan
-Legislative action
-HLBB and 243 Program
-Subsidies
-Effect on poor
-Timing of action
-Congressional recess
-Decision
-Reasoning
-Wage and price settlements
-Abuse of power
-Anti-trust
-Congress
-Inflation
-Maintain current rates
-Duration
 29

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 555-9 (cont.)


-Tandem plan
-Legislation
-Call to [John A. Stastny]
-Housing starts
-Discount rate

President's schedule
-Forthcoming Time story
-Shultz and Connally

Shultz, Connally, Romney, Ehrlichman, Flanigan and McCracken left at 4:16 pm.

Press
-Time story
-Malkin
-Sidey
-Negativity
-Instructions to Shultz
-Statement of facts
-Effect on administration opponents
-Politicians, pollsters, editors
-Arthur F. Burns
-Time
-Connally quote
-Forthcoming meeting with Malkin
-Source
-Eligio de la Garza
-Peter G. Peterson
-Wilbur D. Mills
-Donovan
-Fred R. Harris
-Possible resignation from Senate
-Henry A. Kissinger meeting with Sidey
-People’s Republic of China [PRC] story
-Distortion
-Time-Life editors
-Vietnam war issue
-President
-Pentagon Papers
-Democrats
-John F. Kennedy
 30

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 555-9 (cont.)


-Anger at Administration
-Henry A. Grunwald
-Sidey
-PRC story
-Editing
-Letter to Kissinger
-Editorial position
-Forthcoming story on economy
-Instructions to Shultz
-Positives of economy
-Problems
-Inflation and unemployment
-President’s involvement in economy
-California
- Budget
-Use of time
-Meeting with Connally
-Foreign policy
-PRC
-Melvin R. Laird
-National Security Council [NSC] meetings
-Budget
-President’s view

Economy
-Possible Administration actions
-Burns
-Recommendations
-Wage and price board
-Mandatory controls and enforcement
-Steel industry
-President's instructions to Shultz
-Economic controls
-Connally's schedule
-Texas
-California
-Import tax
-Level
-Tax cut
-Personal exemption
-Investment tax credit
 31

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 555-9 (cont.)


-naming
-Tax cut
-Symbolism
-Budget
-Revenue sharing
-Deferring
-Timing of action
-Congress
-Mills
-House Ways and Means Committee
-Trip to Brussels
-Proposed tax action
-Railroads
-Jobs
-Controls
-Removal
-Effect on trade
-Possible Congressional action
-Import tax
-Investment tax credit
-Controls
-Tax cuts
-Exemptions
-Deficit tax credit
-Excise tax
-Import tax
-Mills
-Credit
-Russell B. Long
-Credit
-House Resolution [H R] 1
-Quid pro quo
-Import tax
-Devaluation of dollar
-Japan
-Imposition and removal
-Congress
-Bargaining chip
-Devaluation

Malkin
 32

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 555-9 (cont.)



Connally and Shultz left at 4:35 pm.