Tuesday 21st September 1982
MS [Michael Scholar] brought bad news about Unemployment Trade figures and production - tremendous pressure on her
Peter M. [Peter Middleton] was agreeable to a 3% but thought it should be leaked rather than announced - I agree - told JV [John Vereker] and he saw the argument
PM thinks he can persuade CE [Chancellor of the Exchequer]
Lunch with Private Secretaries
FM [Ferdinand Mount]. JV AS [?Alfred Sherman] discuss what to recommend on unemployment package - JV wants to set in motion a debate on Minford/Smith but I objected and this was carried.
Eddie George + Peter Middleton on Conversion
EG said essentially he could not push any more shorts and cover the funding needs. IG’s [Indexed Gilts] were not moving in spite of favourable stockbrokers comments.
I suggested a convertible from short conventional into IG - say 5 years at 11% and then IG at 3% yield or conventional at 8%