Conversation 670-007

TapeTape 670StartMonday, February 14, 1972 at 10:07 AMEndMonday, February 14, 1972 at 10:59 AMTape start time01:10:41Tape end time02:04:08ParticipantsNixon, Richard M. (President);  Ehrlichman, John D.;  Burns, Arthur F.;  Bull, Stephen B.Recording deviceOval Office

On February 14, 1972, President Richard M. Nixon, John D. Ehrlichman, Arthur F. Burns, and Stephen B. Bull met in the Oval Office of the White House from 10:07 am to 10:59 am. The Oval Office taping system captured this recording, which is known as Conversation 670-007 of the White House Tapes.

Conversation No. 670-7

Date: February 14, 1972
Time: 10:07 am - 10:59 am
Location: Oval Office

The President met with John D. Ehrlichman and Arthur F. Burns.

     People’s Republic of China [PRC] trip
          -The President’s departure
               -Timing
          -Length
          -Arrival time
                                         15

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/06)
                                                          Conv. No. 670-6 (cont.)


     -World changes
     -Union of Soviet Socialist Republics [USSR] trip
          -Arms control
                -Importance
                     -Future impact
     -Chinese
     -Japanese
     -Indonesians
          -Concern for Chinese neighbors
                -Importance of arms control
     -Use of individuals
          -Mao Tse-tung
          -Chou En-lai
          -Mao Tse-tung
                -Chiang Kai-shek

Economy
    -Ehrlichman
          -Domestic Council
    -George P. Shultz
    -Interest rates
    -Money supply
          -Timing
                -M-1
    -New York board
          -Alfred Hayes
                -Assistance from Administration
                       -David Rockefeller
                -Unknown person
                       -Relationship to Burns
                -Possible disciplinary action
    -Prices
          -Instability
                -President’s instructions to Burns
          -November 1972
          -William McChesney Martin, Jr.
                -President’s recollection
    -Interest rates
          -Banks
    -Money supply
          -Possible increase
                                       16

                    NIXON PRESIDENTIAL MATERIALS STAFF

                               Tape Subject Log
                                 (rev. 10/06)
                                                         Conv. No. 670-7 (cont.)


                -Amount
                     -M-1, M-2
     -Milton Friedman
          -Ideas
     -Comparison to war
     -Budget
     -Controls
     -Burns
          -Testimony
          -Opinion on strong factors
                -Retail sales
                     -Rising prices
                -Taxes
                     -Unknown man
                     -Reform
                            -Value added tax [VAT]
                     -Property taxes
                            -Schools
                     -John B. Connally
                     -Cut
                            -Congress
                     -VAT
                            -Corporate income tax
                     -Property tax
                     -Corporate tax
                     -Individual tax
                     -Property tax
                     -VAT
                            -Burns’s support
                            -Timing
                     -Tax bill
                     -Reform
                            -Normal operations

Busing
     -White House position
     -Bipartisan committee
          -Neil H. McElroy committee
                -Support
     -Commission
     -Courts
                                   17

                NIXON PRESIDENTIAL MATERIALS STAFF

                           Tape Subject Log
                             (rev. 10/06)
                                                             Conv. No. 670-7 (cont.)


-State level
      -Possible crisis
-McElroy Commission
      -Burns
      -Parochial schools
      -Public schools
            -Comparisons and differences
      -Private school committee
      -Public schools
      -Blacks
      -Public schools
            -Problems stated
-Constitutional amendments
      -Howard H. Baker, Jr.
      -William E. Brock, III
      -Harry F. Byrd, Jr.
      -Robert P. Griffin
      -Thomas N. Downing
      -Norman F. Lent
      -Thomas J. (“Tom”) Steed
      -John G. Tower
      -Elliot L. Richardson
            -John N. Mitchell
                  -Possible explanation of problems to Congress
                        -Scheduling
      -Meeting
            -Briefing papers
            -Ehrlichman
            -Baker
                  -Grasp of subject matter
            -Griffin
                  -Different approach
            -Baker
-Position of Administration opponents
      -John V. Lindsay
      -Edward M. Kennedy
      -George S. McGovern
      -Edmund S. Muskie
      -Hubert H. Humphrey
            -Changes on the issues
      -Black education
                                         18

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                   (rev. 10/06)
                                                               Conv. No. 670-7 (cont.)


                -Quality
     -The President’s view
          -Brown vs. Board of Education
                -Meaning
                      -Segregated education
          -Quality education
                -Black children
                      -Neighborhood breakdown
                            -Churches
                            -Schools
                            -Friends
                            -Forced transportation
                                  -Opportunities
                                  -Choices
          -Legal restrictions

Appointments
    -Andrew F. Brimmer
         -President’s previous conversation with William P. Rogers
         -Ehrlichman
         -Shultz
         -St. Lawrence Seaway
         -Panama Canal
         -Ambassadorship
               -Sweden
                     -Black
                           -Jerome H. Holland
               -Europe
                     -Length
                           -Sweden
                                -Desirability
               -Black
                     -Africa
               -Frederic V. Malek
               -Sweden
                     -Responsibilities
               -Finland
               -Rogers
                     -United Nations [UN]
               -Malek
                     -Gathering of European ambassadors
                                         19

                    NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/06)
                                                             Conv. No. 670-7 (cont.)


               -Latin America
               -Europe
                     -Potential for safety
                     -Holland
                          -Problems
                          -Finland
               -State Department
               -Central Bank of Sweden
                     -Austria
               -Europe
                     -Location
                     -West Germany

Budget
    -Stimulation
    -Money
         -Contractor
               -Pay in advance
    -1972-73 financial transfers
    -Burns’s plan
         -Caspar W. (“Cap”) Weinberger
               -Report to the President
                     -Accomplishments
                           -Buying hardware
    -Fred C. Foy
         -Koppers Corporation
               -Press conference
                     -90,000 jobs created
                           -California
                           -White House budget stimulation
    -Buying hardware
         -747s
               -Production
                     -Number
    -Weinberger
         -Reports to a committee
               -Monthly compared to weekly
                     -Burns’s view
    -Contractors
         -Shipping
         -Airplanes
                                   20

               NIXON PRESIDENTIAL MATERIALS STAFF

                           Tape Subject Log
                             (rev. 10/06)
                                                            Conv. No. 670-7 (cont.)


           -Transactions
-Weinberger
     -Weekly reports
           -John B. Connally
           -Defense
                 -Robert C. Moot
                      -Weinberger
                      -Shultz
-Cabinet officers
     -Weekly reports
           -Created for the President and Weinberger
           -Budget figures
           -State Department
           -Connally
           -John A. Volpe
           -Rohr Industries
                 -Contract (Hardware)
                      -San Diego
                      -Urban Mass Transit experiment
                      -Amount
                      -California
-Treasury Department
     -Withholding problem
           -Administration awareness
     -Release of tables
           -Sabotage
                 -Withholding rates
                      -Change
                      -Internal Revenue Service [IRS]
                      -John W. Dean, III
                      -Connally
                      -Johnnie M. Walters
                      -Publicity
                            -Radio and television advertisements
                            -Warnings in pay envelopes
                      -Under withholding
                      -Constituency
                      -Married people
                            -Over withholding
                      -Burns’s opinion
                            -Advertising
                                                21

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/06)
                                                                       Conv. No. 670-7 (cont.)


                                     -Director of research at FRB [J. Charles Partee]
                                          -Withholding form
                                                -Time to prepare
                                                       -Average American worker
                                                            -Difficulties
                                     -FRB
                                          -Comptroller
                                                -Fill out withholding forms for staff
                                     -Business firms
                                          -Withholding forms
                                                -Preparation for employees
                                     -Appeal to individuals
                                     -Congress
                                          -Suggestions
                                -White House
                                -Revenue Act of 1971
          -Burns’s proposal
               -Dinners
                     -Business people
                     -Weekly
                     -Size
                           -Anticipated results

Stephen B. Bull entered at an unknown time after 10:07 am.

     Schedule
          -Meeting
               -Senators
               -Congressmen
               -Cabinet Room
          -Timing
               -Ronald L. Ziegler

Bull left at an unknown time before 10:59 am.

     Business people
          -White House dinners
               -Possible effect
                     -Campaign
                     -Confidence
                     -Relay messages to hometowns
                                       22

                    NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                  (rev. 10/06)
                                                         Conv. No. 670-7 (cont.)


                -Big business
                      -Size of towns
                -Connally
                -Peter G. Peterson
     -Business Council meetings
           -Conduct
           -40% of American businesses represented
           -Connally
                -Involvement
     -Blair House meetings
           -Weekly
           -Connally
           -Maurice H. Stans
           -Cabinet members
           -White House staff
                -Council of Economic Affairs [CEA]
           -Business and labor
           -Success

Busing

Budget
    -Working toward one goal
    -Expansion
    -Price and wage control
    -Economists’ analyses
          -Free economy
          -Decisions and decision makers
    -Governmental level
          -Confidence

Economy
    -Burns
          -Tone comments
    -Fourth quarter 1971
    -First and second quarters, 1972
    -Arthur Goldberg
          -Talk with the President
                -Wage Board
                -PRC trip
          -Donald H. Rumsfeld
                                              23

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                      Tape Subject Log
                                        (rev. 10/06)
                                                               Conv. No. 670-7 (cont.)


               -Dr. Neil H. Jacoby
                    -Occidental Life Insurance Co.
                          -Resignation
                    -Robert S. McNamara
               -Chairman of Wage Board
               -Rumsfeld
                    -Availability

    FRB
          -Board of Governors
               -Appointment
                     -Scali’s work
                     -Vacant post
                           -Search for viable candidates
                     -California
                           -Type of candidate
                     -Prestige
                     -William D. Eberle
                     -Banker
                     -Claire Giannini Hoffman
                           -Age
                     -Burns
                           -Selection of name

    Busing
         -Henry M. (“Scoop”) Jackson
              -Proposed constitutional amendment
              -Dual school system
              -Equal education
                    -State level
              -Florida primary
              -Forced integrated housing
                    -Lost cost public housing


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

BEGIN WITHDRAWN ITEM NO. 3
[Personal Returnable]
[Duration: 14s ]
                                             24

                          NIXON PRESIDENTIAL MATERIALS STAFF

                                     Tape Subject Log
                                       (rev. 10/06)
                                                               Conv. No. 670-7 (cont.)



END WITHDRAWN ITEM NO. 3

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


                     -Public housing
          -Possible effect on economy
               -Social mobility
          -Burns
               -Possible statements
               -George W. Romney

Burns left at an unknown time before 10:59 am.

     Public housing and busing

     Economy

     The President’s schedule

Ehrlichman left at 10:59 am.