Economy: Alan Walters diary [Prior trying to stop abolition of wage councils; Invergordon bailout][released 2012]

Document type:	Declassified documents
Source:	Walters MSS (Churchill Archives Centre): WTRS3/1/2
Editorial comments:	Read other entries from this diary. View all Walters documents. The original diary can be studied here
Importance ranking:	Major
Word count:	168
Themes:	Industry, Monetary policy, Privatized & state industries, Pay, Public spending & borrowing

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.