He ‘Restored Faith in the American Dream,’ She Says : Thatcher Hails Reagan in Fond Farewell

British Prime Minister Margaret Thatcher, in a farewell filled with pomp and sadness, Wednesday hailed President Reagan’s Administration as “one of the greatest in American history,” declaring that he has “restored faith in the American dream.”

During her White House visit, Thatcher, who will meet with President-elect George Bush today, also said that the West is “very fortunate” to have Bush as Reagan’s successor. “That brings enormous stability and confidence to the feeling of the world,” she told reporters as she sat next to Reagan during a photo session in the Oval Office.

An impressive White House ceremony, including troop reviews, a fife and drum corps parade and a 19-gun salute, officially greeted Thatcher. Her friendship with Reagan--her conservative ideological soul mate--is among the closest ever between a prime minister and an American President.

During the 20-minute ceremony under gray skies on the soggy South Lawn and later during photo sessions, Reagan and Thatcher exchanged exceptionally generous remarks, notable as much for their poignancy as for their warmth.

After citing their mutual love of little government, individual creativity and strong national defense, Reagan lauded Thatcher for her “extraordinary role in the revitalization of freedom.”

The President, who leaves office Jan. 20, said that “it is profoundly reassuring to me and to all who care about freedom that you will continue to share with America your vision and your steady hand.”

He called this “especially critical to us at this moment of transition in our government.”

Thatcher, following Reagan to the microphone as their spouses watched nearby, credited him with having “restored faith in the American dream--the dream of boundless opportunity built in enterprise, individual effort and personal generosity.”

She told Reagan that his office is “the greatest in the world. But it is the man who holds that office--you, sir--who has enabled us to begin the world over again.”

The two leaders met privately for 30 minutes, then talked in a group that included Bush, Secretary of State George P. Shultz and other U.S. and British officials. They discussed a wide range of issues affecting both countries--the environment, agriculture, economy, regional conflicts--but broke no new ground, according to Rozanne L. Ridgway, assistant secretary of state for European and Canadian affairs.

Ridgway said that Bush did not speak during the meeting, although he nodded in agreement that the environment needs protecting. She noted that the meeting was for Reagan and Thatcher, with Bush’s meeting with Thatcher due today.

Express Regret

As they posed for photographs in the Oval Office before their meetings, Thatcher and Reagan chatted, expressing regret at the prospect of never meeting again at the White House, although Thatcher said that “I’m sure I shall see and talk with him many more times” elsewhere.

“This is the last time you’re going to take the President and me and this room,” Thatcher said to photographers. “So it’s just rather special . . . for us, isn’t it?”

“Yes,” said the President.

At one point, after Reagan praised unity among the Western allies and Thatcher’s role in fostering world peace, the prime minister paid Reagan a final glowing compliment before photographers were ushered out.

“The President staked out the ground on which he wished to fight,” Thatcher said. “He stood on that ground.” Turning to Reagan, she added, “And you fought and you won.”

Wednesday night, the Reagans hosted their final White House state dinner in honor of Thatcher, and the two leaders continued to praise each other.

In a toast, Reagan compared their “personal rapport and genuine friendship” to that enjoyed by Winston Churchill and Franklin Delano Roosevelt, saying, “I believe we’ve added to that great stream of Anglo-American history.

“Those who love freedom have not had a better friend than our distinguished guest this evening.”

Thatcher, in her toast, said that Reagan “can rightly take tremendous pride in the 71 continuous months of expansion of the American economy.” She also saluted “a friend, whose cheerful bravery in the face of personal danger and of illness overcome we have all admired.” She said the President embodies “a combination of true valor and gentle good humor.”

Times staff writer Betty Cuniberti contributed to this story.