Operation Urgent Fury, or the United States-led intervention on the Caribbean island nation of Grenada, caused a diplomatic rift between (usually-close) allies US President Ronald Reagan and UK Prime Minister Margaret Thatcher. The background to the operation was that following Grenada's independence from the UK in 1974, a coup five years later saw Maurice Bishop and his New Jewel movement seize power from incumbent Eric Gairy. Bishop's policy of friendship with Cuba irritated Reagan, but it wasn't until an internal power struggle from hard-liners within the New Jewel Movement saw the more moderate Bishop captured and then executed, that the US decided to act.
Reportedly it was Grenadian Govenor-General Paul Scoon who appealed to the US for assistance and within six days of Bishops execution, US troops were deployed. This turn of events caught out then Prime Minister Margaret Thatcher, who was no supporter of the Grenadian regime but was deeply concerned that the invasion would be seen as Western intervention against a smaller, independent nation's affairs. Reagan's decision to act despite the concerns of the UK Prime Minister caused a momentary rift between the leaders, but Thatcher (in public) supported the intervention. The United Nations also condemned the invasion as a 'flagrant violation of international law'.
The operation was a success, as Scoon was freed from house arrest by the US troops and the military government led by Hudson Austin deposed. Scoon, once restored to office, appointed an interim government before fresh elections were held in December 1984, won by Herbert Blaize's Grenada National Party. The anniversary of the invasion is now marked as a national holiday in Grenada (Thanksgiving Day).
Ultimately the invasion did not damage relations between the US and UK; Reagan's apology for 'miscommunication' was accepted and the two leaders resumed relations.
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