Interviewer
Prime Minister, the event that overshadowed all others in Britain this year was obviously the Falklands crisis. For a while it thrust the country into a totally different world role. As you look back on the conflict now, do you believe there are deeper and more far reaching lessons still to be drawn from it?
Mrs. Thatcher
Oh yes, I think so. The lesson was to anyone who invades someone else's territory, and tries to subjugate other peoples, the lesson was—don't do it, you'll lose. I found when I went to Berlin, well after the Falklands campaign was over and successfully won. I was able to say to the people of Berlin—look, I not only believe in freedom and justice, but when it was taken away from some of our people by an invader, you know that we went to get it back and obviously it hadn't occurred to them in quite that way. But it was just an extra reassurance that we really meant what we said when we were prepared to defend the liberties of our own people.
Interviewer
World support for Britain was very widespread at the time, but now many countries, particularly in Latin America are becoming increasingly anxious to see tangible signs of improved relations between Britain and Argentina. What would you say to them?
Mrs. Thatcher
We've always been prepared to hold out the hand of friendship and indeed we wanted to get rid of some of the restrictions on trade that still exist and we offered to do so but we've had no response so far, indeed. As you know, the Argentines have not agred to a permanent end to hostilities so really it's over to the Argentine now.
Interviewer
The United States refusal to back Britain over the Falklands vote in the United Nations, was only one of a number of serious disagreements between the two countries throughout the year, the steel imports and the issue of the pipeline embargo. How much … of … and others … . how much of a strain have these put on the relationship and how would you assess the relationship now?
Mrs. Thatcher
When we've had things like that occurring we've been absolutely frank as one can be with friends and said—‘look, what you did there was wrong and insensitive’—and I believe they know it, but we've always been very much aware that it's in the interests of freedom, justice, for the people of the United States, the peoples of Europe, and particularly the peoples of Britain and of the free world everywhere, for those of us who believe in democracy and the principles I've enumerated, that we stick together and we're seen to stick together. So, yes, we do have these differences from time to time but they do not undermine the essentials of the alliance and we'll always see to it that they never will. [end p1]
Interviewer
Well, the West enters 1983 having to cope with the uncertainties of a new Soviet leadership. Plus a growing European and indeed American unilateralist movement. How will Britain set about tackling these issues and what value do you think its contribution will be to East/West relations generally?
Mrs. Thatcher
I do not think that many people will be taken in by unilateralism, which is one-sided disarmament, after all if you really believe in freedom and justice, you believe it is worth defending and I think that most people share the view which I take and most of my colleagues take, namely that we're the true disarmers, if you really want to get rid of armaments from the world or to reduce the amount you spend on them—you want to get them down on all sides and you want to get them down simultaneously. And in a balanced way, that's the way to get them down genuinely and still be capable of safeguarding the things and the people which you hold dear.
Interviewer
1983 also looks like becoming a year when world trade could slip towards greater protectionism. The European Community. At the present GATT ministerial meeting in Geneva failed to condemn it as strongly as many countries would have liked. Where exactly does Britain and the rest of the EEC stand on this issue and what line will you take?
Mrs. Thatcher
I think that we … . we believe in open trade. After all we're a great trading nation and, as you say, from our latest export figures, we are exporting still quite well, our balance of trade is still good. But you simply cannot have an open market yourself unless you find an open market elsewhere, we can't just take everything in here and then find difficulty in getting goods into other people … . and so if you believe in open trade you've got to go at other people's barriers and say—‘look, if you're going to keep up barriers, we are going to put them up, you will have to see a retaliation’ and that's the way to try to get them reduced. But you are quite right, the barriers are not coming down, some of them are tariff barriers, we have enormous tariff barriers in our trade with spain which are totally unfair and we are having now to take action through the Community. Some of them also are non-tariff barriers of the kind that you get with japan and we have a number of voluntary arrangements. But what you've got to have is fair trade and it's got to be fair to us all, we can't have everyone free to come to some markets and us, who are an exporting nation, not free to go to others in the same way.
Interviewer
Well, still on the European Community, Britain has now been a member of the European Community for ten years, how valuable has membership been, both for the country and for the community?
Mrs. Thatcher
They've been ten very difficult years for us all. I think it's been much better for us to be in the community than it would have been to have been outside the community. I think it's all … . also better from the viewpoint of foreign affairs in that we meet regularly to discuss things one among another and too on economic affairs, it's helped to keep us I think on to sound policies which offer much more hope for the long term future than had we just run short term ones and reflated. [end p2]
Interviewer
What benefits would you say it had, the membership had, for those countries lying outside the European community?
Mrs. Thatcher
Well, a number—certainly the under-developed world negotiates with Europe as a whole, they negotiate trade agreements, some of them have got very good trade agreements with Europe as a whole, and then we have quite a big programme to help countries in the third world, so there are two things immediately.
Interviewer
Finally, Prime Minister, your domestic economic policies have remained consistent since you came to office in 1979, that is the overriding need to beat inflation and to make British business more competitive. Do you still believe the measures that you are adopting are the right ones, despite the high level of unemployment at the moment?
Mrs. Thatcher
They're absolute correct because if we were to do the opposite, just take for a moment if we did the opposite: if we pursued a policy of inflation—first. It's dishonest to every saver in the country. Second, it would ultimately make your goods more expensive and you'd be less able to compete in the markets of the world, that would lead to even higher unemployment, so we have to get our inflation down to below that of Germany and japan to be able to compete. We also have to be efficient if we are to sell goods. We also are not bedevilled by a very large budget deficit as are a number of other countries, they've run their policies, some of them, in a less sound way than we have and they are now, in fact, having very great difficulty. So governments have to run things right for people to be able to take advantage of a sound financial policy. What governments can't do is to create the enormous goods and businesses of the future. For this you need the enterprise and initiative of the individual and their talent and ability to get other people working with them. You know, we are a very very inventive people, we are very scientific people, we are very inventive, somehow we've never learned as other countries have, to turn that scientific genius and invention into industrial and commercial profit. That's what we've got to do now.
Interviewer
Prime Minister thank you very much indeed.
Mrs. Thatcher
Thank you.