Economy: Alan Walters diary (budget) [foreign reserves meeting; PM said she was a staunch European and we ought to enlarge][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:	227
Themes:	Defence (Falklands), Monetary policy, Pay, European Union (general), Trade unions

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