577–3

Conversation No. 577-3

Date: September 20, 1971
Time: 12:45 pm - 1:30 pm
Location: Oval Office

The President talked with John N. Mitchell; Arthur F. Burns entered at 12:45 pm while the
conversation is in progress.

[Conversation No. 577-3A]

[See Conversation No. 9-95]

[End of telephone conversation]

Greetings

Supreme Court resignation
-John Harlan
-Health
-Georgetown Hospital
-Announcement
-Date
-Speculation
-Appointees
-Number
-Effect on Supreme Court
-Justice Department
-Federal Bureau of Investigation [FBI]
-Role in appointing Justices
-Appointees
-Congressman
-Clement F. Haynsworth, Jr.
-G. Harold Carswell
-Richard H. Poff
-Credentials
-Harry F. Byrd, Sr.
 7

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 577-3 (cont.)


-Conservatism
-Practice of law
-Judiciary Committee
-American Bar Association [ABA]

International economics
-Burns's European trip
-John B. Connally
-US objectives
-Europeans
-Currency re-alignment
-Convertibility of gold
-France
-Restoration of convertibility
-Results
-Significance in France
-France
-Price of gold issue
-Reactions
-Price of gold
-Burns's conversation with Connally
-US position
-Policies
-Tariffs

Manolo Sanchez entered at an unknown time after 12:45 pm.

Refreshments
-coffee

Sanchez left at an unknown time before 1:30 pm.

International economies
-Price of gold
-Raising price
-Amount
-William Proxmire
-William V. Roth, Jr.
-Opposition
-Congressional actions
-Price of gold
 8

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 577-3 (cont.)


-Increase
-Attitude
-Political and economic objection
-Political objection
-Rewards for countries
-South Africa
-Soviet Union
-France
-Price of gold
-Comparison to earlier prices
-Official price compared to market price
-Action of raising price
-Percentage points
-Inflation
-Future action
-Europe
-Japan
-Subsidization of exports
-Canada
-Free trade
-Relationship with Canada
-Great Britain
-Political situation
-Common market
-Germany
-Relationship with the US
-Question of future policy
-Forthcoming economic meetings
-International Monetary Fund [IMF] and Group of Ten
-Preparation
-Location
-Washington
-The President’s schedule
-Alaska
-Forthcoming IMF meeting
-Possible statement by the President
-Reception
-Connally, the President
-Secretary of the Treasury
-Central bankers
-IMF chairman
 9

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 577-3 (cont.)


-Number
-Statement by the president
-Impact
-Location
-White House
-Secretaries of the Treasury
-John B. Connally
-Timing
-Great Britain
-Connally's evaluation
-European market
-Common market
-Effect on foreign policy of the US
-Economic policy
-Approach
-Integration of economic and foreign policies
-Japan
-People’s Republic of China [PRC]
-Soviet Union
-Japan
-Relationship with US
-Commercial relationship
-PRC, Soviet Union
-Relationship with Europe
-Comparison with the US
-Europe and Japan
-Relationship with the US
-Competition
-Japan
-Relationship with the US
-The President’s previous comments
-Competition
-People
-Type of governments
-Relationship between foreign policy and domestic issues
-Group of Ten meeting
-Congress
-Meeting with the President
-Isolationism
-Surcharge
-Foreign aid
 10

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 577-3 (cont.)


-Trade barriers
-Canada
-Japan
-US public
-Possible speculation
-Anti-trust laws
-Subsidization
-Okinawa reversion treaty
-Textiles
-Type of diplomacy for the US
-Strength
-Public posture
-Congress
-Jacob K. Javits
-Current situation
-Projections for the future
-Britain
-British press
-Influence in US
-The Economist
-Relationship with the US
-Politics
-Orientation
-Italy
-Rome
-Memorandum
-Conversation between the president and burns
-Foreign restrictions
-Impact in the US
-Timing
-Economic theory
-Floating exchange system
-Milton Friedman
-Godfrey [Surname unintelligible]
-Marketplace forces
-Demand and supply
-Contrast of theoretical and practical conditions
-Current environment
-Restraints
-Government rules
-Central banks
 11

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 577-3 (cont.)


-European countries
-Unification of ideas
-Competition with the US
-Obstacle
-Percentage points
-Connally
-Presentation of US position abroad
-Understanding of problems
-Foreign countries
-Problems
-Gold prices
-US understanding
-Type of problems
-Impact of us action
-Import surcharge
-US position
-Duration
-Currency realignment
-Relation to surcharge
-Negotiations
-Length of time
-Gold issue
-Devaluation of the dollar
-Psychological impact
-Political impact
-Price of gold
-Inflation
-International reserves
-Measured by gold
-Reduction
-Special Drawings Rights [SDR’s]
-Economic theories
-Political economic effects
-Political factors
-Parliamentary bodies
-US position on gold prices
-Congress
-Economic change
-Election period
-Proxmire, Roth
-Burns
 12

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 577-3 (cont.)


-Connally
-Burns's trip
-Education
-Burns's credentials
-Representation of the US
-Negotiations
-International economics
-Domestic versus international matters
-Burns, Connally
-Meeting with central bankers and finance ministers
-Clarity of communications
-Connally
-Representation of the US position
-Connally
-Credentials
-Type of trip
-Connally
-Obtaining information
-Conversation with burns
-France
-Gold convertibility
-Germany
-Percentage points appreciation
-European economic community [common market]
-Director General's position
-Price of gold
-Political compared to economic problem
-Economic problem
-Foreign, economic discussions
-Conally's position
-Limitation on discussions
-Central bankers
-Tradition of discussion
-President’s approval
-Connally
-US position
-Unified position
-Possible outcome
-Press
-Burns
-Relationship with Connally
 13

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 577-3 (cont.)


-Role as economist
-Representation of the US
-US position
-Connally
-Agenda proposal
-Price of gold
-Trade
-Currency re-alignment
-Domestic political scene
-Conversations between Burns, Connally, and the President
-William P. Rogers
-State Department
-[Federal Reserve Board [FRD]]
-Treasury Department
-Council on International Economic Policy [CIEP]
-US negotiating position
-Connally's staff
-Limitations
-Connally's
-Credentials as negotiator
-Understanding of foreigners
-Perception by Europeans
-Toughness
-Understanding
-John Foster Dulles
-State Department
-Relationship with the President
-Number of individuals involved
-CIEP
-Peter G. Peterson
-State Department
-Commerce Department
-Peterson
-Number involved
-Type of discussions
-Connally's role
-Foreign policy
-Nathaniel Samuels, Philip H. Trezise
-Henry A. Kissinger
-Relationship with the President
-Peterson
 14

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 577-3 (cont.)


-Kissinger
-Foreign relations factors
-Germans
-France
-Georges J.R. Pompidou
-Britain
-Japanese
-Future implications
-Member of group
-Political interests
-Domestic advantages
-IMF
-The President's appearance
-Statement
-Reception
-Pierre Paul Schweitzer
-Possible meeting with the President
-Connally
-Possible reaction
-Detroit Economic Club
-Upcoming Question and answer [Q&A] session with the President
-Date
-Preparation of background information by Burns
-Audience
-International issues
-IMF
-Gold
-Handling
-Transmittal
-Date
-Time
-H. R. (“Bob”) Haldeman
-Rose Mary Woods
-California
-Type of information
-Impact

The economy
-Phase II
-Meetings with various special interest groups and individuals
-Date
 15

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 577-3 (cont.)


-Decisions
-Directions of policy
-Congressmen, Senators, business leaders
-Preferences
-Labor leaders
-Position on Phase II
-Comparison to business leaders
-The President's schedule
-Trip
-Alaska
-Unified position
-Direction
-Freeze
-Phase II
-Follow-up
-Budgetary and tax action
-Follow-up
-IMF meeting
-Freeze
-Impact
-Meeting between Burns and the President
-Freeze
-Phase II
-Sequence of follow-up action
-Burns's conversation with Herbert Stein
-Changing process
-Mechanics of change
-Labor leaders’ cooperation
-People
-Support of the President
-Results of polls
-George Meany
-Lack of support versus support
-Freeze
-Impact
-Freedom
-US people
-Support of the President
-Election
-Restraint imposed by freeze
-Labor unions
 16

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 577-3 (cont.)


-Forthcoming Q&A session
-Memo from Burns to the President
-Phase II
-Date
-Preliminary statement

Burns left at 1:30 pm.