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Conversation: 454-004

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Start Date: Friday, February 19, 1971 10:08 PM

End Date: Friday, February 19, 1971 11:34 PM

Participants:

Nixon, Richard M. (President)Shultz, George P.McCracken, Paul W.Burns, Arthur F.Connally, John B.Ziegler, Ronald L.Woods, Rose MaryWhite House photographer

Recording Device: Oval Office

Full Tape Conversation Start Time: 00:15:22

Full Tape Conversation End Time: 01:54:17

454a.mp3

454b.mp3

454c.mp3

NARA Description:

On February 19, 1971, President Richard M. Nixon, George P. Shultz, Paul W. McCracken, Arthur F. Burns, John B. Connally, Ronald L. Ziegler, Rose Mary Woods, the White House photographer, and members of the press met in the Oval Office of the White House from 5:08 pm to 6:34 pm. The Oval Office taping system captured this recording, which is known as Conversation 454-004 of the White House Tapes.

Nixon Library Finding Aid:

Conversation No. 454-4

Date: February 19, 1971
Time: 5:08 pm - 6:34 pm
Location: Oval Office

The President met with George P. Shultz, Paul W. McCracken, Arthur F. Burns, John B.
Connally, Ronald L. Ziegler, and Rose Mary Woods; the White House photographer and
members of the press were present at the beginning of the meeting

     [General conversation]

     The President’s meeting with Young Republicans

     [General conversation]

     George Black, Jr.
         -Great grandchildren
         -Forthcoming trip to Africa
               -President’s aunt
               -Purpose

Ziegler, Woods, and the press left at an unknown time before 6:34 pm

     Quadriad
         -History
              -Dwight D. Eisenhower administration
         -Procedure
         -Frequency of meetings with the President
         -McCracken’s Congressional testimony
                                        6

                    NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                    (rev. 9/08)



         -Revenue sharing
     -Meetings with the President
         -Purpose
               -Full employment budget
               -Cooperation
         -Format
     -Council on International Economic Policy [CIEP]
         -Peter G. Peterson                              Conv. No. 454-3 (cont.)
               -International monetary policy
               -Meeting with Quadriad

National economy
     -Growth
     -Inflation
     -Growth
           -Retail sales
     -Unemployment
           -Improvement
           -Cities
           -Effect on individuals
           -White collar/Aerospace industry
                 -Problem
                 -Importance to nation
                 -White House meeting
                 -Administration position
           -National Science Foundation [NSF]
                 -Grants
                 -Scientists
                 -University professors
                 -Administration’s budget
           -Administration efforts
           -Impact
           -Number
           -Need for government coordinator
                 -David Packard
                 -Administration efforts

Inflation
      -Administration efforts
          -Business
                -Wage concerns
          -Steel and oil
                                    7

                NIXON PRESIDENTIAL MATERIALS STAFF

                           Tape Subject Log
                              (rev. 9/08)



     -Labor
-Hubert H. Humphrey and Hugh Scott
-Edmund S. Muskie and George Meany
-Possible wage and price freeze
-Davis-Bacon Act
     -Analysis
     -Effect
     -Governors                                      Conv. No. 454-4 (cont.)
           -Impact
           -California
           -New York
                 -Nelson A. Rockefeller
           -Florida
           -Illinois
           -Ohio
           -Michigan
     -President’s position
           -Governors
     -Effect on steel negotiations
           -Shultz’s position
     -Federal construction contracts
           -Importance of timing
     -Effects on construction industry
           -Unemployment
           -Possible effect on mortgage rates
           -Importance
     -Unions
           -Connally’s view
           -Minorities
     -Options
           -Wage and price freeze
                 -President’s view
           -Construction industry
           -Steel
           -History
           -Effect on wages
-Federal budget deficit
     -Administration’s policy
           -Lyndon B. Johnson
     -The President’s vetoes
     -Effect on inflation
     -Administration’s policy
                                         8

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                   (rev. 9/08)



                 -Spending lid
                 -Economic forecast
                 -Full employment budget
           -Revenue sharing
                 -Number of grants
                 -Administration’s policy
                 -Relations with Congress
                 -Effect                                            Conv. No. 454-4 (cont.)
           -Washington Post story
                 -David S. Broder
                 -Connally’s view
                 -Administration position
           -Walter W. Heller
                 -Statement in California
                 -The President’s conversation with Humphrey
           -Reform efforts
     -Full employment budget
           -Possible congressional action
                 -Edward M. (“Ted”) Kennedy’s health program
           -Burns’ view
           -Shultz’s view
     -Relationship between currency and gold
           -Views of business community
           -Federal Reserve Board governors
     -Fiscal versus monetary policy
           -Use of balance of payments
                 -Effects
     -Results of possible failure of the President’s economic policy
           -Effect on future
           -Liberal spending policies
                 -John Kenneth Galbraith
           -Budget deficits
           -Wage and price controls
                 -Polls
           -Policies of the 1960s
           -Employment
           -Impact of President’s policy

Balance of payments
     -Deficits
     -Commercial trade
     -Foreigners’ concern and aid
                                        9

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                   (rev. 9/08)



           -State of Union message
     -President’s budget proposal
     -Paul A. Volcker
     -Domestic economic policy
           -International concerns
                 -Administration statements
                 -Possible effect on US economy and policy
     -Connally’s visit to Europe                                 Conv. No. 454-4 (cont.)
           -Schedule
                 -International Bankers Association
                 -Possible meetings with bankers
                       -Purpose
                       -US policy
           -Domestic political repercussions

Interest rates
      -California
            -President’s property
                  -Popular view of interest rates
            -The President’s conversation with Samuel W. Yorty
            -Effect on housing
            -Deposit interest rates
      -Money supply
            -Compared with the President’s Laos decision
      -Recent decline
            -Popular opinion
                  -Need for public relations efforts
            -Money supply
      -Need for public confidence
      -Economic recovery
            -Burns’ view
            -Inflow of deposits
            -Public confidence
            -Increase in money supply
                  -Treasury Department’s role
                  -Power of Federal Reserve
                  -Transaction demand
                  -Savings

The President’s schedule
     -Money supply
                                             10

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                       Tape Subject Log
                                          (rev. 9/08)



     Economic policy
         -Federal Reserve Board
               -Interest rates
                     -Effects of decisions
                           -Monetary effect
                           -Supply and demand
                           -Effect on economy
                     -Future meeting on monetary policy               Conv. No. 454-4 (cont.)
         -Briefing paper
         -Future meeting
         -Problem
               -Uncertainty
         -Administration’s policy
         -Economists
         -Public confidence
               -Administration efforts
                     -Market-oriented policies
               -Stock market
                     -Ripples of influence
                     -Factors
                     -Expectations of profit
                           -Increased productivity

     The President’s schedule
          -Forthcoming meeting on monetary policy

     Wage and price controls
         -Press questions
              -Connally’s possible response to questions
                     -Participant’s views

Shultz, McCracken, and Burns left at an unknown time before 6:34 pm

     State dinner
           -Connally’s observations
                -Entertainment

     Previous Quadriad meeting
          -Monetarists
               -Burns
               -President’s policies
               -McCracken
                                              11

                           NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                        (rev. 9/08)




     Washington Post story
         -Connally’s comments
         -Administration policy
               -Compromises
               -Connally’s view
               -John A. Burns
     Democrats                                                  Conv. No. 454-4 (cont.)
         -Economic meeting
         -Allen J. Ellender
         -Comments on the President’s programs
               -Revenue sharing
               -Government reorganization

Connally left at 6:34 pm