634–16

Conversation No. 634-16

Date: December 9, 1971
Time: 4:59 pm - 5:54 pm
Location: Oval Office

The President met with John B. Connally.

Connally’s schedule
 19

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 634-16 (cont.)


Tax bill
-Call to Wilbur D. Mills
-The President’s foreign policy\"
-“Check-off” deal
-Anticipated reaction from Congress
-Treasury Department
-John [W. Byrnes?]
-Comments
-Strength
-Mills and Byrnes
-Praise
-Call to Mills
-Senate
-President’s request
-Connally
-Mills’s skill
-Revenue sharing

International monetary situation
-George P. Shultz
-Previous conversation with Connally
-Surcharge in terms of trade
-Arthur F. Burns
-Conversations with New York bankers
-The President's talk with Henry A. Kissinger
-Burns
-Convertibility
-Condition for deal
-Shultz
-Possible deals
-Connally
-US position
-Gold issue
-Georges J.R. Pompidou
-British
-Pompidou
-Usefulness to US
-French
-Progress
-Paul A. Volcker and Connally
-Position paper
 20

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 634-16 (cont.)


-Burns’s position
-Fixed rates
-International Monetary Fund [IMF]
-Convertibility
-Limited compared to full
-Timing
-Shultz
-Gold
-Edward R.G. Heath
-Connally
-Previous conversation with Shultz
-Press
-Connally's meeting with the Ministers
-Convertibility
-Shultz
-Henry S. Reuss-Jacob K. Javits Bill
-Congress
-Shultz’s concern
-Connally’s previous conversation with Shultz
-Gold
-Connally’s view
-Edward M. Kennedy
-Edmund S. Muskie
-Hubert H. Humphrey
-Mills
-Convertibility
-Connally’s conversations
-Former Secretaries of the Treasury
-Democrats
-Europeans
-Pompidou
-Realignment
-Meeting in Rome
-Price of gold
-Special Drawing Rights [SDRs]
-British pound
-French franc
-Different standards
-IMF
-Future plans
-Surcharge
 21

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 634-16 (cont.)


-Gold
-Limited convertibility
-Opinions of financial experts
-Shultz
-IMF
-Protecting the dollar against convertibility
-Deficit
-US money in other government’s hands
-Amount
-US assets
-Amount
-Exchange rates
-Germany
-France
-High rates
-US blamed
-Surcharge for realignment
-Gold for trade concessions
-Germany
-Potential problems
-Pompidou
-Connally’s previous conversation with Kissinger
-Japan
-Deals with US on bilateral basis
-Trade and money
-Wants a multilateral sum
-Canada
-To be dealt on a bilateral basis
-Potential US difficulties
-France
-Pompidou
-Willy Brandt
-Heath
-Under pressure for agreement
-Deutsche mark
-Value
-Franc
-Gold-trade agreement
-Trade concessions for the US
-Remove surcharge
-10% devaluation of the dollar
 22

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 634-16 (cont.)


-Pompidou
-The President’s upcoming meeting with Pompidou
-Knowledge of subject
-Connally and Valery Giscard D’estaing
-William P. Rogers
-Proposed US deal with France
-Maximum realignment
-Proposed price of gold
-Italy
-Amount
-US-France negotiations
-Connally’s view
-Realignment
-US needs
-Political risks involved
-Trade concessions
-US needs
-US standing firms
-Ultimatum
-Agriculture
-Grain storage commitment
-Timing
-Germany
-Pompidou
-US concessions
-Possible agreement
-Timing of meeting
-Group of Ten
-Negotiations
-Value of money
-Japanese
-People’s Republic of China [PRC] and Union of Soviet Socialist Republics [USSR]
-State Department
-Kissinger
-Pompidou
-D’Estaing
-Andre Meyer
-Individuals to be conferred without the President’s meetings with
Pompidou
-Connally's meeting
-Timing
 23

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 634-16 (cont.)


-D’Estaing
-Call for instructions
-Pompidou
-Japanese
-Preparations for meeting
-Germany
-France
-Key to the European Community importance in making a deal with
France
-Meyer
-President’s instructions
-Bob Murphy
-Meyer
-Heath
-Arthur H. Dean
-Negotiator skills
-Acquaintances
-Kissinger
-Possible attendance at meeting
-Pompidou
-Trust in Kissinger
-Heath
-Brandt
-Heath’s possible agenda at meeting
-Canada
-Edgar J. Benson
-Floating the dollar
-Convertibility
-Negotiations
-Benson
-Pierre E. Trudeau
-Presence at meeting
-US investments in Canada
-Oil reserves
-Automobiles
-US requirements from Canada
-Trade concessions
-Floating the dollar
-Percentage and value
-Benson
-Automotive agreement
 24

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 634-16 (cont.)


-Border crossings
-Exemptions
-Agreed to by Canada
-Possible agreement
-French
-Bilateral meetings
-The President’s upcoming meetings with Brandt and Eisaku Sato
-Meeting in January
-Group of Ten
-Ultimatum from US
-Surcharge
-French
-Connally's meeting
-Group of Ten
-Sato, Brandt and Heath
-Potential problem for the President
-France
-Gold
-Possible problems for US
-History
-Germany
-Connally's schedule
-Policy paper
-Kissinger

Brazil
-The President's meeting with Emilio Garrastazu Medici
 25

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 634-16 (cont.)


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

BEGIN WITHDRAWN ITEM NO. 1
[National Security]
[Duration: 16s ]


BRAZIL


END WITHDRAWN ITEM NO. 1

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


-Fidel Castro
-Juan Velasco Alvarado
-Organization of American States [OAS]
-No change in US policy
-Bolivia
-Medici
-Elections
-Venezuela
-Colombia
-Argentine ambassador [Pedro E. Real]
-Conversation with Connally
-Democracy compared with stability
-Unknown person
-Population growth in Brazil
-In comparison with
-Bolivia
-Chile
-Argentina
-Time span

International monetary situation
-Latin America
-Canada
-Southeast Asia
-Indonesia
-US economic growth
 26

NIXON PRESIDENTIAL MATERIALS STAFF

Tape Subject Log
(rev. 10/06)
Conv. No. 634-16 (cont.)


-Gross National Product [GNP]
-Compared to Great Britain
-Indonesia ambassador’s [Suedjatmoko] previous conversation with Connally
-Trudeau dinner
-International organization [International Group for Aid to Indonesia [IGAI]]
-Meeting in Brussels
-Aid amount to Indonesia
-US amount
-Multilateral amount
-Direct aid
-Amount
-Japan
-Netherlands
-Germany
-Proposal to increase aid
-Congress
-World bank
-Cut in aid
-India
-Assistance
-Lt. Gen. T.N.J. Suharto

Connally left at 5:54 pm.