Wednesday 14th July 1982
Wages Councils at E - registered NT’s [Norman Tebbit] modest proposal - selectively Retail Trades - politically not on. Jim agreed that wages did not affect employment.
ominous signs that P Jenkin [Patrick Jenkin] wants an expensive package of £1 BN +
Lunch with Harold Lever - wants zero coupons to have capital gains for liability only to lender
PM on Interest rates - wanted her about the B/E exchange rate band and how 88-92 could cause a crisis - funding stop etc, but no way we can get out of it
She was v. annoyed with P Jenkin letter - who wrote it (Hans Liesner?)
Drink with Nigel Lawson - Macro Policy is fine - B/E - he liked Haddon-Cave.
Thinks Treasury is Incomes policy oriented (Wass) and they have got GH [Sir Geoffrey Howe] going along those lines - see last speech.