Economy: Alan Walters diary [memo to PM saying do not defend the Exchange rate; sends PM memo seeking peaceful resolution of Falklands crisis - “this jingo mood will pass”] [released 2012]

Tuesday 6th April 1982

Financial markets and £ sinking - but not as rapidly as one would expect

- Memo to PM saying “do not defend the ER”

Jock BG [Jock Bruce Gardyne] + Treasury in a flap - even GH [Sir Geoffrey Howe] has lost his nerve and wants to increase interest rates. We should stick with our policy.

Falkland - I sent PM a memo saying we should get Argentina to pay compensation to the Falklanders - objections from John Coles that PM would through [sic: throw] it out - need some blood first for credibility to H/C and to Argentine. - I doubt it. This jingo mood will pass but JH [John Hoskyns] thinks she will miss the change

PM anxious for me to press ahead with the Conversion Plan - I alerted George and Middleton

Michael Scholar note to AAW interleaved in diary, to which Walters has added the date 6 April:

Alan

I think that she has already considered a number of ideas like this but has concluded that it wd mean the end of the government to pursue them now.

It is difficult to get her to find the time to look at papers on this subject, I'm told.

If it were me, I wouldn’t put it in but it is up to you: if you want to put it in the weekend box, say, nothing prevents you from doing so (I suggest in an envelope marked personal or something)

Michael

I put in the G. Pepper note

7-16 April entries blank