Wednesday 12 November 1980
… Back for the meeting in MT’s study on Douglas Wass’s paper, “Policy Options” - I assumed she’d seen our paper. But Tim passed me a note as I sat down, which said, “She’s asked us not to join in”. David afterwards said that he felt she didn’t want me introducing some unpleasantly realistic home truths, hence the note to ‘us’. The meeting was MT, GH [Sir Geoffrey Howe], Douglas Wass, Robert Armstrong, David [Wolfson], Clive [Whitmore], Tim [Lankester] and me. It was in my view a waste of time. The only option she’d really accept was 2 per cent off MLR, though Douglas quite dubious unless the accompanying PE statement was v tough. She wouldn’t really consider a fiscal switch - I wasn’t quite sure whether she was saying … that she wanted no increase in personal taxation whatever. …But that means you can’t get out of the box at all, surely? … MT attacking Douglas and GH, not on our agenda of really crucial issues. Otherwise generally futile discussion, rattling about in the box, MT asking for assurance that GH was really “getting at” the nationalised industries - as if shouting at them could change performance by April. … Afterwards talked with David in his office till nearly 6 (from 4.35) having seen Dwin Bramall and others going in to see MT in the Cabinet Room, and talking briefly to Robert A (who didn’t really make much contribution to the discussion) who seemed to feel v similarly about the box and said how we’d just got to get ahead of the game. I thought I glimpsed our paper in his hand, clandestinely copied to him by Tim, but I could be wrong. David and I agree she and GH just weren’t facing facts and GH should be reading the riot act to her. DW feels it’s for him to write the note, not me. … He said she does not want me at Chequers on Sat with Ian MacGregor on BSC. He feels she’s just insulating herself from frank discussion …