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http://www.margaretthatcher.org/commentary/displaydocument.asp?docid=110526

"At one stage a clearly heated Thatcher demanded to know what Reagan would do if Alaska had been invaded and the United States had suffered casualties recapturing it.

“I wonder if anyone over there realises, I'd like to ask them. Just supposing Alaska was invaded ...” asked Thatcher. “Now you've put all your people up there to retake it and someone suggested that a contact could coe in ... you wouldn't do it.”

“No, no, although, Margaret, I have to say I don't quite think Alaska is a similar situation” said Reagan.

“More or less so,” snapped Thatcher. Reagan feared the pending rout of Argentine forces in the south Atlantic would destabilise the region, damaging Washington's battle against left-wing regimes in Latin America.

But Thatcher, with barely concealed impatience, scotched the plan with a verbal explosion. Reagan could barely get a word in as the prime ministe gushed out a torrent of dismissal. “I didn't lose some of my best ships and some of my finest lives, to leave quietly under a ceasefire without the Argentines withdrawing,” she said.

“Oh. Oh, Margaret, that is part of this, as I understand it ...” stammered Reagan, trying to outline a Brazilian peace plan. It called for a ceasefire, Argentine withdrawal and a third-party peace-keeping force in the disputed islands. “Ron, I'm not handing over ... I'm not handing over the island now,” insisted Thatcher. “I can't lose the lives and blood of our soldiers to hand the islands over to a contact. It's not possible.

“You are surely not asking me, Ron, after we've lost some of our finest young men, you are surely not saying, that after the Argentine withdrawal, that our forces, and our administration, become immediately idle? I had to go to immense distances and mobilise half my country. I just had to go.” "