Conversation No. 52-1

Date:  April 8, 1971
Time:  10:40 am - 12:17 pm
Location:  Cabinet Room

The President met with William P. Rogers, John B. Connally, Clifford M. Hardin, Maurice H. Stans, James D. Hodgson, George P. Shultz, Paul W. McCracken, Henry A. Kissinger, Carl J. Gilbert, David M. Kennedy, Rocco C. Siciliano, Deane R. Hinton, Donald A. Webster, C. Fred Bergsten, and Peter G. Peterson
[Recording begins while the conversation is in progress]

	Domestic briefing for administration wives
		-Revenue sharing

	Photograph of Council on International Economic Policy [CIEP] members
		-Kissinger
			-Location
		-John D. Ehrlichman
		-Timing

	CIEP
		-Origins
			-Connally
		-Purposes
		-Jurisdiction
		-Peterson=s role
		-Hardin
		-Rogers
		-Procedures
		-Membership
			-Melvin R. Laird=s memo
			-Limitation
		-Kennedy=s role
			-Trade policy
			-Special assignments

	Photographic session
		-Timing

	Foreign economics
		-Adlai E. Stevenson, III
		-Review of trends
			-Options for United States
		-Gross National Product shares
			-United States
			-European community
			-Communist nations
			-Underdeveloped countries
			-Developed countries
				-Japan
				-United Kingdom
				-Soviet Union
			-Communist nations
				-Eastern Europe
				-China
		-Reserves
			-United States= share
			-European Economic Community
			-Japan
			-United Kingdom
			-Soviet Union
		-Exports
			-United States
			-European Economic Community
				-United Kingdom
			-Japan
			-United Kingdom
			-Underdeveloped nations
		-Reserves
			-Oil-producing countries
			-Exports
				-United States
			-Importance
			-Canada
				-Foreign economics
			-United States= share

	United States= balance of trade
		-Commerce Department study
			-Categories
			-Technological areas
			-Non-technological areas
			-Agriculture
		-Agriculture
			-Drop in workers
			-Output increase
		-Technological exports
			-Aircraft
			-Computers
			-Nuclear reactors
			-Motor vehicles
			-Telecommunications
				-Japanese advances
		-Non-technology
			-Categories
			-Exports versus imports
			-Growth in underdeveloped countries
		-Motion picture industry
			-California
			-Connally
			-Favorable industry
			-Possible study
		-Foreign share of non-technology
			-Japanese competition
			-Shoes
			-Penetration
			-Share of United States= market
		-Trade by country
			-Canada
				-Shift
				-Agriculture
				-Automobiles
				-Negative
				-American investment
			-European Economic Community
				-Franco Maria Malfatti
				-Technology
				-Agriculture

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		Japan

[To listen to the segment (12m12s) declassified on 02/28/2002, please refer to RC# E-513.]

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	Monetary issues
		-Connally and Paul A. Volcker
		-Income from United States= companies abroad
			-Growth
		-Balance of payments
			-United States= investments abroad
		-Liquidity problem
			-Connally, Volcker concern
		-Balance of payments
			-Gilbert
			-Current items
			-United States= assets abroad
			-Strengths
			-Vulnerabilities
			-Underdeveloped countries
			-Population problems
			-Per capita growth
			-United States= per capita growth
			-Increase of private investments
			-Raw materials

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		Japan

[To listen to the segment (6s) declassified on 02/28/2002, please refer to RC# E-513.]

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		-United States= investment abroad
			-Increase
			-Canada
			-Europe

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		Japan

[To listen to the segment (15s) declassified on 02/28/2002, please refer to RC# E-513.]

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				-Compared to domestic investment
				-Concerns
				-United States= companies

	Multinational corporations
		-International Telephone and Telegraph
		-Labor union concerns
		-Trade implications
		-Involvement of United States= companies
		-Commerce Department study

	Productivity question
		-Labor costs
		-United Kingdom
		-West Germany
		-Japan
			-Wage increases

	Raw materials
		-United States= consumption
		-Future imports

	Research and Development
		-Importance
		-Great Britain=s program
		-Need for encouragement

	Japan
		-Low-cost encouragement of development
		-Article on Japan, Incorporated
		-Policy questions
		-Government involvement in international business
		-Export promotion
		-Cooperation
			-People=s Republic of China, Taiwan
		-Raw materials
			-Agreement with Australia
		-Labor
			-Shultz
			-Tied to productivity increases
			-Absence of strikes
		-Conglomerates
			-Sony Com [?]
				-Compared to United States= companies

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		Foreign Investment

[To listen to the segment (34s) declassified on 02/28/2002, please refer to RC# E-513.]

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	Justice Department
		-Anti-trust question
		-Conglomerates
			-United States= policy compared with Japan=s
			-Difficulties for United States= companies
		-Attitude towards big business
		-Rogers
		-President=s discussions with Connally
		-Anti-trust Division
			-Sherman Act
		-Anti-trust laws	
			-Need for study
			-Foreign policy implications

	Business attitudes
		-View of government-business relations in Japan
		-Conglomerates
			-President=s discussions with Connally
		-Justice Department
		-International trade
		-View of administration policies
		-Changes in business methods
		-Balance of payments problem
		-View of anti-trust enforcement

	Justice Department
		-Policies
		-Rogers
		-Anti-trust Division study
			-Richard W. McLaren
		-Anti-trust laws
			-Possible need of change
		-Small franchises
			-Anti-trust Division
			-Burger King
		-Patents
		-Need for anti-trust study
		-McLaren

	International trade
		-Steel companies
		-Voluntary export controls
		-Cartels
		-California banks
			-Connally=s conversation with unknown banker
			-Possible anti-trust suits
		-World position of United States

	Trade and legislative strategy
		-Textiles and shoes
		-Import quota bill
			-Viable alternative
		-1969 legislation
		-Foreign economic initiative
			-European Economic Community
			-Japan
			-Canada
			-Trade
		-Textiles and shoes
		-Planning
		-Need for adjustment assistance program
			-Liberal policy
			-Early warning system
				-Stans and Hodgson
			-Anti-trust aspects
			-Acquisitions
			-Vertical integration
			-Overseas issues
			-Incentives for investment
			-Retraining
				-Peterson=s conversation with John H. Burns
			-Community assistance
			-Management assistance
				-Policy questions
			-Domestic and foreign competition
				-Need for differentiation
			-Complexity of process
			-Need for experimentation
		-Liberal trade policies
			-Need for stronger constituencies
			-Reaction to fears
			-Soybean people
				-Clifford M. Hardin
			-Need to build constituencies
				-Industries
				-Consumers
			-Industrial tariffs
				-Common market
				-Agriculture
				-Price support question
				-Political rationale

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		New Zealand

[To listen to the segment (35s) declassified on 02/28/2002, please refer to RC# E-513.]

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		-Non-tariff barriers
		-Trade and investment restrictions
			-Japan
		-Economic blocs
			-United States= policy considerations
			-Most-favored nation agreements
			-Implications
			-Monetary unions
				-European Economic Community
		-Trade
		-Income and employment
		-Agriculture in Europe
			-Common Market
			-Sicco L. Mansholt
			-Increase in efficiency
			-Higher demand for products
			-Self-sufficiency
		-Population in Europe

	Foreign investment
		-United States= exports compared to United States= investments abroad
			-Policy considerations
		-International corporations
		-Possible international investment code
		-Connally
		-Tax and anti-trust provisions
		-Transfer of technology
			-Monitoring of agreements
		-International corporations
			-Views of organized labor

	International monetary policy
		-Connally=s and Volcker=s role
		-Balance of payments policy
		-European monetary union

	Competitive position of United States
		-Inflation and productivity
		-Stimulation of research and development
		-Effect of space program
		-Technology and the industrial sector

	Raw materials and energy position of United States
		-President=s forthcoming plan
		-Stans= efforts
		-Need for research and development
		-Foreign policy aspects

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		Middle East

[To listen to the segment (16s) declassified on 02/28/2002, please refer to RC# E-513.]

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		-Nuclear reactors
			-Supersonic Transport

	Export promotion
		-Financing and tax strategies
		-Japan
		-New United States government/business relations
		-Anti-trust aspects
		-New business relationships
			-Japanese made
		-Connally=s paper
		-Cooperation with United States= allies in economic spheres
		-United States= economic interests and foreign policy

	Photo session
		-Vice President Spiro T. Agnew

	Kennedy=s forthcoming trip
		-Japan
		-Europe
		-CIEP members

	Subject discussed at meeting
		-Priorities
		-Proposals

	Franco Mario Malfatti

	Photo session
		-Stephen B. Bull

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		[Unintelligible]

Malfatti entered at 12:00 pm

[To listen to the segment (4m14s) declassified on 02/28/2002, please refer to RC# E-513.]

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The President, et al. left at 12:17 pm

Conversation No. 52-2

Date:  April 8, 1971
Time:  Unknown between 12:17 pm and 1:04 pm
Location:  Cabinet Room

Unknown people met

	Greetings

	Cabinet Room table
		-Jesse H. Jones
		-Franklin D. Roosevelt

	White House operators
		-Lyndon B. Johnson

	White House security
		-President

	[General conversation]

	Young people
		-Colleges and universities
		-Silent majority

	Cabinet Room furniture
		-Lyndon B. Johnson

	White House garden

	1956 campaign
		-Dwight D. Eisenhower
		-Robert Borows [sp?]
		-Volunteers
		-Organization
			-William Lynn [sp?]
			-Hickok Veltch [sp?]
		-Briefing
		-Detroit
		-Young lawyers

	1968 Campaign
		-Role of unknown person
			-Location
		-Walter Williams
		-Organization

	Past campaigns
		-Theodore (ATeddy@) Roosevelt
		-[Thomas] Woodrow Wilson

	Campaign to promote business confidence
		-Hall [Surname unknown]
		-Economy
		-Housing program
		-Federal Home Loan Bank Board
			-Preston Martin
		-Housing starts
		-Bowling
		-Lumber

	Vietnam
		-Press coverage
		-Experiences of unknown man in World War II
		-Role of army
		-President=s speech on Vietnam
			-Views of unknown men

	Wendell Wilkie

	Unknown man

An unknown man entered at an unknown time after 12:17 pm

	[General conversation]

The unknown man left at an unknown time before 1:04 pm

An unknown man entered at an unknown time after 12:17 pm

	President=s schedule
		-Stephen B. Bull

The unknown people left at an unknown time before 1:04 pm

Conversation No. 52-3

Date:  April 8, 1971
Time:  Unknown between 12:17 pm and 3:56 pm
Location:  Cabinet Room

General Alexander M. Haig, Jr. met with Douglas MacArthur, II

	MacArthur=s career
		-Army during World War II
		-France
			-Paris
			-Vichy
		-North Africa
			-Adolf Hitler
		-Normandy
		-Western European division
		-Dwight D. Eisenhower
			-North Atlantic Treaty Organization command
		-Japan
		-Belgium
		-Tehran
		-Japanese treaty
		-World War II
			-Belgium
			-Evacuation of troops

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		Middle East and Southeast Asia

		[Unintelligible]

[To listen to the segment (1m25s) declassified on 02/28/2002, please refer to RC# E-513.]

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Haig and MacArthur left at an unknown time before 3:56 pm

Conversation No. 52-4

Date:  April 8, 1971
Time:  Unknown between 12:17 pm and 4:30 pm
Location:  Cabinet Room

William P. Rogers, Peter G. Peterson, and unknown people met

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BEGIN WITHDRAWN ITEM NO. 1
[National Security]
[Duration:  2m 49s  ]

	AUSTRALIA, NEW ZEALAND, VIETNAM, KOREA

An unknown man entered at an unknown time after 12:17 pm

The unknown man and an unknown person left at an unknown time before 4:23 pm

Henry A. Kissinger and unknown people entered at an unknown time after 12:17 pm

An unknown man entered at an unknown time after 12:17 pm

The unknown man left at an unknown time before 4:30 pm

	[Unintelligible]

[To listen to the segment (28m50s) declassified on 02/28/2002, please refer to RC# E-513, E-514.]

END WITHDRAWN ITEM NO. 1

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Rogers, Peterson, and the unknown people left at an unknown time before 4:30 pm

Conversation No. 52-5

Date:  April 8, 1971
Time:  Unknown between 4:30 pm and 7:13 pm
Location:  Cabinet Room

Unknown people [a tour group?] met

	Cabinet Room seating arrangements
		-President
		-Vice President Spiro T. Agnew
		-John N. Mitchell
		-Department of Transportation
		-John B. Connally
		-Department of Defense
		-Rank
		-Department of Agriculture
		-President=s office

The unknown people [tour group?] left at an unknown time before 7:13 pm