853–10

Conversation No. 853-10

Date: February 8, 1973
Time: 10:31 am-12:24 pm
Location: Oval Office

The President met with Russell B. Long and John D. Ehrlichman; the White House photographer
was present at the beginning of the meeting.

Greetings

[Photograph session]
-Newsletter
 -7-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)



George P. Shultz
-Attendance at meeting
-Taxes

Vietnam settlement
-Letter from President

Congressional relations
-President’s visit to John C. Stennis
-Chances of living
-Physical condition
-Compared to Harry F. Byrd, Jr.
-Attitude
-Southern Democrats
-Richard B. Russell
-Long’s support for President
-Vietnam settlement
-Support for President
-Political disagreements
-Republican Senators
-Foreign policy

Public relations
-Support for President
-South
-Registered Democrats
-George S. McGovern
-Carolyn Bason Long
-Family Assistance Plan [FAP]
-Welfare Rights Organization
-McGovern
-Albert E. Sindlinger
-Telephone polls
-Up-to-date polls
-Congress
-Executive privilege
-Attack on Stennis
 -8-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Public sympathy
-Prayer breakfast
-Crime issue
-Public concerns
-Awareness

Congressional relations
-Support for President
-Long’s conversation with Russell
-President’s visit to Russell
-[Senate]
-[Vietnam settlement]
-Budget
-President’s tax pledges
-Joint budget
-Long’s committee seat
-Ceiling
-Cuts in spending
-Debt ceiling
-Tax increase
-Inflation
-Increase
-Social Security
-Poor
-Elderly

Welfare
-Meeting with Long and President
-Shultz
-Caspar W. (“Cap”) Weinberger
-Confirmation
-Qualities
-John G. Schmitz
-John Birch Society
-Comments on Senate attacks
-Single mothers
-Incentives for lawsuits against fathers
-Effect on amounts
 -9-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Reliability of government money

Manolo Sanchez entered at an unknown time after 10:31 am.

Refreshments
-Sanka

Sanchez left at an unknown time before 11:05 am.

Welfare
-Mothers
-Assistance from fathers
-Employers
-Benefit levels
-Incentives for employment
-1973 Inauguration
-Department of Health, Education, and Welfare [HEW]
-Working poor
-Social Security
-Cash rebate on contributions
-Compared to FAP
-Administration’s cooperation
-Long’s proposal
-FAP
-Guidelines
-Changes in income
-Abraham A. Ribicoff
-Approval
-Senate support
-Edward M. (“Ted”) Kennedy

Housing
-Federally built housing projects
-Permanent ghettos
-Miami
-James T. Lynn
-Department of Housing and Urban Development [HUD]
-Great Britain’s housing allowance
 -10-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Buyer’s market


******************************************************************************
[Begin segment reviewed under deed of gift]

-President’s first car
-Used car
-Model A

[End segment reviewed under deed of gift]
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-New compared to old housing
-Housing for poor
-Dishwasher, recreation center, color television [TV]
-Deterioration
-Federal programs
-Changes
-Social security
-Housing allowances
-Long’s opinion

Welfare
-Incentives for employment
-Workforce
-Selfishness
-Blacks, Chicanos
-Florida
-Charles G. (“Bebe”) Rebozo
-Employment rate
-Cubans
-Blacks
-Work habits
-Incentives for employment
-Long’s input
-Ribicoff’s proposal
 -11-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Amount
-Food stamps

Housing
-Housing projects
-Edward W. Brooke’s amendment
-Rents
-Maintenance costs
-Deterioration


******************************************************************************
[Begin segment reviewed under deed of gift]

Support for President
-Carolyn Long
-Parents
-North Carolina

Long
-Opposition in State of Louisiana
-Republicans

[End segment reviewed under deed of gift]
******************************************************************************


Welfare
-Incentives for poor
-Self-help
-President’s statement
-John F. Kennedy
-Peace Corps
-Enforcement
-Fathers
-Penalties
-Positive incentives
-Costs
 -12-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Kennedy, Ribicoff
-Alternatives

Congressional relations
-Purpose of meeting
-Discussion with Wilbur D. Mills
-Japanese textile controversy
-Credit
-Conflict between Mills and Long
-Taxes
-Trade legislation
-Cooperation between administration and Congress
-Politics
-Need for Long’s and Mills’s support for programs
-President’s approach to Congress
-Tax bill
-Joint effort
-Outside advice
-Bureaucrats
-Longevity
-Interference with President and Congress
-Under Secretary
-“Invisible government”
-Lyndon B. Johnson
-Vietnam War
-John Kennedy
-Responsibility for war
-Length of war
-Honorable end
-Non-communist Asia
-People’s Republic of China [PRC]
-President’s conversation with Alice Roosevelt Longworth
-Editorials
-December 1972 bombing
-Prisoners of War [POWs]
-President’s decision
-North Vietnam response
-Negotiations
 -13-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Cease-fire
-President’s actions
-Popularity compared to respect
-Timidity
-Demonstrators, press
-Effect on allies
-Trust
-Respect of enemies
-Soviet Union
-PRC
-Future relations
-Respect for Presidency
-“Invisible government”
-Bureaucracy
-Johnson
-Press
-John W. Chancellor, [Arnold] Eric Sevareid
-Elected officials
-Authority
-Need for communication
-Long’s role
-Contact with Ehrlichman
-Consultations in advance on measures
-Taxes
-Bipartisan briefings
-Long’s leadership

George P. Shultz entered at 11:05 am.

Greetings

FAP
-Ribicoff
-1973 inaugural address

Congressional relations
-Meeting with Ehrlichman, Long, Weinberger, Lynn
-Housing allowance
 -14-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Senate Finance Committee
-Rents
-Controls
-Great Britain
-Welfare
-Poor
-Food stamps
-Housing
-Transportation
-Long’s input
-Medical issues
-Senate Finance Committee
-Common Cause
-United Auto Workers [UAW]
-Adlai E. Stevenson, III
-Democrats
-Republicans
-Number
-Robert W. Packwood
-Herman E. Talmadge
-Harry Byrd
-Lloyd M. Bentsen, Jr.
-Support for Long
-Number of votes

Tax policy
-Mills’s hearings
-Tax reform
-1972 campaign
-Demagoguery
-President’s commitments
-Aid to parochial schools
-Tax relief for elderly
-Property taxes
-Equity
-Implications
-Energy
-Trade
 -15-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Trade
-Senate Finance Committee
-President’s options
-Treaty
-Act of Congress
-Committee approval
-J. William Fulbright
-Trade bill
-Senate
-Finance Committee
-Foreign Relations Committee
-Tax reform
-Long’s opinion
-Mills’s hearings
-Treasury Department testimony
-President’s commitments
-Simplification
-Energy
-Strategy ideas
-Reduction in rates
-Mills
-Charity
-Private foundations
-Compared to giving to heirs
-Colleges, charities, churches
-Contributions
-Foundations
-Tax status
-Activities
-Subcommittee
-Bentsen
-Seniority
-Income tax avoidance
-Corporate returns
-Deductions
-Minimum tax
-Big companies
-Corporate taxes
 -16-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Treasury Department study
-Oil industry
-Exploration
-Foreign drilling
-Tax exemptions
-Domestic sources
-Development
-Changes in corporate tax structure
-Foreign tax exemptions
-Internal revenue code

Energy
-Oil imports
-Natural gas
-Price control
-Removal
-Superior product
-Incentives
-Shortages
-Schools
-Generator plants
-Incentives
-Controls
-Production
-Compared to oil and coal
-Washington Post
-Charles E. Walker
-Controls on natural gas
-Prices
-Impact on production
-Contract restrictions
-Oil
-National security
-Friendly nations
-Suez crisis
-Europe
-Egypt
-Domestic production
 -17-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Shale oil
-Coal
-Emergencies
-Domestic productions
-Market forces
-Incentives
-Shale oil
-Solar energy
-Feasibility
-Nuclear power
-Compared to fossil fuels
-Oil
-Pricing
-Free market
-Imports
-Stock piles
-Problems
-Refineries
-Defense
-Louisiana
-National emergency
-Limited war
-Prices
-Increase
-Cost of gasoline
-Elasticity of supply

Tax policy
-Reforms
-Pro-business orientation
-Congress
-Wealthy people
-Investment
-Leonard Woodcock
-Politics
-Irresponsible proposals
-Minimum income tax
-1969 tax legislation
 -18-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Investment taxes
-Incentives
-John B. Connally
-Depreciation
-Guidelines
-Albert A. Gore, Sr. [?]
-Tax increases
-Unpopularity
-Minimum income tax
-Senate Finance Committee
-Jack R. Miller
-Paul H. Douglas
-Gore
-John Mayer [?]
-Fred R. Harris
-Tax cuts

Shultz possible meeting with Long

Oil exploration
-Dry holes
-Tax credit
-Rewarding exploration
-Pay off for failure
-Problems in defining
-Incentives
-Tax breaks
-Small operators
-Compared to large companies

Tax policy
-Minimum tax
-Offset increases
-Energy exploration
-Tax reform
-Property taxes
-Minimum tax
-Equity
 -19-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Tax increase
-Veto

Oil production
-Dry holes
-Wells
-Number
-Productivity of US
-Tax avoidance
-Accountants, lawyers
-Independent operators

Ehrlichman’s briefing
-Shultz’s questions and answers [Q&A]

Ehrlichman left at 11:44 am.

Trade
-Problems
-Trade balance
-Japan
-Difficulties
-Countervailing duty
-Authority for President
-Negotiations
-Reductions and increase on duties
-John F. Kennedy’s administration’s policies
-Surtax
-Balance of payments
-Emergency
-Surtax
-President’s actions
-Previous surtax
-Connally’s negotiations
-Inflation
-Tariffs
-Japan
-Inundating markets
 -20-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Job loss
-Electronics
-Flooding
-Automobile market
-California
-Protection
-Countervailing duty
-Dumping laws
-Safeguards
-Labor, business
-Job retention
-Support for welfare
-Protectionist
-Tariffs
-Compared to Kennedy negotiations
-Reductions
-Europe
-Japan
-US negotiating position
-Trade deficits
-Long’s experience
-Majority whip
-Visit to Lyndon B. Johnson’s ranch
-Johnson’s view
-Unilateral actions
-Conference
-Trade representative
-Dean Rusk
-Problems
-Connally
-Peter G. Peterson
-Japan
-US balance of payments
-Trade coupons
-Spain
-France
-Latin America
-Compared to US oil imports system
 -21-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Petrochemicals
-Surtax
-Flexibility
-Surtax
-Application
-Latin America
-Compared to Japan, Europe, Canada
-General Agreement on Tariffs and Trade [GATT]
-Legislation
-Emergency power
-Japan
-Need for trade surplus
-US policies
-Foreign aid
-Defense
-Japan
-Europe
-Canada
-Defense
-Need for supplies
-France, Europe
-Deficits
-Size
-Imports
-Trade coupon
-Exchange of dollars
-Speculation
-Legislation
-President’s authority
-Negotiations
-Japan
-Congress
-Limits
-Negotiations
-Congressional support
-Consultation
-William Proxmire
-Long’s support for increased authority
 -22-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Suggestions

Oil
-US shipping
-Paul Hall
-Seafarers Union
-Labor negotiations
-No strike pledge
-Cost of shipping
-Labor costs
-Compared to factory
-Balance of payments
-Connally’s views
-William E. Simon [?]
-US market
-Venezuela, Middle East
-Producers
-Control of production and transport
-US dealings with Saudi Arabia, Iran, Gulf States
-US control of tankers
-Bargaining position
-Tankers
-Soviet Union
-Deepwater ports
-Subsidies
-Oil industry
-Strikes
-Hall
-Relations with administration
-Labor Management Advisory Committee
-Number of unions
-Competition
-Hall
-Thomas W. (“Teddy”) Gleason
-International Longshoremen’s Association [ILA]

Oil
-US shipping
 -23-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Organization of Petroleum Exporting Countries [OPEC]
-Pressure on oil companies
-Tankers for producing countries
-Profits
-Control
-Jobs
-Steel
-Fabrication of ships
-Oil imports
-Quota tickets
-Oil companies
-Maritime industry
-Costs of energy
-Offshore oil
-Domestic pricing

Stephen B. Bull entered at an unknown time after 11:44 am.

Press relations
-Statement for Ronald L. Ziegler
-Meeting with President, Long, Shultz, and Ehrlichman
-Welfare reform
-Tax, trade, energy policies
-Length
-Politics

Bull left at an unknown time before 12:04 pm.

Trade
-Negotiations
-Japan
-Trade bill
-Shultz’s consultations with Long
-Congressional leaders
-Meeting
-Monetary matters
-Need for quick action
-President’s responsibilities
 -24-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Long’s support
-Consultations
-National interest
-Statement

Long’s schedule
-Senate reconvention
-Vacation

Long’s support for President in Congress
-Louisiana Republicans
-Democrats
-President’s courage
-Congressional relations
-Opposition to President
-Cabinet confirmations
-Politics
-Electoral mandate

Congressional relations
-David H. Gambrell
-Sam Nunn
-Carl Vinson
-Georgia
-Vietnam War
-Walter Huddleston
-Kentucky
-J. Bennett Johnston, Jr.
-Louisiana
-Common Cause
-Influence in Democratic Party
-Committee Chairmen
-Democratic caucus
-Long’s opposition
-Budget controversy
-Obstruction
-Tax reform
-Democratic Policy Committee
 -25-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-10 (cont’d)


-Stanley S. Surrey
-Tax reform
-Recommendations
-George S. McGovern
-UAW
-Bentsen
-George W. Romney
-Attack on seniority
-Common cause
-Press release
-Mills
-James O. Eastland
-Senate leadership
-Johnson during Eisenhower’s administration
-President’s support for Long

Monetary matters
-Dollar
-Consultations with Long

Long left at 12:24 pm.

Monetary matters
-Forthcoming meeting

Shultz left at 12:24 pm.