Mr. Mills
Mrs. Thatcher, can we talk first of all about Anglo-American relations.
As we come to the end of the 70s, what is the state of Anglo-American relations and how do you see them developing in the 1980s?
Prime Minister
Well, I think the state of Anglo-American relations is very good indeed. First, there is a natural affinity between the people of Great Britain and the people of the United States. It is a common history, belief in a common political system, belief in liberty, belief in the rights of the individual—all of these being of very great affinity to the people of America and the people of Britain, and that is reflected in their governments.
There have been other things. There is common danger. The threat which the democratic world faces from—it usually comes from the Soviet Union, because they wish to impose their ideology on us. So common danger brings you together.
There is something else too: we have a common interest—not only ourselves and the United States but with many other [end p1] nations—because of the problems that have arisen: are we going to be able to get enough oil to carry on with the standard of living we have come to expect?
And then, finally, there is just one other thing. We have a common interest in seeing that the customs and laws of civilization are upheld in every country in the world. I just refer briefly to Iran. Even in the earliest civilizations, the messengers were given safe conduct and protected, and it has been a very great shock to all of us that diplomats who are today's messengers do not automatically have that protection; and that too has brought us all much much closer to America on a really human problem and, you know, that is the level at which feelings are strongest.
Mr. Mills
Can we talk now about the world economy? Things are looking pretty bleak at the moment for the economy. How do you see it developing over the next few years? Is there any room for greater optimism than there has been in the 1970s? [end p2]
Prime Minister
Let me take the last part of the question first. I would not be in politics unless I felt there is room for optimism, because what happens is determined by what people do now. It is not predestined. We can affect it in the future and that is why I myself am right in the heart of politics.
There are going to be two problems dominating the world economy. In the Western Nations it is going to be inflation, because I think really you know that we have inflation because often politicians promise more than the people can produce, and we just must stop doing it. But we also have the tremendous uncertainty about the oil situation. Ironically enough, in the fourth quarter of this year, the actual demand for oil is slightly down because we have all been economizing and we must economize. We cannot be profligate with this rare resource. Demand is slightly down; supply is slightly up, but the price has not fallen. Now why? It is because people are very worried indeed; are they going to be able to have access to oil in the future? And everyone, therefore, is trying to stop, everyone trying to protect their own industries in the future.
Now that is going to dominate the world economy, but do not think it is only an economic question. It is not. It is a political one, because it is political decisions that have led to the price of oil rising. [end p3]
So there are two things in the West and, of course, for the Third World. They too are going to be grievously affected by oil prices, because the price they have to pay for oil will prevent them from developing their very considerable resources, and they have so much room for growth and expansion and for the raising of the standard of living of their peoples.
Mr. Mills
But are you personally optimistic about the way the economy is going to develop here in Britain and in the world?
Prime Minister
Am I personally optimistic? I think that frequently you have to go through a very difficult time to come through to a better time. It think it really is sometimes like when you can see things wrong; you can see things wrong with a patient and you have to give them medicine to enable them to come through to be a healthier and fit person. There are a number of economic problems like that, and I think Britain will come through to be a stronger country. We shall turn from being a country where we just concentrated on distributing the wealth we have got to recreating it anew, and I do not refer only to North Sea oil; I refer to the basic inventiveness and talent of Britain which has not been given its full rein in the last years. It will take a little time, but we shall do it. [end p4]
Mr. Mills
Let us talk, finally, about your discussions with President Carter.
What topics are you going to be covering and what do you hope is going to come out of the discussion?
Prime Minister
Well obviously, in Jimmy Carter 'shis mind, unless things are sorted out by next week-end—which I would hope, but we cannot necessarily expect—Iran will feature. It is a thing which affects us all, you know. There is never a day in which we do not give some part of the day to discussing what can we do to help United States in the grievous situation there, and it affects us all. That will be preeminent in his mind.
Then, as you know, we have just had to take very important decisions with NATO this week, to see that we are strong enough to deter the Soviet Union and her satellite countries. So we are bound to talk about that and the future of nuclear weapons and how we in the United Kingdom can develop our own nuclear deterrent.
Of course, we talk about the world economy, because inflation and oil will dominate everything, and I am sure that I too will be asked some questions about Northern Ireland and then I must talk too about Rhodesia. As you know, we have just sent a Governor there and we hope to have elections soon and we hope to keep democracy in the [end p5] heart of Africa—and what an achievement that will be—and we shall need a little bit of help, a little bit of encouragement, to do so.
Mr. Mills
Are there any objectives in particular that you would like to achieve as a result of this visit to the States?
Prime Minister
I do not think you can necessarily set specific markers in something like this. It is steadily to develop a closer relationship and a more concerted approach to the problems of the world, because no country in the world is isolated now from others. What happens in Cambodia affects what happens in Britain and you have seen the marvellous response from Britain to try to help the refugees and the children. So it really is part of a long, continuous process to develop ever closer relationships so that we consult with United States and they with us.
But beneath it all is this common history, the common ideals of liberty and service to the community.
Mr. Mills
Mrs. Thatcher, thank you very much.