Tuesday 14th September 1982
David Howell came in to see me - asked about my worries on Serpell - told him of need for sound review over 10-20 year period - we did not want to let ourselves in for a lot of problems later. Hinted that he would like me to be on a group to consider action post Serpell
Foreign Reserves. Jock [Jock Bruce Gardyne], Pet M [Peter Middleton], etc - were we intervening too much - took in $6 Bn up to March 81 then since spend about 2½ or so, 1½ over Falklands - still very small beer comparatively - but do we profit - do not know - inconclusive discussion.
Lunch with PM + Gaston Thorn - PM concerned about process of agreeing on a fair budget
- thought that Germany could not be asked to go on paying - Thorn said France got ag [agricultural] protection and bought German mfctors - that was original De Gaul [De Gaulle] Adenaur basis but things had changed
PM said she was a staunch European and thought we ought to enlarge - particularly Portugal which had voted out a communist gvt.
Meeting on Interest Rates + Funding with Pet Midd [Peter Middleton], Bank etc. - Agreed with Eddie [Eddie George] as in Toronto
Terry Burns a little more pressing but surprising unanimity