British Defense Chief Quits in Dispute With Thatcher

Defense Secretary Michael Heseltine resigned in a spectacular government row today after accusing Prime Minister Margaret Thatcher of stifling his campaign against the sale of Britain’s only helicopter firm to American-led interests.

Heseltine, a flamboyant politician often mentioned as a successor to Thatcher, stormed out of a Cabinet meeting and told reporters he was quitting.

Later, at a news conference, Heseltine accused Thatcher of personally blocking his one-man campaign to sell the ailing Westland helicopter company to a European consortium, rather than to the U.S. Sikorsky firm and Fiat of Italy.

Conspiracy Suggested

Heseltine, 52, suggested there was a conspiracy by Thatcher and other Cabinet ministers to suppress information favoring the European bid. “This is not a proper way to carry on government,” he charged.

Heseltine has been in open conflict with Trade Secretary Leon Brittan in the Westland dispute, while Thatcher kept a neutral public profile, calling the sale a private business deal.

Less than two hours after Heseltine stormed out, Thatcher’s office announced that Scotland Secretary George Younger will replace him. Younger, 54, is chairman of the Conservative Party in Scotland.

A statement by Thatcher said Heseltine had opposed a rule that the Cabinet should approve all public statements relating to the helicopter company. “Mr. Heseltine finds himself unable to accept this procedure and left the Cabinet. The prime minister expressed her regret at his decision,” the statement said.

British newspapers had been speculating for weeks that Heseltine could be forced to resign as he defied increasing odds and continued to fight the Sikorsky-Fiat bid.

But Conservative Party Chairman Norman Tebbit today said: “Good Lord, no. Quite the opposite,” when asked whether there had been pressure on Heseltine to resign.

Tebbit, who participates in government meetings, said the Cabinet had decided on the rule of clearing Westland statements, and Heseltine said, “I’m afraid I shall have to leave.”

Wealthy Businessman

A wealthy businessman who made a fortune in magazine publishing before entering politics, Heseltine has been a rising star in the Conservative Party since the early 1970s, and he became environment secretary in 1979 when Thatcher won the general election.

He was appointed defense secretary in January, 1983, and was reappointed when the Conservatives won the elections that June.

The Westland board of directors has unanimously recommended accepting the Sikorsky-Fiat bid, and took out full-page newspaper ads today urging stockholders to vote for it.