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Archive (Walters MSS)

Economy: Alan Walters diary [PM charmed by governor; British Steel developments][released 2012]

Document type: Declassified documents
Source: Walters MSS (Churchill Archives Centre): WTRS 3/1/2
Editorial comments: Read other entries from this diary. View all Walters documents. The original diary can be studied here
Importance ranking: Major
Word count: 169
Themes: Industry, Monetary policy, Privatized & state industries, Public spending & borrowing, Trade unions

Monday 11th January 1982

PM charmed by Gvr [Governor of the Bank of England] - doing what he could - only offered bills at 143⁄8

What can he do - supporting the market to the tune of £400 m etc.

But we all knew he could tell Petheridge at Union Disc or Gerrard to put in a bid at 137⁄8.

David Young on Kaiser project - no cash from BSC [British Steel Corporation], it forms two cos [companies?]

1. 80% BSC/ 20% Kennecot - buying steel slabs to keep Ravenscraig open.

2. Kennecot takes the £300 m or so Coalfields of Kaiser (adjacent to its own)

Kennecot/Sohio provides $400m in cash - but Kaiser has medical coverage for all its workers - costs $400m to buy it out.

Phoned Peter Newman [head of Economics Department at Johns Hopkins] - Ok to July 83

Chris Willoughby

HSBC & Chartered should be denied - Crazy [Mergers & Monopolies Commission blocked their bids for RBS]

Developed Paper for monetary meeting on Wednesday