853–12

Conversation No. 853-12

Date: February 8, 1973
Time: 12:28 pm-1:19 pm
Location: Oval Office

The President met with E. D. Kenna, Eugene J. Hardy, W. Richard Howard; the White House
photographer was present at the beginning of the meeting.

Greetings

[Photograph session]

The White House photographer left at an unknown time before 12:40 pm.

National Association of Manufacturers [NAM]
-Kenna’s activities as president
-Earl H. Blaik
-Greetings to President
-Residence
-Palm Springs
-Kenna’s possible visit
-Merle J. (McDowell) Blaik
-Operation
-Qualities
-New York
-Retirement
-Kenna’s activities as president
-Travel
 -27-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-12 (cont’d)


-Support for administration policies
-Spending
-Members
-Letters to Congress
-Trade policies
-Energy
-Spending
-Importance of issue
-Russell B. Long
-Congress
-Special interests
-Accountability
-Tax increases
-Prices
-Inflation
-Membership
-Constituents of Congress members
-Programs
-Computerized lists of members
-Congressional districts
-Energy
-Foreign trade
-Inter-industry Council
-Trade associations
-William D. Eberle
-Peter M. Flanigan
-Special trade representative [STR]
-Recommendations
-Negotiations
-Data
-Research efforts
-Tariffs
-Trade adjustment systems
-Monetary reform
-Administration relations
-Charles J. DiBona
-Kenneth R. Cole, Jr.
-Flanigan
 -28-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-12 (cont’d)


-Eberle
-William E. Simon, George P. Shultz
-Treasury Department
-Energy
-NAM stake
-Export policies
-Trade deficit
-US market
-Problems
-NAM programs
-World Trade Institute
-New York
-Seminars for small companies
-US-Soviet Union trade conference
-US representation
-Approach

Trade
-Soviet Union
-People’s Republic of China [PRC]
-Japan
-Negotiations
-Edward R. G. Heath
-Visit to US
-Europe
-Tariff barriers
-US approach
-Sales to Europe
-Henry Kearns
-Export-Import Bank
-Robert D. Anderson
-Work with Kenna
-New York

NAM
-Isolationism
-Europe
-US
 -29-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-12 (cont’d)


-President’s opposition
-Representation
-Import restrictions
-Policy determination
-Foreign trade
-Encouragement

Stephen B. Bull entered at an unknown time after 12:28 pm.

Shultz’s arrival

Bull left at an unknown time before 12:40 pm.

NAM
-Howard’s role
-Work with administration

Spending issue
-President’s leadership

Shultz entered at 12:40 pm.

Introductions
-Simon

NAM
-Budget policies
-Spending
-Trade
-Protection
-US companies
-World markets
-Contact
-Shultz’s forthcoming address

Kenna, Hardy, and Howard left at 12:42 pm.

Labor relations
 -30-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-12 (cont’d)


-Railroad strike
-Trustees
-Federal government
-Hearings in Congress
-Pete Williams
-Legislation
-Responsibility of President
-Administration’s strategy
-Support
-Amendments
-Penn Central
-Unprofitable lines
-Interstate Commerce Commission [ICC]
-Transportation Department
-Peter J. Brennan
-Claude S. Brinegar

International monetary situation
-Money markets
-Chaos
-Administration policies
-Paul A. Volcker
-Mission to Japan
-Kakeui Tanaka
-Exchange rates
-US moves to change
-Trade
-Cause of problems
-Speculation
-Trade balance
-Inflation
-Budget
-Trade balance
-Psychology
-Speculation on exchange rates
-Multinational corporations
-Floating
-Switzerland, Great Britain
 -31-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-12 (cont’d)


-Advantages

Trade
-Administration’s proposals
-Treasury Department announcement
-Consultations with Congress
-Surcharge
-Japan
-Intentions of government
-Tanaka
-Helmut H. W. Schmidt
-Problems
-Germany
-Possible agreements on exchange rates
-Unilateral announcement
-International Monetary Fund [IMF]
-Market’s reaction
-Acrimony
-Purpose of US actions
-Germany

Stock market
-Shultz’s evaluation
-Reasons for problems
-Pessimistic reasons
-Arthur F. Burns
-Money supply rate of growth
-Interest rates
-Jawboning
-Inflation
-Phase III
-Explanation
-Squeeze on corporate profits
-Burns
-Interest rates
-Demagoguery

Inflation
 -32-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-12 (cont’d)


-National gas price controls
-Long
-Shortages
-France
-Rents, housing
-Paris
-Jacob K. Javits
-Rent controls
-President’s opposition
-Reasons
-Problems in New York
-Housing deterioration

International monetary situation
-Temporary nature
-Administration position
-IMF
-Strengths
-Negotiations
-Framework
-William P. Rogers
-US moves
-Strategy
-Effectiveness
-Implementation
-Wall Street
-David Rockefeller
-Telephone call to Shultz
-Nelson A. Rockefeller
-President’s trip to Romania and Poland
-Statement on Smithsonian Agreement
-President’s evaluation
-New York

Personnel
-Labor Department
-President’s advice
-Brennan
 -33-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-12 (cont’d)


-Shultz’s opinion
-Lack of help in department
-Amount of work
-Appointments
-Vacancies
-Shultz’s help
-Undersecretary
-Compatibility
-Simon and Shultz
-Elliot L. Richardson and William P. Clements, Jr.
-Assistant Secretaries
-Managers
-Loyalty
-Role of Secretary
-Public role
-Help from assistants
-Need for managers
-Politics
-George Meany
-Concern for Labor Department
-Brennan’s personnel choices
-Opposition to Undersecretary
-John D. Ehrlichman
-Charles W. Colson
-Ehrlichman
-Frederick V. Malek
-Brennan
-Loyalists
-Undersecretary
-Possible problem with Ehrlichman and Malek
-Arnold R. Weber
-Qualities
-Malek
-Political sensitiveness for manager
-Compared to business managers
-Meeting between Shultz and Brennan
-Shultz’s meeting with Meany
-President’s appearance at AFL-CIO convention
 -34-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-12 (cont’d)


-Ehrlichman
-Colson

Labor Department
-Brennan
-Assistants
-Vacancies
-Willie J. Usery, Jr.
-[First name unknown] Townsend [?]
-Mediation
-Resignation
-Construction job
-Loyalty to President
-Age
-Salary
-Bechtel Corporation [?]

Treasury Department
-George D. Webster
-General Counsel nomination
-Jerry H. Jones
-Colson
-International Revenue Service [IRS]
-Shultz’s evaluation
-Treasury’s constituents
-Problems
-Respect
-Lawyers for Nixon Chairman
-Complexities of job as general counsel
-IRS
-President’s concerns
-Current chief [John Larkin]
-Malek
-Interior Department
-Qualifications
-Philosophy
-Ehrlichman’s interview
 -35-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-12 (cont’d)


Personal appointments
-Shultz’s talk with Brennan
-Help
-Decision making
-Good managers
-Undersecretary
-William J. Rogers [?]
-Background
-Assistant Secretaries
-Undersecretary
-Trustworthiness
-Meany
-Labor’s interests
-Manpower training
-Taxes
-Trade
-Meetings
-Weber
-Webster
-Background
-Problems
-Organized labor
-IRS
-Telephone call from Meany
-Opposition
-President’s conversation with Haldeman and Colson
-Decision
-Brennan
-Success
-Ehrlichman
-Conflicts
-Value to administration
-“Wild card”
-Compared to professional managers
-Usery
-Service at Labor Department
-Value to department
-Problem solver
 -36-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-12 (cont’d)


-Mediation position
-Brennan
-Independent agency
-Support from Meany
-Promotion
-Brennan
-Ehrlichman
-Value to administration
-Cabinet
-Colorfulness
-Patricia R. Hitt
-Possible position at Labor Department
-Department of Health, Education, and Welfare [HEW]
-Caspar W. (“Cap”) Weinberger
-Problems
-Qualities
-Political sensibilities
-Asset to administration
-Treasury Department
-Campaigning
-Helena M. (“Obie”) Shultz
-Departure from HEW
-Romana A. Banuelos
-Problems
-Treasurer of the United States
-Limousine service
-Qualities
-Ethnics, blacks
-Job for Hitt
-Hitt
-New job
-Women’s Bureau
-Assistant Secretary
-Women in government
-[Dixie Lee Ray]
-Atomic Energy Commission [AEC]

Monetary situation
 -37-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. Feb.-10)
Conversation No. 853-12 (cont’d)



Shultz left at 1:19 pm.