Conversation No. 87-1

Date:  January 3, 1972
Time:  3:40 pm - 4:44 pm
Location:  Cabinet Room

The President met with William P. Rogers, Paul A. Volcker, George P. Shultz, Peter M. Flanigan, Clark MacGregor, Peter G. Peterson, Richard V. (ADick@) Allen, Deane R. Hinton, William D. Eberle, and Stephen B. Bull
[Recording begins while the conversation is in progress]

	Congress

	John B. Connally
		-Schedule and role

	Political decisions

	The President=s January 5, 1972 speech in California

	The US economy
		-Gold crisis
		-Volcker
		-Congress
			-Beginning of new session
		-The President=s State of the Union address on January 20, 1972
		-Time factor
		-Bill to be submitted to Congress
		-Russell B. Long
		-International negotiations
			-The price of gold
			-Trade
			-Quotas
			-Price of gold
		-Congress= understanding of the issue
		-Congressional hearings
			-Gold, trade linkage or separation as issues
			-Legislative bill
				-Negotiations
				-Delays
		-Grain prices
			-Markets in Europe
		-The President=s expectations
		-Trade bill
			-Introduction in Congress
				-Latter part of January, early February
			-Congress
			-Complexity of bill
				-Price of gold
			-Introduction after convening of Congress
			-Congressional leadership
				-Meeting with European leaders week of January 10
					-Briefing by administration official
			-Strategy
				-Congress
				-Congressional staff
			-Complications regarding introduction
				-First week in February
			-Effect on financial markets
				-Newspaper stories
				-Wall Street
				-Introduction of trade bill
					-Middle of February
			-Grain and wheat
			-Tobacco
			-Negotiations
			-February
		-Stockpiling
		-Re-valuation
		-Trade bill
			-Midwest
				-Reaction to trade action
			-Grain, wheat
				-$4 billion in subsidies

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	Trade bill

[To listen to the segment (7m10s) declassified on 02/28/2002, please refer to RC# E-573.]

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		-US trade bill
			-Reaction of Congress
			-Submission to Congress
		-Revenue sharing
		-Health legislation
		-Wilbur D. Mills
			-Ways and Means Committee
			-Congressional recesses
		-US trade bill
			-Congressional deliberations
		-Meeting scheduled for January 4, 1972 with Volcker, Rogers, and others

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	Latin America

[To listen to the segment (41s) declassified on 02/28/2002, please refer to RC# E-573.]

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		-Congress
			-Ways and Means Committee
			-House of Representatives
			-Senate
			-US trade bill
		-Japanese
			-Criticism
		-Mills
			-Forthcoming meeting
		-Administration=s handling of legislation
		-Meeting with Volcker, Peterson, Connally
		-US trade bill
			-Cost of Living Council
			-Comprehensive nature
			-Vance Hartke labor legislation
			-Export promotion
			-Jobs
			-Technological development
			-American competition
		-Hartke labor bill
		-David M. Kennedy round of trade negotiations
		-International trade
			-Long-term goals
			-Short-term goals
				-Politics
				-Money markets
		-The President=s State of the Union message
			-Economic statement
			-Protectionism
		-The business community
			-In America
			-In Japan
			-Connally
			-Sources of raw materials
		-@New Economic Policy@
			-Jobs, international monetary situation
			-Inflation
			-Wage-price freeze
			-Shultz
				-Budget
		-US economic policy
			-Short-term goals
			-Role for Connally
			-Domestic expansion
			-Exports
			-Jobs
			-1973
			-Trade
				-Japanese
					-Items
		-Volcker and Peterson
			-Informing Connally of issues and politics discussed
		-Trade negotiations
			-Announcement
				-Gerald L. Warren
				-Eberle=s report on negotiations with Europeans

	[General conversation/Unintelligible]

The President left at 4:44 pm

Conversation No. 87-2

Date:  Unknown between January 3 and January 20, 1972
Time:  Unknown between 4:44 pm, January 3 and 2:45 pm, January 20, 1972
Location:  Cabinet Room

Unknown men met

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BEGIN WITHDRAWN ITEM NO. 1
[Non-historical]
[Duration:  5m 5s  ]

END WITHDRAWN ITEM NO. 1

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The unknown men left at an unknown time before 2:45 pm, January 20, l972

Conversation No. 87-11

Date:  Unknown between January 3 and January 20, 1972
Time:  Unknown between 4:44 pm, January 3 and 2:45 pm, January 20, 1972
Location:  Cabinet Room

Unknown men met

	Audio-visual equipment

The unknown men left at an unknown time before 2:45 pm, January 20, 1972

Conversation No. 87-3

Date:  Unknown between January 3 and January 20, 1972
Time:  Unknown between 4:44 pm, January 3 and 2:45 pm, January 20, 1972
Location:  Cabinet Room

Unknown people met

	Cabinet Room
		-Seating arrangements
		-Cabinet meeting
		-President, Vice President
		-Unnamed book
		-Photographers
		-Lighting in the Cabinet Room
			-Effect on photography

	State Dining Room
		-The President=s signing of the Cancer Bill, December 23, 1971

	Cabinet Room
		-New table, old table, rug
		-President
		-Theodore (ATeddy@) Roosevelt, [Thomas] Woodrow Wilson
		-Paintings
			-Availability for White House office use

The unknown people left at an unknown time before 2:45 pm, January 20, 1972

Conversation No. 87-4

Date:  Unknown between January 3 and January 20, 1972
Time:  Unknown between 4:44 pm, January 3 and 2:45 pm, January 20, 1972
Location:  Cabinet Room

Unknown men met

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BEGIN WITHDRAWN ITEM NO. 1
[Non-historical]
[Duration:  9s  ]

END WITHDRAWN ITEM NO. 1

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The unknown men left at an unknown time before 2:45 pm, January 20, 1972

Conversation No. 87-5

Date:  Unknown between January 3 and January 20, 1972
Time:  Unknown between 4:44 pm, January 3 and 2:45 pm, January 20, 1972
Location:  Cabinet Room

Unknown people met

	Cabinet Room
		-Seating arrangement
			-The President, Vice President
		-Table, chairs
		-Theodore (ATeddy@) Roosevelt, [Thomas] Woodrow Wilson
		-Seating arrangement
			-Cabinet Secretaries
				-Stag Party in the White House
					-Presentation of chairs as gifts to departing Cabinet members
		-Cabinet meeting
		-Table

The unknown people left at an unknown time before 2:45 pm, January 20, 1972

Conversation No. 87-6

Date:  Unknown between January 3 and January 20, 1972
Time:  Unknown between 4:44 pm, January 3 and 2:45 pm, January 20, 1972
Location:  Cabinet Room

Unknown men met

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BEGIN WITHDRAWN ITEM NO. 1
[Non-historical]
[Duration:  1m 10s  ]

END WITHDRAWN ITEM NO. 1

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The unknown men left at an unknown time before 2:45 pm, January 20, 1972

Conversation No. 87-7

Date:  Unknown between January 3 and January 20, 1972
Time:  Unknown between 4:44 pm, January 3 and 2:45 pm, January 20, 1972
Location:  Cabinet Room

Unknown people met

	Cabinet Room
		-Table
		-President
		-Seating arrangement
			-President
			-Secretaries
				-Maurice H. Stans
			-Henry A. Kissinger
			-Ownership of chairs
		-President=s chair
			-Lyndon B. Johnson
				-Call buttons by his chair
					-Soda
					-Service request button
		-Cabinet Secretaries

	Portraits

	The White House Rose Garden
		-Wedding

The unknown people left at an unknown time before 2:45 pm, January 20, 1972

Conversation No. 87-8

Date:  Unknown between January 3 and January 20, 1972
Time:  Unknown between 4:44 pm, January 3 and 2:45 pm, January 20, 1972
Location:  Cabinet Room

Michael J. Farrell met with unknown people

	Cabinet Room
		-Seating arrangement
			-President
			-Vice President
			-Secretaries

	White House Rose Garden
		-Wedding
			-Tricia Nixon Cox and Edward R. F. Cox
		-President=s use

	Cabinet Room
		-Decor
		-Secretaries
		-Telephones

Farrell left at an unknown time before 2:45 pm, January 20, 1972

		-The Secretary of the Treasury
			-John B. Connally
		-Farrell
		-Unknown Individual
			-Ambassador
			-Europe

	[Unintelligible]

An unknown man entered at an unknown time after 4:44 pm, January 3, 1972

	Identification
		-Farrell
			-Schedule

The unknown man left at an unknown time before 2:45 pm, January 20, 1972

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BEGIN WITHDRAWN ITEM NO. 1
[Non-historical]
[Duration:  3m 33s  ]

END WITHDRAWN ITEM NO. 1

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David N. Parker entered at an unknown time after 4:44 pm, January 3, 1972

	Introductions

	The President=s office

Parker left at an unknown time before 2:45 pm, January 20, 1972; the unknown people left at an unknown time before 2:45 pm, January 20, 1972.

Conversation No. 87-9

Date:  Unknown between January 3 and January 20, 1972
Time:  Unknown between 4:44 pm, January 3 and 2:45 pm, January 20, 1972
Location:  Cabinet Room

Unknown people met

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BEGIN WITHDRAWN ITEM NO. 1
[Non-historical]
[Duration:  33s  ]

END WITHDRAWN ITEM NO. 1

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The unknown people left at an unknown time before 2:45 pm, January 20, 1972

Conversation No. 87-10

Date:  January 20, 1972
Time:  Unknown between 2:45 pm and 11:59 pm
Location:  Cabinet Room

Vice President Spiro T. Agnew met with William P. Rogers, John B. Connally, John N. Mitchell, William T. Pecora, Earl L. Butz, Maurice H. Stans, James D. Hodgson, Elliot L. Richardson, George W. Romney, John A. Volpe, David M. Kennedy, George P. Shultz, Donald H. Rumsfeld, George H. W. Bush, H. R. (ABob@) Haldeman, John D. Ehrlichman, Peter M. Flanigan, Raymond K. Price, Jr., Ronald L. Ziegler, Alexander P. Butterfield, Herbert G. Klein, William E. Timmons, Herbert Stein, Caspar W. (ACap@) Weinberger, and Robert C. Moot

	[General conversation/Unintelligible]

The President entered at 3:05 pm

	Appreciation of the President
		-Members of the Cabinet

	Meeting agenda
		-US economy
		-Stein
			-Fourth quarter
		-Rumsfeld
		-Connally

	US economy
		-Fourth quarter of 1971
			-1971
			-Gross National Product [GNP] increase
				-Figure to be released January 21, 1972
			-Unemployment rate
			-Consumer Price Index [CPI] for December
				-Increase
				-Figure to be released January 21, 1972
			-Prices of industrial commodities
			-Civilian employment increases
			-Economic report
				-Recovery of economy in 1972
			-Fiscal policy
				-Expected returns
			-CPI increase
				-Magnitude
				-Inflation rate
				-Food price increases
					-Price controls
			-Cost of living
				-Wages
				-CPI
					-Magnitude
			-Employment figures
			-Unemployment rate
				-January, February, October
				-Method of computation
				-New jobs created per year
				-Influx of young job hunters
				-New jobs created
				-People entering job force each year
					-Married women
				-The President=s conversation with Connally about unemployment
					-Unemployment
					-1960s
						-John F. Kennedy administration
						-Unemployment rate
					-Political effects
					-Bureau of Labor Statistics breakdown of unemployment rate by categories
						-Married and unmarried men
						-Heads of household and unmarried women
						-Women
					-Los Angeles Times
						-Job openings
					-Jobs people don=t want
					-Eighteen-year-olds in the labor force
					-Married women in the labor force
					-US population
					-Increases in wages
					-Family income
					-Commerce Department
					-Council of Economic Advisors [CEA]
					-Comparison of current employment rate figures with ten years ago
					-Want ads
					-Rural America
						-Wages
					-Pockets of high unemployment
					-Unemployment rate in Birmingham, Alabama
					-Working women whose husbands are working
					-Computation of unemployment rate
						-Ten, fifteen years ago
					-Connally
						-Definition of problem
					-Young people
						-Minimum wage
					-Points of view on unemployment
					-Farm
					-Labor
					-Congress
					-Business
				-Young people
					-Leaving school
				-Unemployment rate to be reviewed in a month
				-Unemployment in various parts of the country
					-Midwest
					-Southern California
					-Texas
					-Florida
					-South
				-Components of the unemployment figures
					-Voluntary unemployment
				-Computation of the unemployment rate
				-Number of Federal government workers
				-Vietnam veterans
				-Planning a meeting on unemployment
					-Commerce Department
					-Labor Department
					-CEA
					-Agriculture Department
					-Department of Health, Education, and Welfare [HEW]
					-Department of Defense [DOD]
		-The Pay Board and the Price Commission
			-Regulations
				-Public reaction
			-Wages
			-Rental units
			-Retail establishments
			-Inflation
			-Internal Revenue Service
			-John Kenneth Galbraith
			-Congress
				-Working poor
			-Transportation industry
				-United Airlines
				-Labor contracts
			-Judge George H. Boldt
			-Connally=s remarks to businessmen
				-Response of businessmen
			-Price controls
				-Duration
			-Agriculture
			-Controls
				-Purpose
				-Labor/Management
				-Cost of Living Council
				-Direct and indirect
				-Time limits
			-Dock strike
			-Transportation
				-Congressional legislation
					-Organized labor
				-Railroads
				-Ships
				-Docks
			-Dock strikes

	US Budget
		-Deficit
			-Size in fiscal year 1973
		-Prosperity
		-Inflation
		-Deficit
			-Size in fiscal years 1972 and 1973
			-Last three years of the Lyndon B. Johnson administration
		-1972 deficit
		-Full employment budget
			-Outlays
			-Revenues
			-Fiscal year 1973
			-Full employment
			-Outlays
			-Inflation
			-CPI figures
				-1969 to the present
			-Inflation
			-Unemployment
				-Decline in military personnel
				-Civilian defense industry
			-Wages
				-Defense budget
		-Revenue sharing
			-The President=s State of the Union address
			-The President=s budget message
		-Tax rate
			-Changes
			-Effect on government revenues
			-1976 increase in Social Security taxes
			-Congress
			-Tax reduction
			-Galbraith
		-Discretionary items in the government budget
			-DOD budget
				-Increases
				-Congress
				-Edward M. (ATed@) Kennedy
				-Strategic forces
				-Military personnel
				-Defense industry
				-Unemployment
					-Wages
					-Productivity
				-Congressional reaction
		-Research and development outlays
			-Civilian
			-Military
			-Trends
		-Resources for urban transportation
			-Highways
			-Mass transit
			-Airways
			-Congress
			-1973 outlays
			-Nelson A. Rockefeller=s comments about mass transit
			-Volpe
			-House appropriations committee
		-Defense budget
			-1968 budget proportions
			-1973 budget proportions
		-HEW budget
			-Size
			-Social Security benefits
		-Defense budget
		-HEW budget
			-Welfare
			-Medical
				-Price increases
					-CPI
			-Food aid to the needy
				-Food stamps
			-Starving children
				-School lunches
					-Problems with the government program
					-Middle class families
					-Hubert H. Humphrey
			-Hospital
			-Congressional reaction
		-Vietnam veterans
			-Medical care
			-Service connected disabilities
				-Benefits
		-Drug addiction
			-Crime reduction
				-Law enforcement
				-Treatment, rehabilitation, and education
			-Arrests
		-Environment
			-Government spending in 1962, 1964, 1966
			-Pollution control
				-Rivers
				-Harbors
				-Dams
		-Civil rights
			-E. M. Kennedy
			-Comments by Richardson
			-Food stamps
				-Number of recipients
			-Jobs to minorities
				-1969, 1971
				-Federal government
		-Deficit
			-Office of Management and Budget [OMB]
			-Economic expansion
			-Creation of jobs
			-Directors of OMB
		-Budget analysis
			-Six-month comparison
			-DOD
			-Outlays
			-Fiscal policy tools
		-Spending all monies allotted in budget
			-DOD
		-Secret message from the President to department heads
		-OMB
		-Fiscal policy
			-Spending all monies allotted in budget
		-1973 budget
			-Leap year
			-Gross outlays
		-1972 budget
		-1973 budget
			-Effects on the economy
			-Deficit
			-Increase in spending
				-Shortfall
			-Full employment revenues
				-1972 budget
				-Full capacity
				-Balanced budget
					-Tax revenues
			-Spending all monies allotted in budget
				-Fiscal policy
					-Monetary policy
					-Full capacity economy
					-Government budget deficit
					-Full employment
					-Deficit
					-Full capacity economy
					-OMB production of monthly report on expenditures from government departments
			-Taxes
			-Deficit
			-Inflation
			-Explanation of budget to the public
				-Monday magazine
			-Food stamps
				-Revelation of amount spent by the administration
			-Environment
			-Civil rights budget
				-Increases
			-Children
				-Nutrition
			-Spending

	The President=s schedule
		-Departure for another meeting
		-Dinner party

	The President=s appreciation of his staff and Cabinet

	1973 government budget
		-Deficit
		-Shultz
		-Weinberger
		-Spending policy

The President left at 4:50 pm

	[General conversation/Unintelligible]

Recording was cut off at an unknown time before 11:59 pm