Thatcher Counters U.S.-Lap Dog Image By Admonishing Washington on Deficit
LONDON -- The poodle is biting back.</br></br>Prime Minister Margaret Thatcher was derided by satirists here as Ronald Reagan's "poodle" when in April 1986 she allowed U.S. planes to launch their attack on Libya from British air bases. While her international moniker has been "Iron Lady," here at home critics have cast her as America's faithful lap dog.</br></br>But she is now impatient with the Reagan administration because she believes the global financial crash -- and the ensuing uncertainty in financial markets -- threatens everything she has worked for in her eight years as prime minister. Yesterday in Parliament, she criticized American economic policy, saying she is "very anxious" for deficit-reduction negotiations between the president and Congress to succeed. "A convincing package to reduce the U.S. budget deficit is a vital first step towards restoring confidence in the financial markets," she said. The blunt public admonition followed a private message sent Wednesday to President Reagan.</br></br>After years of tough -- and politically unpopular -- retrenchment, Britain's economy is growing smartly. But if the current market turmoil continues -- and many analysts believe it will unless the U.S. slashes its budget deficit -- then Britain could be dragged into a world recession.</br></br>Mrs. Thatcher isn't without some influence over her pal, Ronald Reagan. The two have a mutual admiration society where most aspects of economic policy are concerned. But American officials aren't likely suddenly to clean up their economic mess just because Britain's prime minister has spoken. Her comments, and the more pointed statements of other British officials, instead show how peeved Britons are with American policy makers.