Diary Entry - 01/18/1983

Key Facts
President Reagan holds Cabinet meeting where it was determined that the next budget would be equal to the 1983 budget in constant dollars, but an increase of 4.5% in actual dollars due to inflation.
President Reagan meets with the Prime Minister of Japan Yasuhiro Nakasone to discuss trade relations.
Soviet Foreign Minister Andrei Gromyko concludes a 2-day visit to Bonn, West Germany, where he urges his hosts not to go through with deployment of new U.S. intermediate-range nuclear missiles, scheduled for the fall.
P.M. Nakasone (Japan) arrived. We met privately. I acknowledged what he had done already about reducing tariffs & upping the mil. bud. but told him more was needed. I recognized his pol. problems but told him we had some too—a drive in Cong. to turn to protectionism, which was growing in strength. I believe he will take action. We moved to larger meeting in the cabinet room & continued discussion there & lunch in the W.H. I invited him & his wife & daughter to brkfst. tomorrow. Cabinet met & heard last word on budget. In constant $ it will be equal to ’83 bud. Allowing for inflation it will [be] 4 1⁄2% bigger the exact amt. of present inflation rate. Charley Wick brought in Rupert Murdock for a meeting. He is supportive of me which means some of the press is with us—his press.
