Archive (Walters MSS)

Economy: Alan Walters diary [discusses Guildhall speech with PM; MT gives Howe “a roasting on thresholds”][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: 124
Themes: Monetary policy

Wednesday 13th October 1982

“Mantle of leadership of West on her”?

PM called me in to discuss Guildhall Speech

lots of free association. PM said more hope for Russians than Chinese - “they are cruel”

Explained Minford’s SECRET was favoured by the SSRC and very openly available.

PM anxious for me to draft speech and to have lunch with economists

Base Rate Cut ½%

EG [Eddie George] - picked up £100 mn of long dated

- stepping into technical reaction

- customising against

New Stock - £500 mn ¾ premium

- switch into IG’s [Indexed Gilts]

PM saw C/E [Sir Geoffrey Howe] - gave him a roasting on Thresholds and his contempt for Lafferism (when 100% common sense etc.) - still firm on thresholds