Economy: Alan Walters diary (budget) [PM “deeply worried and offended” about secret strategy meeting that she was not told about; PM says CPRS must be run by businessmen][released 2012]

Tuesday 5th January 1982

Return from Gambia

Meeting PM, JH [John Hoskyns], DW [David Wolfson] and lunch in flat.

PM deeply worried and offended to hear “by backstairs” that a strategy meeting involving her ministers had taken place at Westwell. We should have got her blessing and input first. She knows strategy - it is economy (slump - we did not anticipate)

JH & DW say she KNEW - and she did.

PM says she thinks we have got it all wrong (but she only had 3 of a 30 page Report)

David Howell is no good at doing anything (Gas Pipeline etc. + Denis Rooke)

PM would regard Treasury Ministers as very necessary at any strategy meeting. (We invited Nigel [Nigel Lawson] but he could not come).

[CPRS - PM says must be run by businessman + JH is not of the right stature - aside to me]

JH said he must leave - about April time

PM says next to AW [Alan Walters] JH is the most valuable aid. [sic]

PM spoke for 45 minutes - we could not get a word in at all. Exchange rates and how it “helps” with inflation etc.