Margaret Thatcher Addresses the U.S. Congress: House of Representatives Session (1985)
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Thatcher's first foreign policy crisis came with the 1979 Soviet invasion of Afghanistan. More on Thatcher: https://www.amazon.com/gp/search?ie=UTF8&tag=doc06-20&linkCode=ur2&linkId=858e3241942d0e05dacb4e088744bbc9&camp=1789&creative=9325&index=books&keywords=Margaret%20Thatcher
Thatcher became closely aligned with the Cold War policies of United States President Ronald Reagan, based on their shared distrust of Communism, although she strongly opposed Reagan's October 1983 invasion of Grenada. Reagan had assured Thatcher that an invasion was not contemplated, and thereafter Thatcher felt she could never fully trust Reagan again. During her first year as Prime Minister she supported NATO's decision to deploy US nuclear cruise and Pershing missiles in Western Europe and permitted the US to station more than 160 cruise missiles at RAF Greenham Common, starting on 14 November 1983 and triggering mass protests by the Campaign for Nuclear Disarmament. She bought the Trident nuclear missile submarine system from the US to replace Polaris, tripling the UK's nuclear forces at an eventual cost of more than Â£12 billion (at 1996--97 prices). Thatcher's preference for defence ties with the US was demonstrated in the Westland affair of January 1986, when she acted with colleagues to allow the struggling helicopter manufacturer Westland to refuse a takeover offer from the Italian firm Agusta in favour of the management's preferred option, a link with Sikorsky Aircraft Corporation. The UK Defence Secretary, Michael Heseltine, who had supported the Agusta deal, resigned in protest.
On 2 April 1982 the ruling military junta in Argentina ordered the invasion of the British-controlled Falkland Islands and South Georgia, triggering the Falklands War. The subsequent crisis was "a defining moment of her [Thatcher's] premiership". At the suggestion of Harold Macmillan and Robert Armstrong, she set up and chaired a small War Cabinet (formally called ODSA, Overseas and Defence committee, South Atlantic) to take charge of the conduct of the war, which by 5--6 April had authorised and dispatched a naval task force to retake the islands. Argentina surrendered on 14 June and the operation was hailed a success, notwithstanding the deaths of 255 British servicemen and 3 Falkland Islanders. Argentinian deaths totalled 649, half of them after the nuclear-powered submarine HMS Conqueror torpedoed and sank the cruiser ARA General Belgrano on 2 May. Thatcher was criticised for the neglect of the Falklands' defence that led to the war, and especially by Tam Dalyell in parliament for the decision to sink the General Belgrano, but overall she was considered a highly capable and committed war leader. The "Falklands factor", an economic recovery beginning early in 1982, and a bitterly divided opposition all contributed to Thatcher's second election victory in 1983. Thatcher often referred after the war to the "Falklands Spirit"; Hastings and Jenkins (1983) suggested that this reflected her preference for the streamlined decision-making of her War Cabinet over the painstaking deal-making of peace-time cabinet government.
In September 1982 she visited China to discuss with Deng Xiaoping the sovereignty of Hong Kong after 1997. China was the first communist state Thatcher had visited and she was the first British prime minister to visit China. Throughout their meeting, she sought the PRC's agreement to a continued British presence in the territory. Deng stated that the PRC's sovereignty on Hong Kong was non-negotiable, but he was willing to settle the sovereignty issue with Britain through formal negotiations, and both governments promised to maintain Hong Kong's stability and prosperity. After the two-year negotiations, Thatcher conceded to the PRC government and signed the Sino-British Joint Declaration in Beijing in 1984, agreeing to hand over Hong Kong's sovereignty in 1997.
Although saying that she was in favour of "peaceful negotiations" to end apartheid, Thatcher stood against the sanctions imposed on South Africa by the Commonwealth and the EC. She attempted to preserve trade with South Africa while persuading the government there to abandon apartheid. This included "[c]asting herself as President Botha's candid friend", and inviting him to visit the UK in June 1984, in spite of the "inevitable demonstrations" against his government.