BRITAIN: Mrs. Thatcher's Bold Gamble

Immigration and racism become campaign issues

A funny thing happened to Margaret Thatcher on the way to No. 10 Downing Street: the economy and political mood of Britain underwent a sea change. Less than a year ago the Tories were running 21% ahead of Labor in the polls, and Conservative Leader Thatcher was the odds-on favorite to become her country's first woman Prime Minister. Now the two parties are in a dead heat, and Prime Minister James Callaghan is more popular than his party while Thatcher lags behind hers.

Callaghan's main accomplishment has been...