Wednesday 29th September 1982
PM back from China 7.00pm
Another 1/8th off interest rates
Talked to Peter M [Peter Middleton] - why do we not buy in £200m or £300m of 12 year gilts? - Would straighten out the yield curve - Already achieved Banking October’s funding target
The £1,250 mn 10½’% T 1988 sold like hot rock and was oversubscribed (£20 down etc)
Bloom for lunch - he started his own business as company doctor
Patrick Minford - we told him of FM [Ferdinand Mount] + AAW’s [Alan Walters] memo on Unemployment Package - reluctant to see the 70% cap raised to 90% - would mean a redn of unemployed of 260,000 instead of 875,000
But politically we could not make it stick.
Patrick wants MMC applied to Unions - in enabling legislation but MMC would need reorg