Economy: Alan Walters diary (budget) [dreadful PM meeting on trade; MT complains of “beastly French”. Howell retreating on economic arguments][released 2012]

Tuesday 8th September 1981

Dreadful PM meeting on Trade - finding ways of cheating - complains about beastly French - free trade had a rough ride - hardly mentioned

Lunch with PM + DT [Denis Thatcher] and private secs

2.00pm GGP [Gas Gathering Pipeline] with PM - she s against it strongly.

4.50 KJ [Keith Joseph] - but both are politically naive - KJ says the argument will be elimination of monopsony of BGC [British Gas Corporation] and she says Oil Cos will not do it - neither excuse will sit well with public - who have the Oil Cos: And monopsony? Will the public regard BCG as their protection against high gas prices.

6.00-8.00 DW [, David Wolfson] and I saw David Howell at 21 Victoria Square - he started retreating on the economic arguments - more marginal etc but emphasised polit. arguments. Stopper in the bottle but I think it is likely to be the beginning of the flood.