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President's Handwriting, September 16 thru 30, 1971 [2 of 4]

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OCR Page 1 of 58
THE PRESIDENT PEPSICO INC. by PURCHASE, N.Y. 10577 TEL. (914) 253-3000 Dear DONALD M. KENDALL CHAIRMAN, CHIEF EXECUTIVE OFFICER your Ron- etc make sense quest dealy that our a you will All September 17, 1971 policies will reflect The President The White House Washington, D.C. 20500 a severd q your Dear Mr. President: Sufficient time has elapsed following the initial announcement on your new economic policy where I now believe the conclusion can be reached that it is definitely an unqualified success. I feel, however, that it is most essential that a new program be developed that continues some sort of control after the ninety-day period. As you well know, I am basically against any type of controls and normally believe in the free market place. However, since it was necessary to put on controls, I feel that you must continue with them in some form to make certain that the original goals are achieved. Otherwise, the opposition will have a specific campaign issue for 1972. I believe the said controls should be very simple and not require a large bureaucracy to administer them. I recommend the following thoughts for your consideration: 1. Wages - We should have a law providing for mandatory, a binding arbitration if labor and management cannot agree, A three-man board should be established. If management and labor cannot reach agreement, this board should be required to render a binding decision, within a two-week period, so that production is never interrupted. The three-man board should be constituted of individuals who are highly qualified, and not merely selected because they represent the business community or labor. 2. Prices - I believe you should only have controls on the key 2) industries that obviously have the most impact on the economy.

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