Monday 1st February 1982
Saw GH [Sir Geoffrey Howe] he asked me what my PSBR position was. I prefer 8 but would settle for 9. He said politically he was considering 9½ what did I think. I said I would live with it but he was sacrificing some interest rate effects.
TB [Terry Burns] phoned about M1 - fixed up mtg.
Ryrie phoned to join a regular meeting on money and interest rates.
Lunch with Tim Lankester - Scholey [deputy chairman BSC] knows no economics and nothing about monetary policy - but good at motivating people etc.
to see Walter Salomon re his presentation at dinner - looked pretty disastrous - far too long.
PM saw me about TUC + Treasury Papers - the latter very academic. TUC was objecting to Direct investment overseas which is competing with UK. But then the Japs would be in Indonesia etc. Very confused.
CPRS [sic: Walters surely meant CPS; see opening of 3 Feb entry also] dinner for Donors: Walter Salomon walked out when he had gone on for 10-15 minutes - very angry because [gap in text]