Economy: Alan Walters diary (exchange controls) [Wakeham accommodating to Walters “Yellow Peril” arguments; George proposes exchange controls][released 2012]

Monday 29th November 1982

Tremors on Foreign Exchange Mkts but soon firmed up

M. Marc - Frenchman

Phoned Paddie [Paddie Walters]

Lawrence Prest + Co

John Wakeham on Yellow Peril - very accommodating to my arguments - particularly on withdrawing completely the upstream loan measures - since they couldn’t be identified in tax avoidance terms

Eddie G [Eddie George] + Peter M [Peter Middleton] - drop depositories for int + divi - Exchange Rate held and Interbank at 10½ just at limit of threat to Base Rates

EG said one way to stop flight of £ on election was to introduce exchange controls!! - trying it out

I told Eddie about Charles Goodhart (but not naming him) telling Marty Feldstein that we were on an exchange rate target - He protested but reported it