#ThisWeekInDiplomacy #OTD in 1989, the Madrid European Summit saw UK isolated in opposing Delors plan linking Monetary Union and Social Charter.
There had been much internal wrangling in London in days prior...
Charles Powell, a foreign affairs adviser to PM Thatcher, suggested on 21 June, a form of words for Cabinet: hold out on Social Chapter but agree to beginnings of ERM without a firm commitment to join - knowing that stages 2 and 3 may never happen.
Percy Cradock, Foreign Affairs Private Secretary to the PM: “it is of overriding strategic importance that we should not be marginalised in Europe”
Powell was clearly appalled (“selfish”) when, despite the Cabinet meeting, finance minister, Lawson, and foreign affairs minister, Howe, seemed to want to rehash the Cabinet discussion on the eve of the summit.
Thatcher made a note of this ‘Madrid Ambush’: [Howe and Lawson] “demanded...I give an undertaking to join the ERM and...a date...If not they would both resign. I said I would give no undertaking...but for market reasons...they should know better than to demand a precise date.”
It was maybe clearest indication to that point of how things would end for Thatcher premiership. Howe would, sometime later, seal deal with damaging resignation speech focused on Europe.
Wonder about statecraft lessons: this unfolded over 18 months. Spotting hubris early enough to course-correct? Also illustrates strain a wait-and-see diplomatic strategy, although perhaps attractive in the moment, can put on your own side, if there are tensions.
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