Conversation No. 74-1

Date:  September 13, 1971
Time:  Unknown after 2:58 pm until 3:45 pm
Location:  Cabinet Room

John B. Connally met with Maurice H. Stans, William P. Rogers, Peter M. Flanigan, Peter G. Peterson, Richard V. (ADick@) Allen, Albert L. Williams, Dr. Isaiah Frank, James H. Binger, Fred J. Borch, Dr. Courtney C. Brown, Gaylord Freeman, Richard N. Gardner, Dr. Antonie T. Knoppers, Dr. Stewart M. Lee, Edmund W. Littlefield, Charles F. Myers, Jr., Dr. Max Myers, Kenneth N. Naden, Alfred C. Neal, William R. Pearce, Dr. Dan Throop Smith, Leroy D. Stinebower, and George A. Stinson

	[General conversation/Unintelligible]

The President entered at 3:07 pm

	Williams Commission members
		-Knoppers
		-Lee
		-Brown
		-C. F. Myers
		-Stinson
		-Neal
		-Littlefield
		-Smith
		-Freeman
		-Gardner
		-Binger
		-M. Myers
		-Stinebower

	[General conversation/Unintelligible]

	Economics
		-Williams Commission on International Trade and Investment Policy
		-General contributions
			-Appreciation
			-Freeze on wages
		-Release of report
		-Commission=s work
			-Timing of report
			-Commission members
		-The President=s 1969 speech
		-World economic interdependence
			-Investment
			-Production
			-Employment
			-Trade
			-Study conclusions
				-Report recommendations
					-Interdependence of factors
			-Timing of study
			-August 15, 1971 speech by the President
			-Support for the President
				-Congress
				-US public
		-Report
			-Revision
			-Import surcharge
			-Export subsidy
			-Representation of majority
				-Labor members
			-Events between May and August 15, 1971
				-Monetary policy
				-Moderation of inflation
				-Productivity increase
				-Exchange rate
		-Economic conditions
			-Exchange rates, monetary barriers, US inflation
			-Public views
			-Exchange rates
				-Japanese yen, German mark, European currencies
			-Inflationary spiral in the US
			-US allies in post-World War II period
				-Germans
				-French
				-British
				-Asia
					-Japan
						-Steel production
							-1950 and 1971 competition
				-New conditions for US
				-Revitalized Europe, Great Britain
				-Japan
				-Quotas and surcharges
				-World market conditions
			-US focus in the future
				-US production increase
		-US export surplus in post-World War II period
			-Recent world developments
				-Western Europe
				-1970s
					-US need for new economic policies
				-Interest and dividends on foreign investments
					-International accounts
				-Increasing world competitiveness
					-US ability to compete long term
			-Steel industry
				-US competitive position
				-Service and quality standards
				-Dependence on foreign steel
				-Technological superiority
				-President=s reinstitution of investment credit
					-Steel merger
			-Re-establishment of US competitiveness
			-Research
			-Investment tax credit
				-Sources for revenue
				-Upgrading of US plant
				-Capitol investments
				-Research and development
					-US long-term outlook
		-Investment
			-Other countries compared to US
			-Department of Treasury=s role
				-Congress
				-Permanency
		-Taxes
			-Capital income versus other forms of income
			-Surcharge
				-General Agreement on Tariffs and Trade [GATT]
			-Credit
			-Tax depreciation
				-Investment of credit
				-Legislative processes
					-William Proxmire=s views
					-Welfare payments
					-Social Security
					-Profits and savings
					-Tax action
						-Aids to business
							-Public view
							-Automobile excise tax
					-Investment tax credit
						-Business
						-Jobs and production
						-Competitive prices
					-Inflation
					-Surtax
					-Value-added tax [VAT]
			-US competitive position in world
				-Continuance of trade
				-National Steel Company merger
					-Legal opposition
					-Commerce Department stance
				-Antitrust laws
					-Cartel approach
					-Monopoly
				-Concept of united Europe as unit
					-Projected United Kingdom entry into the European Economic Community [EEC]
					-Competition with US
				-Japanese people and government
					-Government-run industries
						-Trading company tradition
						-Movement as unit
					-Totalitarian countries
				-US examination
					-Antitrust policies
					-Tax laws
					-Labor policies
				-US role in the world
					-Movement ahead
					-Compared with sports
					-Unnamed man
						-Track and field events
							-Paavo Nurmi
								-Speed
								-Lack of competition
									-Running against the clock analogy
							-Roger Bannister
						-Quotation from former Senator Eugene D. Milliken
			-Future competition
				-United Europe
				-Japan
				-The People=s Republic of China [PRC], Latin America
				-US reaction to challenge
					-Exchange rate issue
					-Concern with US
			-Effect of competition

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	Japan

[To listen to the segment (21s) declassified on 02/28/2002, please refer to RC# E-555.]

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	US goals and attitude in the future

	Secretary of State

	Member of Commission

	[General conversation/Unintelligible]

Recording was cut off at 3:45 pm

Conversation No. 74-2

Date:  September 14, 1971
Time:  8:09 am - unknown before 10:21 am
Location:  Cabinet Room

The President met with George P. Shultz, Paul W. McCracken, Herbert Stein, Charls E. Walker, Arnold R. Weber, Hugh Scott, Robert P. Griffin, Gordon L. Allott, Peter H. Dominick, Wallace F. Bennett, Milton R. Young, Jacob K. Javits, Gerald R. Ford, Leslie C. Arends, John B. Anderson, John J. Rhodes, Robert C. (ABob@) Wilson, H. Allen Smith, Robert T. Stafford, Richard H. Poff, Barber B. Conable, Jr., Frank T. Bow, John W. Byrnes, William L. Springer, John D. Ehrlichman, Clark MacGregor, William E. Timmons, Kenneth E. BeLieu, Patrick J. Buchanan, and Gerald L. Warren
[Recording begins while the conversation is in progress]

	Economics
		-Corporations
		-Tax reform act
			-Personal exemption
			-Increase in standard deductions, 1972-1973
				-Cut in individual taxes
					-Low and mid-income brackets
				-Domestic International Sales Corporation [DISC]
					-House passage
					-Plant building abroad
						-Tax bias
							-Cut down of job exportation
						-Revenue costs
			-Surcharge
				-Revenue increase
			-Forthcoming meeting
				-Issues covered
					-House Ways and Means Committee
					-Profits and excess profit tax
					-John B. Connally
					-Job increases
			-Walter W. Heller
				-Effect on businesses and individuals
				-Tax cuts
					-Tax Reform Act
					-Automobile excise tax
					-1969, 1970, 1971, 1972, 1973 actions
						-President=s actions
							-Individual income cut
							-Corporate tax cut
		-Byrnes= view
			-Ways and Means Committee
				-Excise tax repeal
				-Proposal
				-Jobs development training
				-Minimum standard deduction raise
					-Wilbur D. Mills= proposal
				-Depreciation reform
					-Guidelines
						-Competitiveness with other countries
		-Senate
			-Christmas tree tax reduction
			-Excise profits tax
			-Amendment for Economic Stabilization Act
				-Productivity of tax measures
		-Overview of economic policy
			-Congressional leaders= views of wage-deferral issue
			-Opinion Research Corporation [ORC] poll
				-President=s role in development of questions
				-High wages and high prices
				-Union member
					-George Meany
				-Democrats
				-Critics
					-Specific criticism as reflection of general criticism
					-President=s program
				-Wage-price freeze
					-Union members
					-Automobiles
			-Import tax
			-Job development tax credit
				-Incentives for new plants and equipment
			-Tax cuts
			-Federal spending relation to high prices
				-Government employees
				-Union members
				-Revenue sharing
				-Foundation
				-Public approval
					-Opposition
					-Results
						-Consumers
						-Effect on investment, stock market
							-Psychology
								-Broad public support
								-Bipartisan support
							-Predicting consumer action
								-Retail sales figures
							-Business compared to individual consumers
								-Investment
								-Stock market investors
									-Those who invest in job-producing activities
										-Stimulus from program
										-Business attitude
			-Congress
				-Budget
					-Wage deferral issue
						-Politics
							-President=s congressional advisors
					-The President=s role
						-Labor
					-Viability of program
					-Phase II
						-Cooperation of business leaders
						-Public opinion
						-Announcement in October
						-Effectiveness
						-Direction
						-Political aspects
						-President=s speech to Congress, September 9, 1971
							-Results
						-Public support
						-House and Senate members
						-President=s role in program support
							-Presentation as package
		-Congressman Jerome R. Waldie=s efforts
		-Federal Employees Wage Comparability Act
			-Passage two years previously
			-Deferral of recommendation
				-Reaction of House and Senate
			-Waldie=s introduction of resolution
				-Civil Service and Post Office committee
				-House action
					-Ford=s trip to Puerto Rico
					-Speaker of the House
					-Scheduling
						-Rosh Hashanah
			-White House liaison office
				-H. R. Gross and Committee members
				-Meeting
					-Conference after meeting
						-Republican unanimity
			-Government pay raises
				-Productivity
				-Volunteers
				-Jesse Wilcox and World War II era action
				-Office of Price Administration=s [OPA] 47,000 employees
				-Wage-price issue
				-Stimulus of World War II
				-Current freeze program=s brevity
				-Public support
					-Deferred wage increases
					-Democratic support
						-Support of outside organization
							-Chamber of Commerce
							-Resolution
								-Effects
							-Mobilization
								-Leonard Garment
		-Common Cause
			-Doctrinaire approach
		-News media
			-Wall Street Journal
			-Common Cause
				-John W. Gardner
				-Partisanship
					-Effect on contributors
				-Liberalism
				-Ideas from constituents
					-Support of Common Cause
			-Approach to swing Democrats and undecided Republicans
			-Wilson
				-Government employees
					-Wages increase
			-Time limit for resolutions
				-Senate responsibility
			-Pay increase for Congress and executives
				-Federal employees= view
					-Legislative machinery governing congressional pay raises
						-Outside commission recommendations
				-Comparability
					-Federal Reserve Board chairman
						-Arthur F. Burns and President=s meeting
		-Impact of 90-day freeze
			-Six month freeze
			-After 90 days
				-Impact on private sector
				-Phase II
				-Kansas City settlement of 40%
				-Labor and business
				-Wage increases
					-Three and six months
				-Freeze=s effects on federal employees
					-Comparability
						-Phase II and effects on federal employee
						-Recession
					-Six month freeze
						-General schedule employees
						-Wage board employees
							-Comparability surveys
								-Private sectors
						-Study of different pay systems
							-Public and private sectors

	International monetary and trade issues
		-Surcharge
			-Reaction from other countries
		-US goals in the world marketplace
		-Other countries
			-The Netherlands, Switzerland
				-Response
		-Perception of US leadership role
			-Comparison with situation in 1947-1948
			-Need for new approach

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	Japan and Europe

[To listen to the segment (7m9s) declassified on 02/28/2002, please refer to RC# E-555.]

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		-International economics
			-Temporary policy
			-US position
				-US economy
				-Preparedness for negotiations
			-10% investment credit
			-President=s proposal
			-Small business issues
			-Appeal to patriotism
				-Wartime situation
				-Productivity
				-Direct appeal by President to common man
					-Preservation of US
		-Investment credit issue
			-Inconsistency in policies of past presidents
				-Firms and industries competition
			-Stance
				-Byrnes
				-Major industrial competitors
					-Europe=s effectiveness
					-Government and business cooperation
					-Japan
						-Germans
						-United front
						-US role
							-Support of US business abroad
							-Agricultural products
		-Support of business
			-Productivity
			-New plant equipment
			-Japanese and German progress
				-Use of taxes
				-Acceleration in depreciation
			-US action
				-Byrnes, Bennett
			-Job development, depreciation options
			-Examination of US plan
				-Competition-domestic and foreign
				-US tax program
					-Plant development
					-[Peter G.?] Peterson=s views
		-President=s State of the Union message
			-Appeal
				-Main point and response
					-Republicans
					-Democrats
					-Time to emphasize US
		-Walker=s views
			-Ways and Means Committee
				-Byrnes
				-Members
					-Investment credit support
				-Automobile tax
					-Members= reaction
		-Proposal on credit
			-Automobile exception
				-Senate and House
		-Minimum standards
		-Depreciation issue
			-Ways and Means Committee
				-Chairman
					-Politics
				-Legislation
					-Congress
					-Possible salutary effects
				-Effects on business
				-Congressional action
		-Health care legislation
			-Cooperation
				-Dominick
				-Schedules
		-Conclusion to meeting
			-Forthcoming agricultural group
			-President=s appreciation of support
			-Weber
				-Wage-price freeze
					-International monetary system
					-Suddenness of announcement of wage-price freeze action

	President=s call to Nelson A. Rockefeller
		-Rockefeller=s call to the President
			-Attica prison uprising
				-Captors demands
					-Amnesty
						-Rockefeller=s action
					-Blacks
					-The President=s conversation with White House employee in elevator
				-George Jackson=s San Quentin escape attempt
				-Stance in negotiations
				-Conable, Javits
				-Hostages= fate
					-Careful planning
				-Amnesty

	Draft bill
		-Filibuster
		-Action in Congress
		-Conference in House
			-Vote in House
				-Congress committee
		-The President=s forthcoming meeting with Allott and Arends on the Selective Service Conference report
		-Conversation with Michael J. (AMike@) Mansfield about filibusters
		-Car buying

The President left at 10:07 am; unknown members of meeting remained

	[General conversation/Unintelligible]

The unknown people left at an unknown time before 10:21 am

Conversation No. 74-3

Date:  September 14, 1971
Time:  Unknown between 10:07 am and 10:21 am
Location:  Cabinet Room

Stephen B. Bull met with unknown people

	Preparation for forthcoming meeting

	Unknown man

	Seating
		-Staff
		-The President

	Paper
		-Copy

Bull and the unknown people left at an unknown time before 10:21 am

Conversation No. 74-4

Date:  September 14, 1971
Time:  Unknown between 10:07 am and 10:51 am
Location:  Cabinet Room

Joseph Wilson, Joseph A. Beirne, Dr. M. Alfred Haynes, Richard McGrail, J. Alexander McMahon, Walter J. McNerney, A.C. Nielsen, Jr., Dr. Joseph T. Painter, Wrede Petersmeyer, Charles A. Siegfried, Daniel Seymour, Dr. Irving Shapiro, Scott Simonds, J. Henry Smith, Dr. Merlin K. DuVal, Dr. Robert Laur, Victor Weingarten, Josee Laventhal, Linda Brannick, Grace Urrows, Howard Ennes, Dr. Peter Warter, Peter Meek, Levitt Mendel, Clarence Pearson, Dr. George Wheatley, and Caesar Brancini met; Stan [Surname unknown-Scott?] and unknown people may have been present at the beginning of the meeting

	[General conversation/Unintelligible]

The President entered at 10:21 am; the White House photographer and members of the press were present at the beginning of the meeting

	Greetings and introductions

	Doctors

	Labor leaders

	Schedule

	[General conversation/Unintelligible]

	Schedule

	Congressional legislative meeting
		-Wilbur D. Mills
		-President=s program
			-Support from non-governmental sector
			-Commission members

	Purpose and focus of Committee to Form a National Health Educational Foundation
		-President=s health strategy
			-Prevention
		-National Health Foundation proposal
			-Support
			-Chairman Wilson
			-Vice Chairman McNerney
			-Private sector support
				-Private insurance industry
				-McNerney
				-North Carolina Blue Cross/Blue Shield
					-McMahon
				-Head of National Cancer Society
					-McGrail
						-President of National Health Council
							-Membership
		-Private insurance industries
			-Blue Cross/Blue Shield
		-Provision of data and backup
			-Health education need
			-Elliot L. Richardson
				-Vacation in Canada
				-Rockefeller committee on health care delivery service
				-Recommendations
				-Private sector involvement
				-Public moral support of government
				-President=s support
			-Invitation to address National Cancer Society
				-The President=s role
			-Volunteer center
				-Rubella testing effort
		-Large corporations and national institutions
		-President=s advisory committee
			-New name
				-President=s committee on health education
		-Health care issues
			-Philosophy and politics
				-US health care
					-Prevention
						-Government controlled program
			-Group/President=s commission
				-Credibility
				-Comprehensive government
				-Essentialness of program
			-Handling
				-Those who cannot afford medical care
				-Private medicine
					-Insurance
				-British example
				-Quality of health care
					-Voluntarism
					-Private initiative
					-Competitiveness
					-Federal government role
				-Diversity of group
					-Labor, education, business
					-Voluntary nature of effort
					-US health system
					-US Cancer Society
						-Heart/Lung Association
						-Multiple sclerosis
						-Muscular dystrophy
						-Raising money for cures
							-Public appeal
								-March of Dimes
									-Polio
						-Cancer patients
							-Robert A. Taft, Jr.
							-John Foster Dulles
					-Creative energy of private sector efforts
		-Government action in health plans
			-Encouragement of health organizations
			-Imagination and interest
			-Audiences at hotels
				-Waldorf and Beverly Hilton, Chicago, Blackstone
				-Wealthy and educated interest
					-Cancer, heart, arthritis
					-Focus contrasted with business
			-Richardson
				-Unnamed person from Arizona
				-Present health system
					-Voluntary insurance
					-Private insurance
					-Private medical profession
			-Group present
				-Role
					-Use of resources
						-Old line organizations
							-Tests
						-Volunteers
		-Corporations role
			-Contributions
				-Participation
		-American approach
		-Draft of charter
			-Effectiveness of health education
			-New non-profit organization
				-Resources
					-Directing interests of country
						-Focus
							-Cancer, polio
					-Interest abroad
					-Focus
					-National Institutes of Health
			-Voluntary nature of committee
				-Wage-price freeze
			-Education

	Richardson=s role

The President left at 10:48 am

	[General conversation/Unintelligible]

	Presidential cufflinks

	[General conversation/Unintelligible]

Recording was cut off at an unknown time before 10:51 am