SECRET: LANDSMAN: COMMERCIAL IN CONFIDENCE
of the Exchequer's permission to pass on to me the following information. The Chancellor has talked to the Chairman of Sailmaker, who says he has it in mind to make a bid for Quarterdeck but has reached no decision. Sailmaker has blown hot and cold on this matter, but the latest information available to the Chancellor is that they may indeed make a bid tomorrow morning first thing. The Treasury are not aware of any Bank of England pressure: the Bank has consistently said it would abide by the market. (Although I will pass this on to the Governor for his personal information, he will not be able to speak again to Mr Purves, who will already be in the UK having his meetings here).
5. I have told the Governor that I have the impression that the Bank of England are none too happy with Mr Purves and that there is a feeling that he has shown little sensitivity for the political and financial concerns at this end: the thought has been expressed that Mr Purves is only too well aware that this is a difficult time to raise his proposals, but that he is counting on being able to force them through precisely for this reason. The Governor's telegram to me, C attached, is reassuring on this point. It is interesting to
note that, in determining his present tactics, Mr Purves will have been consulting Baroness Dunn and Li Ki Shing.
6. Events could move quite quickly tomorrow before the call takes place. I will do my best to keep the Secretary of State up to speed with developments.
Andows Buan
R A Burns
EM4ABK SECRET: LANDSMAN: COMMERCIAL IN CONFIDENCE