Monday, Jan. 24, 1983

Hail the Conquering Heroine

By Frederick Painton

Thatcher wins another Falklands victory, despite criticism

Like so many of Margaret Thatcher's actions, her surprise visit last week to the Falkland Islands roused strong emotions at home, abroad and, not least, within herself. On one occasion during the five-day mission to that barren South Atlantic archipelago, the Prime Minister was moved to tears as she honored Britain's fighting men, living and dead, whose victory over an Argentine occupying force had lifted Britain's spirits and Thatcher's own political fortunes. Her supporters cheered the 8,000-mile journey, which began shrouded in secrecy until her rugged Hercules transport plane touched down on the new airstrip at Port Stanley, the capital. Thatcher called it her "personal pilgrimage." Her adversaries called it a crass political ploy, calculated to appeal to British nationalism and boost the Prime Minister's standing in time for the election she is expected to call later this year.

The British public was indeed enthralled by the emotional encounter between the 1,800 Falkland Islanders and the woman they regard as a heroine and savior. Most of the country followed her progress on television as the Prime Minister jounced along rutted roads in Civil Commissioner Sir Rex Hunt's maroon London taxi; accepted pink roses and wild cheers from the islanders; stood, head bowed, at the simple white cross marking the grave of Paratrooper Lieut. Colonel H. Jones, whose courage won him the Victoria Cross; and placed flowers by the 14 graves overlooking San Carlos Bay, where British troops first stormed ashore.

With these dramatic scenes from Thatcher's sentimental journey, Argentines were uncomfortably reminded of a lost war that became a national humiliation. Argentine President Reynaldo Bignone branded Thatcher's trip "a new act of provocation and arrogance." Washington, which was not forewarned of Thatcher's gesture, was not much happier about it. Although no public comment was made, privately officials called it "pretty extreme provocation." By reminding the Argentines of their military failure, an official said, Thatcher risked reviving anti-Americanism in a country that bitterly resented U.S. support for Britain during the Falklands war. Said another U.S. official: "It's obvious the only reason Thatcher went was because she's got to run against a bad economy."

That cynical view was shared by the Prime Minister's critics at home, who insisted that she was merely trying to deflect public attention from raging unemployment (now 13.3%) and the alarming decline of the pound. Sterling dropped to an alltime low of $1.56 on foreign exchange markets briefly last week.

Whatever her motives, the Prime Minister's triumphal voyage was nonetheless a highly successful distraction. Just before her plane landed in the Falklands, the local radio station was alerted of the impending visit and broke the news to the islanders. The 900 residents of Port Stanley, now far outnumbered by the 4,000 British troops on the islands, raced outdoors into the blustery summer afternoon. Tousled by the wind, Thatcher said of her presence: "It is more than a visit. It is a profoundly moving experience." Throughout the tour, the Prime Minister repeated her pledge to safeguard the freedom of the islands and keep them British.

Her intransigence is not supported by opposition figures in Britain. Liberal Party Leader David Steel, on a visit to the U.S., said, "At some point, they [Britain and Argentina] are going to have to reach an agreement about peace in the region and how the islands are governed." The pro-Labor Daily Mirror warned, "There will be other Prime Ministers after Mrs. Thatcher. They will not all share her enthusiasms nor have the same willingness to bear the expense." The price is indeed considerable. Recapturing the islands cost the government $1.1 billion, plus $1.4 billion in damage and loss of ships and aircraft. Declared Thatcher: "To maintain peace with freedom and justice is always expensive, but less expensive than war."

Maintaining the pound may prove similarly difficult. With last week's slide, the value of sterling has dropped some 13% since Oct. 12, when the bout of jitters began. The Labor Party's shadow chancellor of the exchequer, Peter Shore, called the decline "yet further evidence of the failure and incompetence of this government's economic policies."

To stem the run on sterling, British banks last week raised base interest rates 1%, a gesture that should help encourage speculators to keep their money in Britain. As soon as she arrived from the airport, Thatcher met with a team of Treasury officials at her Downing Street office. Tired as she was, the Prime Minister was expected to apply another brisk dose of resolution to the pound's neurotic behavior. As her Treasury aides pointed out, inflation in Britain has fallen in the last year from 12% to about 6%. Government budget deficits have been brought under control, the trade balance is in healthy surplus, and unit labor costs are rising by a modest 5 1/2% a year. Britain, said Tory Leader Cecil Parkinson, was "a very safe place to keep your money secure." If necessary, the Prime Minister will make the message clearer. After saving the Falklands, Thatcher hardly seemed likely to let the pound slip out of control.

--By Frederick Painton.

Reported by Bonnie Angelo/London

With reporting by Bonnie Angelo/London This file is automatically generated by a robot program, so viewer discretion is required.