Thursday 6th May 1982
Sterling rebounds on peace hopes
Chancellor comments on CPRS - very eclectic, all over the place - note to PM saying so.
Jim Prior trying last ditch attempt to stop the abolition of wages councils (2 decided by PM)
I expect she will be hopping mad when she sees it especially since it suggests studying Layard’s incomes policy
PS [Private Secretary] lunch
Sent Brittan (L) a suggestion that we make wage reduction a condition of Invergordon bailout
George [Eddie George] + Middleton on Conversion - agreement on strategy - stupid to sell gilts at 14% if inflation is 5%. But George would not agree that we could get the indexed market going by reducing increasing the yield to 5%
David Marsh (in FT) says I was defeated in summer [word unclear] in my bid to bring in MBC [Monetary Base Control] - I do not know who briefs him, possibly the Treasury trying to score a point and make me appear innocuous and ineffective.