Two containers of high explosive were discovered by a sniffer dog shortly before the ambassador was due to host President Francois Mitterrand in October 1984, the documents unveiled by the National Archives show.
According to the documents cited by Sky News, the French security officer who planted the bomb was later found with further explosives in his room at the Grosvenor House Hotel.
British police were "extremely annoyed" after the plot was uncovered, the documents show.
The minutes noted that the ministers demanded the exercise would not be repeated by the French, saying: "In particular assurances should be sought regarding security at Buckingham Palace.
"The police were naturally extremely annoyed at what had occurred.
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