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TELECON Mr. Kissinger The President 1/13/70; 8:50 m. K said Mr. President, I wanted to report about my trip -- I got back about one hour ago. K said he (LBJ) was in a more benign mood this time and said he had to confess something. K said that LBJ had to confess that re foreign policy things were a lot better now than they were when he left office. K said LBJ was worried about the Defense budget. K said LBJ didn't have any specific reasons but he went over his Defense budget with great care and was proud when he could cut $5 billion out of it. K said LBJ thought K should impress upon the President that somewhere along the line somebody will have to pay for it. P said we, on the Defense budget, can move in a certain direction now but have to be prepared to move in other directions later. P said we have a difficult problem now that could destroy everything. P said we have to make it credible. K said he told LBJ that we had set up a Defense Review Group Committee and to the best of K's knowledge he didn't see where we cut anything that would hurt us. P said I think we have to put more in authorization and less in appropriation. P said he had Laird in and asked what we could cut. P said Laird said Safeguard. P said Laird said he can't do too much because it involves our bargaining position. P said I told Laird to discuss this with you or Harlow in the morning. P said the whole question is whether it could be done in a way that is really credible due to the fact that we really don't know what to do. P said but under no circumstances can we take away our bargaining card. P said Laird said that in the Cabinet meeting today and that Laird is very strong on the issue. K said maybe we can cancel F-111. P said but then Laird says he wants to buy other planes. K said I will go over it with him. K said Laird called him but he has not been able to reach him. P said keep in mind that national security comes first. K said he was very strong to President Johnson about that and LBJ said he wanted the President to know that he had great confidence in him. K said LBJ said P should have more confidence in his instincts and XX not in advisors (?). K said I told LBJ that no one is less affected by the press than you are. P said the main thing is how we handle the inflation problem. P said he would like to put in larger authorizations and smaller appropriations. K said Haig was over there to talk to the Generals and he (Haig) has never seen them in a more rebellious mood they think that Laird tricked them. P said let me say this just do what you can but no more. P said you, &Harlow talk to Laird but don't let Laird do more than he ought to do. P said 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": "TELECON\nMr. Kissinger\nThe President\n1/13/70; 8:50 m.\nK said Mr. President, I wanted to report about my trip -- I got back\nabout one hour ago. K said he (LBJ) was in a more benign mood this\ntime and said he had to confess something. K said that LBJ had to\nconfess that re foreign policy things were a lot better now than they\nwere when he left office. K said LBJ was worried about the Defense\nbudget. K said LBJ didn't have any specific reasons but he went over\nhis Defense budget with great care and was proud when he could cut\n$5 billion out of it. K said LBJ thought K should impress upon the\nPresident that somewhere along the line somebody will have to pay\nfor it. P said we, on the Defense budget, can move in a certain\ndirection now but have to be prepared to move in other directions\nlater. P said we have a difficult problem now that could destroy\neverything. P said we have to make it credible. K said he told LBJ\nthat we had set up a Defense Review Group Committee and to the best\nof K's knowledge he didn't see where we cut anything that would hurt\nus. P said I think we have to put more in authorization and less in\nappropriation. P said he had Laird in and asked what we could cut.\nP said Laird said Safeguard. P said Laird said he can't do too much\nbecause it involves our bargaining position. P said I told Laird to\ndiscuss this with you or Harlow in the morning. P said the whole\nquestion is whether it could be done in a way that is really credible\ndue to the fact that we really don't know what to do. P said but under\nno circumstances can we take away our bargaining card. P said\nLaird said that in the Cabinet meeting today and that Laird is very\nstrong on the issue. K said maybe we can cancel F-111. P said but\nthen Laird says he wants to buy other planes. K said I will go over\nit with him. K said Laird called him but he has not been able to reach\nhim. P said keep in mind that national security comes first.\nK\nsaid\nhe was very strong to President Johnson about that and LBJ said he\nwanted the President to know that he had great confidence in him. K\nsaid LBJ said P should have more confidence in his instincts and XX\nnot in advisors (?). K said I told LBJ that no\none\nis\nless affected by the press than you are. P said the main thing\nis how we handle the inflation problem. P said he would like to put\nin\nlarger authorizations and smaller appropriations. K said Haig was\nover\nthere to talk to the Generals and he (Haig) has never seen them in a\nmore rebellious mood they think that Laird tricked them. P said\nlet me say this just do what you can but no more. P said you, &Harlow\ntalk to Laird but don't let Laird do more than he ought to do. P said\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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