Tuesday 7th December 1982
Overnight pressure on stg [sterling] mainly from Continentals + Yen - 11% on 7 day, 103/8 on 3 month - threat to base rates
PM said that the last thing she wanted was another increase in Base Rates. Ex R 85.4
Give away on Ilygon - “bird in the hand” [line in red crayon]
- great pressure from Trade + Industry
E on steel plant at Iligon
Tax avoidance (PM’s mtg) cancelled
Matthew Simon at Tante Claire
Spent £160 by 10.00 oclock - but then pressure eased but still 11% of 7 day, 103/8 on 3m
4.00pm 10¾ [on 7 day], 10½ [on 3 month]1629 3.93 Ex Rate 85.7
Steadied of its own accord - no more intervention apart from £125m this morning