Conversation No. 107-1

Date:  August 8, 1972
Time:  Unknown after 8:02 am until 10:11 am
Location:  Cabinet Room

The President met with Caspar W. (ACap@) Weinberger, Herbert Stein, Hugh Scott, Robert P. Griffin, Norris Cotton, Gordon L. Allott, Peter H. Dominick, Wallace F. Bennett, Milton R. Young, Gerald R. Ford, Leslie C. Arends, John J. Rhodes, Samuel L. Devine, H. Allen Smith, Robert C. (ABob@) Wilson, Barber B. Conable, Jr., Frank T. Bow, John W. Byrnes, Richard H. Poff, Robert J. Dole, Clark MacGregor, John D. Ehrlichman, Gerald L. Warren, Richard K. Cook, Thomas C. Korologos, Harry S. Dent, Patrick J. Buchanan, Herbert G. Klein, Kenneth R. Cole, Jr., and William L. Gifford
[Recording begins while the conversation is in progress]

	Economy
		-Recovery
		-Inflation rate
			-Reduction

	New Economic Policy
		-Productivity increases
		-Reduction of taxes
		-Real earnings
		-Spendable earnings

	Unemployment
		-Statistics

	Gross National Product [GNP]
		-Hobart Rowen
		-Growth rate
		-Farm income
		-Forecast
			-GNP
			-Consumer Price Index [CPI]
			-Growth
			-Unemployment
			-CPI forecast
			-Food price increases
				-Meat
				-Chicken
				-Eggs
				-Wholesale meat price decline
			-Inflation
				-Causes
				-Budget control

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BEGIN WITHDRAWN ITEM NO. 5
[Personal Returnable]
[Duration:  9m 9s  ]

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	Council of Economic Advisors report
		-Testimony, statistics
		-Presidential statement

	Unemployment
		-Michigan
			-Motor vehicle sales
			-Repeal of auto excise tax
			-Tool and die industry
		-Rate

	Employment
		-Figures
		-Department of Defense [DOD]
			-Reductions in armed service employment
				-Vietnam

	Unemployment
		-Administration record
			-George S. McGovern speech
			-Compared to Lyndon B. Johnson, John F. Kennedy administrations
			-Effect of armed forces size on figures
		-Economic issue

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BEGIN WITHDRAWN ITEM NO. 6
[Personal Returnable]
[Duration:  1m 2s  ]

END WITHDRAWN ITEM NO. 6

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		-Reduction of armed forces
			-Effects
			-Thomas E. Dewey
			-New Deal

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BEGIN WITHDRAWN ITEM NO. 7
[Personal Returnable]
[Duration:  11s  ]

END WITHDRAWN ITEM NO. 7

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		-Full employment

	Income taxes
		-Avoidance of payment
			-Speech by Edwin S. Cohen
		-Stewart R. Mott

	Defense Department
		-Reduction in force
		-Defense industries
			-Vietnam
		-Unemployment

	Income taxes
		-System
		-Tax reform program

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BEGIN WITHDRAWN ITEM NO. 8
[Personal Returnable]
[Duration:  20s  ]

END WITHDRAWN ITEM NO. 8

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		-Reforms in tax laws
			-Effects

	Budget
		-Weinberger
		-McGovern
			-Effect on taxes

	Economy
		-John B. Connally speech
			-Increased employment
				-Figures
				-Shift in types of jobs
				-Military versus civilian

	Stein
		-Role in President=s administration

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BEGIN WITHDRAWN ITEM NO. 9
[Personal Returnable]
[Duration:  23m 31s  ]

END WITHDRAWN ITEM NO. 9

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	Spending ceiling bill
		-Cook
		-Comments from Johnson=s book
		-House Resolution [HR] 16090
			-J. William Fulbright
			-Strategy
				-Inflation
				-Budget control
				-International economics
			-Proposed ceiling
				-Effects
					-Tax increase
		-Previous budgets of 1970's
			-Compared to present budget
		-Spending increases
		-Use of the veto
			-Bill
			-Johnson
			-Bow
			-Byrnes
			-Wilbur D. Mills
			-George H. Mahon

	Departments of Labor and Health, Education, and Welfare [HEW] Appropriation Bill
		-Possibility of veto
		-Amount of bill
			-Social Security
			-Size of bill
				-Effect on taxes

	George P. Shultz
		-Connally
		-Strategy in Congress
			-HEW conference report
		-Roll call vote
		-Veto
		-Senate input to bill
		-Bureau of the Budget input
			-Black lung benefits
			-Winn [sp?] amendment
			-Black lung benefits

	Department of Defense budget
		-Cuts
			-Melvin R. Laird
			-Popular opinion
			-Effect on US international status
			-Union of Soviet Socialist Republics [USSR]
			-Arms limitation
				-Trident
		-GNP percentage on defense
			-Compared with USSR
		-Strategic Arms Limitations Talks [SALT]
			-Budget cuts

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	Effect

[To listen to the segment (17s) declassified on 02/28/2002, please refer to RC# E-601.]

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BEGIN WITHDRAWN ITEM NO. 10
[Personal Returnable]
[Duration:  2m 10s  ]

END WITHDRAWN ITEM NO. 10

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	Economy
		-Theory

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	Foreign relations

[To listen to the segment (5s) declassified on 02/28/2002, please refer to RC# E-601.]

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		-Strategy
			-Government
			-Private enterprise

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BEGIN WITHDRAWN ITEM NO. 11
[Personal Returnable]
[Duration:  3m 14s  ]

END WITHDRAWN ITEM NO. 11

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	Budget cuts
		-Department of Defense
			-Effect on military bases
				-MacGregor report
					-Distribution
						-Civilian advisory groups
				-Laird press conference
			-Hill Air Force Base, Utah
				-The President=s visit in 1970
			-San Jose base
			-Portsmouth Naval Base

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BEGIN WITHDRAWN ITEM NO. 12
[Personal Returnable]
[Duration:  41s  ]

END WITHDRAWN ITEM NO. 12

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	Congress
		-Foreign aid
		-Vietnam amendment
			-Carl B. Albert, [Thomas] Hale Boggs
			-Strategy

	Foreign aid bill
		-Aid to Israel, Korea, Taiwan
			-Arends
			-Hamilton amendment

	Vietnam
		-AEnd the War@ amendment
			-Ted Stevens
			-Vice President Spiro T. Agnew
			-Congressional activity
				-Brooke amendment
			-Aiken amendment
				-Strategy
			-Congressional activity

	Legislation
		-Weapons
			-Hart amendment
			-Kennedy amendment
			-Hart amendment
				-Gun registration
					-Objections
					-Sportsmen
						-Tax on weapons
				-Amendments
					-Inexpensive hand guns
				-Henry M. (AScoop@) Jackson
				-Fulbright
				-George D. Aiken
				-Committee

	Arms control
		-Jackson Amendment
			-Administration position
			-Congressional activity
				-USSR
			-Wording of legislation

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BEGIN WITHDRAWN ITEM NO. 3
[National Security]
[Duration:  2m 29s  ]

	WEAPON SYSTEMS

END WITHDRAWN ITEM NO. 3

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	Public works
		-Rural development

	Agriculture
		-Appropriations
			-Increases
				-Rural development
		-Budget
		-Environment

	HEW
		-Cotton
		-Committee
		-Appropriations subcommittee
			-Birch E. Bayh, Jr.
		-William Loeb
		-Veto possibility
			-Strategy
			-Warren G. (AMaggie@) Magnuson
			-Continuing resolution
		-Strategy
		-Veto
			-Public reaction

	Foreign Relations Committee

	Foreign Affairs Committee
		-Strategy
		-Otto E. Passman
		-Congressmen
			-Seymour Halpern
			-Donald W. Riegle, Jr.
			-Paul N. (APete@) McCloskey, Jr.

	Foreign aid authorization

	Office of Economic Opportunity [OEO] authorization
		-Strategy
			-Jacob K. Javits
		-R. Sargent Shriver
		-Ehrlichman
			-Legal services
			-Reduction in authorization
		-Strategy
		-Staff
		-Need for continuing resolution
		-Strategy
			-Veto
			-HEW
			-Legal services
				-The President
				-OEO
				-Javits
		-Javits
		-Strategy
			-Albert H. Quie
			-HEW appropriation
			-Shriver

	Busing
		-Congressional activity
			-William M. Colmer
			-Committee on Education and Labor
		-Constitutional Amendment
		-Quie
		-James G. O=Hara
		-William D. Ford

	Continuing resolution
		-Mahon

	Virginia Supreme Court
		-Poff
			-Supreme Court

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BEGIN WITHDRAWN ITEM NO. 4
[Personal Returnable]
[Duration:  1m 53s  ]

END WITHDRAWN ITEM NO. 4

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	Poff
		-Court appointment

	John L. McClellan

	[Unintelligible]

The President, et al. left at 10:11 am

Conversation No. 107-2

Date:  August 10, 1972
Time:  5:07 pm - unknown before 11:59 pm
Location:  Cabinet Room

The President met with George P. Shultz, Donald H. Rumsfeld, Herbert Stein, Peter G. Peterson, Caspar W. (ACap@) Weinberger, General George A. Lincoln, Virginia H. Knauer, Arthur F. Burns, James T. Lynn, Laurence H. Silberman, J. Philip Campbell, James W. McLane, C. Robert Lane, Marvin H. Kosters, William I. Greener, Jr., Joseph Mullaney, Richard B. Cheney, I. David Wheat, Jr., Marina von N. Whitman, William Walker, and Ronald L. Ziegler; the White House photographer was present at the beginning of the meeting
[Recording begins while the conversation is in progress]

	[General conversation/Unintelligible]

	Economy discussion
		-Expansion
		-Unemployment rate
		-Inflation
			-Interest rates
				-Financial markets
				-Securities
				-Burns
				-Prime rate
					-Increases
			-Results of the President=s policies
			-Food prices
				-Problems
			-Lumber
			-Automobiles
		-Budget
			-Problems
			-Need for discipline
		-Dollar
			-Smithsonian Agreement
			-Strength
		-Rate of inflation
			-US compared to other nations=
		-Budget
			-Problem area

	Budget discussion
		-Problem areas
			-Reductions
			-Tax revenues
				-Reductions
			-Personnel reductions
				-Savings
				-Congressional vote for federal employee pay increases
		-Congress
			-Excessive spending
		-Government spending
			-Scope
			-Purchase Review Board
		-Balanced budget
			-Impact on fiscal policy
				-Restraint
		-Congress
			-Overspending threat
		-Spending ceiling
			-Necessity
			-William V. Roth, Jr.=s bill
			-Wilbur D. Mills
				-Support
			-George H. Mahon, Frank T. Bow
				-Support
			-Debt ceiling bill
				-Black lung
				-Social Security
			-House support
				-Department of Health, Education, and Welfare [HEW] appropriation
			-Taxes
				-Increases
			-Congress
				-Need for cooperation
			-Relation to taxes

	Economic stabilization program
		-Difficulties in economy
			-End
			-Food prices
		-Goals
			-Inflation curbs
				-Rates in 1968 and 1969
					-Impact of freeze
			-Unemployment reduction
		-Wages
			-Pay Board and Price Commission
			-Relation to prices
				-Sources of labor frustration
		-Bureaucracy
			-World War II
			-Korea
				-Number of officials
		-Controls
			-Economic pressures
		-Inflation
			-Reduction of rate
				-Public perceptions
					-Harris, Gallup polls
			-Alternative answers
				-Lack
				-George S. McGovern
			-Rents
				-Controls
				-Internal Revenue Service [IRS]
		-Price controls
			-Dangers
			-Limitations
			-Public understanding
		-Unemployment/inflation
			-Norms
			-Peacetime levels
			-Low points
				-Wartime
			-Administration=s achievements

	Economy-Economic Stabilization Program
		-Rumsfeld
		-Employment
			-Growth
				-Reasons
				-Economic stabilization program
				-Comparison with other periods
		-Labor relations
			-Strikes
				-Time loss
				-Drop
					-Reasons
		-Construction
			-The President=s executive order
			-Wage increases
				-Drop in rate
			-Union leaders
				-Comparison with Great Britain
				-Control over locals
					-Increase
				-George Meany
					-Support on postal strike
		-Postal strike
			-Source of problems
				-Rank of file
			-Number of unions
			-Willie J. Usery, Jr.
				-Role in settlement
				-Trust of both sides
		-Labor relations
			-John T. Dunlop
				-Role
				-Allen W. Dulles as Central Intelligence Agency [CIA] Director
					-Successes
						-Publicity
					-Bay of Pigs

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BEGIN WITHDRAWN ITEM NO. 5
[Privacy]
[Duration:  31s  ]

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		-Construction
			-Wage increases
				-Restraint
		-Productivity
			-Increases

	Maurice H. Stans
		-The President=s meeting with Jim Brown
			-New group
			-Support for the President

	Brown
		-A program
		-Interest in youth, blacks

	US economy
		-Comparison with other nations
			-Real growth
				-Changes in rates
				-Impact of Economic Stabilization program
		-Japan

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	Foreign relations

[To listen to the segment (1m24s) declassified on 02/28/2002, please refer to RC# E-601.]

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		-Inflation
			-Rate of increase
			-Impact of US foreign policy
			-Jack F. Kemp=s speech
		-Great Britain
			-Economic indicators
		-Productivity
			-Improvements
				-Automotive situation
					-Henry E. Ford, II
			-Service industries
			-Foreign imports
		-Food prices
			-Labor frustrations
				-Profits
					-General Motors [GM]
					-International Business Machines [IBM]
					-Reasons for increases
					-Political problems
		-Inflation
		-Gross National Product
			-Increases in a decade
			-Profit levels
				-Changes
				-Drop
				-Reinvestment
				-Dividend guidelines
				-Impact on interest rates
					-Decline of pressure
					-Drop
				-Dividends
					-Impact of a ceiling on interest rates
		-Wages
		-Stein
		-Increases
			-Profits
		-Food prices
			-Rumsfeld
			-Increases
				-Concern
			-Food stamps
				-Abuses in program
			-Rate of increases
				-Seasonal changes
			-Retail prices
				-Wholesale prices
				-Peaks
					-Times
			-Meat imports
				-Impact on prices
			-Retail prices
				-Stabilization
				-Decline
				-Beef prices
					-Shultz
					-Drop
					-Data
			-Check on prices
				-IRS agents
				-Report
			-National Association of Food Chains
				-Cooperation
				-Public perceptions
				-Volunteer efforts
					-Public pressures
		-Meat prices
			-Peak
				-Timing
					-Republican convention
		-Consumer programs
		-Chain stores
			-Administration campaign
			-Cost of Living Council
			-Poultry
				-Sales
				-Turkey

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	Trade

[To listen to the segment (3m17s) declassified on 02/28/2002, please refer to RC# E-601.]

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	US economy
		-Stein
			-McGovern
			-Hobart Rowen

	US economy
		-Wage-price controls
			-Results
		-Review of last year
			-Performance of economy
			-Postwar problems
		-Inflation
		-Growth
			-Predictions
		-Unemployment
			-Reduction of rate
		-Inflation
			-Pressures
			-Impact of unemployment
		-Budget
			-Negotiations with Congress
		-Democrat economists
			-Warnings
			-Dangers of present economy
		-Restraints
			-Necessity
		-Improvements in past year
			-Wage-earners
		-Inflation
			-Rate
				-Decline
			-Restraints
				-Limitations
		-Political problems
			-Liberal advantages on issue of economy
			-Conservative disadvantages
		-Food prices
			-Percentage of family pay
				-Comparison with other nations
					-Great Britain
					-Union of Soviet Socialist Republics [USSR]
		-US economy
		-Strengths
			-Political problems
		-Administration=s record
			-Comparison with 1956
			-Economic growth

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BEGIN WITHDRAWN ITEM NO. 6
[Personal Returnable]
[Duration:  1m 21s  ]

END WITHDRAWN ITEM NO. 6

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			-Farm Belt
			-Feed lot prices
				-Seasonal drop
			-Administration=s position

	Politics
		-Politician versus statesman
			-Nikita S. Khrushchev=s visit to the US
			-Distinction

	Presidential gifts
		-Cuff links
		-Pins

	Introductions
		-Mullaney
		-Walker
		-Cheney
		-Lane
		-Kosters

	Coffee farmers

The President left at 6:29 pm

	US-Soviet relations
		-Wheat contract
			-Advantages
			-Terms
			-Impact on price of wheat
		-Council action

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