Tuesday 1st June 1982
Write note for PM on Tax Increase issue for Reagan - impossible to get hold of Ken Couzens and Chancellor all day
Discovered I was not invited (by John Coles) to Reagan briefing - wrote irate note to JC
Lunch with Leonard Silk + Stephen Rattner - LS a rather stupid man - still believes that expansionism will reduce unemployment
Did not appreciate Eire, Germany, France etc. counter arguments. Believes in Communal coordination of econ policies (like EMS!!)
But said basic objective of summit was to put pressure on Reagan to increase taxes.
I said that it was not for us to tell him how to reduce deficit.
Eased 3 month + 6 month rates down by 1/8th - probably effect dealing rates on Thursday or Friday.