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OCR Page 1 of 33TELECON
Secretary Connally
10/1/71
p.m.
K: What did I do to get you gxx triggered off again?
C: There have been so many bad pictures of me and good ones of you
K: You've had your day now. Incidentally, I hear friendly things about your
speech yesterday. It was just right and puts the London thing in the right perspec-
tive. You'd never have had that reaction if you'd
in London. What'
interesting is the reports from people who were crying about you 10 days ago.
Barber, Exkly Filler - very friendly. You achieved what you set out to do.
C: They can't
gripe
?
and it's not in their interest to.
K: But I think they are on the road there.
C: I do too.
K: The offset proposal
--
Rogers wants to make it to the Germans.
He sent a memo over saying he was going to do it on his own. We have stopped it.
C: Good. We can get more than he's asking.
K: Didn't stop it for any personal reason. We stopped it pending your
and Laird's reaction.
C: Okay, give me a day or two to look at it.
K: You think we can do better?
C: Hell yes. If he would hold to a firm position we'd have no problem.
If the first place, you shouldn't negotiate with them every year anyway. We
oguth to say we expect so much offset every year, and not have a new agreement
every year.
K: And it gets us fighting on subjects that aren't really very high level.
C: Exactly right.
K: We will help hold on. Second, we have had word from the Japanese
they are ready to move on the textile issue. Kishi is coming to settle, but only
with the President. They want from us assurances on the surcharge, and to
stop stalking about trading with the enemy. I am suggesting to Peterson, pending
your recommendation, that he call a meeting tomorrow or Monday to see what
we are prepared to give.
C: I have no objections. That's a good idea. The Japanese are ready
to move. Let's not trade off too much for textiles. While they are moving
let's give them a shove.