Party Vote Stuns Thatcher : British Leader Forced Into 2nd Ballot to Retain Post

Former Defense Minister Michael Heseltine today forced Prime Minister Margaret Thatcher into a second-round ballot in their struggle for leadership of the Conservative Party.

The close vote was a sharp setback for Thatcher, who has governed Britain for 11 1/2 years. She won 204 votes from party members of the House of Commons, while Heseltine received 152 votes. If she had received two more votes from the 16 members who abstained, she would have won on the first ballot.

“It is the end for her,” Conservative lawmaker Robert Rhodes James said.

If Thatcher loses the leadership of the party, she will step down as prime minister.

“I confirm it is my intention to let my name go forward to the second ballot,” a calm Thatcher told reporters outside the British Embassy in Paris, where she is attending the European summit.

It was expected, however, that some of her supporters will urge her to step down rather than risk a humiliating defeat.

The opposition Labor Party compounded the political turmoil by tabling a motion of no confidence in the government. That motion, which probably will be debated before the second ballot next Tuesday in the leadership contest, could bring down the government and force a national election.

A smiling Heseltine greeted reporters outside his home. “I am overwhelmed with gratitude to my parliamentary colleagues who in such large measure have given me their support,” he said as he stood hand in hand with his wife, Anne, outside their home.

The 204 votes gave Thatcher a lead of 14.6%, when she needed a 15% advantage to win outright.

In the second ballot, a simple majority will be sufficient to win. However, other candidates are free to step forward. Foreign Secretary Douglas Hurd has indicated that he might run against Heseltine if Thatcher drops out.

Thatcher had been at pains to keep up business as usual earlier today--although the business last weekend included a round of lengthy interviews with newspapers about the leadership challenge.

Thatcher, 65, had argued that Heseltine’s economic policies were a betrayal of her free-market crusade.

Heseltine, 57, portrayed himself as a Thatcherite with better prospects than the prime minister. He pointed to a flurry of opinion polls showing that voters would be more favorable to the Conservatives if he were party leader.

He also promised to review an unpopular local services tax sponsored by Thatcher that is widely deplored as unfairly favoring the wealthy.

Heseltine’s ambition to become prime minister had been evident ever since he walked out of his last Cabinet meeting in January, 1986. He had insisted for years, however, that he could not foresee trying to unseat Thatcher.

Thatcher was first elected in 1979 and reelected in 1983 and 1987. She has been in office longer than any European leader.

The revolt in the Tory ranks followed a 12-nation European Community summit in Rome at the end of October. Eleven of the leaders, over Thatcher’s vociferous dissent, agreed on a timetable for establishing a central European bank, followed by a single European currency.

Her deputy, Sir Geoffrey Howe, predicted that Thatcher will eventually fall into line with Britain’s European partners, as she had in the past. But with signs indicating the contrary, Howe resigned Nov. 1.

A week ago, Howe delivered a scalding speech in the House of Commons, accusing Thatcher of jeopardizing Britain’s vital interests.