Margaret Thatcher that Foreign Secretary James Callaghan warned his fellow Labour Cabinet members in 1974 of the possibility of "a breakdown of democracy", telling them: "If I were a young man, I would emigrate." In mid-1978, the economy began to recover and opinion polls showed Labour in the lead, with a general election being expected later that year and a Labour win a serious possibility. Now Prime Minister, Callaghan surprised many by announcing on 7 September that there would be no general election that year and he would wait until 1979 before going to the polls. Thatcher reacted to this by branding
Margaret Thatcher on and fight to win" the second ballot, but consultation with her Cabinet persuaded her to withdraw. After holding an audience with the Queen, calling other world leaders, and making one final Commons speech, on 28 November she left Downing Street in tears. She reportedly regarded her ousting as a betrayal. Her resignation was a shock to many outside Britain, with foreign observers such as Henry Kissinger and Gorbachev privately expressing consternation. Thatcher was replaced as Prime Minister and party leader by Chancellor John Major, who prevailed over Heseltine in the subsequent ballot. Major oversaw an upturn in Conservative support