Conversation No. 72-1

Date:  September 10, 1971
Time:  10:13 am - unknown before 12:39 pm
Location:  Cabinet Room

The President met with I[lorwith] W. Abel, Joseph A. Beirne, John H. (AJack@) Lyons, George Meany, Leonard Woodcock, Frank E. Fitzsimmons, [Joseph] Lane Kirkland, John B. Connally, James D. Hodgson, George P. Shultz, Arthur F. Burns, Paul W. McCracken, and Willie J. Usery, Jr.; Ronald L. Ziegler and photographers were present at the beginning of the meeting

	[General conversation/Unintelligible]

	Program

	The economy
		-Phase I, forthcoming Phase II
			-Herbert Stein=s group
			-Objectives
			-Meetings
				-Formal consultation
				-Congress
		-Workable solutions
		-Form, extent, duration of Phase II
		-The President=s role
			-Development of follow-up program
				-90-day freeze
			-Consultations
				-Schedule and time span
					-Business group
					-Agriculture group
					-Congressional group
					-Consumer groups
					-Cost of Living Council
				-Deadline
					-Span
						-General consultations
							-Ideas
				-Cooperation necessary
					-Government sanctions
						-Freeze
				-Preferable program
					-Necessity of consultation
				-Effectiveness of present meeting
					-Notes of meetings
						-Labor views
						-Business views
				-Public view of freeze
					-Labor leaders= view
				-Suddenness of freeze imposition
					-Effect on prices
				-Board or councils
					-Rules and regulations
					-Future policy
						-Announcement of future action
				-Wage price controls
					-Permanent versus temporary imposition
				-Free collective bargaining
				-Free market system
				-Flexibility of policy
					-Voluntary compliance
					-Minimum government compulsion
			-Informal consultations
				-Standards
			-Government sanctions and controls
				-Present situation
					-Opposition of wage-price control
				-Exceptions to action
				-Government sanctions
					-Effectiveness of voluntary action
						-Examples
							-Steel company
								-Price raise and government action
							-Construction
								-Davis-Bacon Act
							-Stockpiles
							-Jawboning
								-Labor and business leaders
								-Wage-price controls
								-Bargaining
								-Economic patterns and areas
				-Voluntary action
					-Free market
				-Freeze
				-War Labor Board example
					-Duration
					-Policies
						-Labor
						-Management
						-The President=s role
						-Pledge
						-Labor
						-History of War Labor Board
							-Voting
								-Unanimity
					-December 1941
						-National Defense Mediation Board [NDMB]
						-Pearl Harbor attack
							-US reaction
							-Franklin D. Roosevelt
								-Frances Perkins
								-Labor and management
									-Will Davis
										-Vice Chairman, NDMB
										-Moderator of meeting with Elbert D. Thomas of Utah
								-Meeting in Federal Reserve building
									-Burns
									-Rules and regulations
									-Letter to Roosevelt
										-Subjects
											-No strikes, lockouts during the war
											-Settlement of disputes by agency
											-Roosevelt=s role in issuing executive order
										-Roosevelt=s response
											-War Labor Board
												-12 members
												-Presence of government officials
						-Fringe benefits
							-Effect on inflation
						-Decisions with voluntary method
							-Comparison with controls
								-Views of industry and labor
		-Present economic situation
			-Phases I and II
				-The President speech, September 9, 1971
					-Limits of Phase I
						-Follow-up
					-Government control
						-Sanctions
							-Need for discussion
					-Price control
						-Internal Revenue Service [IRS]
							-New York City
					-Extent of price control
					-Success of voluntary methods
					-Labor=s cooperation with the President
						-Control of business and labor
						-Increase of productivity
						-Interest rates
							-Effect on inflation
							-Equitable nature of possible action
							-Deferred wage increases
								-Legal contract
									-Binding nature
								-Public interest
					-Money supply
						-Inflation
							-Amount of products versus money
		-Voluntary controls versus government controls
			-Strikes
			-History
				-Effect of wartime situation
					-1941
						-Cessation of strikes
				-Korean war period
					-Guidelines
						-Handling of strike issues
						-World War II
		-Wage and price control
		-IRS
			-Employees
		-The public=s view
		-Cooperation of construction industry
			-Trade
			-Management=s view of the future
			-West Coast strike
				-Employees, operators
					-Issues
				-Independent contractors
					-California
		-Phase II
			-Situation
				-Machinery involved in freeze
					-Inequities
			-Duration of freeze
				-Public acceptance
					-Comparison with end of World War II
					-Phase II
				-Christmas 1971
			-Construction industry stabilization program
				-Lyons
				-Stability of program
				-Executive order
					-Effect of wording
					-Relief of inequities
					-Production of inequities
				-Labor management group
					-Voluntary nature
				-Labor Department building
					-Wage Stabilization Board
				-Court orders
				-World War II programs
					-War Labor Board
						-Owensboro, Kentucky plant
							-Wages paid employees
							-Flexibility
					-Establishment of Wage Stabilization Board
						-James F. Byrnes
				-1972
					-Forthcoming wage settlements
					-Automobile workers, steelworkers, railroads, coal industry workers, longshoremen
					-Airline employees and aerospace workers
					-Oil workers
					-Tripartite nature of action
						-Voluntary cooperation
						-Cost of living protection
							-Cap
						-Automobile prices
							-Hodgson, Shultz
							-Edward N. Cole=s speech in Philadelphia
							-General Motors
							-1945-65
								-Productivity, labor costs
								-Automobile price increases
								-Wage price increases
								-Contracts
								-Ground rules post-November 14, 1971
									-Personal savings
										-Handling by the public
								-Contracts
									-Initial versus successive years
		-Price guides
		-AMeet the Press@
		-Phase I
		-Contracts
		-Federal Mediation and Conciliation Service [FMCS]
		-Government sponsorship
		-Phases I and II
		-Enforcement machinery
		-Price review board
			-McCracken=s comments
		-Productivity
			-Prices, wages
		-Organizational structure or form
			-Tripartite board
			-Status of automobile industry
			-Wages versus productivity
		-Post-November 1971 phase
			-Steelworkers
				-Cleanup operation
				-Grievances
					-Steel
						-Recent negotiations
					-Court
					-Freeze
			-1946
				-Philip Murray
					-Strikes
						-Editorial in Life magazine
							-[Forename unknown] Berle
				-Steel industry
		-Wage and price increases
			-Inequities
			-1968 agreement
				-Productivity improvements
				-Arbitration
					-Will Sinton [?]
				-Steelworker benefits
				-Effect of Phase I and II action
				-Productivity goals
			-Railroad development
				-Archaic work rules
			-Wage-price freeze
				-Duration
					-Phase II
					-Examples in Washington, DC
						-Printing industry
							-Washington Post labor action
				-Voluntary and tripartite approach
					-World War I
					-Preordained formula
						-Congress
						-Executive order
							-Guidelines
							-Bureaucracy
				-Non-organized industries
				-World War II examples
				-Wages, salaries, executive compensation
				-Prices
				-The President=s August 15, 1971 speech
					-Policing by consumers
				-Executive order
				-Interests of different groups
					-Universities
						-[Forename unknown] Davies [?]
						-George Taylor Martin [?]
				-James P. Mitchell=s tenure as Labor Secretary
				-[Walter W.?] Heller
					-Effect of guidelines set
				-Bureau of Labor Statistics
				-Contracts
					-Cost of living
					-Executive order
			-Difference between formula and objective
			-Present objectives
				-Moderation of inflation
				-Control of wages, salaries, compensation
			-World War I
			-World War II effects
			-Korea effects
			-Effects of set formulas
			-Cost of living increases
			-Airlines, machinists
			-Missile Sites Labor Commission
			-The administration=s instructions to public members
			-Construction of stabilization machinery
				-Executive order
				-Deferred increases
					-Commission=s role
					-Contractors
					-Renegotiations
					-Kansas City settlement
					-Connecticut
					-Meany
			-Trade unions
				-Clause in the President=s executive order
					-Deferred wages
					-Commission=s authority
					-Situation
						-Abel
						-Woodcock
				-Consumers
				-Renegotiation clauses
					-Freeze
						-Cost of living increases
							-Management
								-Establishment of price and rate structure
							-Wage increases
							-Price levels
							-Industry
		-Effect of contracts
		-Non-organized workers
			-Low paid industries
			-Grievances
				-Company unions
				-The South
					-Freeze
					-Results
						-Wage settlement
			-World War I
			-Phase II
				-Length of time
				-1971
					-Projected working of program
					-Public acceptance
					-High prices
						-Inflation
							-Relation to reality
							-Productivity
								-Salaries
						-Unions and stable prices
						-Free market, collective bargaining
				-Shultz
					-Howard W. Johnson
					-Automobile industry
						-James M. Roche
					-Meany
					-Issues with automobile industry
					-Automobile as utility
						-Regulation
			-Controls
				-World War I
				-Wage stabilization
				-Korea
			-Freezing of wages and prices
			-Voluntary moves
				-Free enterprise
			-Deferred wage issue
			-Industry
				-Price increases
					-Anticipated wage increases
			-Need of cooperation
			-Equitable and voluntary system
			-Wages and salaries
			-Interest rates
				-Capital Controls Act
				-Treasury Bills
				-Three-year notes
				-Decrease
			-Controls
				-Need to decrease interest
				-Prices, rents, interest
		-Interest rates
			-Burns
			-Controls
				-Banking analogy
		-Government controls
			-Extent
			-Permanent system
			-Voluntary controls
			-US wage and price control system
			-US public=s view
				-Wage and price controls
					-World War II era Office of Price Administration [OPA]
			-Rising cost of living since 1969
				-Effects
					-Majority consensus for wage and price controls
			-Economy=s future
				-Public demand
			-Effect of election on public
			-Congress=s view
				-Actions on majority view
			-Control=s effects
			-Accomplishment of result
				-Convincing public of results from action taken
			-Voluntary cooperation
				-Labor
				-Business
				-Pacesetters
					-Major businesses and labor
		-Time table
			-Submission of views of group
				-October 1
				-November 13, 1971 expiration date
				-Phase II
				-Guideline
		-Mechanism for handling control
			-Government board
				-Ordinances
		-Consultation
			-Labor, business, Congress
		-Implementation of Phase II
			-Announcement
				-Need for time lag for preparation

	[General conversation/Unintelligible]

The President left at 12:12 pm; Abel, et al. left at an unknown time before 12:39 pm

Conversation No. 72-2

Date:  September 10, 1971
Time:  Unknown between 12:12 pm and 12:39 pm
Location:  Cabinet Room

Unknown men met

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

END WITHDRAWN ITEM NO. 1

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Recording was cut off at an unknown time before 12:39 pm