Wednesday 10th March 1982
Reactions to budget quite favorable - only saw notes about MTFS - Rupert (Economist) [Rupert Pennant-Rea] asks is this the end of monetary discipline.
Realisation that CGT reform is going to change credit markets dramatically.
Businessweek columnist - quite knowledgeable.
Note to PM pointing out that B/E had got it wrong
- indexed gilts did not depress conventionals - on the contrary they took off.
Lunch with PM of Norway, Douglas Hurd
I did not get a briefing note. Of the debt $27 Billion we had about $3 Bn of which $1.5Bn was ECGD. I was for a Default but F.O. man was very reluctant - prevent ECGD call.
Discussion about weekend human rights protest by Norwegians about Turkey - I weighed in very well.
Peter Bauer - tells me Cairncross thought that + £ Bn to PSBR would simply mop up unemployed resources and have no effect on inflation absorb some of the £8Bn surplus on balance of payments.
Dinner at PTB<[Peter Bauer] with Ray Richardson, Tom Griffin (GT Investment) John Wood - LT [London Transport] strike so walked.