The Administration: George Shultz Has Arrived

WHEN he moved across town to the White House a month ago, he gave up a Cabinet post as Secretary of Labor and a much-publicized Cadillac limousine. In exchange, as head of the new Office of Management and Budget, George Shultz acquired huge powers. He was to assume authority not only over the crucial area of budget making, but was also to supervise the monitoring of some 1,000 federal programs. But there is often an immense difference between an official's paper powers and his real influence. Shultz is bland and quiet. Would he be able to penetrate the tight White House staff hierarchy and make his presence felt? The answer is in. Shultz has arrived--dramatically.

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The evidence is plentiful and persuasive. When South Carolina Senator Strom Thurmond vented his anger at the Nixon Administration's school desegregation policies in the South, it was Shultz rather than Justice or HEW officials who briefed the press on the Administration's intentions. As a battle over foreign trade policy continues in the Congress, it is Shultz rather than Commerce Secretary Maurice Stans who is explaining Nixon's preferences. When Nixon decided to warn Congress that it must hold down spending to check inflation, it was again Shultz rather than a member of the speechwriting staff who wrote the statement.

Last week, as Nixon concentrated on budgetary matters at San Clemente, Shultz was ubiquitous. He defended the Administration's fiscal management as effective. He faced reporters when it was revealed that the wholesale price index had risen another three-tenths of 1% in July, and he admitted candidly that it was too much of a hike. He organized a series of almost philosophical discussions of budget priorities for the President.

According to the tidy White House organization charts, the key influence on presidential decisions in all but foreign affairs ought to be the Domestic Affairs Council, headed by John Ehrlichman. But the Shultz franchise of supervising the cash enmeshes him in policy decisions. The Shultz shop is currently analyzing the model cities program, advising Nixon whether to veto the new education bill, even dealing with such specific problems as how to handle the Indians occupying Alcatraz.

One White House aide explains the relationship between Shultz and Ehrlichman: "It's Ehrlichman's job to gas up the car, and it's Shultz's job to drive it." But it is not working out that way. Shultz has emerged as a persistent and broad-gauged man who can deal with policy issues even while handling administrative chores. Ehrlichman is primarily an administrative technician. "The President felt that he was not getting hold of the bureaucracy," one official says. "That's what he wants Shultz to do for him." And he is doing it. -

Also, Shultz has much more--and more able--manpower on his staff than does Ehrlichman. His 330 professionals are among the best in Washington, whereas Ehrlichman has a staff of 20, many of whom have limited experience in government.

Beyond budgetary power, the key to Washington influence is closeness to the President, and already Shultz has more regular access to Nixon than anyone else except National Security Adviser Henry Kissinger. As one of the top hands in Ehrlichman's office puts it: "If you're talking about confidence in judgment, then nobody's closer than Shultz. If you're talking about accessibility, then nobody has it better. He's on a walk-in basis." Shultz's success is one of the major surprises of this Administration. He has already become something very close to an Assistant President.

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