726–5

Conversation No. 726-5

Date: May 19, 1972
Time: 12:19 pm - 12:49 pm
Location: Oval Office

The President met with George P. Shultz.

[Discontinuities at the end of the conversation appear in the original recording.]

Shultz
-Confirmation
 33

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. Jan-02) Conv. No. 726-5 (cont.)

-Clark MacGregor
-Timing with Richard G. Kleindienst's confirmation
-Tactical considerations
-Congressional tactics
-Acting Secretary of Treasury
-Confirmation
-Hearings
-Support
-Relationship to Kleindienst hearings
-Filibuster
-President's strategy
-Timing
-Ease
-Acting Secretary of Treasury
-Legality
-Timing
-The President’s trip to the Soviet Union
-John B. Connally trip
-Date
-Australia, New Zealand, and South America
-Purpose
-Shultz's assumption of position
-Legal impediments
-Date
-Connally trip
-Transition
-Speed

Shultz's schedule
-Briefings
-Meetings with Congressmen
-Office of Management and Budget [OMB] work

Connally
-Trip
-Status

Shultz
-Acting Secretary status
 34

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. Jan-02) Conv. No. 726-5 (cont.)

Treasury Department
-Personnel
-Shultz's choices
-Tax reform
-Personnel
-Edwin S. Cohen
-Personnel
-Shake-up at top
-Current problems
-\"Chicago group\"
-Arnold R. Weber
-Knowledge
-Work on freeze
-Management needs
-Internal Revenue Service [IRS], Customs
-Shake-up at IRS
-Connally's changes
-President's expectations of Shultz
-Changes
-Scope
-Timing
-Forthcoming election
-Preparation
-Qualities
-Youth
-Possible current changes
-Effect
-Top managers
-Support of President
-Charls E. Walker
-Paul A. Volcker
-Future positions
-Shultz's team
-Connally's team
-Qualities desired

Department of Labor
-Shultz’s previous tenure

George Meany
-Call
-Meeting
-Cost of Living Council [COLC] , tax reform
 35

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. Jan-02) Conv. No. 726-5 (cont.)

-Benefits


**********************************************************************

BEGIN WITHDRAWN ITEM NO. 1
[Personal Returnable]
[Duration: 23s ]


END WITHDRAWN ITEM NO. 1

**********************************************************************


-Work with Shultz
-Lee Elder
-Identified
-Appointment as golf professional at Washington, DC golf course
-Rogers C.B. Morton

George B. Hartzog, Jr.
-The President’s view
-Future
-Action on Elder appointment

Elder
-Appointment as gold professional
-President's orders
-Shultz's call to Meany
-President's role
 36

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. Jan-02) Conv. No. 726-5 (cont.)

**********************************************************************

BEGIN WITHDRAWN ITEM NO. 2
[Personal Returnable]
[Duration: 2m 24s ]


END WITHDRAWN ITEM NO. 2

**********************************************************************


Economic policy
-Shultz
-Knowledge
-Conflicts with Arthur F. Burns
-Money supply
-Convertibility
-Tax system
-The President’s view
-Reform
-Use
-Social goals
-Legislation and appropriations
-Charitable deductions
-Simplification
-Tax lawyers
-Value-added tax [VAT]
-Manufacturers' excise
-Loopholes
-Milton Friedman
-Recruitment
-The President’s view
-Consultation
-Possibility
-Support for President
-View of wage and price controls
-Recruitment
-President's urging
-The President’s trip tot he Soviet Union
-Teaching load
-Conditions
-Personnel
 37

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. Jan-02) Conv. No. 726-5 (cont.)

-Recruitment
-Qualities desired
-Friedman
-Radicalism
-The President’s view
-Value
-The President’s message
-Shultz's future plans
-Tax reform
-Treasury Department
-Shake-up
-Dwight D. Eisenhower era personnel
-The President’s view
-Harry S. Truman era personnel
-The President’s view
-Congressional partnership
-Wilbur D. Mills
-Russell B. Long
-Meetings with Shultz
-Advice
-Work with President
-Senate role
-Mills
-Importance
-Meeting with President
-Tax bill
-Mills's position on reductions
-Problems
-Loopholes
-Democratic criticisms
-Effect of Democratic National Convention
-Republicans
-Importance
-Meetings with Shultz
-Shultz's relationship with President, Republicans
-Handling

Treasury Department
-Shultz's nomination
-President's advice on role
-Connally
-Relationship with Caspar W. Weinberger on budget
-Importance
 38

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. Jan-02) Conv. No. 726-5 (cont.)

-Trade and monetary policy
-US National interests
-Trade terms
-Protectionism
-Forthcoming election
-President's position
-Support for Connally's position
-Shultz's position
-Press reports
-Peter M. Flanigan
-Work on international trade policy
-Connally
-Knowledge
-Shultz's role
-Quadriad
-COLC
-Controls
-1972 election
-Termination
-Timing
-Budget
-Projections

Shultz left at 12:49 pm.