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Conversation: 502-020

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Start Date: Thursday, May 20, 1971 6:47 PM

End Date: Thursday, May 20, 1971 7:58 PM

Participants:

Nixon, Richard M. (President)Ehrlichman, John D.Shultz, George P.Bull, Stephen B.Haldeman, H. R. ("Bob")White House operator[Unknown person(s)]Kissinger, Henry A.White House operatorWoods, Rose Mary

Recording Device: Oval Office

Full Tape Conversation Start Time: 02:49:36

Full Tape Conversation End Time: 03:55:58

502a.mp3

502b.mp3

NARA Description:

On May 20, 1971, President Richard M. Nixon, John D. Ehrlichman, George P. Shultz, Stephen B. Bull, H. R. ("Bob") Haldeman, White House operator, unknown person(s) [Arnold R. Weber's secretary], Henry A. Kissinger, White House operator, and Rose Mary Woods met in the Oval Office of the White House from 2:47 pm to 3:58 pm. The Oval Office taping system captured this recording, which is known as Conversation 502-020 of the White House Tapes.

Nixon Library Finding Aid:

Conversation No. 502-20

Date: May 20, 1971
Time: 2:47 pm - 3:58 pm
Location: Oval Office

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

     Strategic Arms Limitation Talks (SALT)
           -President's SALT agreement
           -Soviets
           -Negotiations
                 -Strength
           -President's SALT agreement television announcement
                 -Columbia Broadcasting System [CBS]
                       -Dan Rather's comments
                             -Defensive
                             -Offensive
                             -Negotiations
                 -Marvin L. Kalb's comments
                       -Edmund S. Muskie's question
                 -President's performance

     US economy
          -Collective bargaining
                -1973
                -1972
                -Longshoremen
                -General Electric [GE] Westinghouse
          -Peter G. Peterson's meeting with economic leaders
                                  30

               NIXON PRESIDENTIAL MATERIALS STAFF

                          Tape Subject Log
                             (rev. 9/08)



-Herbert G. Klein
-John B. Connally
-Maurice H. Stans
-Policy coordination
      -Connally
      -Council of Economic Advisors [CEA]
      -Domestic Council
      -Meeting of Connally, Paul W. McCracken, Peterson, Peter
                                                          Conv.M.No.
                                                                  Flanigan,
                                                                     502-20 Shultz
                                                                            (cont.)
            -Schedule
      -Stans
      -James D. Hodgson
      -Labor Department statistics
            -Prices
            -Employment level
      -Commerce Department statistics
      -Stans
      -Hodgson
      -Stans
      -Flanigan
      -Stans
      -McCracken
      -Connally's relationship with Arthur F. Burns
-Meeting of Quadriad, May 21, 1971
      -McCracken
      -Herbert Stein
      -Monetary policy and interest rates
-Burns’ statement in Congressional testimony, May 19, 1971
      -Interest rates and international monetary system
      -US dollar
      -Money speculation
      -Germans
            -German Mark
-International monetary conference
      -Ambassador from the Hague
      -Shultz’s view
-German Mark
      -Lunch at French Embassy
            -Valery Giscard D'Estaing
            -Shultz, Connally, Burns, Flanigan
            -Food
            -Giscard D’Estaing's view on the German Mark
            -Burns’ view on the German Mark
                                   31

               NIXON PRESIDENTIAL MATERIALS STAFF

                           Tape Subject Log
                              (rev. 9/08)



            -German's Views on the German Mark
                  -Parity
            -Capital Flows
                  -Giscard D’Estaing's views
            -Giscard D’Estaing's views
                  -Fiscal restraint
                  -Economic stimulation
-Fiscal policy                                              Conv. No. 502-20 (cont.)
      -Burns’ views
      -Implementation
      -Congressional spending
            -Politics
            -Republicans
            -1972
            -Veto
      -Estimate of Fiscal 1971 deficit
            -$21 billion
            -Government expenditure
                  -Full employment revenue bill
                  -Treasury measurements of income
      -Estimate of Fiscal 1972 deficit
            -$18 billion
                  -Full employment revenue
      -Fiscal policy stimulative power
            -Expansionary status of US economy
      -State of the economy
            -Expansionary
            -Inflation
            -President's position
                  -Antiballistic Missile [ABM] negotiations
                  -SALT talks
            -Government budget
            -Burns
                  -Social Security tax
            -Consumer Price Index [CPI] figure
                  -Forthcoming announcement
                  -Food prices
                        -Percentage of CPI
            -Burns
                  -Monetary policy and interest rates
            -Government budget
                  -Shultz
                                  32

               NIXON PRESIDENTIAL MATERIALS STAFF

                          Tape Subject Log
                             (rev. 9/08)



           -International monetary developments
                  -Connally
                  -Bankers meeting in Munich, Germany
                  -US economic policy
                        -Shultz’s view
                              -Domestic priority
-Proposed Committee of Economic Policy
     -Stans                                                Conv. No. 502-20 (cont.)
     -President's meetings with Hodgson and Stans
     -George W. Romney
     -John A. Volpe
     -Ehrlichman's meetings with Stans
     -Stans
           -Role in economic matters
-Meetings of the Quadriad
     -Burns’ views on membership in the Quadriad
     -Peterson
     -Connally, McCracken, Flanigan, Shultz
     -Burns
-Balance of payments statistics
     -Stans’ meeting with President
     -Russell B. Long's views on computation of Balance of Payments [BOP]
           statistics
     -Shultz's new system for computing BOP
           -Short and long-term movements
           -Stans
           -Long
           -Shultz's testimony on May 21, 1971 before International Committee
           -Stans’ letter to Shultz
                  -Leaks
                  -Stans’ meeting with President
                  -President's approval
                  -Long's reaction
     -President's meeting with Stans
           -President's instructions
     -Shultz's new system
           -Imports
           -Exports
                  -Government subsidies
           -International trade
-Government subsidies
     -Previous meeting with President
                                          33

                        NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                    (rev. 9/08)



           -Shultz's views on subsidies
                -Market
           -Henry Kearns
                -Budget
           -La Pantha [sp?]
           -Rolls Royce
           -Lockheed
           -Boeing                                            Conv. No. 502-20 (cont.)

Supersonic Transport [SST]
     -Status

John W. Bynes
     -Social Security

Nathaniel A. Owings
     -National Mall
     -Owing's presentation for President in 90 days

Manpower special revenue sharing
    -Trip to Birmingham, Alabama
    -Southern Congressmen
    -Byrnes [?]
    -Romney
          -Urban special revenue sharing
    -Hodgson
          -Manpower special revenue sharing
    -Stein
          -CEA
                -Hendrik S. Houthakker
                -Europe
    -White House strategy
          -President's meeting with press
    -Birmingham

Ronald W. Reagan
    -Edwin Meese III's conversation with John D. Ehrlichman
    -Reagan's position
          -White House's Legal Service's Bill and HR 1
    -Edwin Reinecke

HR 1
                                        34

                    NIXON PRESIDENTIAL MATERIALS STAFF

                                  Tape Subject Log
                                     (rev. 9/08)



Vacancies in the Federal judiciary
    -Former law partner of the President, named [Forename unknown] Liddig (?)
          -Unknown law firm
          -Rating by American Bar Association [ABA]
    -Stanley N. Barnes
          -Rating by ABA
    -Liddig (?)
          -Political allegiances                              Conv. No. 502-20 (cont.)
    -Earl [Surname unknown]

Court of Military Appeals
     -Albert W. Watson
     -Two vacancies
     -Blacks
     -Robert E. Quinn
     -William H. Darden
           -Frederick V. Malek
     -Blacks
     -Edward F. Brooke
           -Future appointments

Executive Departments
    -Retirement of assistant secretaries and undersecretaries
    -Political impact
    -Recruiting replacements
    -Political impact
          -Upcoming election
    -Richard C. Van Dusen, Department of Housing and Urban Development [HUD]
    -SST
          -William M. Magruder
                -Job offer with aerospace industry
                      -Salary

Congressional relations
    -Parks
    -House Armed Services Committee
          -F. Edward Hébert
                -Camp Pendelton, California
                -Legislation
          -Marine Corps
          -Melvin R. Laird
          -Arnold R. Weber's meeting with Hébert
                                       35

                    NIXON PRESIDENTIAL MATERIALS STAFF

                               Tape Subject Log
                                  (rev. 9/08)



          -Laird in Louisiana
                -Hébert's reaction
          -California
     -H R 1
          -Byrnes
          -Republicans
          -Social Security
                -Aged                                          Conv. No. 502-20 (cont.)
          -Meeting with Laird
                -Byrnes
     -General revenue sharing
          -Byrnes
          -Laird
          -Chairman
                -Cities, states
                -Speech on May 20, 1971 in North Carolina legislature
                      -Shultz's views
          -Legislative leaders
          -California democrat
          -Romney
          -State Department
          -Wilbur D. Mills
          -Suggested meeting between Ehrlichman and Laird
          -Byrnes
          -Cabinet meeting on May 20, 1971
          -Mills
     -Social Security
          -Byrnes [?]
          -Apologies
          -Republicans
          -Aged
          -Unknown person
          -Office of Management and Budget [OMB]

Revenues
    -Treasury Department estimates
    -Full employment revenues
    -Gross National Product [GNP]
    -Expenditures for 1971
    -Caspar W. (“Cap”) Weinberger
    -1971 deficit
    -Fiscal 1973
                                               36

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                         (rev. 9/08)



          -Full employment revenues
          -Fiscal 1973 budget
          -Tax system
                -Tas raises
                -Property tax
                      -Burden
                      -Raises
                -Secretary (Connally?)                                 Conv. No. 502-20 (cont.)
                -John N. Mitchell
                -Political impact of changing tax system
                -Need for Presidential decision
                      -H.R. (“Bob”) Haldeman
                            -President's schedule
          -Child care
                -Unknown person's bill
                -Health, Education, and Welfare [HEW]
                      -Revenue Sharing financing
                -Kevin P. Phillips' backing of unknown person's bill
                      -OMB
                      -Phillips' wife
                            -Job with the Committee

     Black Caucus

Stephen B. Bull entered at an unknown time after 2:47 pm.

     President's schedule
          -Meeting with Kissinger

Bull left at an unknown time before 3:43 pm.

     Employment

     Education

     Housing

     Black Caucus
          -President's record

     Civil Rights Commission
           -Theodore S. Hesburgh
                                               37

                           NIXON PRESIDENTIAL MATERIALS STAFF

                                         Tape Subject Log
                                            (rev. 9/08)



           -June 14th, 1971 hearing on housing
                 -Subpoenas of assistant secretaries
           -Samuel C. Jackson
           -Samuel J. Simmons
           -Statement prepared for the President

Haldeman entered at 3:15 pm.
                                                                      Conv. No. 502-20 (cont.)
     Dr. Bertram S. Brown
          -Firing
                -Reconsideration
                      -Elliot L. Richardson
          -Brown
                -Richardson’s view
          -Richardson’s appointment request
          -John W. Dean, III
          -Egil G. (“Bud”) Krogh, Jr.
          -Malek
          -Position on narcotics
          -Dean
          -Krogh
          -Weber
          -Richardson
                -Health, Education, and Welfare [HEW]
          -Brown
                -Drug traffic
                -Marijuana
          -President's meeting with Arthur G. (“Art”) Linkletter on May 18, 1971

Ehrlichman and Shultz left at 3:43 pm.

[The President talked with the White House operator at an unknown time between 3:15 pm and
3:44 pm]

[See Conversation No. 3-89]

[Conversation No. 502-20A]

[End of telephone conversation]

     Donald H. Rumsfeld
         -Office of Economic Opportunity [OEO]
                                                 38

                            NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                         (rev. 9/08)



                 -Knowledge
           -Knowledge of National Security Council [NSC]
           -President’s plan
                 -George A. Lincoln

Bull entered at an unknown time after 3:43 pm.

     President's schedule                                           Conv. No. 502-20 (cont.)
          -Meeting with Kissinger
          -President's appointment at 4 o'clock

Bull left at an unknown time before 3:46 pm.

[The President talked with Mrs. Lee, Weber's secretary, at an unknown time between 3:43pm
and 3:46 pm]

[See Conversation No. 3-90]

[Conversation No. 502-20B]

[End of telephone conversation]

     Connally
         -Treasury

Kissinger entered at 3:46 pm.

     SALT agreement
         -Soviet clarification statement
              -Soviet Embassy's press secretary
              -Anatoliy F. Dobrynin
              -Distribution

           -Kissinger's briefings
                -John W. Chancellor

     President's schedule
          -Haldeman’s call to Connally
                 -Kissinger’s forthcoming meeting with Connally

Haldeman left at 3:48 pm.
                                            39

                         NIXON PRESIDENTIAL MATERIALS STAFF

                                    Tape Subject Log
                                       (rev. 9/08)



     SALT agreement announcement
         -Headlines
         -Chancellor, [Arnold] Eric Sevareid, [Forename unknown] Morgan (?), Marvin L.
               Kalb
               -Understanding of SALT agreement
         -Columbia Broadcasting System [CBS]
               -Dan Rather and Kalb
         -Kissinger's briefings                                   Conv. No. 502-20 (cont.)
               -Gerard C. Smith
         -Kissinger’s phone calls
               -McGeorge Bundy
         -President's thoughts on Kissinger
         -Bundy
               -Reaction to announcement
               -Offer of assistance
                     -Senate Foreign Relations Committee

Haldeman entered at 3:49 pm.

     President's schedule
          -Haldeman’s conversation with Connally
                 -Connally’s reaction

     SALT agreement announcement
         -Bundy's offer of help
              -Senate Foreign Relations Committee
              -J. William Fulbright
         -Michael J. (“Mike”) Mansfield
         -Harold E. Hughes
         -George D. Aiken
         -Democrats
              -Hubert H. Humphrey
                    -Charles W. Colson
                          -Mindset
                    -President
                          -Mindset
                    -Colson's report on a Humphrey speech on Antiballistic Missiles [ABM],
                          Multiple Independently Targetable Reentry Vehicle [MIRV] and
                          arms talks
                                              40

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                         (rev. 9/08)



               -Edmund S. Muskie
                    -Someone Kissinger sent to see Muskie
          -Dean G. Acheson
               -Kissinger's call

[The President talked with the White House operator at an unknown time between 3:49 am 3:53
pm]
                                                                     Conv. No. 502-20 (cont.)
[See Conversation No. 3-91]

[Conversation No. 502-20C]

[End of telephone conversation]

     SALT agreement announcement
         -[Forename unknown] Kleiman of New York Times
              -Kissinger's call
              -Kleiman's comments

[The President talked with the White House operator at 3:53 pm]

[See Conversation No. 3-92]

[Conversation No. 502-20E]

[End of telephone conversation]

Rose Mary Woods entered at 3:53 pm.

     Copy of President’s memo to Acheson, May 20, 1971

Woods left at 3:54 pm.

          -Dobrynin's call to Kissinger
               -Soviet press release
               -Offer to call Senators

     Statement President made to the Rules Committee
          -Albert J. Beveridge
          -[First name unknown] Marshall
          -[First name unknown] Bowers [?]
          -Text of statement
                                             41

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                        (rev. 9/08)



                -Partisanship
                -1898
                -Patriotism

     SALT agreement
         -William P. Rogers
         -Laird
         -Military                                                  Conv. No. 502-20 (cont.)
         -Kissinger's forthcoming call to Rogers
         -Rogers’ meeting with President
               -Photographs
         -U. Alexis Johnson's comments

     Shultz

[The President talked with the White House operator at an unknown time between 3:54 pm and
3:56 pm]

[See Conversation No. 3-93]

[Conversation No. 502-20F]

[End of telephone conversation]

     Laird


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

BEGIN WITHDRAWN ITEM NO. 4
[Privacy]
[Duration: 14s ]


END WITHDRAWN ITEM NO. 4

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

[The President talked with Shultz between 3:56 pm and 3:57 pm]

[See Conversation No. 3-94]
                                              42

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                         (rev. 9/08)



[Conversation No. 502-20D]

[End of telephone conversation]

The President, Haldeman, and Kissinger left at 3:58 pm.


                                                               Conv. No. 502-20 (cont.)