The Territorial Status of the Falkland Islands: Past and Present

In the Falklands the result of the war is an increased semi-permanent British garrison, protecting the islands against the possibility of a renewed Argentinian invasion. By the end of the 1990s the population of the colony consists of some 1700 troops guarding 2200 residents. The islands acquire the name Fortress Falklands, as the costs of the brief war continue to escalate. One of the first acts of Carlos Menem, on becoming president of Argentina in 1989, is to open peace negotiations with Britain. They make little immediate progress, but hostilities are formally concluded by 1995. A treaty in 1995 also tackles another important issue which has been a subtext in the conflict. Geological surveys suggest that there may be extensive oil reserves in the Falklands region. This, as much as national pride, is a reason for claiming possession. Although no progress is made on the matter of sovereignty, a compromise on oil is reached in 1995. Britain and Argentina agree to share, in proportions varying in different regions, any wealth deriving from the anticipated oil fields. The British share is to be used to defray the cost of the war and the garrison. Licences are issued in 1996. Exploratory drilling begins in 1998.