Economy: Alan Walters diary (MTFS) [Sterling appreciates; Middleton disappointed at MTFS meeting][released 2012]

Wednesday 27th January 1982

Gvr [Governor of the Bank of England Gordon Richardson] warned M. Scholer [Michael Scholar] that American events (Reagan’s state of the Union address) would have great affect on the UK - but in fact sterling appreciated and markets seem easier. The yield curve is almost flat and we are set for another reduction in interests.

Spoke to P Middleton and said we must start pushing the B/E [Bank of England] again for another ½% even over the dead body of Gvr.

P. Middleton very disappointed at MTFS [Medium Term Financial Strategy] Treasury meeting - all the yearning [?] to go back to M3 whereas PM had agreed that no primacy for M3 - Terry [Terry Burns] was very weak and trying to frighten everyone out of their wits.

Peter M. [Peter Middleton] and I will have to orchestrate these Treasury mtgs but GH [Sir Geoffrey Howe] is hopeless.

Lunch with Charles Hambros + Chips Keswick - they were v. much encouraged by my line.

ASLEF [Associated Society of Locomotive Engineers and Firemen] dispute - David Howell’s suggestions are not up to much. I agree with JH [John Hoskyns] JV [John Vereker] that we should get BR to escalate.

Richard Haas - all upset since Tebbitt [sic] had not found time to see him. Wants me involved in the China Oil business - seems to be moving somewhere.

Antony Sheppard - about minibuses - phoned Peter Baldwin (Hong Kong) and asked about my enquiry

- he said “pushing on open door” - shared buses from suburbs due to strike + high rail fees.