US president George W. Bush is right on the money with his controversial plans to build an anti-ballistic missile defence shield, according to former British Prime Minister Margaret Thatcher.

Speaking at a lunch at the Fourways Inn yesterday - which was also attended by former Bermuda Premier Sir John Swan and former US Presidential candidate Ross Perot - Baroness Thatcher said: "We live in a world of multiple threats," said Baroness Thatcher. "Some 37 states possess around 13,000 ballistic missiles, and there is an increased risk of unauthorised or accidental missile attack.

"So I applaud the vision of President Bush and (Defence) Secretary Rumsfield in seeking to create a missile shield which would protect the American homeland, as well as America's allies and our deployed forces.

She said a global missile defence system was an "urgent necessity".

Baroness Thatcher, who earned herself the moniker "the iron lady" during her 11 year rule as Britain's prime minister, is on the Island as a guest of American billionaire Ross Perot.

America's plans have been opposed by a number of European states, as well as Russia and China. Critics fear that a new arms race could be sparked off if the United States goes ahead with the $60 billion program. And there are concerns that it might not be technologically feasible.

Detractors of the programme also contend that it would violate a 1972 anti-ballistic missile (ABM) treaty which prohibits national missile defence systems.

Washington has been working hard at winning over European leaders - offering to help them develop their own national systems - and trying to persuade Russia to modify the ABM treaty.

Baroness Thatcher's speech echoed Washington's argument for the system - that it would make America and the Western world safer from "rogue states" like Iraq, Iran, Libya, Syria and North Korea. "All these countries have promoted or practised violence," she said. "The proliferation of weapons of mass destruction afford them new opportunities to threaten us.

"Such states know that simply by possessing these weapons they could sharply change the balance of advantage in their dealings with the West. In a crisis, they could threaten to take out a major Western city. But even the possibility of such action, they hope, would be enough to prevent Western interventions in support of our interests and our allies".

Baroness Thatcher took an even harder line than Washington's more diplomatic approach. While Washington has generally stayed away from officially singling out China as a national security threat, Baroness Thatcher left no doubt that the communist nation needed to be watched.

"To me it's strange that so many Europeans have enthusiastically lined up with Russia and China in opposing America's plans. After all in their different ways, both Russia and China still pose a potential threat".

She said while there had been some encouraging developments towards democracy in Russia - "even if they do have the discomfiting habit of voting in too many communists" - Russia's foreign policy "still seems to be based heavily on its Soviet past".

She pointed to "deep hostility to the use of Western power'' (as in Kosovo) and "brutal disregard for the rights of non-Russians, who by misfortune live within the Russian empire (as with Chechnya). Russia is also intent on trying to forge a strategic relationship with China aimed at the West", she said.

Baroness Thatcher was even more anxious about China.

"With its known proliferation of weapons of mass destruction and its ambitions toward Taiwan, China needs to be watched," she said.

"Moreover, Chinese behaviour over the downing of the American reconnaissance plane demonstrates that this is one country where communists habits still hold sway".

About 120 people were invited to the luncheon organised by former premier Sir John Swan. Guests included Sir John Plowman, former United Bermuda Party cabinet minister Quinton Edness, Bermuda Monetary Authority chair Cheryl Ann Lister and Governor Thorold Masefield and his wife. A host of leading business people were also in attendance.

Baroness Thatcher deflected questions about current British policy toward Bermuda.