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