Secret White House Tapes

935-007a

About this recording

935-007a
  • President Richard M. Nixon
  • Alexander M. Haig
  • John B. Connally
  • George P. Shultz
  • Herbert Stein
  • John T. Dunlop
June 11, 1973
Conversation No. 935-7

Date: June 11, 1973
Time: 10:01 am - 12:11 pm
Location: Oval Office

The President met with Alexander M. Haig, Jr.

Watergate

-Elliot L. Richardson

-Conversation with Haig

-Mandate to Archibald Cox

-Dita Beard

-James O. Eastland inquiry

-Richardson’s role in administration

-Richardson’s role

-Qualifications

-International Telephone and Telegraph [ITT]

-E. Howard Hunt, Jr.’s meeting with Beard

-Charles W. Colson

-Contribution

-Richard W. McLaren


Richardson

-Role in administration

-Attitude

-Recommendations concerning appointments

-Judges, US Attorneys

-Possible review

-16-


NIXON PRESIDENTIAL LIBRARY AND MUSEUM


Tape Subject Log

(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Conservative reviewer

-J. Fred Buzhardt, Jr., Leonard Garment

-Purpose

-Political opposition to administration

-Haig’s assessment of Richardson

-President’s appointment

-Political considerations


Claudia A. (Taylor) (“Lady Bird”) Johnson

-Possible role in administration

-Alternative candidate

-Military [?]

-Northeastern community

-Military


Telephone call [?]

John B. Connally, George P. Shultz, Herbert Stein, and John T. Dunlop entered at 10:07 am.

Golf

-Connally’s recent score

-Connally’s clubs

-Wilson

-Spalding

-Donald McI. Kendall

-Ownership of Wilson
-Graphite shafts, Augusta (Georgia) course

-Distance of shots

-Quality


Improved sports equipment

-Pole vault

-Quality of new poles

-Tracks

-Charlie Paddock

-Track and Field

-Quality of running surface

-17-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Influence on speed

-University of Southern California

-Running style


Horse racing
-“Secretariat”
-Compared to “Man O’War”
-Speed
-Kentucky Derby, Preakness, Belmont Stokes

-Length of race

-Winners of individual races

-Triple Crown winners

-Stud fee

-$30,000

-Earnings

-$1,000,000 per year


National economy
-Administration’s plan

-Philosophical differences

-Economy compared to politics

-Watergate
-Possible Congressional actions on freeze
-Victory
-Option 1
-Three month freeze
-Possible counteraction by White House
-Veto
-Television [TV]
-Override
-Labor leaders
-President’s decision-making process
-Consultation
-Melvin R. Laird’s views
-Review
-Europe
-Labor-Management Committee
-18-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Congressional strategy

-Hugh Scott, Gerald R. Ford

-Bryce N. Harlow’s views

-Alternatives to freeze

-President’s possible speeches

-Quality of prepared speech

-Possible freeze

-Effects

-Recession

-Black markets

-Rationing

-Presentation of options to President

-Positive as opposed to negative options

-Possible freeze

-Options

-Uncertainty

-Follow-up

-Connally, Haig views

-August 1972 freeze

-Phase II and III

-Effect

-Business

-Economy

-Implementation
-Perception of certainty
-Possible Congressional action
-Possible freeze
-Plans

-Dunlop, Shultz, and Stein views

-Analysis of President’s view

-Congress

-90-day freeze

-President’s opposition

-Scope

-Follow-up

-Meeting of Shultz, Stein, and Dunlop

-Call from Haig
-19-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Shultz’s plan
-Option 2
-Controls
-Popular opinion
-Follow-up
-Scott
-Option 2
-Raw agricultural products
-Farm Prices
-Export Controls, PL 480
-Shultz’s conversation with John N. Turner, Canada’s Finance Minister
-Canada’s situation

-International prices

-Effect of freeze

-President’s efforts

-Raw agricultural products
-Exceptions

-Implementation

-Auction prices

-Exports
-Dunlop’s assessment
-Effect on food prices
-Retail prices
-Previous experience
-Raw agricultural products
-Phase I compared to Phase II

-Farm

-Lettuce, artichokes

-Controls
-Ambiguity
-Coverage
-Food prices
-Phase II
-Profits, margins

-White House awareness

-Continuous ceilings

-Meat, bread, lettuce, butter
-20-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Raw agricultural products
-Compared to August 1970
-Phase II
-Effects

-Rate of increase

-Public opinion

-Foreign products
-Connally’s viewpoint
-Retail food prices

-Ceiling

-Minimum

-Artichokes

-Producer prices

-Ceiling

-Regulation, administration

-Retail food prices

-Ceiling

-Effect on retailer

-Retail prices compared to commodities

-Support for Option 2

-Production levels

-Steel, chemicals, aluminum, paper, textiles
-Plant utilization

-Pressure

-Price increases

-Gasoline
-Retail price controls

-Exemption

-Increase

-Phase II

-Comprehensive controls

-Gradual elimination

-Minimum control

-Additional commodities, business

-Compliance

-Length of freeze

-30-day

-21-


NIXON PRESIDENTIAL LIBRARY AND MUSEUM


Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Limitations
-Phase II compared to Phase III
-Extensibility
-Gasoline
-Retail prices
-Administration
-Scale
-Retail food prices
-Grocery stores
-Follow-up
-Industrial prices
-Pre-notification of industry
-Value of businesses
-Timing
-Executive compensation
-Labor leaders
-Congress
-Duration
-Grace period
-Price rollbacks
-30-day
-60-day
-Arthur F. Burns
-Discontinuation of freezes
-Wages
-Teamsters
-Prices, costs
-60 days compared to 30 days
-Leak
-Effect on prices
-Political considerations
-Follow-up
-Public statements
-Phase II
-Option 2
-Congressional action
-Legislation
-22-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Trade
-Alaska pipeline
-Prices compared to wages
-60 days
-Business reaction
-Costs

-Labor negotiations

-Frank E. Fitzsimmons

-Teamsters

-Retroactive pay

-Phase II
-Adherence
-Settlement
-Business reaction

-Wage settlement

-Cost of Living Council [COLC]

-Price increases

-Justifications

-Retroactive increases

-Promises

-Previous expansion

-90-day freeze

-60 days

-Connally’s support

-Wages

-White House compared to Congress package
-Duration
-Veto
-Public opinion
-Housewives
-Price increases

-Haig

-Option 2

-Shultz
-Option 1

-President’s support

-Compared to Phase III

-23-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Strength

-Publicity

-Amendment

-Dunlop

-Controls

-Permanence

-Rent, dividends, profits, interest

-Housing

-Washington, DC

-Effect

-Rent control
-Food prices

-Controls

-Follow up

-Increase

-Summer

-Connally’s viewpoint

-Retail

-Exemptions
-Retail compared to wholesale freeze

-Food grains, soybeans

-Exports

-Exports
-PL 480
-Effect on US foreign policy

-Europe

-Japan

-Latin America, Asia

-Importance
-Option 2
-Possible speech by President
-Export Controls
-Follow-Up
-Uncertainty
-Haig’s conversations with Brent Scowcroft and Henry A. Kissinger
-Disaster

-Southeast Asia

-24-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Food prices

-Freezes

-Retail

-Controls of exports

-Sales to People’s Republic of China [PRC], Union of Soviet Socialist
Republics [USSR]
-Effect on domestic shortages
-US obligations
-Exceptions
-Political purposes
-PL 480

-Legal problem

-Surpluses

-Secretary of Agriculture

-Existing legislation

-Shortages

-Sales Abroad

-Certification

-Export compared to domestic market
-Licenses
-Earl Butz
-Sales to USSR, Japan, PRC

-Reduction in prices

-Soybeans

-Amount as certified by Butz
-Shultz’s assessment
-Stein’s assessment
-Contradiction
-Implementation

-Licensing system, reporting

-Purpose

-Stable domestic prices
-Congress

-Note

-Request

-Changes in existing legislation

-Statement [?]
-25-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-William P. Rogers [?]
-Food exports

-Reporting

-Limitations

-US commitment

-License

-Reporting
-Controls
-Outstanding orders
-Implementation
-Possible freeze
-Raw agricultural products
-Effects
-Gasoline prices, grocery stores

-Wholesale market

-Possible ceiling

-Soybeans, corn, wheat, cattle, hogs

-Effect on livestock herds

-Grain crops
-Effect on hog, poultry and cattle industries
-Licensing of producers
-Export Controls

-Agriculture Department

-Effect

-Size of current crops
-Wheat

-Effect on food prices

-Weather

-Improving conditions
-Possible freeze
-Effect
-Bipartisan support

-World War II analogy

-Duration

-Prospects
-Rationing
-Black markets
-26-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Improvement in marketplace

-Export controls

-Report

-Crop yield

-Estimates

-Effect on prices

-Price ceiling

-Duration

-Short and long term

-Meat

-Price compared to supply

-Feed grains

-Exports

-Congress

-Prices

-Possible subsidies

-Effect on domestic and world economies

-Ceiling

-World War II analogy

-Connally’s view

-Background as farmer

-Possible freeze

-Implementation

-Duration

-Possible freeze
-Wages and prices
-Implementation
-Mandatory compliance
-Political considerations
-Congress
-Previous experience
-Effect on business

-Pending negotiations

-Current guideline

-Implementation
-Price controls after freeze
-Opposition from business
-27-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Wage Board, Dunlop

-Labor Management Committee

-Appointment of czar

-Food
-Negotiations
-Construction, railroad, steel, petroleum, rubber industry support
-Fitzsimmons
-Teamsters
-Postal workers
-Automobile workers
-Cleveland [?]

-Food packers

-George Meany

-Pre-notification

-Guidelines

-5.5 percent

-Regulations

-Dunlop’s work

-Fitzsimmons

-Implementation

-Tri-partite negotiations

-Wage czar

-Price czar

-Duration
-Effect on food prices, CPI

-Reaction

-Congress, business

-Connally’s viewpoint

-Duration

-President’s viewpoint

-Role of market forces, weather

-Phase II, Phase III

-Effect on prices

-60 days

-Congressional action

-Timeline
-Alaska pipeline
-28-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Labor support
-Discipline
-Option 1 compared to Option 2
-Advantages
-Reporting
-Exports
-Food prices
-Mandatory controls
-Phase III
-John Kenneth Galbraith
-Leon Henderson
-President’s assessment
-Gasoline prices
-Role of oil companies, service stations
-Enforcement
-Justice Department
-Possible ceiling
-Possible freeze
-Ceiling
-Food, gasoline, meat, paper products prices
-Political need
-Option 2
-Flexibility for wage and price czar
-Decontrol
-Rents, dividends, interest rates
-Raw agricultural products
-Supplies
-Export Controls
-Licensing program
-Congressional legislation
US interests
-Philippines
-PL 480
-Congressional funding

-Previous contracts [?]

-Southeast Asia, India, Pakistan

-Compared to security
-29-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Licensing system
-Disruption
-Existing contracts compared to new contracts
-Haig’s viewpoint
-Possible freeze
-Effects
-Duration
-Congressional action
-Effects
-Wages
-August 1971 experience
-Retroactive pay increases
-Duration
-Labor-Management Committee meeting
-Announcements

-Confirmation

-Ronald L. Ziegler

-Compulsory savings stabilization

-Memorandum

-Simon’s view

-Congressional action

-Reactions

-Business community
-Germany, Sweden experiences
-Memorandum
-Burns
-Views
-Tax legislation
-Congressional action

-Public reaction

-Gold Standard

-Valery Gisard D’estaing

-Camp David

-Political acumen

-Approach

-Fiscal and monetary policy

-Money supply, discount rate

-30-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Dunlop
-Potential for promotion
-Price and wage czar
-Tax package
-Surcharge
-Congress
-House Ways and Means Committee

-Ash

-Wilbur D. Mills

-Tax bill

-Timing

-Trade legislation
-Possible freeze follow-up
-Implementation

-Reaction

-Staff

-Bureaucracy

-Compared to Phase II

-President’s aversion

-Policing

-Internal Revenue Service [IRS]

-Appointed agency

-Staff

-Duration

-1974 elections

-Possible freeze
-Rent interest, dividends
-Duration
-Implementation
-June 1-8 price

-Executive order

-Unprocessed agricultural products

-Food and gasoline prices

-Ceiling

-Export controls

-PL 480

-Licensing system

-31-


NIXON PRESIDENTIAL LIBRARY AND MUSEUM


Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Level
-Agricultural products
-Yield
-Effect of domestic ceiling
-Wages
-Phase III controls
-Rents, dividends, interest
-Business profits
-Wages
-Phase III controls
-Pre-notification
-Follow-up
-Business
-Phase IV
-Comprehensiveness
-Option 1
-Dunlop’s possible role
-Prices, wages czar
-Wages board
-Qualifications
-Experience
-Staff
-Advice from Shultz, Stein
-COLC
-Phase IV
-Institutional structure
-Specialist in wages
-Specialist in prices
-Notoriety
-Compared to Leon Henderson and Galbraith
-Philosophies
-Price czar
-Dunlop’s, President’s reluctance
-Duration
-1974
-Shultz’s recommendation
-Phase II, Phase III
-32-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Philosophy

-Political as opposed to economic

-Decision making

-Reaction

-Free market

-Phase III

-Failure

-Reasons

-Labor-Management Committee meeting
-Consultation
-President’s attendance
-Presentations
-Stein, Dunlop, Shultz
-Industry
-Labor views
-Shultz’s conversation with I[lorwith] W[ilbur] Abel
-Prices and wages

-Wage settlements

-Controls

-Fitzsimmons’s view
-Food prices
-Bureaucratic controls
-Wages
-George Meany [?]
-5.5 percent guideline
-Stein’s viewpoint
-Moderation
-1974 settlements
-Industrial relations
-Strikes
-Compared to Great Britain
-Labor-Management Committee meeting
-Attendees

-Quadriad members, Dunlop, Connally

-Stein, Dunlop, Shultz, Burns

-Meany, Burns, Ash

-Connally’s assessment

-33-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Discourse
-Shultz, Stein, Dunlop

-Agenda

-Accomplishments

-Wages, prices
-Strikes

-Meany, Leonard Woodcock, Fitzsimmons

-Congressional relations

-Democratic caucus

-Freeze

-Wages

-Possible freeze
-President’s position
-Food, Gasoline prices
-Industrial commodities
-Duration
-Implementation
-Bureaucracy

-Follow-up

-Duration

-60-day freeze

-Food, gas prices

-Implementation

-Immediate problems
-President’s forthcoming speech
-Timing
-Preparation
-Content
-Effect on stock market, prices
-Another economic meeting
-Editing
-Effects
-Possible Congressional action
-Follow-up
-Compared to Phase III
-Pre-notification
-Effect
-34-


NIXON PRESIDENTIAL LIBRARY AND MUSEUM


Tape Subject Log

(rev. July-2011)

Conversation No. 935-7 (cont’d)

-Phase II, III
-Bureaucracy
-Time frame
-Price increases
-Delays
-Dunlop’s article on World War II controls

-Delays

-Efficiency

-Post World War II era

-Korean War

-Product demands

-President’s schedule

-Forthcoming speech


Haig, Shultz, Connally, Dunlop and Stein left at 12:11 pm.
Secret White House Tapes |

935-007a

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