Richard Nixon on Free Trade President of the U.S., 1968-1974

Initiated the dollar as basis of world trade

Thus, while the value of the empire's currency is decreasing, its military force is increasing and the state-of-the-art technology and science monopolized by the superpower are largely directed to weapons development.

China's MFN trade status key to US Pushing positive change

Push Japan on trade, but no retaliatory protectionism

Meanwhile, Japan must reduce its tariff and nontariff trade barriers. We should insist on structural reforms in the Japanese economic system that will eliminate monopolistic and anticompetitive practices of individual firms and cartels. If the Japanese want access to our markets, we must have access to theirs.

Tariffs are just another entitlement that saps incentive

People are entitled to an opportunity to earn the good things in life. They are not entitled to receive them from the earnings of others. It is up to them to ensure that what they bring to the market equals in value what they want to get out of it. It saps incentive, builds resentment, and leads eventually to a corrosive sense of alienation and failure among those who are lured by its siren song into thinking that the nation owes them the good life without effort on their part.

1985: Reduce Japan's non-tariff barriers

Prime Minister Yasuhiro Nakasone exemplified this trend. When I met with him in 1985, we discussed the need to reverse the trend toward protectionism in the US and to reduce the non-tariff barriers discriminating against foreign goods in Japan. Unlike most previous Japanese prime ministers, Nakasone was looking beyond bilateral issues to Japan's role on the world stage. He conceded that Japan needed to spend more on defense, though he stressed this would have to be done in ways that would not alarm neighboring countries.

Competition with Japan but no economic warfare

Trade creates jobs for America's workers in world markets

Our new monetary and trade agreements will make it possible for American goods to compete fairly in the world's markets--but they still must compete. The new technology program will put to use the skills of many highly trained Americans, skills that might otherwise be wasted. It will also meet the growing technological challenge from abroad, and it will thus help to create new industries, as well as creating more jobs for America's workers in producing for the world's markets.

Relax restrictions with PRC but keep trade with Taiwan

[Zhou joins the conversation.] Nixon: I want you to convey my warmest greetings to Generalissimo and Madame Chiang. We will stick by our treaty commitments to Taiwan, we will honor them. I said so in my State of the World report. We will do nothing in the trade and travel field which is in derogation of friendship to your president and to Madame Chiang.

Zhou: We appreciate your special attention; above all, don't spread the impression that all is lost.

Nixon: I want you to know that the relaxation of trade that we are planning is mostly symbolic; the important issue is the UN.