369. Memorandum From the Director of the Office of Management and Budget (Shultz) to President Nixon1
- Meeting with George Shultz
and Henry Kissinger August
11, 1970, 11:00 a.m.
Kissinger and Shultz will present a proposed organizational arrangement for handling foreign economic policy.
On June 30, 1970 you approved a “Troika-plus” arrangement for economic policy generally. In the proposed system for foreign economic policy we plan to build on this arrangement. The Treasury Department, especially Paul Volcker, will play a coordinating role. The National Security Council will be fully represented.
The group itself will be assigned by several subgroups with interlocking membership. While some flexibility should be retained, we visualize the need for five at this time.
- Committee on Monetary Policy and Balance of Payments
- Committee on Commercial Policy
- Committee on Export Promotion
- Two parallel Committees dealing with Multilateral and Bilateral Economic Assistance
If you approve, Shultz will work it through the various affected Departments and prepare a formal memorandum for you and an implementing letter from you to the Secretary of the Treasury. Drafts of these are attached. See Tabs A and B.3
- Source: National Archives, Nixon Presidential Materials, White House Special Files, President’s Office Files, Box 82, Memoranda for the President. No classification marking.↩
- The President’s Daily Diary indicates that Nixon met with Shultz and Kissinger from 11:30 to 11:40 a.m. on August 11. Just prior to that meeting Nixon had met with Shultz for almost 50 minutes, with Ehrlichman, Haldeman, Finch, and Harlow present for most of the meeting. The latter four departed by 11:30. (Ibid., White House Central Files) No record of discussion at either meeting has been found.↩
- Tab B is attached but not printed.↩
- Printed from a copy that bears this typed signature.↩
- Confidential. The draft memorandum appears on blank paper, but another copy (from which the copy at Tab A was made) is on the letterhead of the Secretary of the Treasury and is attached to an August 10 memorandum from Flanigan to Shultz in which Flanigan commented that the “Treasury proposed organization” differed “in only one major respect” from his own proposal—”that difference puts management of the program in Treasury rather than in the White House.” The benefit of Treasury’s proposals, in Flanigan’s view, was that staff already existed in Treasury, while outside of NSC and CEA staff did not exist in the White House. The major objection was in making Treasury “primus inter pares,” which was a “difficult concept,” especially for areas other than monetary, and one State in particular would find hard to accept. (National Archives, Nixon Presidential Materials, White House Special Files, Confidential Files, Subject Files, FO)↩
- Attached but not printed.↩