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Telecon George Shultz 1/13/71 4:00 p.m. page 2 K: My understanding was only 100 million on the MAP counted in the 75. 5. S: I think that was the presumption based on various positions Laird had taken as to what they could absorb and what they could not. But in discussions about itx how to work it out it turned out to be possible to dox with all included. K: Possible to go back to that original position? S: Have to put the extra 200 million somewhere. It's just a question of raising it somewhere. K: What do you think? S: I think it's really technically, physically it would drive us aut of our minds to change the Defense budget now. It is literally now being printed. We closed the books this morning after the last set of Presidential on decisions xxxx revenue sharing, etc. While we can stop the presses I am thinking about trying to make the date to deliver the budget to Congress. Plus you have to figure how to do it with Defense. K: You know it isn't something I would have raised with him. I can see the psychological reason for doing it and know that if we had talked two or three weeks ago there would have been no problem with it. The problem is whether to do it now. S: What he has in his mind is that we table the full employment revenue and budget expentitures from the whole budget review process and did the difference between the two. You have to make two decisions: that difference may then be taken up by various places. He has been toying with ways of filling that gap. He got it filled but it resulted in for one of the tax suggestions. That got a little room. We xxtxx were told to raise revenus sharing and bury the rest. If he wanted to ask for another half billion dollars we are at the point where it can be found though the budget is damned tight, assuming the Congress passes the revenue sharing. But I hate to have to figure with Defense where to put the five. K: How about stopping the base closings? S: The base closings have a in 73 on a billion dollars. K: They don't have to stop completely, but could we stop five hundred million dollars worth? S: There are two things:

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    "ocrText": "Telecon\nGeorge Shultz\n1/13/71 4:00 p.m. page 2\nK: My understanding was only 100 million on the MAP counted in the 75. 5.\nS: I think that was the presumption based on various positions Laird had\ntaken as to what they could absorb and what they could not. But in discussions\nabout itx how to work it out it turned out to be possible to dox with all included.\nK: Possible to go back to that original position?\nS: Have to put the extra 200 million somewhere. It's just a question of\nraising it somewhere.\nK: What do you think?\nS: I think it's really technically, physically\nit would drive\nus aut of our minds to change the Defense budget now. It is literally now being\nprinted. We closed the books this morning after the last set of Presidential\non\ndecisions xxxx revenue sharing, etc. While we can stop the presses\nI\nam thinking about trying to make the date to deliver the budget to Congress.\nPlus you have to figure how to do it with Defense.\nK: You know it isn't something I would have raised with him. I can see\nthe psychological reason for doing it and know that if we had talked two or\nthree weeks ago there would have been no problem with it. The problem is\nwhether to do it now.\nS: What he has in his mind is that we table the full employment revenue and\nbudget expentitures from the whole budget review process and did the difference\nbetween the two. You have to make two decisions: that difference may then be\ntaken up by various places. He has been toying with ways of filling that gap.\nHe got it filled but it resulted in\nfor one of the tax\nsuggestions. That got a little room. We xxtxx were told to raise revenus\nsharing and bury the rest.\nIf he wanted to ask for another half\nbillion dollars we are at the point where it can be found though the budget is\ndamned tight, assuming the Congress passes the revenue sharing. But I hate\nto have to figure with Defense where to put the five.\nK: How about stopping the base closings?\nS: The base closings have a\nin 73 on a billion dollars.\nK: They don't have to stop completely, but could we stop five hundred million\ndollars worth?\nS: There are two things:"
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