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This file contains: Memo from Nixon to Ehrlichman re: summer residence purchase as opposed to construction. 3 pages. [Memo], 1/4/1969 Haldeman Handwritten note for Nixon meeting touching on Agnew function, staff Administration posts Ag task force. 3 pages. [Other Document], n.d. Haldeman Handwritten notes re: Nixon's new year's eve plans, staffing Administration. 3 pages. [Other Document], 12/30/1968 Haldeman Handwritten notes re: Roy Ash Memo. 5 pages. [Other Document], 1/2/1969 Memo from Nixon to Haldeman re: Nixon schedule while on vacation. 1 page. [Memo], 1/3/1969 Haldeman Handwritten notes re: staffing assignments. 1 page. [Other Document], n.d. Note re: Greenspan call about Burns' meeting with Nixon, crucial to convince Burns to join staff. 1 page. [Other Document], 12/20/1968 Haldeman Handwritten notes re: Doris Kearns discussion about coordination of summer youth programs, finding needs & priorities in each department and evaluate programs. 2 pages. [Other Document], 12/20/1968 Memo for Haldeman re: Bud Wilkinson appt as special assistant to the President for coordination of independent boards, committees and commissions. 1 page. [Memo], 12/20/1968 Biographical information of Henry Loomis. 1 page. [Other Document], 12/20/1968 Memo from Harry Fleming to Ehrlichman re: White House Personnel Office, advocating a separate arm that concentrates on providing staff members more in tune with Administration than with Civil Service. 3 pages. [Memo], 12/14/1968 Haldeman Handwritten notes for staff meeting, staff at Pierre, and schedule of travel. 2 pages. [Other Document], 12/15/1968 Haldeman Handwritten notes re: list of boards, Bryce - Civil service commission, staff assignments. 1 page. [Other Document], 12/20/1968 Haldeman Handwritten notes re: Moynihan assignment, Agnew ideas, vacation plans, game plans (sit on both sides). 3 pages. [Other Document], 12/9/1968 memo from Peter Flanigan to Haldeman re: tax issues when moving to or from short term government service, with attached letters from IRS and Frank Wozencraft. 9 pages. [Memo], 12/8/1968 Haldeman Handwritten notes re: cabinet annoucement, cabinet communication procedures, and staff communication procedures. 4 pages. [Other Document], 12/8/1968 Haldeman Handwritten notes re: Whitaker Cab. Secty, plan birthday party in New York, Shultz, McCann and DDE, and Wilkinson to HEW. 3 pages. [Other Document], 12/15/1968 Haldeman Handwritten notes re: background on Nixon planning cabinet, make Agnew contact with LBJ, confer with LBJ's librarian to see how they kept original papers. 2 pages. [Other Document], 12/13/1968

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WHSF: Returned, 36-16
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26126975
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WHSF: Returned, 36-16
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This file contains: Memo from Nixon to Ehrlichman re: summer residence purchase as opposed to construction. 3 pages. [Memo], 1/4/1969 Haldeman Handwritten note for Nixon meeting touching on Agnew function, staff Administration posts Ag task force. 3 pages. [Other Document], n.d. Haldeman Handwritten notes re: Nixon's new year's eve plans, staffing Administration. 3 pages. [Other Document], 12/30/1968 Haldeman Handwritten notes re: Roy Ash Memo. 5 pages. [Other Document], 1/2/1969 Memo from Nixon to Haldeman re: Nixon schedule while on vacation. 1 page. [Memo], 1/3/1969 Haldeman Handwritten notes re: staffing assignments. 1 page. [Other Document], n.d. Note re: Greenspan call about Burns' meeting with Nixon, crucial to convince Burns to join staff. 1 page. [Other Document], 12/20/1968 Haldeman Handwritten notes re: Doris Kearns discussion about coordination of summer youth programs, finding needs & priorities in each department and evaluate programs. 2 pages. [Other Document], 12/20/1968 Memo for Haldeman re: Bud Wilkinson appt as special assistant to the President for coordination of independent boards, committees and commissions. 1 page. [Memo], 12/20/1968 Biographical information of Henry Loomis. 1 page. [Other Document], 12/20/1968 Memo from Harry Fleming to Ehrlichman re: White House Personnel Office, advocating a separate arm that concentrates on providing staff members more in tune with Administration than with Civil Service. 3 pages. [Memo], 12/14/1968 Haldeman Handwritten notes for staff meeting, staff at Pierre, and schedule of travel. 2 pages. [Other Document], 12/15/1968 Haldeman Handwritten notes re: list of boards, Bryce - Civil service commission, staff assignments. 1 page. [Other Document], 12/20/1968 Haldeman Handwritten notes re: Moynihan assignment, Agnew ideas, vacation plans, game plans (sit on both sides). 3 pages. [Other Document], 12/9/1968 memo from Peter Flanigan to Haldeman re: tax issues when moving to or from short term government service, with attached letters from IRS and Frank Wozencraft. 9 pages. [Memo], 12/8/1968 Haldeman Handwritten notes re: cabinet annoucement, cabinet communication procedures, and staff communication procedures. 4 pages. [Other Document], 12/8/1968 Haldeman Handwritten notes re: Whitaker Cab. Secty, plan birthday party in New York, Shultz, McCann and DDE, and Wilkinson to HEW. 3 pages. [Other Document], 12/15/1968 Haldeman Handwritten notes re: background on Nixon planning cabinet, make Agnew contact with LBJ, confer with LBJ's librarian to see how they kept original papers. 2 pages. [Other Document], 12/13/1968
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Richard M. Nixon's Returned Materials Collection
Returned White House Special Files
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Richard Nixon Presidential Library White House Special Files Collection Folder List Box Number Folder Number Document Date Document Type Document Description 36 16 01/04/1969 Memo Memo from Nixon to Ehrlichman re: summer residence purchase as opposed to construction. 3 pages. 36 16 n.d. Other Document Haldeman Handwritten note for Nixon meeting touching on Agnew function, staff Administration posts Ag task force. 3 pages. 36 16 12/30/1968 Other Document Haldeman Handwritten notes re: Nixon's new year's eve plans, staffing Administration. 3 pages. 36 16 01/02/1969 Other Document Haldeman Handwritten notes re: Roy Ash Memo. 5 pages. 36 16 01/03/1969 Memo Memo from Nixon to Haldeman re: Nixon schedule while on vacation. 1 page. 36 16 n.d. Other Document Haldeman Handwritten notes re: staffing assignments. 1 page. Wednesday, June 17, 2009 Page 1 of 3 Box Number Folder Number Document Date Document Type Document Description 36 16 12/20/1968 Other Document Note re: Greenspan call about Burns' meeting with Nixon, crucial to convince Burns to join staff. 1 page. 36 16 12/20/1968 Other Document Haldeman Handwritten notes re: Doris Kearns discussion about coordination of summer youth programs, finding needs & priorities in each department and evaluate programs. 2 pages. 36 16 12/20/1968 Memo Memo for Haldeman re: Bud Wilkinson appt as special assistant to the President for coordination of independent boards, committees and commissions. 1 page. 36 16 12/20/1968 Other Document Biographical information of Henry Loomis. 1 page. 36 16 12/14/1968 Memo Memo from Harry Fleming to Ehrlichman re: White House Personnel Office, advocating a separate arm that concentrates on providing staff members more in tune with Administration than with Civil Service. 3 pages. 36 16 12/15/1968 Other Document Haldeman Handwritten notes for staff meeting, staff at Pierre, and schedule of travel. 2 pages. 36 16 12/20/1968 Other Document Haldeman Handwritten notes re: list of boards, Bryce - Civil service commission, staff assignments. 1 page. Wednesday, June 17, 2009 Page 2 of 3 Box Number Folder Number Document Date Document Type Document Description 36 16 12/09/1968 Other Document Haldeman Handwritten notes re: Moynihan assignment, Agnew ideas, vacation plans, game plans (sit on both sides). 3 pages. 36 16 12/08/1968 Memo memo from Peter Flanigan to Haldeman re: tax issues when moving to or from short term government service, with attached letters from IRS and Frank Wozencraft. 9 pages. 36 16 12/08/1968 Other Document Haldeman Handwritten notes re: cabinet annoucement, cabinet communication procedures, and staff communication procedures. 4 pages. 36 16 12/15/1968 Other Document Haldeman Handwritten notes re: Whitaker Cab. Secty, plan birthday party in New York, Shultz, McCann and DDE, and Wilkinson to HEW. 3 pages. 36 16 12/13/1968 Other Document Haldeman Handwritten notes re: background on Nixon planning cabinet, make Agnew contact with LBJ, confer with LBJ's librarian to see how they kept original papers. 2 pages. Wednesday, June 17, 2009 Page 3 of 3 January 4, 1969 - RN Tape file TO: JOHN EHRLICHMAN FROM: RN RE: SUMMER RESIDENCE I have decided against having the Marine Corps build a summer residence for the President at Camp Pendleton. There are two options which I would like explored. The first is to find some separately isolated house that I could buy personally somewhere below Laguna and above Oceanside. In that way we could use the Marine Corps Air Base for a landing field and have rather quick access to the property. On reflection, while I would like to have this house on the beach II realize that privacy in such a crowded area might be very difficult. If one could be found within 5 or 10 minutes driving time from a good beach this might serve the purpose. What I would suggest is that the Marine Corps make available a good swimming beach on their property and then I purchase a house which is not too far away from it. A second possibility -- which probably would present insurmountable legal problems -- would be for me to build a modest residence upon Marine Corps property and on their beach and then give the house to the government. - 2 - My major concern is the unfavorable publicity that might accrue if we allow a very expensive residence to be constructed by the Marine Corps. The armed services, are wasting money, on a very extravagant basis around the world, and I am going to urge Laird to cut into this waste on a massive basis. I can't do that on the one hand and then have the Marine Corps build a residence for me at the same time. The handling of Key Biscayne I think has been proper up to this point. I am putting out all of the money to buy the property and, of course, will pay for the redecoration, etc. All that the government will provide is the helicopter pad and a place to land a boat. Both of these actions in the long run save money because of the need for additional security in the event that I used a public boat landing or a helicopter pad which was not adjacent to the residence. For purposes of PR you ought to get the exact figures on how much money the government has invested in the facilities at the LBJ ranch. I think landing strip, roads and other buildings they have constructed should amount to something near three million dollars. There is also the immense amount of office space he has in Austin. I want you to get me a complete run-down on what has been spent for Johnson and have this available for Klein and others in the event that any columnists are raising questions about the very modest amounts that are being spent for me. - 3 - In this connection, as you probably are aware, Eisenhower's El Dorado house was given to him by friends and the same is true of the place that was made available to him at Augusta. Let's just be sure that since I am being extremely careful to avoid milking the public treasury that we get the proper credit or at least avoid discredit. As far as theeresidence in California is concerned, I would be willing to put up $150,000 to $200,000. It would be my plan to sell the property which I own on Whittier Boulevard in which my mother lived and to reinvest that into this property. What is probably needed here is a very dis- creet personal friend who will roam around that area and find a good place which we can purchase near the Marine beach property. What we might find is that we should take a house that may have the basic requirements as far as plumbing, etc. are concerned which might require remodeling. From a political standpoint I am very anxious to work out a deal on this as soon as we can find the right property. I don't like the idea of being a Florida resident and while we will allow this situation to go on for about a year because of various considerations, at an appropriate time I think the California residence will become my domicile for all purposes, tax and otherwise. # # # Hughes Certher Bums 758-9851 826-6581 malcdun more 969 5046 S Babara file RN 1/1 - Harden wants to amme. next week Handen I'm to call him -set day etc RN will Ikiso come over for annumts. - ag. tash force he doesn't know who or home if shed have names - will be in DC som. in one Dick Herma h - Bunje -asone of apptais fr agr. - 402-432-605 6050 LF shld have one from Calif. Tell Hardin his the one RN mentioned Pres Col state Bill morgan - retiring 4t if Handen docut take him Hibel shed talked to E x M- - M still a prob. of stranggle agnee * mayrihan acc E this was discussed. - ag Though Council shed be complaint board not poling development agreest Be an my lematation of pray Magnihan nothing to do w/DC except in broad policy. 2 shove all appts offet 11th hand-noed I have mtg- Maymihan M there M hanmer This out - ag also have Kissing - understands difference There between policy implemental a maynihan has to do same they if city has prob. They dont got may withou agnew wordinates etc - he talks to cities must work of mynihan make clear that mayn doesn't aream DC let Justice handle - moderest contact to W.K if mayord have policy q. -goto may if specific action problem -90 to Boe agnew shld call on depth - use all of them not just his own little staff. have to take typical cares f work out one byon mayn concentrate like Kiss on Urlan Policy Planning Bd-deawing shff from depts N doesn't want to meet of them - Agnew shldit have come to RN I'm impire injuristictioned fights always have both for appeal public unage - everyou reports to Pres actually no one shed repatto him he has to concentrate on Nall Secy put people in E. Weng - meed ash - as one -man Hower Commision talk to M - have to get someone with Hichel concerned ie F under sec somebody im. fook at ind. agencies - start namy people don't meet of B his until deal is ready- - knocking off the traditional denners before mtg ag t mort - take to Pat ahead of time ag tell him how myst he is etc may dont get moolved in day. day -ie DC stay of big pelicy deciss in DC take try much twin - un Kininger a to help. RN file 12/30 93%PST fronkB H.P.S. report to Hughers no plan for Nreals Eve ch on Beb Hopes NY Eve party - see if his having - don't tell his RN/uill drop by - no pullicaty covering on memo delicate matter Boe's s / long talk of agrew ie his in X idea in building staff- expects houng welfare - etc. moyn g. of dow This deeplicates calinet t Magnition on stoff of this sent M+9 should lay out guidelines he can't set up little group of expects will compete of , Fail say Ntalhed of me- I want to condinate it. bring in Bill Rogus - to point out how Nwas most suressful VP - twith 200 stall shed have generalists - + then have depts assign him haism men put. Volpe + Hichel - Petefle doesn't have every stake need to have M step in & add weight 2 F- has he gotten anyoned - Elliot Richardsm may go into State thinking of ben Lingle as LOP OEP Moodpartan to NATO of then channe JCS weak in aua of ind. agencies have to get strong people in them Fl I should ride hard on them - up NASA, Poverty, etc., USIA need really major seaul- as in Cabinet use Pachand dub sidge for names talk with memphy ne other names - plan on ash - is dollar year? no. I thish hill come on regular losis enipt. at larly date keep Stans tothersform over reaching - grashing extra - also Rommy situation me Kappel repat - Jones ask Jim Jones - Dick moore- u -off 467-4151 fine Jones- LBT ? then Cole etc Kappel report plans Finch-his status re stall -plans for Orange Co stope 762-8842 miss Hughes - secy. 12/31 Hughes - RN says I talk to Buya RNDAYS om ducks are not in a row get to will talk to Blies later 100 sat. new/state Dept annents RayClsh 1/2/69 new file as I stated to mr. Nixon, J believe I can accomplish the program set forth in my recent memo and would be very weeking to do so, if you find my limitations acceptable. of we can together determine the answers to the questions below, & believe you will be in a position to make a final decision. / does mr. Nixon regard the problems outlined in my memo, and also by others, as critical and in need of important attention and action 1. Does he want to commit a significant effort toward improvement of the particular Execution branch functions described now arm the near future- including proposals for legislation that undonstedly will be recessary at some time, knowing that virtually any proposal to change the organizational or procedural status guo will Cabinet? mut resistance, including some from his own 2. Is my consept of the general direction of solution fitted to Mr. Nixone desires and style on does he prefer the approach suggested by the Task Force on Organization of the Execution Branch a my approach admittedly derived from my new management experience, managerial responsibility rather then additional clearly creates stronger condentrations of fragmented ones. where my recommindation is to establish, for the five related functions descrited, one point of responsibility to the President, the Task Force proposal instead to the plus one new directly reporting adds President two new officer directly reporting committee, and still doesn't eucompass the functions I recommend be performed. 3. Can a sufficient part of my proposal be this time? her mergan thes researched this accomplished without Ed requiring ligislation at point and should have the results by now. Requirements are for adjuste staff authorization as well as for responsibility allocation 4. Is mr. Nixon prepared to discuss with ner. Mayo the relationship of the new function to the Beneau of the Budget, and to acquaint the Cabinet members with his objectives for the new office budget will be sticky fra a while 5. will it be acceptable if I place my ownership of Litton stock in a trust during my service with the government, allowing the trustee the full authority to administer the trust but explicitly reliving him from The obligation to sell Letton shares > similarly, as to an interest I have with mr. Thouton in a partnership which owne L. itton shares, a trustee for my interest would be appointed In this case, Mr. Thounton as majority partner would effecturly make the partnership decisions regarding the stock. although the two of us our the stock, we have committed that it shall be used for the wellimate benefit of Letton executives and employees and will not accrue to our ampersonal benefit If WE together can answer these prestions to your satisfaction, I recommend I join the administration as assistant to the President If a further descryting title is desired, although I see no particular need for it, it might be (- Executive Management) or (- Organization and Management). in contrast to the discussions concerning the role of the Director of the Bureau of the Budget, I feel this position is me to make substantier policy contributions on subjects for which the incumbert is qualified and prepared Certainly, also, the incumbents effectiveness will in large measure be in direct proportion to Presidential support which support, of course, must be justified by performance Because of the numess of such a position and the possible incertanities that many will have as to its significance, I do recommend it physically have a white House office as a in the Executive Branch I see this new minimum symbol of its role relative To others franction, as it becomes operational and formalized at some later time, as fully equivalent to a Class I position Personally, I need minimum "therapy" as Mr. Nixon used the term Performance itself will take care of subsquent events. If you are Mr. Nixon wish, I am prepared to proceed on the above Luis. If the limitations deriving from my Letter strek ownership are not acceptable, and Mr Nixon desires to carry out the outlined work program I well cartinue to seek a prelified alternate candidate or, if Re would prefer to undertake at this time just a portion of the complete program outlined, such as an effort concentrating on Execution Program Coordination alone, I will suta Organization alone, or Program planning alone, or qualified cardidate for that. of Res tasks during the next year or two of he world prefer to concentrate on other and defer a major move or commitment in the direction outlined, I can informally continue a level of preparatory work for that time and also be me a more acceptable stock ownership position for that later time. also will look to ask as major personal man for recruiting & evaluating top level people esp. Ind. agencies and commissions January 3, 1969 MEMORANDUM TO: Bob Haldeman FROM: RN SUBJECT: RN Schedule on Vacation Don Hughes was put in a difficult position on two or three occasions in Miami because he had not had adequate guidance as to the rules that I want followed when on vacation as far as personal requests for appointments are concerned. V. J. Skutt, Jimmy Doolittle, and Jerry Ford's brother were among those who asked to see me, and Don naturally thought he should submit these requests to me. I want a hard and fast rule adopted that when I take these vacations there will be absolutely no exceptions where personal requests of this type are concerned. Everybody that wants to see me of this type should call direct to Washington. Hugles have RN call Lockheed and I See Pase - maybe anne. while have schulge could come come out trute -ame to James Hodgeon- 847.6682 res 344-4094 a Schuly deposit have to a here say- S+N feel helpl be excellent happy to have hin join Call Scholly 202-961-2064- (Labn Dept) Harlow prob. of clearances- F leys - Pachard more high to inform for + Sen than 3rd level Congram 1/9 Allen Greenspan file called re R. E. Burns' meeting with RN. at 1:30 this afternoon. Wanted to relay thrust of what was on Burns' mind and request that you phone him for additional details. McChesney Martin arrangement has apparently fallen through. On basis of this Burns is now deciding not to go to Washington. Greenspan strongly feels that Burns should go to Washington and believes that if meeting with Burns is handled right Burns will go. Greenspan's number is 688-5518. Not really certain RN wants him. as of know - will probly not go. There is a real void - need someone like Burns who understands X can Randle mastin X Beens didnt talk til this week - Barns feels martin not committed Douskeans 12/20 Gile KEARNS DORIS [BarBeown - ck out labor dept youth program with young people in fatters N. Youth Corps - delegated to Loba for 050 get feeling that NAB suman program didn't work should disimanth- 1 and life NYC of other easty georges soft programing instead of shot guning 7 getting business so in need to focus what you ask business for letter to get schools to stay open there isno coordination of summer intern program each agency is independent Rey is togo to alienated groups & have them self define their needs primities include going to white middle - class populate a find out what matters most to each class include people inget in our tackforces let than he heard they know what's what /-evaluate present programs 2- - estab. focal paint in each dept tagency don't concentrate in just one deptie HEW put things into each againg that's concerned from Pres to each Seey -ask 3- Corrdination mechanism - WH or one dept. re WH fellows- don't bring in the type that would have come anyway. December 20, 1968 MEMORANDUM FOR HALDEMAN -- ACTION RE: BUD WILKINSON I propose that Bud Wilkinson be appointed Special Assistant to the President, and that it be understood that his role is that of general assignments for the President with particular responsibility for coordination of the work of all independent boards, committees, and commissions as they relate to the office of the President. These commissions and committees include a wide range of subjects ranging from the Advisory Board on National Parks and Monuments through the Advisory Committee on the Arts, Historic Preservation, Foreign Scholarships, Presidential Scholars, Preservation of the White House, Commodity Exchange, Consumer Advisory Council, Distinguished Civilian Awards, Federal Fire Council, Inter-Agency Committee on International Athletics, Indian Arts and Crafts Board, Radio Advisory Committee, Maritime Advisory Committee, Advisory Council on the Education of Disadvantaged Children, National Park Foundation, Commission on White House Fellows, Council on Youth Opportunity, Council on Aging, Council on Physical Fitness, Council on Recreation, etc. H HRH HENRY LOOMIS --- BIOGRAPHI CAL INFORMATION (12/20/68) Born April . 19, 1919, in Tuxedo Park, New York. Married Mary Paul Macleod of Berwin, Pennsylvania. Four children: Henry Stinson (21) Mary Paul (18) Lucy Farnsworth (12) Gordon Macleod (11) Harvard University; A. B. 1941. Presently Partner in St. Vincent's Island Company, 45 Wall Street, New York, New York. (Risk Capital Business) February 1965 - March 1966: Deputy U. S. Commissioner of Education, Department of HEW. 1958 - 1965: Director, Broadcasting Service, USIA. 1957 - 1958: Staff Director to Special Assistant to President for Science and Technology 1954 - 1957: Chief Office of Research and Intelligence, USIA. 1953: Staff of President's Committee on International Information. 1951 - 1952: Consultant, Psychological Strategy Board, Washington, D. C. 1950 - 1951: Assistant to the Chairman, Research and Development Board, Department of Defense. 1947 - 1950: Assistant to the President, Massachusetts Institute of Technology. 1945 - 1947: Radiation Laboratory, University of California at Berkeley 1940 - 1945: U. S. Navy, Lieutenant Commander. Specialized in radar; on the staff of the Commander-in-Chief. Established and ran radar maintenance service and radar operations school. Honor received while working for the government. 1963: Recipient of the Rockefeller Public Service Award for Foreign Affairs. 1963: Received USIA Distinguished Service Award. On the Board of Directors of the following companies: Miter Corporation, Bedford, Massachusetts. Riverside Research Institute, New York, New York Conservation Foundation, Washington, D. C. African Wildlife Leadership Foundation Member of: Council of Foreign Affairs (New York, New York) Washington Institute of Foreign Affairs Metropolitan Club, Washington, D. C. Myopia Hunt Club Middleburg Hunt Club Cruising Club of America (sails his 38 ft. Ketch, "Land's End") File HRH ACTION? December 14, 1968 MEMORANDUM TO: John Ehrlichman FROM: Harry Flemming RE: White House Personnel Office The function of this office should be to screen and recruit candidates for positions in the government which are exempt from Civil Service. In the past Administration this office was combined with and given to the Chairman of the Civil Service Commis- sion. During the Eisenhower and Kennedy Administra- tions the office was held by a Special Assistant to the President. Although there are benefits to be gained by combining the authority to hire all government per- sonnel in one office through the Civil Service re- cruitment process such a practice will not uncover men who are responsive to the President. It is much more likely to produce people responsive to the com- mission that appointed them, which commission is not equipped to recruit people with that "extra dimension" of excellence demanded by the President-Elect. The people who.run and staff the Civil Service Commission have historically looked upon Presidential appoint- ments as a last vestige of the spoils system and are antagonistic to it. I do not think this can be over- come by the appointment of three Commissioners. If we are to provide personnel compatible with the heads of the individual departments but re- sponsive to the President, the White House should play a major role in the selection and appointment process. I therefore propose that the office be returned to the White House to function pursuant to the following guide- lines. RECRUITMENT We should continue the present transition program of actively soliciting people for Presidential appointments, which process should include private in- terviews and reference checks which are conducted under the direction of a White House staff member. SCHEDULE OF AVAILABLE POSITIONS The office should maintain a roster of avail- able political appointments, which roster should include positions available for the appointment in the reasonable future by reason of anticipated resignations, termination of tenure or lack of suitability of the incumbent appointee. CONGRESSIONAL AND PARTY LIAISON The office should collaborate with the Assistant to the President for Congressional Liaison as well as State Party Officials and Nixon State Chairmen in the various states in order to insure the most effective political use of appointments. CENTRAL DATA BANK The use of EDP should be upgraded on a con- tinuing basis in order to provide the best possible reservoir of information and should be used in con- junction with the data bank maintained by the Civil Service Commission in order to search and find com- petent career people in government whose talents have not adequately been used in the last two Administrations. It is my opinion that the very existence of a separate office responsible solely for political appointments will in and of itself be a big step for- ward in deterring the entrenchment process which in- evitably leads to a strong bureaucracy in which the employees become sensitive only to the needs of their own department instead of the overall needs of the Executive Branch of government. Bell Rm for Whitcher Make Pattern Appt for Thursday 12/15/68 2 topa. , Bay, acknow, Staff mel. - Meno to people at Pierre 1ˢᵗ thing Same for tope. Chief - what do we call. Do tope 1st thing Look at other Put at you Carrolls desk. letter for form ed. Some for Memor Brown -down to Workington, Tuesday swed, Start of Hophins Probably not need two days. a Pattern - pet up Appt at time when RN her Apt. Cole Ait in. Re Security Padrt - do now prior to staff milq. Knogh rend to people now with memo. RN 12/20 K/tophins list mall boards etc to reward fila people Bryce- Civil Service Comm. Dew - Dent get young Southerner you tell Hampton his chmn & don't let him know. think his in change he is our man - period then Fletcher as only Negro. ? Marment stay out- work with us. Hill etc for Bill Rogas. - RN M-F 12/9 File -re Moynihan -/- ch w/ Cash 2- whatdousit do to CEAT McCrocher 3- is he too liberal problem of Agreents role RN will be chann of council lean to Chaffee for OEO. Mck NR re Esa Poston get her in today Moynitan - for Urban affairs talk to ash - Kissinger if here- McGachen if here M- talk to agnew re W. Washing ton he has ideas for using has -v. good ask Ella to bill M. E- Rita Hausa as Dep. Counsel Ells- for on list of jobs to Goos. per RN promise agrees resp. - Ells. handle in from of the for agreem mayntan - sitium up I Garden Fri - also Ells. Apt ck - have wf free u Val Peterson Ells. deal w/. big businessmen -Congmn Bryce use him R - Rose go to Wash for bufg w/th -re vacat in plan- - Can't go to P.S. - because of Drowns from 22 on three mon 6 - staff off. staff sheleton staff -press lid on have Whither move up to Thuss 2 nd then leave [have mayo come in tomorrow (m]] nite of stat Conting Plaza Whitter M 2nd - than back to NY week 86E clear for speech 3rd re game + asa Call- - SC do card start for PN sit on both sides. - inform Woody Hayes + fin Rhodes of some ceremony - Cut down on Ss around RN. maybe have sit in box- but avid fan- wants to sit up where can See Peter M. Flanigan Nixon Agnew Deputy Campaign Manager Campaign Committee 450 Park Avenue New York, N.Y. 10022 (212) 661-6400 December 8, 1968 To Messrs. Haldeman Ehrlichman Harlow Kleindienst Knudsen Flemming The attached letters were written regarding the maintenance of certain company benefits by short-term (two to four years) government employees. It may be useful to you in encouraging candidates for government service to leave their jobs. PMF US Treasury Department RECEIVED JAN 17 10 53 AM '68 Internal Revenue Service Washington, DC 20224 FACE OF LEGAL COUNSEL Date: In reply refer to: JAN 16 1968 T:I:Iz2:1 Honorable Frank M. Wozencraft Assistant Attorney General Office of Legal Counsel Department of Justice Washington, D. C. 20224 Dear Mr. Wozencraft: You have requested the opinion of the Internal Revenue Service concerning certain Federal income tax consequences relating to a proposed personnel interchange program between the Federal government and private business. According to the information which you have provided, employees in business will receive appointments in government and employees in government will receive similar appointments in business. The period of the appointments will be two years, subject to extension upon the mutual agreement of the parties. During participation in the program, the government employees will take leave without pay; the private employees may either take leave without pay or resign from their companies subject to a contractual right of reemployment. You have raised several questions relating to potential Federal income tax problems which may arise from participation in the program. You ask: (1) whether government service by a private employee will constitute a break in employment for purposes of stock options previously granted; (2) whether a private employee may continue to participate in his private employer's pension, profit-sharing or other benefit plan while in government service, assuming nondiscriminatory terms of participation and return to the private employer's service at the end of participation in the program; (3) whether any special tax problems will arise by reason of the government employees' participation in government benefit plans while on leave without pay; and Honorable Frank M. Wozencraft - 2 - (4) whether any special tax problems will arise if the moving expenses of the government and private participants are reimbursed. I. Effect of government service on stock options previously granted Sections 422(a)(2) and 423(a)(2) of the Internal Revenue Code of 1954, which refer to qualified stock options and employee stock purchase plans, require the optionee to be in the employ of the corporation granting the option at all times during the period beginning with the date of grant and ending on the date of exercise, or, in case the employment has been terminated, on the day 3 months before the date of exercise. In the case of a restricted stock option granted after February 26, 1945, and before January 1, 1964, section 424(a)(2) of the Code requires the optionee to be in the employ of the granting corporation at the date of exercise unless he ceased to be an employee within the 3-month period preceding date of exercise. For purposes of determining employment relationship, sections 1.422-1(a)(1)(ii), 1.423-1(b) and 1.424-1(a)(2) of the Income Tax Regulations refer to section 1.421-7(h) of the regulations. Section 1.421-7(h)(2) of the regulations states that the employment relationship will be treated as continuing intact during military or sick leave not in excess of 90 days, or, if longer, so long as the individual's right to reemployment is guaranteed by statute or contract. Although section 1.421-7(h)(2) of the regulations states that the continuity of the employment relationship will not be interrupted by military or sick leave, this reference does not preclude a short-term period of government service under a program such as outlined above. This interpretation of the regulations is consistent with Rev. Rul. 59-140, C. B. 1959-1, 92, which refers primarily to military leave but also refers to other bona fide leaves of absence. Based on the preceding discussion, temporary government service will not affect the continuity of the employment relationship of participants from private business for purposes of options granted prior to participation in the exchange program. It should be noted that government service does preclude the application of the statutory stock option provisions to options granted while the private business participant is in government service. See section 1.421-7(h)(1) of the regulations and Rev. Rul. 59-140, supra. Honorable Frank M. Wozencraft - 3 - II. Effect of government service on pension, profit-sharing or other employee benefit plans A. Pension and Profit-Sharing Plans Section 401 (a) of the Code applies only to a plan for the exclusive benefit of employees or their beneficiaries. Section 1.401-1(b)(4) of the regulations states, inter alia, that a plan is for the exclusive benefit of employees even though it may cover employees who are temporarily on leave, as, for example, in the Armed Forces of the United States. The cited section of the regulations is considered to encompass a leave of absence for government service. Therefore, continued participation in the private employer's pension plan will not be affected by government service under the interchange program. With respect to profit-sharing plans, participation in the plan does not necessarily include participation in employer contributions during the employee's leave of absence since the formula used for allocating contributions among the participants is generally based, at least in part, on the employee's compensation. In the case of both pension and profit-sharing plans, it will be necessary for the plans to permit continued participation by all employees under similar circumstances. See Rev. Rul. 65-178, Part 4(f), C. B. 1965-2, 94, 113. B. Group-Term Life Insurance Section 79 of the Code provides special rules for group-term life insurance purchased for employees. Section 1.79-1(b)(2)(i) of the regulations refers to section 3401(c) of the Code and the regulations thereunder for the definition of employee. In general, section 31.3401(c)-1 of the Employment Tax Regulations states that a relationship of employer and employee exists when the person for whom services are performed has the right to control and direct the individual who performs the services. During the period of government service, the participant from private business is not an employee of the private business within the meaning of section 31.3401(c)- of the regulations and, therefore, is not entitled to the exclusion provided by section 79 of the Code. Honorable Frank M. Wozencraft - 4 - C. Accident and Health Plans Sections 105 and 106 of the Code relate to employee accident and health plans. The regulations under these sections, unlike section 1.79-1(b)(2)(i) of the regulations, do not refer to section 3401(c) of the Code. Nothing appears in sections 105 and 106 of the Code and the applicable regulations which would preclude the continued participation in an accident and health plan by an employee on leave of absence. See also Rev. Rul. 62-199, C. B. 1962-2, 38, which allows retired employees to continue participation in such a plan. III. Participation by government employees in government benefit plans while on leave without pay Based upon the information provided, we do not anticipate any special tax problems arising by reason of continued participation by the government employees in the government benefit plans while in private service. IV. Reimbursed Moving Expenses To the extent that the moving expenses are of the type which would be deductible by the employees under section 217 of the Code, we anticipate no special tax problems arising from the reimbursement of such expenses. The employee who takes a deduction under section 217, of course, would have to include the reimbursement in gross income. As you know, this opinion must of necessity be limited to the specific facts described in your letter. If we may be of any further assistance, please let me know. Sincerely, Commissioner ASSISTANT ATTOMNEY GENERAL Department of Justice Mashington January 12, 1968 The Honorable Sheldon S. Cohen Commissioner Internal Revenue Service Washington, D. C. Dear Mr. Cohen: As you know, the Administration, in cooperation with leaders of the business community, is developing a mid- career personnel interchange program between the federal government and business. We anticipate that under this program outstanding young employees in business will be selected for two-year appointments to positions at an operational level in federal agencies, while outstanding young employees in government will receive similar appointments in private businesses. In some instances the period of appointment may be extended for a third or even fourth year upon mutual agreement by the company, the government and the individual, but the usual period of appointment would be for two years or less. During the first year, we expect that approximately twenty corporate employees will be solected to serve in federal agencies. About the same number of federal govern- ment employees, mostly at the GS-15 level, will be selected to serve in private enterprise. Those from the private sector will probably be employees of domestic corporations at the lower or middle management levels and will receive federal appointments at the GS-15 level. Each appointment will be carefully screened to avoid conflicts of interest. A federal government employee will probably take leave without pay for the period of his employment by the corpora- tion. Private employees may either take leave without pay, - 2 - or resign from their companies with a contractual right to be recmployed at the conclusion of their temporary federal service under the program. Questions have been raised as to whether participants coming from private business to government would be required as a result of their temporary government service to sacri- fice (1) restricted or qualified stock options which have already been granted to them by their employers, (2) continued participation in qualified pension or profit sharing and similar employee benefit plans, or (3) continued eligibility for group life, health or accident plans. These questions require consideration of both the conflict of interest laws and the tax laws. With respect to the former, this Office has given the advice outlined below concerning the prospective effect of 18 U.S.C. sections 208 and 209 on participants in this program. As I mentioned earlier, each appointment is to be care- fully screened to avoid any conflict of interest which would raise a question under section 208, which deals with acting in a governmental capacity on matters in which the employee has a financial interest. If a conflict neverthe- less arises, the employee can disqualify himself, or obtain a waiver from the head of the agency where appropriate under section 208(b). Under section 209 (a), which relates to sources of com- pensation rather than to actual or apparent conflicts, the appointees cannot receive compensation for their services as employees of the United States from any source except the Government of the United States. Section 209(b), however, provides that this provision does not prevent an employee "from continuing to participate in a bons fide pension, retire- ment, group life, health or accident insurance, profit- sharing, stock bonus or other employee welfare or benefit plan maintained by the former employer." - 3 - A review of the history of section 209 and commentaries discussing it persuades us that from a legal standpoint, and without considering matters of appearances, there is no dis- tinction for the purposes of this provision between a leave of absence and a resignation with a right of reemployment. In either case, we believe that appointees coming to the government under this program on a temporary basis may continue to participate in regular employee benefit plans maintained by their former employers. Indeed, we have been informed that this is one of the very kinds of government service for which section 209 (b) was designed. We have also considered the applicability of the conflict of interest laws to stock options granted to the employee before he comes to the government as a participant in this program. From this standpoint, we see no substantive distinction between the ownership of stock in a corporation and the holding of a previously granted option to purchase such stock. If the employee's assignment 1s such that his retention of stock ownership does not create a conflict of interest, we see no reason to believe that his holding or exercise of a previously granted stock option would do so. Conversely, if he should dispose of the stock upon entering government service because of actual or potential conflicts of interest, he should also dispose of the option. of course, a completely different question would be raised by the granting to an employee of additional stock options, or of any special benefits, either during or with a view to his employment by the government under this program. Such an additional grant might in fact be compensation for his services as an employee of the United States. By the same token, the former employer would not be permitted to pay to the employee a supplementation of his government salary, such as a payment based on the difference between his govern- ment compensation and the compensation which he would have received 1f he had continued to work for the employer. - 4 - Even when conflict of interest considerations have been resolved satisfactorily, there remain certain tax points on which our preliminary discussions indicate that participants from private business and their employers need reassurances. Basically, they want to know: (1) whether government service by a private employee will constitute a break in employment for purposes of stock options previously granted; (2) whether a private employee may continue to participate in his private employer's pension, profit- sharing or other benefit plan while in government service, assuming non-discriminatory terms of partici- pation, and return to the private employer's service at the end of participation in the program; (3) whether any special tax problems will arise by reason of the government employees' participation in government benefit plans while on leave without pay; and (4) whether any special tax problems will arise if the moving expenses of the government and private participants are reimbursed. These points involve several provisions of the Internal Revenue Code and regulations. I recognize, of course, that you cannot be expected to give any binding ruling as to the qualification or tax effects of a particular benefit plan or stock option until it has been examined. Meanwhile, however, 1t is important that those who are developing this interchange program be able to inform prospective participants and their employers of your views on the above four questions. Sincerely, Frank M. Wozencraft Assistant Attorney General Office of Legal Counsel PN 12/8 File Kissinger - RN talk before Shriver Harlow - Ehe-J= = re annemt. invite W. House staff but in back 3 1:00 give them a feel of what went them Weds. noon - inform staff of Cabinet annont call them in - Rose etc. Reparate - none before Ell-B-P-G-56 - close group hi and finance group- - Stans- startat noon call top contubs - Birth Kindael- Alone -etc. use Flanigan to help calling Rockly friend B. Lithead Clay - er. personal - Rose handle Hobe, Bobet, mitchell call Bebe, Rockefeller, our Screanton if his back Kappel, Dewey (Brownell hes callifle) Governoro of agnew - Ellsworth helpt agrew come up Tues- - RN tell time Weds than stay have there was Y flydown w/ RN - bring Mrs. 14 who mon: AM + arends * mundt C-RNcall Fordt Driksen set up Harlow call for them later today also Town & Thurmond- to set up M 2 major publishers - Klein make a list - those w/us Trib, Copley, Otis - not auxinbag chat up them after noon Vail, Preswref, maitin Hayden Jack Haught Newhouse July Stable Scripm/toward party people- - only for their own state - -not whole bund d only after Sen +Cougm. have Kget a Terson f Floridian in son -ollso Ohio - RNcall NR noon mon on Eso Porton Cab. Comm. Procedure -not direct to Pres. Fla. - no press briefings no news. 23-30 = Hughes there - d Call lead astronant before shoot on 21st +90 to ae briefing as duBridge if LBJ not there 3/ 3 let Y.L. +Whitter both but not on Campus v track down Jan 9th - plans wants staff mtg - earlypoint handle Rose understand /4T - anything personal from anyme AR frds. rels. contribs - etc. whoever they write - if de goott matter - it goes to person in chg - notto RN my don't want to see ltr for -good frds into l staffed out. no requests on sched direct to RN exceptatually personal Ells- has to be programmed Do notin directly all foreign Three Kissinger, long then Hailow Bryce has to speak up re Rose- cantid re ann went around make it clear that nothing pept prom RN but most go in in night way there channes Price B - Rose etc top. Springs call Keyes- not to call tel 5:00 an time via RV. F the 12/15 be file by apart. Whitaker - F Cab Secy - We part help Harlow dinner NY financial Come - to present Kunnedy big birthday parts 9/H i in NY Willins on - WH - superglad handler anments - here on out how program 8:451 bring in Cab. offers tomours- leg. ldrs. sequence of annents - Harlow Schooly + McCann & DDE - desig Sheely as something - re N. liaison w/ retired Pres. have to woh out details - they have a study Jan 4-RN to Dirksen birthday party in DC Ya. doing this to weld Disksan in Ehe) leklhinson- - ant toPees Whitaker- track & ind agencies now back to Cab t my staff handle VIR's look after youth Consumers etc- travel around sphg some press social companion -go to football games staff for perfessional. - u Ellsworth- E sdd shed can him now- talked it three - cld say pooblem will get worse Jay Wilkinson to HEW- Finel RN 12/13 Ke do some bkgrd ie RN plan fir Cab RN's idea - serll origicted idea of women present - complete saysing Z not going to anne UNTuer - probly Weds med mon this okon Hoover Helus tat hold VA til Bryce clears agnew- be contact WILBJ- - about once a month Cald. Cabinet see Johnson country calls- up. J.M. plan - all except Land t Rogas 4 interest on yr. own call all rupt. people groups tach to thern a lit you know in you field - ke guide them + tack to newsun that would be favable they I have any impt. P.R. you of thead own. see congrom. Eus? alleasys have to hid way to program ag of Int Bryce have someone put Cig in touch of long ldn- that he shed callon then Bryce have Ells help out- get them intiod & there long ag Farm Burear, Thange Farm Union input on than jous. 2 Bitzet when RN gives Gbray etc can it be deducted talk to LBT,htrauan he keeps orig papers fall cab. offers. look into how it's done VIKE then talk to labinet - set it up. Ollie atkins - goahead on photog- - GSA- - Laurence Knott head- - J. says good Harlow ch it out for Bliss Diiksan has a candidate -demands maybe Fred Rundl Aetain Paul Aithen Sec Arry - Dem forn Han Whitaker to Harlow