Senator Carr, who has a Malaysian-born wife, said he respected Lady Thatcher for the boldness of her political leadership, but "100 other things I would pick arguments with her''. "Astonished": Bob Carr Credit:AFP 'I recall one conversation I had with her in her retirement where she said something that was unabashedly racist,'' he told ABC television late on Tuesday from China. ''She warned Australia - talking to me with Helena [his wife] standing not far away - against Asian immigration, saying that if we allowed too much of it we'd see the natives of the land, the European settlers, overtaken by migrants,'' he added. Senator Carr said: ''I couldn't believe it.''

''It reminded me that despite, yes, her greatness on those big questions, the role of the state, the evil nature of the communist totalitarianism, there was an old-fashioned quality to her that was entirely out of touch and probably explained why her party removed her in the early '90s.'' Out of touch: Baroness Margaret Thatcher. Credit:AP Senator Carr, a former premier of New South Wales, said Lady Thatcher used the Pacific island nation of Fiji to illustrate her point. ''I remember one thing she said as part of that conversation. She said, 'you will end up like Fiji'. ''She said, 'I like Sydney but you can't allow the migrants' - and in context she meant Asian migration - 'to take over, otherwise you will end up like Fiji where the Indian migrants have taken over'.

''I was so astonished I don't think I could think of an appropriate reply.'' She said, 'I like Sydney but you can't allow the migrants' - and in context she meant Asian migration - 'to take over, otherwise you will end up like Fiji where the Indian migrants have taken over'. Ms Bishop, who is the opposition spokeswoman on foreign affairs, said Senator Carr's comments were "graceless". ‘‘His decision to make these claims after her death is a crude attempt to slur the reputation of one of the 20th century’s most outstanding leaders,’’ Ms Bishop said in a statement on Wednesday. However, a spokesman for Senator Carr said on Wednesday that the Foreign Minister's comments should be looked at in the context of his other comments about Lady Thatcher's career.

During the interview, Senator Carr said he respected the former prime minister for the "boldness of her political leadership". Senior Tasmanian Liberal Senator Eric Abetz also hit out at Tasmanian Labor government minister David O'Bryne for comments he made on Twitter, in which he called Lady Thatcher a "war criminal". Senator Abetz said the state MP's "vile" comments danced on the grave of the former British prime minister. Mr O'Bryne defended his actions, and said he was entitled to debate his personal views on forums like Twitter. "No death should be celebrated," he said in a statement. "I've recognised and respected that Margaret Thatcher's death is a sad occasion for her family.

"I've also expressed my fierce opposition to Mrs Thatcher's repugnant policies. Is that kind of free speech not allowed after someone has passed away?" Lady Thatcher, Britain's first female prime minister and longest-serving premier of the 20th century, was a divisive figure, with critics saying she destroyed millions of lives with her free-market economic policies. Her supporters have called her the greatest British leader since Winston Churchill and tributes have flowed from world leaders, who hailed her role in bringing down communism. On Tuesday, Prime Minister Julia Gillard praised Lady Thatcher, who was 87, saying she had ''changed history for women'' by opening the door to females taking high-powered leadership roles. Britain's Queen Elizabeth II will lead mourners at Lady Thatcher's funeral next week, the first time the monarch will have attended the ceremony of one of her former prime ministers since Churchill died in 1965.

AFP, with Andrew Darby and Judith Ireland

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