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W riston, both of whom Shultz had gotten to know through the Business Roundtable. Other recruits included Charls Walker, who continued to serve as one of Bechtel’s lobby ists, and Cap Weinberger.

Through the spring and summer, Shultz and the coordinating-committee members met with Reagan during campaign breaks at Reagan’s Santa Barbara ranch. Slowly, the candidate began to come aroundnot entirely, but sufficiently to make Shultz an admirer. “I believe in what Ronald Reagan stands for,” he told Walker after one session at the ranch. “Limited government, low taxes and a strong defense. I look at him and I see a man who is secure in himself. I look at his record and I see that ninety-five percent of the time, Ronald Reagan has surrounded himself with highly competent people. “21 After Reagan captured the Republican nomination in late July, Shultz also began boosting the candidate ,with his fellow CEOs on the Business Council and the Business Roundtable. “George used to sing Reagan’s praises at our meetings,” said one Roundtable member. “He was Reagan’s most convincing emissary to the business community. “22

News of Shultz’ missionary work reached Reagan, who, according to Walker, was so gladdened “that his eyes misted over.” He expressed his appreciation September 9, when, during an address to the International Business Council in Chicago, he announced the appointment of Shultz as chief of a council of economic advisors. Walker was named to the council as well, with responsibility for devising tax reforms, as, in a decidedly minor role, was Cap Weinberger, who, following a stream of flattering letters and offers of help, was quietly active during the Reagan campaign.

Despite his relegations to bit-player status, Weinberger still had hope. Appointment as a Reagan advisor, he told friends, meant he was in the running for the cabinet slot of his dreams, notably, secretary of State.

The only trouble was that his old nemesis George Shultz wanted the same job, and was being actively promoted for it by, among others, former Federal Reserve chairman Arthur Burns and former Defense secretary 216

COMPANY TROUBLES

Melvin Laird. Though the election was still a month off, the press too was plumping for Shultz’ nomination-much to the distress of Steve Bechtel, Sr., and his son, who intended to make Shultz president of the Bechtel Group, a newly formed holding company that would oversee all ofBechtel’s operations. The fate of Shultz, who was being closemouthed about his plans, was, accordingly, on the minds of both Bechtels when they attended a Business Council meeting at Hot Springs, Virginia, in mid-October. During a break in the proceedings, Steve senior pulled Walker aside and asked him for a reading of Shultz’ intentions. 23

“My feeling is he’ll go,” Walker responded, “but only as secretary of State.”

Steve senior frowned. “I think you’re right.”

Caspar Weinberger too was keeping tabs on Shultz’ ambitions, and after Reagan’s election, doing his best to thwart them. Early on in the transition period, Cap had accepted an offer from Reagan to become secretary of Defense, a job second only in foreign-policy clout to the one at State. Pleased with his new role, and apparently unwilling to share his status with the likes of Shultz, Weinberger, some of Shultz’s allies later asserted, passed along word to Reagan that it would be unwise politically to appoint two senior Bechtel executives to top national-security positions, and that Shultz had already committed himself to stay on at Bechtel.

Shultz, who had done nothing of the sort, was, as a result, stunned when, shortly thereafter, he received a call from Reagan, who told him he had talked to a “friend of yours” and understood completely his desire to remain at Bechtel. Perhaps, Reagan added, he could help the administration in other ways. Before Shultz could protest or explain, the

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