Date: February 7, 1973

Time: 3:15 pm-5:11 pm

Location: Oval Office

The President met with George P. Shultz and John D. Ehrlichman.

Legislation

Tax policy

-Commitments

-Property taxes

-Tax credits

-Private schools

-Simplified forms

-Tax reform

-Political advantage for administration

-Criticism

-Budget

-Wilbur D. Mills

-Russell B. Long

-Congressional and public’s support

-Proposals

-List

-Compared to major goal strategy

-Mills

-Reactions to proposals

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-Shultz’s caution

-Tax reform proposals

-Consultation with Congress

-Commitments

-Cooperation with Congress

-Candidates

Foreign trade

-Important aspects

-Taxes

-Burke-Hartke bill

-Taxable foreign earnings

-American foreign investment

-John B. Connally’s assessment

-Shultz’s and Ehrlichman’s assessments

-Union support

-George Meany

-New York Newspaper Guild

-Conversation with Shultz

-Trade legislation

-Jobs

-Businessmen council meeting

-Oil industry

-Exploration abroad incentive

-Losses

-Early exploration

-Deductible

-Income

-Tax

-Loss to US

-Taxes

Energy

-Imports

-Shultz’s report

-Connally

-Independent oil operators

-Opposition

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-Oil prices

-Incentives for domestic production

-Oil Policy Committee

-William E. Simon

-Chairman

-Restructuring

-Imports

-Necessity

-Restrictions

-Preferred market

-Bargaining tool

-Mohammed Reza Pahlavi [Shah of Iran]

-[Faisal, King of Saudi Arabia] Malik Faisal ibn Abd al-Aziz

al-Saud

-Oil study

-Shultz’s staff

-Political considerations

-Earlier delays

-Senators

-Clifford P. Hansen

-Quotas and tariffs

-Differences

-Long

-Meeting with President

-Oil and gas interests

-Family

-Meeting with Golda Meir

-Restrictions on Arab oil

-Domestic oil producers

-National security

-Tariffs

-Domestic incentives

-Reform

-Liberalization

-Experimental process

Tax reform proposal

-Capital gains

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-Minimum tax

-Changes

-Capital losses

-Exploration for oil

-Tax breaks

-Drilling costs and depreciation allowance benefits

-Difficulties

-Drilling incentives

-Dry holes

-Energy message

-Trade bill

-Foreign tax bill

-Tax reform package

-Hearings

-Politics

-Oil companies

-Dry holes

-Appearance of loophole

-Energy plan

-Tandem with tax plan

-Trade energy packages

-California

-Presentation to Congress

-Integration of packages

Congressional relations

-Energy policy

-Bipartisan leaders

-Publicity

-Meeting with President

-Scheduling

-Trade policy

-Bipartisan presentation

-California

-Message

-Devaluation announcement

-Timing

-Consultation with Congress

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-Recess

-Difficulties

-Telephone calls from White House staff

-Timing

-Trade bill announcement

-President’s return to Washington

-Meeting with Henry A. Kissinger

-Leaders’ meeting

-Radio speech

-Support for President

Energy policy

-Connally’s attendance

-Comprehensive paper

-Peter M. Flanigan

-Option paper

-Decisions

-Charles J. DiBona

-Analysis

-National security

-Oil imports

Stephen B. Bull entered at an unknown time after 3:15 pm.

Wilbur D. Mills

-Arrival for meeting

Bull left at an unknown time before 3:44 pm.

Energy policy

-DiBona’s analysis

-National security

-Oil reserves

-Arab oil

-Conservation

-Contrast with Long’s view

-Oil study

-Levels of domestic production

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-Bargaining position

-Exploration

-Long

-Prices

Energy paper

-Nuclear power

-Breeder reactor

-Soviet prototype

-Time before production

-Budget

-Breeder reactor

-President’s conversation with Dr. Edward Teller

-Feasibility

-Theoretical stage

-Soviet Union

-France

-Prototypes

-Scientific community involvement

-Consensus

-Dr. H. Guyford Stever

-Carnegie Mellon University

-Dr. Edward E. David, Jr.

-Involvement

-Connally

-Connally’s views

-Deregulation of gas prices

-Exploration

-Price incentives

-Continental shelf

-Leases

-Deep water ports

-Tankers

-Connally

Mills and the White House photographer [?] entered at 3:44 pm.

Greetings

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Seating

-Edward R. G. Heath

-[Hussein, King of Jordan] Hussein ibn Talal

-Mills

Mill’s appreciation

-Photograph [?]

-First Family

[Photograph session]

Ehrlichman and the White House photographer [?] left at 3:44 pm.

Congressional relations

-Legislation

-Mill’s vote

-Farmers

-President’s trip to Arkansas

-Searcy, Arkansas

-Harding College [?]

-University of Arkansas

-Little Rock

-Hendrix College

-Mill’s alma mater

-Arthur F. Burns

-School of Social Sciences

-Curriculum

-Mill’s interest

-Liberalism

-Compared to social services

-Sociologists

Stennis

-President’s visit

-Chances of survival

-President’s telephone call

-Tricia Nixon Cox

-Recovery

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-Gen. Walter R. Tkach

-Appearance

-Hand-shaking

-Doctor’s comments

-Physical condition

-Compared to James O. Eastland

-Liver

-Habits

-Compared with Eastland

-John J. Flynt, Jr. [?]

Economic legislation

-Arkansas farmers

-Price supports [?]

-Mills’s knowledge

-John W. Byrnes

-[Herman T. Schneebli] [?]

-Leadership

-Meetings with President and Shultz

-Tax problems

Tax proposals

-Discussions with President

-Legislation

-Tax reform

-Energy

-Oil, natural gas

Trade

-International monetary situation

-Mill’s interest

-Public posture of administration

-Markets

-Mills’s work

-Administration’s work

-Most favored nation [MFN] status

-Soviet Union

-Albania [?]

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-Jews

-Votes in House of Representatives

-1948 United Nations [UN] agreement on emigration

-Soviet Union

Soviet Union

-Israel

-Jewish emigration

-Administration’s negotiations

-Jews

-Mills’s attendance at Philadelphia event

-Fund raising

Trade

-Bipartisan meeting

-Scheduling

-Trade package

-Shultz’s meeting with Mills

-Mills’s schedule

-Byrnes’s visit

-Protectionism

-Burke-Hartke bill

-Administration’s opposition

-Balance of payments

-MFN status

-Bargaining position

-Compared to unilateral action

International monetary situation

-Shultz

-Consultation with Congress

-Balance of payments, trade deficit

-Need for surprise

-Great Britain

-Currency flow

-Dual arrangement

-Balance of payments

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Manolo Sanchez entered at an unknown time after 3:44 pm.

Refreshments

Sanchez left at an unknown time before 5:11 pm.

International monetary situation

-President’s program

-Conversations with Burns

-Publicity

-Surcharges

-Amounts

-Balance of payments

-Imports

-Inflation

-Wages

-Compared to rates in France

Trade package

-Bipartisan meeting

-Scheduling

-Preliminary work

-Administration’s approach

-US jobs

-Flooding of US market

-Japan

-Bipartisan meeting

-Message to Congress

-Shultz’s role

-Meeting with Mills

-Scheduling

-Mill’s schedule

-Speaking engagements

-New Orleans

-Car dealers

-Little Rock

-Broadcasters

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George S. McGovern

International monetary situation

-Shultz’s telephone call to Mills

-Prompt action

Manolo Sanchez entered at an unknown time after 3:44 pm.

Cigarettes

-Smoking

-Allergy

Refreshments

-Iced tea

Sanchez left at an unknown time before 5:11 pm.

Trade proposals

-Mills’s speech

-Economy

-Future

-International problems

-Conference

-International conferences

-Number of countries

-Value

-Dealings with individual nations

-Big five nations

-US, Great Britain, France, Germany, Japan

-Discussions over trade, money, defense

-Defense expenditure

-Link

-Trade arrangements

-Great Britain

-Separate issues

-Heath

Tax policy

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-Shultz

-Testimony

Trade proposals

-International Monetary Fund [IMF] speech

-Negotiating authority for President

-Tariffs

Unknown person entered at an unknown time after 3:34 pm.

Photograph [?]

Unknown person left at an unknown time before 5:11 pm.

Trade negotiations

-Balance of payments emergency

-President’s authority to declare

-Surcharge

-1971 surcharge

-Bargaining chip

-Japan

-Possible import surcharge in legislation

-Effects

-Balance of trade deficit, payments

-Leaders’ meeting

-Bargaining

-Japan

-Europe

-Bipartisan clout

-Authority for President to restrict imports

-Inflation

-Selected items

-Beef, cattle

-Fear of flooding markets

-Japan

-Safeguards

-Choices for President

-Tariff commission

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-Compared to radio, television [TV]

-Protectionism

-Burke-Hartke bill

-Sentiment

-Balance of trade deficit

-World trade

-Concerns

-Labor unions

-Job safeguards

-Adjustment assistance

-Shultz’s discussions

-George Meany

-Trade bill

-Safeguards for jobs

-Unemployment compensation bill

-Federal standards

-Congressional support

-Standards

– -States

-New York compared to Arkansas

-Ways and Means Committee

-Social Security Act

-State legislatures

-Arkansas

-Governor

-Income maintenance

-Imports

-Resulting loss of jobs

Labor issues

-Jobs

-Vested pensions rights

-Ways and Means Committee

-Appropriations Committee

-Education and Labor Committee

-Contractors with government

-Defense, National Aeronautics and Space Administration [NASA]

-Employees

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-Length of employment

-Pension rights

-Pension funds

-Pooling

-Employer payments

-Mobility of work force

-Construction industry

-Contractors

-Trade bill

-Pension bill

-Employment termination

-Guarantees

-Labor unions

-Pensions

-Expense

-[David] [?] Leonard

-Meany

-Government supervised pension fund

-Standards

-Social Security buffer

Trade

-Possible legislation

-MFN status

-Developing countries

-Japan

-Europe

-Latin America

-Special treatment

-State Department

-Africa

-Common market

-Commonwealth

-Great Britain, France

-Special deals with former colonies

-Mediterranean

-Latin America

-US special deals

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-Formulas

-Brazil

-Gold reserves

-Political system

Philippines

-Ferdinand E. Marcos’s government

-Internal situation

-US Support for Marcos

-Necessity

Foreign policy

-Dealings with other nations

-Internal affairs

-Genocide

Trade

-Congress

-Modification of President’s authority to negotiate

-Trade barriers

-Tariffs

-Desirability

-International monetary situation

-Undervaluation of dollar

-Tax policy

-Congressional relations

-Japan

-Leaders’ meeting

-Consultations

-Pressures

-Mills’s role

-Agreement with administration

-Working together

-Long

-Welfare reform meeting with President

-Bipartisan strategy

-Tax policy

-Difficulties

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-Demagogues

-Labor leaders

-Business leaders

-Mills’s role

Congressional relations

-Consensus

-Lyndon B. Johnson

-Role of President

-Tax reform

-Disagreements

-Trade

-Jacob K. Javits

-New York constituents

-Free trade

-Consultation

-Bipartisan leaders

-Shultz’s role

-Requesting support

-Advice from Congress

-Mills

-Nomination for Presidency as Democrat

-Fred Barkley

-Mills’s friend

-President of Union Oil

-Testimony on fuel shortages

-John O. Pastore

-Silvio O. Conte

-Bipartisan meetings

-Taxes

-Trade

-Energy

-Shultz

-Ways and Means Committee

-Quotas

-Imports

-Long

-Ehrlichman

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-Oil interests

Energy policy

-Kerr-Mills

-Federal Power Commission

-Gas

-Arkansas

-Gas shortages

-Atlantic Richfield Company [ARCO] gas field in Oklahoma and Texas

-W. R. (“Witt”) Stevens

-Federal Power Commission

-Request for pipeline

-Chairman

-Responsiveness

-Report from staff

-Study in administration

-Shultz, Ehrlichman

-DiBona

-Simon

-Flanigan

-Rogers C. B. Morton

-Importance of problem

-Francis Case

-Oil interests

-Fred Barkley

-Oil prices

-Arabs

-Bargaining leverage

-Long

-Intrastate gas

-Price control

-Compared with interstate gas

-Meetings with Shultz, Ehrlichman and Connally [?]

-Mills’s recommendation

-Campaign contributions

Tax policy

-Tax angles

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-Trade aspects

-Energy problem

-General tax message

-Energy, trade messages

-Mills’s schedule

-Paul A. Volcker [?]

-Bailout

-Public witnesses

-President’s views

-Tax reform

-Commitments

-Credit for private schools

-Congressional action

-President’s problems

-President’s political commitments

-Catholics

-John F. Kennedy

-Dual school system

-Property tax relief for elderly

-Burden

-New England

-President’s political commitments

-Checklist on tax reform

-Tax reform

-Important areas

-Investment income

-Amount

-Tax rate

-Capital gains

-Changes

-Nelson A. Rockefeller

-Depreciation

-Conversion

-Rate structure

-Wall Street

-Reactions

-Speculation

-Taxation

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-Capital gains

-Amount

-Beneficiaries

-Sale of homes

-Exclusions

-Mills’s views on reform

-Capital gains reinvestment

Bull entered at an unknown time after 3:44 pm.

President’s schedule

Bull left at an unknown time before 5:11 pm.

Tax policy

-Capital gains

-Payments over years

-Political appeal

-Conservatives

-Estate taxes

-Rates

-Charity contributions

-State taxes

-Capital gains

-Labor

-Inherited assets

-Market value

-Inequities in tax structure

-Mortgage deductions

-Charity deductions

-President’s support

-Hendrix College

-Whittier College

-Tax relief

-Gasoline tax

-Middle incomes

-Silent Majority

-Meany

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-Protests

-Poverty level income

-Minimum wage

-Subsistence level

-Whittier, California

-Little Rock

-Welfare reform

-Annual income

Unemployment

-Young people

-Breadwinners

-Compared with late 1960s

-Women

-Youth

-Meany

-Beginner’s wage rate

-US, Soviet Union

-Minimum wage

-Unemployment rates

-Meany

-Labor market

-Peter J. Brennan

Great Depression

-Unemployment

-Percentage calculation

-Welfare recipients

-Social Security

Tax policy

-Credit for private schools

-Property tax relief for elderly

-Simplification

-Energy, trade

-President’s checklist from Shultz

-Shultz’s conversation with Mills

-Areas of agreement

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-Inequities

-Incentives

-Equity

-Problems

-Conflict with national objectives

-Charity

-Social objectives

-Employment of women

-Energy

-Tax reform

-President’s law school

-Charles Lown’s [?] comments

-Social purpose

-Charles Lown’s [?] comments

Stephen Bull entered at an unknown time after 3:44 pm.

Alice Roosevelt Longworth

Bull left at an unknown time before 5:11 pm.

President’s schedule

-Ronald L. Ziegler’s telephone call

-Longworth

-Illness

Congressional relations

-Consultations between Shultz and Mills

-Energy

-Trade

-Tax

-Another meeting

Tax policy

-Mills’s commitment

-Single taxpayers

-Numbers

-Importance

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-Burden of taxation

-Compared to families

-Women’s longevity

-Unknown woman’s support for President

President’s schedule

-Future meetings with Mills and Shultz

-Camp David

Franklin D. Roosevelt

-Meeting with Winston S. Churchill, Josef V. Stalin, Chiang Kai-shek

-Seating arrangements

Shultz and Mills left at 5:11 pm.