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Conversation: 475-022

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Start Date: Thursday, April 8, 1971 8:03 PM

End Date: Thursday, April 8, 1971 8:55 PM

Participants:

Nixon, Richard M. (President)Ehrlichman, John D.Shultz, George P.Cox, Tricia Nixon

Recording Device: Oval Office

Full Tape Conversation Start Time: 04:23:35

Full Tape Conversation End Time: 05:14:06

475-022.mp3

NARA Description:

On April 8, 1971, President Richard M. Nixon, John D. Ehrlichman, George P. Shultz, and Tricia Nixon Cox met in the Oval Office of the White House from 3:03 pm to 3:55 pm. The Oval Office taping system captured this recording, which is known as Conversation 475-022 of the White House Tapes.

Nixon Library Finding Aid:

Conversation No. 475-22

Date: April 8, 1971
Time: 3:03 pm - 3:55 pm
Location: Oval Office

The President met with John D. Ehrlichman and George P. Shultz

     [Lieutenant William L. Calley, Jr. case]
          -Letters from unknown contacts
          -[Letters from Captain Aubrey M. Daniel and unknown man]
          -Releases
          -Ehrlichman’s recommendations
          -Possible press reaction
          -Background of contacts
          -Referral to Stanley R. Resor
                                             42

                         NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                        (rev. 9/08)



         -Instructions for Resor
         -Ronald L. Ziegler
         -Questions
         -Press
         -Unknown people writing a book
               -Publicity
         -”Peaceniks”
         -Resor                                                      Conv. No. 475-21 (cont.)


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

BEGIN WITHDRAWN ITEM NO. 1
[Personal Returnable]
[Duration: 1m 8s ]


END WITHDRAWN ITEM NO. 1

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


    Demonstrations
        -Intelligence estimates
              -Veterans
                    -Dates
                          -April [1971]
                    -Numbers
              -Moratoria
                    -Dates
                          -May [1971]
              -Sit-ins
                    -Rennie Davis
        -Moratoria

    President’s message on the District of Columbia, April 7, 1971
         -Last of special messages

    Ehrlichman’s schedule
                                           43

                        NIXON PRESIDENTIAL MATERIALS STAFF

                                   Tape Subject Log
                                      (rev. 9/08)



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

BEGIN WITHDRAWN ITEM NO. 5
[Personal Returnable]
[Duration: 47s ]


END WITHDRAWN ITEM NO. 5                                      Conv. No. 475-22 (cont.)

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


    Shultz’s schedule


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

BEGIN WITHDRAWN ITEM NO. 6
[Personal Returnable]
[Duration: 43s ]


END WITHDRAWN ITEM NO. 6

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


    Domestic briefing for administration wives
        -Briefing for Congressional wives
              -Clark MacGregor and George W. Romney
        -Thelma C. (Ryan) (“Pat”) Nixon
        -Duration
        -Questions
        -Comments

    Council on International Economic Policy [CIEP] meeting
        -Peter G. Peterson
        -Pace of meeting
                                             44

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                        (rev. 9/08)



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

BEGIN WITHDRAWN ITEM NO. 2
[National Security]
[Duration: 4s ]

     FOREIGN RELATIONS
                                                                     Conv. No. 475-22 (cont.)
END WITHDRAWN ITEM NO. 2

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


          -Schedule
          -John B. Connally and Maurice H. Stans
          -Instructions for Shultz
          -Discussion of priorities
          -Peterson, Shultz, Ehrlichman, Henry A. Kissinger, and President
          -Discussion of priorities
          -Possible action
          -Peterson


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

BEGIN WITHDRAWN ITEM NO. 3
[Personal Returnable]
[Duration: 3m 8s ]


[The President talked with Tricia Nixon at an unknown time between 3:03 pm and 3:55 pm]

[Conversation No. 475-22A]

[See Conversation No. 1-47]

[End of telephone conversation]


END WITHDRAWN ITEM NO. 3

******************************************************************************
                                      45

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                   (rev. 9/08)




Peterson

Anti-trust
     -Cartelization
     -Need for decisions
     -Agriculture
           -Franchise                                        Conv. No. 475-22 (cont.)
                 -Stans
           -Need for decision

US economic goals
     -Peterson
     -Imports and exports
     -Markets
     -High technology
     -Balance of payments
     -Investment in industrial research
           -Defense and space
           -National Science Foundation [NSF]
                 -Defense Department
                 -Problem
     -Peterson’s view
     -Breeder reactor
           -Possible reaction
                 -Chet Holifield
           -Impact on energy
     -Coal technology
           -Prospects
     -Shale oil
     -Peterson’s view
     -Items for group discussion
           -Kissinger
           -Ehrlichman, Shultz, Peterson, and President
           -Russell W. Peterson
           -Paul W. McCracken
     -David M. Kennedy
     -Ad hoc meetings
     -Federal research efforts
     -National Aeronautics and Space Administration [NASA]
           -Research vs. space business
           -Space
                                         46

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                  Tape Subject Log
                                     (rev. 9/08)



     -Productivity Commission
     -Federal effort outside Defense Department
           -Medical field
     -P. G. Peterson’s view regarding outside people
           -General Motors [GM]
           -General Electric [GE]
           -Bell [Telephone]
     -Ten-year projection                                         Conv. No. 475-22 (cont.)
           -Costs
           -Business combinations
           -Labor policies
     -Difficulty in competition
     -Need to revitalize economy
     -Sherman Act
           -Standard Oil
                 -Standard Oil of New Jersey, Standard Oil of Indiana
           -Airlines
                 -International competition
           -Communications
           -Adam Smith theories
     -Ominous trends
           -Connally’s view on international monetary crisis
           -Discussions
                 -Ehrlichman, Shultz, and P. G. Peterson
                 -Kissinger, McCracken, President
                 -Possible meeting at Executive Office Building
                       -”Brainstorm”
                       -Timing
                 -Stans, Richard W. McLaren
                 -P. G. Peterson, Stans

McLaren
    -Report on anti-trust division [Justice Department] operating policy

Cabinet meeting, April 13, 1971
     -Peaceful uses of atom
          -Holifield
          -Craig Hosmer
          -Glenn T. Seaborg
                -Agenda item
                                         47

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                    (rev. 9/08)



CIEP meeting
    -P. G. Peterson
          -Pace of briefing
          -Connally
          -Possible report to staff
    -Evaluation
    -Possible Cabinet briefing
    -Possible abbreviated report                                 Conv. No. 475-22 (cont.)
    -Background material
    -World events
          -Japan
    -Need to keep up-to-date
    -Possible book by P. G. Peterson for President
          -Charts

Sub-Cabinet
     -P. G. Peterson
     -Relations with William P. Rogers and Connally

P. G. Peterson’s briefing on CIEP meeting
      -Possible presentation to Domestic Council staff, National Security Council [NSC]
           staff
           -Under Secretaries, Cabinet officers
           -The President

President’s schedule
     -Meeting with Douglas MacArthur, II and Sir Keith J. Holyoake
     -Meeting with McCracken, April 9, 1971

McCracken
    -Possible resignation
          -Hendrik S. Houthakker
          -Ezra Solomon
          -McCracken
                -Michigan
          -President’s possible response
    -President’s meeting with Shultz, April 9, 1971
    -Evaluation
          -Policy
          -Salesmanship
    -Arthur F. Burns
    -Shultz
                                       48

                      NIXON PRESIDENTIAL MATERIALS STAFF

                               Tape Subject Log
                                  (rev. 9/08)



     -Herbert Stein
     -Solomon [?]

Economy
    -Prospects
    -Earnings
    -Department store sales
    -Home sales, autos                                     Conv. No. 475-22 (cont.)
    -Decline of inventories
    -GE profits
    -Stock market

McCracken
    -Future within administration
    -Policy

Administration’s economic policy
    -Shultz’s appearance in Cleveland
          -Steady-as-you-go line
          -Taxes
          -Spending
    -Tone
    -Long-term performance of economy
    -Criticism
          -1972 elections
    -Shultz’s appearance in Cleveland
          -Burns’ comments
    -Burns

President’s speech on Southeast Asia, April 7, 1971
     -Comments at Joseph W. Barr’s party for Connally
           -Burns
           -F Street Club
                 -Timothy [Surname unknown]
           -Reaction of group
                 -Shultz
     -End of war
           -Stability
           -Effect on economy
           -Congress
                                         49

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                    (rev. 9/08)



Vietnam
     -Projections
           -Combat
           -End of draft
     -President’s plans
           -General Nguyen Van Thieu’s re-election
                 -October 1971
           -Negotiations                                  Conv. No. 475-22 (cont.)
     -Negotiations
           -Prospects
           -Timing
           -Terminal date
           -Possible agreement
                 -Odds
     -Prisoners of War [POWs]
     -Cease fire
     -Announcement of withdrawal of US forces
           -Effect on North Vietnamese
           -Conditions of withdrawal
           -POWs
           -Effect on South Vietnam
     -Time element in negotiations
     -Popular sentiment
           -Draft
           -US combat role
           -Withdrawal date
     -Analogy with economy
     -Time element in negotiations
     -Negotiations
           -Effect on economy
           -Union of Soviet Socialist Republics [USSR]

President’s speech on Southeast Asia, April 7, 1971
     -Style
     -Effectiveness
           -Compared with 1959, 1960
     -Conclusion
           -Effect of reading
           -Lack of pretense
     -Drama
                                              50

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                         (rev. 9/08)



     Shultz’s meeting with Wilbur D. Mills
          -Package proposal
          -Burns
          -Revenue sharing
                -Fiscal relief
          -Statement of purpose
                -Categories
          -Structure of dollar                                        Conv. No. 475-22 (cont.)

Stephen B. Bull entered at an unknown time after 3:03 pm

     President’s schedule
          -Postponement of Holyoake meeting
          -Meeting with MacArthur

Bull left at an unknown time before 3:55 pm

     Shultz’s meeting with Mills
          -Revenue sharing
               -Level
                     -Figure
               -Formula for funding
                     -Personal tax basis
               -Mills’ changes in formulas
                     -Element of need
                           -Population
                           -Tax effort
                     -Low income areas of cities
                     -President’s instruction to Shultz
                     -Element of need test
               -Administration’s efforts
               -Role of Treasury as loan bank for states and cities
                     -Premium interest rate
               -Daniel P. (“Pat”) Moynihan
               -Connally
               -John N. Mitchell
                     -Talk with Shultz
               -John W. Byrnes
               -Tax credits
               -State and city taxes
                     -”Piggy-back” on federal income tax
                     -Percentage of federal tax
                                           51

                      NIXON PRESIDENTIAL MATERIALS STAFF

                                  Tape Subject Log
                                     (rev. 9/08)



                 -Aggregation to state
                 -Decision-making by locality
                 -Service value
                 -Efficiency aspects
                 -Avoidance of tax duplication
                 -Facilitation of tax ability of city and state in income tax area
Tax reform
     -Prospects for 1972                                             Conv. No. 475-22 (cont.)
     -Administration’s position
     -Mills
     -Budget
     -”Piggy-back” option
     -Connally
     -Possible action
          -Study on value-added tax
     -Mills and Byrnes
     -Possible package proposal
     -Meeting with Mills and Byrnes
     -Administration’s position
     -Congress
          -Shared credit with Administration

Welfare bill
     -Current situation

Intelligence reorganization
      -Memorandum
            -Distribution
      -President’s Foreign Intelligence Advisory Board [PFIAB]
      -Melvin R. Laird and Richard M. Helms
      -Shultz and Kissinger
      -Shultz’s meeting with PFIAB
      -Dr. James R. Schlesinger
      -President’s meeting with PFIAB, April 15, 1971
      -PFIAB’s membership
            -Nelson A. Rockefeller
            -Admiral George W. Anderson, Jr.
      -Shultz’s and Kissinger’s memorandum on PFIAB
      -Benefits
      -Opposition

Defense budget
                                              52

                            NIXON PRESIDENTIAL MATERIALS STAFF

                                        Tape Subject Log
                                           (rev. 9/08)



          -Pay overrun
                -Figure
          -Fight in House
          -Laird
          -Administration’s position
                -Figures
          -Congressional response
          -Need for program                                         Conv. No. 475-22 (cont.)
          -Difficulties
          -Pay raise
          -Manpower costs
          -Capital intensiveness in defense
          -President’s meeting with Shultz, April 9, 1971
          -Possible Anti-ballistic Missile [ABM]
                -Funds

     President’s schedule, April 9, 1971
          -Meeting with Shultz
                -H. R. (“Bob”) Haldeman

     Ehrlichman’s schedule
           -Vacation trip

Ehrlichman and Shultz left at 3:55 pm