Archive (Walters MSS)

Economy: Alan Walters diary (E-meeting) [confused debate at E-meeting; Bruce-Gardyne annoyed at Governor][released 2012]

Document type: Declassified documents
Source: Walters MSS (Churchill Archives Centre): WTRS 3/1/2
Editorial comments: Read other entries from this diary. View all Walters documents. The original diary can be studied here
Importance ranking: Major
Word count: 287
Themes: Monetary policy

Tuesday 20th July 1982

Peter M [Peter Middleton] phoned ask me mtg with FST [Nick Ridley] - Gvr [Gordon Richardson] wanted to have £500m 1989 £500m 20013 as taps - latter to straighten out the maturity structure - I said NO

E - confused debate on LA Expenditure GREAS etc. - £18,800m “allocated” but expected that addn 700m would in fact be spent

- enable no increase in rates if wages held to 5%

Max political furore

Norman T’s [Norman Tebbit] job splitting approved - also he mentioned extending YWS to domestic servants - He had talked to GEC etc about job splitting - not to the Central Bureaucracy for Industry (CBI) [sic]

Lunch at James Capels - I gave account of monetary policy and the long term aims

Ec Sec [Jock Bruce-Gardyne] - agreed - some £500 Bn OK

Gvr/Chancellor [Sir Geoffrey Howe] meeting - Gvr must have £1 Bn

Chancellor agreed £ Bn tranchettes

Gvr - shorts no good, all 2013

JB/G [Jock Bruce Gardyne] protested - presentationally silly for inflation

Low point in yield curve 12%, JB/G

Chancellor agreed £500m long £250 short

What should be long - 2013 or 1998

C/E wants to tie it up and go away for holiday

→ Gvr would not want to come back

Index - Long tap for 2011

250 - 1989, 1998

JBG came to see me and said how annoyed he was with Gvr - matter of face - JB.G said he would tolerate 300 - 1989 - 300 1998 but he thought Gvr would object and say he wanted 2013

- could I frighten Geoffrey [Sir Geoffrey Howe] - No. 10 Big Bertha [ie, MT as the big gun, to frighten Howe?]