Conversation No. 66-1

Date: July 22, 1971
Time: Unknown between 5:18 pm and 5:34 pm
Location: Cabinet Room

The President met with Peter G. Peterson, Clinton P. Anderson, Wallace F. Bennett, J. Caleb Boggs, Clifford P. Case, Carl T. Curtis, Paul J. Fannin, J. William Fulbright, Robert P. Griffin, Clifford P. Hansen, Roman L. Hruska, Jacob K. Javits, Warren G. (AMaggie@) Magnuson, Jack R. Miller, Robert W. Packwood, Charles H. Percy, Abraham A. Ribicoff, Robert A. Best, and Thomas Vail
[Recording begins while the converstion is in progress]

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	World economy

[To listen to the segment (8m43s) declassified on 02/28/2002, please refer to RC# E-541.]

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	Economic challenges
		-Jobs
		-Productivity
		-Presidents Dwight D. Eisenhower, [Thomas] Woodrow Wilson, Theodore (ATeddy@) Roosevelt
		-Peace as issue

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	World economy

[To listen to the segment (1m25s) declassified on 02/28/2002, please refer to RC# E-541.]

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		-Peterson=s presentation
			-Significance
		-Competitive position vis-a-vis other nations

	Meeting participants
		-Nebraska
			-Curtis

	Adlai E. Stevenson, III
		-Foreign economic policy
			-Protectionism and free trade

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	World economy

[To listen to the segment (4m1s) declassified on 02/28/2002, please refer to RC# E-541.]

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Recording was cut off at an unknown time before 5:34 pm

Conversation No. 66-2

Date: July 23, 1971
Time: 3:11 pm - 6:45 pm
Location: Cabinet Room

The President met with John B. Connally, John D. Ehrlichman, George P. Shultz, Caspar W. (ACap@) Weinberger, Kenneth R. Cole, Jr., and Edwin L. Harper; H. R. (ABob@) Haldeman entered at an unknown time after the meeting was in progress
[Recording begins while the conversation is in progress]

	The economy
		-Income tax rates
		-Sales taxes

	The automobile industry
		-California, Michigan, Ohio

	Unemployment in the United States
		-Texas
		-Pennsylvania
		-New Jersey
		-New York
		-Ohio
		-Indiana
		-Illinois
		-Wisconsin
		-The South
			-Louisiana
		-Texas
		-California
		-The West
			-Mexican-American unemployment
				-California, Texas, Arizona, New Mexico
		-California
		-Washington state
			-Aerospace workers
			-Daniel J. Evans
			-Supersonic Transport [SST]
			-Emergency unemployment benefits
			-Highway money
		-National rate compared to local rates
		-California, New Jersey
		-Washington state
		-Oregon
		-New Jersey
			-Newark
			-Elizabeth
			-Jersey City
			-New York
		-Projected 1972 employment rate
			-Third-quarter, 1971
			-Tax breaks
			-Tax credit
			-Forthcoming 1972 presidential election

	Balanced budget (1973)
		-Taxes, spending, deficits
		-John F. Kennedy administration action
		-Full employment deficit
		-Tax increases
		-Tax credits
		-Investment tax credits

	Inflation
		-Reduction
		-National Commission on Productivity
		-Fiscal and monetary policy
		-Anti-trust actions
		-Import sanctions
		-Manpower training

	Wage-board pay raise bill
		-Congressional action
		-Presidential veto

	Crime in the United States
		-Rise in rate
		-Age breakdown of criminals
		-Violent crimes
			-Arrests
			-Criminals under the age of twenty
		-Federal crime legislation
			-Gun control of ASaturday night specials@
				-Gun lobby
					-National Rifle Association
					-Richard S. Schweiker
					-Hand gun control
			-Metropolitan criminal justice centers program
				-Washington, DC
				-American cities
			-Prison reform
				-Cost
				-Proposal
			-Hand gun control issue
				-Richard G. Kleindienst
				-Potential congressional action
		-Crowded court dockets
			-Speedy trials
			-New judgeships
			-Chief Justice Warren E. Burger
			-New York City
				-Narcotics cases
					-Use of special courts
			-Pre-indictment probation
			-New judgeships
				-Circuit rider concept
			-DC courts
				-Judge David L. Bazelon
			-Burger
			-Juvenile delinquency programs
				-Justice Department
				-Law Enforcement Assistance Administration [LEAA]
				-Department of Health, Education and Welfare [HEW]
				-Transfer of program responsibility

	Privacy issue
		-Office of Management and Budget [OMB] study on confidential information
		-Domestic Council
		-Possible presidential statement

	Juvenile crime
		-Statistics
		-The District of Columbia
		-Drug-related nature of crimes
		-HEW personnel
		-DC schools
			-Absentee rate
		-California

	Crime
		-Key states, cities
		-Political issue
		-Rate and percentage of population
		-Prevention
		-Increase in police
			-LEAA
		-J. Edgar Hoover
		-Crime decrease
			-Houston, Texas
			-DC
			-Types of crimes
		-Non-permissive judges
			-[Forename unknown] Gerstein of New York
		-LEAA expenditures
		-White House Chiefs of Police meeting
		-Hoover, Federal Bureau of Investigation [FBI]
		-Drug problem
		-Burger
		-DC

	Drugs
		-Addict numbers
		-US servicemen in Vietnam
		-Drug program
			-Administration
		-International drug traffic
		-Elmo Roper poll
			-Nation=s problems
				-Drugs
				-Vietnam
			-Date of poll, field of poll
		-Relationship between drugs and crime
			-Regional differences
		-Crime rates
			-Impact of crime as an issue
				-Effect of news reports
		-Administration efforts
			-Media efforts at discrediting administration
			-Comparison to Franklin D. Roosevelt
			-Democratic opponents
				-Stand on crime-related issues
					-Hubert H. Humphrey
					-Edmund S. Muskie
					-Edward M. (ATed@) Kennedy
					-George S. McGovern
					-Henry M. (AScoop@) Jackson
		-Perceptions of anti-crime image
			-John N. Mitchell
			-Hoover
			-Deportation of Charles (ALucky@) Luciano
		-US-Turkish relations
			-Drug agreement
		-Public relations image
			-May Day demonstrations
			-Support of Hoover
		-Timothy Leary
		-Cost of heroin habits
		-Organized crime
			-AGodfather@ movie
				-Popularity of book
			-Administration efforts against organized crime
			-Italian vote
				-Joseph Colombo

	Veterans= issues
		-Vietnam
		-Veterans= Administration [VA] care of veterans
		-World War II, Korean War
		-Veterans of Foreign Wars [VFW], American Legion
		-Vietnam era
			-Problems of returning veterans
				-Special treatment
				-Unemployment
				-Cultural shock
				-Perceptions of drug use
					-Effect on employment
				-GI bill
				-Medical care
					-VA hospitals
				-Jobs for veterans
				-Comprehensive GI bill of rights
				-Outreach effort for the disadvantaged
			-Military pay
				-Recomputation of retired veterans pay
		-Veterans
			-Number of voting age for November 1972
				-Ohio
				-New Jersey
				-Illinois
				-California
		-Southerners
			-Career military people
			-Comparison to World War II period
			-Florida
			-Compared with New York, Texas, California
		-Veterans programs
			-Legislative efforts
			-Singling out of Vietnam veterans

	Environment
		-Public perceptions
			-Survey, Durham, North Carolina
			-Pollution
			-Balance between jobs and environmental protection
		-Air pollution laws
			Environmental Protection Agency [EPA]
		-Pollution
			-Marginal industries
			-Agricultural areas
			-Air, water pollution
			-Clean Air Act
		-Problems (1972)
			-California
				-Santa Barbara, Los Angeles
			-Florida
				-Everglades
			-Great Lakes
			-Four Corners Power Plant
			-Alaska
				-Aleutian Islands
				-Pipeline

	Agriculture
		-Perceptions by farmers
		-Farm income
		-Problems (1972)
			-Corn blight
			-Wheat
				-Effect of drought
			-Commodities
				-Oranges
				-Wool
				-Rice
				-Potatoes
				-Hogs
		-Support for the President in the Midwest
		-Indiana, Illinois, Ohio, Iowa
		-Corn blight
		-Farm Bill
		-Exports
		-Surpluses
		-Rural development
		-Agriculture Act (1970)
		-Proposal to appoint an agricultural ambassador
			-Exports
		-Farm Labor bill
			-Political implications
		-Farm prices and effect on Consumer Price Index [CPI]

	Education
		-Accountability
			-Costs
		-Expenditures
			-States
				-Southern states
				-California, key states
			-Elementary education, higher education
		-Real estate taxes
			-Mississippi
		-Property taxes
			-Office of Economic Opportunity [OEO] experiment
				-National Education Association [NEA]
		-Nonpublic elementary, secondary schools
			-Regional differences
			-Catholic school enrollment
				-California
				-New York
				-Illinois
			-Tax credits
		-College credit
			-Middle income families
			-Student loan assistance program
		-Federal education aid
			-Poll results
		-Impact of issues on constituents
		-Nonpublic schools
			-Constitutional amendment
			-Use of public funds
		-Busing
		-Nonpublic school aid
			-Political implications
				-Impact on Pennsylvania election
				-New York, Illinois, Pennsylvania, New Jersey, California, Louisiana, Texas
		-Busing
			-Supreme Court
			-Constitutional amendment
			-San Francisco
				-Chinese-Americans
			-Fourteenth Amendment repeal
		-Parochial school aid
			-Federal funding
			-School closings

	American elderly
		-Administration efforts
		-Perception of indifference
		-Housing
			-Shortages
		-White House Conference on Aging
		-Social Security increases
		-Medicare
			-Prescription drugs coverage
		-Nursing home standards
			-Elliot L. Richardson
			-Federal strike force
		-White House Conference proposals
			-Housing, transportation, jobs
			-Compared to the Great Society
				-Hot lunch program
			-Senior citizen community centers
		-Older Americans Act
			-Foster Grandparents program
		-Projected voting trends
			-Florida
			-Illinois
			-Local problems
			-Midwest
		-Health
		-Political support
			-Comparison to other voting blocs
			-The President=s administration
		-House Resolution [HR] 1
			-Welfare
				-Public perceptions
		-Association of Retired Persons (Chicago)
		-Jobs and social security
		-Problems
			-Nursing homes
			-Exploitation
				-Doctors
			-Increased longevity
			-Comparison to minorities
			-Political implications
		-White House conference
		-Administration support
		-Pension vesting
			-Collective versus individual handling
			-Job mobility
				-Alan Greenspan=s comments
			-Costs

	Employment
		-International trade
		-Job loss
		-Mobility, job transfers
		-Political implications
		-Costs
		-Regulation of industry

	Private school amendment
		-Preparation of draft
			-Ehrlichman, Weinberger

	Health
		-Costs
		-Medical personnel
			-Throughout the United States
				-Florida
				-Texas
				-California
					-Chiropractors
				-Midwest
				-Rural areas
				-California
					-Suburban nature of communities
				-Texas
					-Small-town areas
		-Legislation
			-Administration sponsorship
				-Key congressmen
					-Domestic Council
					-Wilbur D. Mills
						-Support for administration
						-Credit on issues
						-Political aspirations
							-Muskie, E. M. Kennedy, Humphrey
					-Jackson
					-Peter G. Peterson, David M. Kennedy
						-Shoe industry
					-Mills
						-Approach to foreign policy
						-Political strategy
							-Handling of Mills on domestic and foreign policy issues
						-Importance
						-Revenue sharing
						-Taxation
						-Political strategy
							-Possible Democratic presidential nomination
							-Democratic party factions

	Health issues
		-Various insurance programs
			-Private health insurance

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BEGIN WITHDRAWN ITEM NO. 1
[Personal Returnable]
[Duration:  51s  ]

END WITHDRAWN ITEM NO. 1

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			-Key states
				-Texas
			-Cancer lobby
			-Heart lobby, kidney lobby
				-Dr. Michael E. DeBakey
			-The President=s appearance at convention of cardiologists
			-Heart problems
			-Possible budget
		-Cancer
			-Public reaction
			-Victims
			-Stewart J. O. Alsop
				-Communication with the President
			-Leukemia
				-Chemotherapy
			-Indiana cancer clinic=s work on tumors
				-Dr. Lee Clark

	Important issues in 1972
		-Jobs
			-Florida
			-North Carolina
			-Virginia
		-Taxes
		-Crime
		-Drugs
		-Veterans
		-Agriculture
		-Environment
		-Education
		-Health
			-California
		-California
			-Aerospace industry
		-Mexican-Americans
			-California
			-Texas
			-Chicago, Illinois
		-Minority employment in motion pictures, television and commercials
			-Media influence
			-Hispanic actors
				-Movie ACarnal Knowledge@
		-Open housing, desegregation
			-Southern states and California
		-Textiles
			-Missouri, North Carolina, Virginia
		-Wisconsin
			-William Proxmire
			-Government waste, consumer issues

	Key states
		-Pennsylvania

	Issues
		-National compared with local interest
		-Regional approach
			-Administration position
		-Style
		-Packaging
			-Public relations
			-Edward L. Morgan=s handling of revenue sharing
		-Responsive issues
			-Fund expenditures
		-Cost of living
		-Public opinion on government expenditure increases
			-Housing, Medicare, environment, education, health care, crime and law enforcement, water and air pollution, cancer research
			-Decreases recommended for space, Vietnam War, defense, foreign aid
			-Tax relief
			-Decrease
				-Space programs
				-Vietnam war
				-Foreign aid
			-Welfare
				-Poll results
				-Survey results
		-Decreased federal expenditures
			-Political consequences
				-Tax cut
				-Jobs
				-Cost of living
			-Speech writers
				-Repetition of phrases
		-Need for regional emphasis on issues for maximum effect

	Vietnam
		-Drug issue
		-North Dakota

	Political speeches, speech writing
		-Drug issue
			-Crime, boredom
		-Unemployment
			-Detroit
				-Support of athletic teams
					-Detroit Tigers
					-University of Michigan

	Sir Kenneth Clark
		-Civilisation book and film series
			-Character of America
				-American boredom
				-Accomplishments
				-Goals
					-Peace

	Administration public relations efforts
		-New era
			-Peace, prosperity
		-Roper poll results
		-Negatives
			-Vietnam war
			-Drugs
			-US economy
				-Retail sales
				-Public opinion
				-Prosperity and opportunity
		-American future
			-Public opinion
		-Depressants
			-Vietnam War
			-Drugs
			-The news media
				-Compared to earlier administrations
				-Left-wing character
				-Television
					-Emphasis on the negatives
			-Teachers
				-Comparison to the President=s teachers
			-Ministers
				-Quakers
					-Draft evaders
			-Colleges
				-Smith
					-Attendance by Julie Nixon Eisenhower
				-Finch
					-Attendance by Tricia Nixon Cox
			-Churches
				-Catholic
					-Immigrants
						-Irish, Italians, Poles
				-Hardhats
				-Protestants
					-Quakers
					-Fundamentalists
						-Faith in the American system
		-Leaders
			-Influence
			-Negative attitude
			-Administration efforts
				-Need for confidence, pride in accomplishments
				-Foreign policy
				-Economic policy
			-Influence
			-The administration
				-Positive influence

	The President=s July 24, 1971 schedule

	The Administration=s public relations efforts
		-Period of peace
			-Unemployment
			-Younger generation
				-Future
				-Challenges
			-Present-day America
				-Optimism
					-Peace, communication, jobs
			-Defense spending
				-Effect on employment
				-Vietnam War
		-Economic competition in the world
			-Germany, Japan, Western Europe

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	People’s Republic of China [PRC]

[To listen to the segment (15s) declassified on 02/28/2002, please refer to RC# E-541.]

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			-The Marshall Plan
		-Challenge of peace
		-The news media
			-The President=s July 6, 1971 Kansas City speech
			-Resistance
			-Reporters
				-Compared to muckrakers
					-Robber barons
		-Leader class
			-Businessmen, educators, media, politicians, ministers
			-Belief in America
				-Purpose
		-Government programs
			-Revenue sharing, health
			-New directions
				-OEO appropriations veto
		-Peace issue
		-New directions
			-Lyndon B. Johnson and the Great Society
				-Programs
		-The establishment
			-Revolt against the AEstablishment@
			-Liberals

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BEGIN WITHDRAWN ITEM NO. 3
[National Security]
[Duration:  3s  ]

	PEOPLE’S REPUBLIC OF CHINA

END WITHDRAWN ITEM NO. 3

[To listen to the segment (3m26s) declassified on 02/28/2002, please refer to RC# E-541.]

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		-The liberal establishment
			-Reaction to the President
				-Comparison to reaction to Barry M. Goldwater

	Forthcoming meeting of the President and Connally
		-July 24, 1971

	Presentation

	The President=s schedule

The President, et al. left at 6:45 pm

Conversation No. 66-3

Date: July 24, 1971
Time: Unknown between 9:40 am and 12:28 pm
Location: Cabinet Room

John B. Connally met with George P. Shultz, Caspar W. (ACap@) Weinberger, John D. Ehrlichman, Kenneth R. Cole, Jr., Peter M. Flanigan, Edwin L. Harper, and H. R. (ABob@) Haldeman

	[General conversation/Unintelligible]

The President entered at 10:39 am

	Tax initiative proposal
		-Costs
		-Details
		-Policy objectives
			-Additional revenue
				-Value added tax
			-Social purposes
				-Property tax relief
				-Child care expense proposal
				-Private education relief
				-Social security payroll tax
			-Tax simplification
			-Economic stimulation
				-Investment tax credits
				-Depreciation
				-Research and development expenditures
				-Individual and excise taxes

	Value added tax
		-1969 study
		-Recommendation
		-1973 budget
		-Additional revenue
		-Definition
		-Advantages
		-Disadvantages
			-Regressive nature of the tax
		-Labor unions, Wall Street Journal
		-Chamber of Commerce, Committee for Economic Development
		-Details
			-Application
			-Exclusion
			-Revenue raised
		-Problems
			-Implementation
				-Time
					-European example
		-Balanced budget
			-Congressional response
				-Charls E. Walker=s memorandum

	Property tax relief
		-Revenues raised
		-Burdens
		-Problems
		-Comparison
			-Canada, United Kingdom, Germany, France
		-Relief
			-Revenue sharing
			-Education funding
				-Property tax relief
				-Allocations
					-Details
					-Revenue sharing
		-Tax credit
			-Advantages, disadvantages
		-Property tax
			-Single fixed rate
			-Disadvantages
			-Advantages
			-Education tax
				-Governor William G. Milliken
					-Michigan

	Child care expenses tax relief
		-Standard child deduction
			-Itemized tax returns
				-Income levels
		-House Resolution [HR] 1
		-Treasury Department proposal
			-Additional deduction
			-Costs
			-Advantages
			-Disadvantages
			-Working mothers with small children

	Tuition costs tax relief
		-Tuition cost
			-Rise
		-Application
			-Primary, secondary education
			-Tax relief
		-Treasury Department proposal
			-Primary, secondary education
		-Costs
		-Advantages
		-Disadvantages
		-Political effect
		-Opponents

	Payroll tax
		-Lower, middle income impact
		-Social Security tax
			-Details
			-Impact
			-Alternatives
				-General revenue
				-Payroll schedule adjustment
			-Advantages

	Personal income tax simplification
		-Complexity
		-Standard deductions
		-1969 Tax Reform Act
		-Itemizing tax returns
			-Number
		-Tax laws
			-Social objectives
		-Republican Party platform of 1968
		-Treasury Department proposals
			-Capital gains
			-Ordinary income
			-Eliminate personal deductions
			-Tax reduction
			-Application
			-Opposition
		-Income tax rates
			-Top rate
			-Political feasibility

	Economic stimulation
		-Capital investment
			-Investment tax credit
			-Liberalized depreciation
		-Investment tax credit
			-Recent rate
			-Proposed change and effect
			-Revenue loss
		-Depreciation schedule change
			-Special industries
				-Motion pictures
				-Leasing
				-Railroads
		-Research and Development [R&D] expenditures
			-Dr. [Forename unknown] Kraft=s memorandum
			-R&D expenditures tax credit
			-Industrial science research foundation
				-Creation
				-Tax law reformation
				-Patent sales
			-R&D expenditures tax credit
				-Revenue loss
				-Employment gains
				-Treasury Department=s views
					-Opposition
					-Direct federal expenditures
		-Individual income tax reduction
		-Excise tax reduction
			-Dollar amount

	Tax simplification initiative
		-Relationship to personal income tax credits

	Value added tax
		-Generated revenue
		-Surplus
			-Use
				-Education
				-Child care
				-Tuition credits
				-R&D

	Tax reform initiatives
		-Value added tax
			-Political effect
		-Treasury Department staff
			-Stasis
			-Political understanding
		-Tax bill
		-Education tax credits
			-Political effect
			-Higher education
			-Primary schools
		-Value added tax
			-Shift in approach to taxes
		-Tuition credits, property tax, investment tax credit, excise tax
		-New taxation system
		-Political appeal
			-Value added tax, property tax
		-Present system

	Tax simplification
		-Value added tax
		-Personal exemptions
		-Disadvantages
		-Capital gains structure
			-Abolition
			-Consequences
			-Profit sharing funds
			-Tax exempt bonds
		-Public perception
			-Effect on income groups
		-Value added tax
			-Property tax
				-Milliken=s actions in Michigan
				-Education support
				-Real property taxes
			-Limitation
			-Advantages
			-Revenues produced
				-Uses

	Property tax
		-Constituent appeal
		-Application
			-Veterans exemption

	Investment tax credit
		-R&D efforts

	Specialized industries
		-Treasury Department investigation
		-Motion picture industry
			-Television shows
				-Residuals from broadcasts of old movies
					-Trend toward made-for-television movies
		-Railroads
			-Roadbeds
				-Depreciation
		-Automobile excise tax
		-Telephone tax
			-Telephone company
				-Excise tax
				-Rates charged

	Day care centers

	Education tax credit
		-College tuition
		-Primary school
		-College tuition assistance
		-Burdens on middle-income families
		-Primary and secondary school tuition credit
			-Parochial schools

	Social security payroll tax
		-Regressive aspect
		-Political impact

	Property tax

	Dividends
		-Taxation

	Capital formation
		-Private investments

	Dividends, corporate profit
		-Taxation

	Tax reform

	Social security payroll tax
		-Job impact
			-Overtime
		-Earnings level
		-Tax base
		-Impact

	R&D tax credit
		-Investment tax credit
		-Specific industries
		-Business reaction
			-Depreciation schedule

	Sales tax
		-US labor system

	Job creation
		-Tax changes

	Value added tax
		-Compared to sales tax
		-Revenues earned

	Tax reform
		-Economic effect
		-Credits, deductions
			-Public perception
			-Simplification
			-Constituencies

	Value added taxes

	Tax simplification
		-Tax rate
		-Value added tax
		-Internal Revenue Service
		-Certified Public Accountants [CPA]
		-Tax lawyers
		-Capital gains
			-Rates
		Effect
			-Public perception of wealth

	Property taxes
		-Value added tax
		-Constitutional amendment
		-Tax revolt
		-Amount of tax paid on Connally=s ranch
		-School financing

	Tax proposal
		-Schedule

	Connally=s program

The President and Connally left at 12:27 pm; Shultz, et al. remained

	[General conversation/Unintelligible]

Recording was cut off at 12:28 pm