Records Reveal Thatcher's Defence Cuts Battle

A year before she oversaw victory in the Falklands Conflict, Margaret Thatcher was embroiled in a battle with British defence chiefs over spending cuts, and was warned that she could "prejudice our national security."

The full extent of the internal arguments which preceded the invasion of the Falklands was exposed in documents released by the National Archives.

The Cabinet papers were kept secret for 30 years.

On May 18th, 1981 the head of the Royal Navy wrote to her after she had initially refused to meet him to discuss proposed budget changes.

The First Sea Lord Admiral Sir Henry Leach said: "I note with regret but understanding that the tightness of your programme precludes your seeing me personally as requested.

"I am confident however that you will at least spare two minutes to read this note from the professional Head of the Navy before you and your Cabinet colleagues consider a proposition substantially to dismantle that Navy."

He ended his letter with a warning that with hindsight seems remarkably prescient.

"We are on the brink of a historic decision. War seldom takes the expected form and a strong maritime capability provides flexibility for the unforeseen," he said.

"If you erode it to the extent envisaged I believe you will foreclose your future options and prejudice our national security."

The files also contain a letter written by the then Foreign Secretary Lord Carrington in which he advised that the axing of HMS Endurance from its duty in the region could have dramatic consequences.

"Any reduction would be interpreted by both the islanders and the Argentines as a reduction in our commitment to the Islands and in our willingness to defend them," he wrote.

Then-Defence Secretary Sir John Nott told Sky News: "Endurance had been up for scrapping for the previous 10 years and it would have taken a great deal of money to keep her going. At the time it seemed like a sensible decision.

"We had no idea that the Falklands problem was going to arise, in retrospect I wish in fact we hadn't done it. But you know you can be very wise after the event."

In late March the following year the Argentinian military government led by General Leopoldo Galtieri invaded the remote outpost of South Georgia, before taking control of the Falkland Islands.

Sir Henry Leach recommended that the islands could be retaken if a Naval Task Force was dispatched immediately. Argentinian forces surrendered on June 14th.

The 10-week war cost 255 British and 655 Argentinian lives. Three islanders also died.

The dispute over the Islands' sovereignty continues, and this month several South American countries refused to allow ships flying the Falklands flag to dock in their ports.

And there are many other issues from the 1981 Cabinet papers which continue to resonate in 2011.

The battle to control public spending at a time of economic difficulties; the fall out from inner city riots; there are even insights into Anglo-French diplomacy - always a tricky issue as David Cameron has recently discovered.

Leafing through the folders of letters and briefing papers from 1981, while wearing the obligatory white gloves to protect what are historical documents, there are many examples of the personal hand of Baroness Thatcher.

She has underlined the most important points, or added comments directed to her officials.

On one public expenditure briefing she notes to Tim Lancaster, her Private Secretary for Economic Affairs: "Tim, I cannot just do nothing about this. We appear to have nocontrol over expenditure."

In another she writes: "Tim, this is another example of cabinet taking decisions on totally inadequate information. This cannot go on."

In the aftermath of the riots in Brixton and Toxteth, the files contain a lengthy list compiled by the Metropolitan Police Commissioner Sir David McNee of equipment he feels is needed to protect officers and maintain public order.

CS gas, rubber bullets and water cannon are recommended along with riot shields and protective headgear.

There is also a suggestion for what was termed a Heli-Telly - a helicopter equipped with surveillance cameras.

And when briefed that an upcoming visit to Britain by the French President Francois Mitterrand would involve a 40-minute car ride together without room in the vehicle for an interpeter, Mrs Thatcher decides to greet him at Downing St rather than travel with him from RAF Northolt.

There was also a lengthy discussion with French officials over the fact that Mrs Thatcher would be seated in a chair with arms while the French President's chair was armless.

The French objected until it was pointed out that a previous President had sat in an armless chair.

The once private messages from the Thatcher premiership are even more timely because of next week's release of the film about her life.

The Iron Lady stars Meryl Streep, but the documents also reveal Baroness Thatcher to be the Ironing Lady.

When a row develops about the cost of providing household items for her Downing St flat she tells officials on three occasions that she is prepared to buy her own ironing board, and pointed that she has "an excellent ironing board which is not in use at home".

She also offers to use her own crockery. Thrift in public spending began in the Thatcher home.