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TELCON Secretary Laird Mr. Kissinger 10:10 a.m., 12-31-69 L asked if K had received his memorandum. L said we spent quite a bit of time going over this - three people sat in on this. We should only go for 25,000. K said you are mixing up the two figures. They say you only reduced 38,000 permanent people. L said I sent you a rundown and a table which I think will explain it fully to you. We are going down to fulltime permanent figure of 1.9 and total of 1.50. The table explains that. I spent quite a bit of time with Packard and my Comprroller and they think the budget people understand it. K said Mayo does not understand it. L said will make an effort to reduce further. We would have to go to contract employment and wouldcost us more. It would cost us more dollars. K said intent is to show no increase in federal payroll. L said what I would like you to do is look over the material and Dave and I and our omptrollerspent most of the night going over this. I think it is a mistake because it will add costs rather than subtract. It should be there no (the memo), It goes into detail. The three people working from the Bureau of the Budget, I am sure, understand these figures. If you go over this memorandum, I think it will take care of it. K said OK, if the President asks me, you think it is basically a mistake to do it. L said yesk. K said let me raise another point on the toxin issue. We want to move it into the NSC so that the President can get credit for it. L said, well of course. K said will you make sure there is no decision until the President gets a crack at it. *** All we want is the various departments to put the various options before the President. K said then you and I and the President can decide how we can move it. L said Henry, you know since I have been here we have produced none. The thing about it is the President should get credit for it when he needs it. K said exactly. L said what they are trying to do is take credit as an agency. K said an agency that does not have to carry the burden should not take credit for it. L said we will not even say we are not producing it. K said just emphasize the options. L said they are even calling me up saying they will take my language on the oil thing. I am doing nothing on it until next week. I told them I would have to read it over next Tuesday or Wednesday. I wonder if someone couldn't talkto Lincoln and see if he wouldchange the date. Lincoln, Schultz, etc., are all going for six months. If I could get one more person to not go immediately, I would be in good shape. K said let me tell you now, I will do what I can to see that you are not pushed any further. I hope you feel I have been helpful on the budget thing. I talked to Dave about this thing and he is quite upset about it. May I talk to Dave about it so that I won't have to bother you about it. L said yes, fine. L said I will get on the toxin thing right away. I will be back in the office on Saturday. K said fine. mlh Reproduced at the Richard Nixon Presidential Library DECLASSIFIED This document has been reviewed pursuant to Executive Order 13526 and has been determined to be declassified.

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    "ocrText": "TELCON\nSecretary Laird\nMr. Kissinger\n10:10 a.m., 12-31-69\nL asked if K had received his memorandum. L said we spent quite a\nbit of time going over this - three people sat in on this. We should\nonly go for 25,000. K said you are mixing up the two figures. They\nsay you only reduced 38,000 permanent people. L said I sent you a\nrundown and a table which I think will explain it fully to you. We\nare going down to fulltime permanent figure of 1.9 and total of 1.50.\nThe table explains that. I spent quite a bit of time with Packard\nand my Comprroller and they think the budget people understand it.\nK said Mayo does not understand it. L said will make an effort to\nreduce further. We would have to go to contract employment and\nwouldcost us more. It would cost us more dollars. K said intent is\nto show no increase in federal payroll.\nL said what I would like you to do is look over the material and Dave\nand I and our omptrollerspent most of the night going over this. I\nthink it is a mistake because it will add costs rather than subtract.\nIt should be there no (the memo), It goes into detail. The three\npeople working from the Bureau of the Budget, I am sure, understand\nthese figures. If you go over this memorandum, I think it will take\ncare of it. K said OK, if the President asks me, you think it is\nbasically a mistake to do it. L said yesk. K said let me raise\nanother point on the toxin issue. We want to move it into the NSC\nso that the President can get credit for it. L said, well of course.\nK said will you make sure there is no decision until the President\ngets a crack at it. *** All we want is the various departments to\nput the various options before the President. K said then you and I\nand the President can decide how we can move it. L said Henry, you\nknow since I have been here we have produced none. The thing about\nit is the President should get credit for it when he needs it. K said\nexactly. L said what they are trying to do is take credit as an\nagency. K said an agency that does not have to carry the burden\nshould not take credit for it. L said we will not even say we are\nnot producing it. K said just emphasize the options. L said they\nare even calling me up saying they will take my language on the oil\nthing. I am doing nothing on it until next week. I told them I would\nhave to read it over next Tuesday or Wednesday. I wonder if someone\ncouldn't talkto Lincoln and see if he wouldchange the date. Lincoln,\nSchultz, etc., are all going for six months. If I could get one\nmore person to not go immediately, I would be in good shape. K said let me\ntell you now, I will do what I can to see that you are not pushed any\nfurther. I hope you feel I have been helpful on the budget thing.\nI talked to Dave about this thing and he is quite upset about it.\nMay I talk to Dave about it so that I won't have to bother you about\nit. L said yes, fine. L said I will get on the toxin thing right\naway. I will be back in the office on Saturday. K said fine.\nmlh\nReproduced at the Richard Nixon Presidential Library\nDECLASSIFIED\nThis document has been reviewed pursuant to Executive Order 13526 and has been determined to be declassified."
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