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.