Reemergence Of The Falkland Islands Territorial Dispute

Originally published by American Bar Association

Sovereignty over the Falkland Islands has historically been a point of contention involving many states. But while most have abandoned their claims, the Argentine Republic and the United Kingdom of Great Britain and Northern Ireland continue to assert their respective sovereignty. The dispute between Argentina and the United Kingdom began in 1833, when the British returned and reclaimed the Falklands from Argentina. Recently, this dispute has evolved to encompass each state's interest in obtaining control of the Falklands' natural resources, particularly in developing oil and gas around the islands. Sylvia Pfeifer, Exploring for Oil in Falklands Threatens to Open Old Wounds, Financial Times, Dec. 22, 2011.

While conservative estimates suggest a viable recovery of 3.5 billion barrels of oil, the British Geological Society has suggested that 60 billion barrels are recoverable from the islands' exclusive economic zone. Consequently, British companies have commenced exploration and appraisal operations that have "outraged" Argentina, which has accused the United Kingdom of stealing its resources. Brian Swint, Oil Grab in Falkland Islands Seen Tripling U.K. Reserves, Jan. 20, 2012, Bloomberg Businessweek. Recent escalations in the region indicate the significance of the sovereignty dispute for energy companies deciding to invest in the Falklands. The United Kingdom has posted Prince William to the islands, along with its most advanced nuclear-missile warship. Martin Walker, The Falklands Again, United Press International, Feb. 13, 2012. Argentina has taken its protest of the British oil campaign to the United Nations, citing British militarization in the region. Argentina Takes Falkland Islands Protest to UN, The Guardian, Feb. 10, 2012. And the United States, whose companies are investing in the Falklands, has endorsed British sovereignty over the islands. Obama Backs U.K. over Falklands, Defense Management, Mar. 16, 2012; Steve Hawkes, US firm's £1bn for Falklands Oil, The Sun, Jan. 22, 2012.

For companies pursuing oil exploration and drilling in the region, these events jeopardize not only geopolitical stability, but also millions in investments.

History of the Falkland Islands Dispute

Although the Americas were first discovered by the Europeans in 1492, the Falklands were not discovered until the following century. Some claim that England discovered the islands in 1592; others suggest that either Spain or France discovered them earlier. Ian Strange, The Falkland Islands 25 (1972); Julius Goebel, The Struggle for the Falkland Islands: A Study in Legal and Diplomatic History 1–34 (1927). While there is disagreement as to which state discovered the islands, it is well established that France settled on East Falkland in 1764, although Spain protested the settlement and subsequently purchased the Falklands from France in 1767. J.C.J. Metford, Falklands or Malvina? The Background to the Dispute, 44 Int'l Aff. 463, 467 (1968).

In 1765, a year after the French settlement, the United Kingdom claimed the islands and established a settlement on West Falkland. Rupert Glover, International Law in the Falkland Islands, 1982 New Zealand L. J. 191 (1982). The British too were ousted by Spain by 1774, but not before leaving behind a plaque reiterating British rights. The islands then became part of the Spanish Viceroyalty of the Río de la Plata until Argentina gained independence in 1816 and proclaimed, in 1820, that it had succeeded to all the rights of Spain over the Falklands. The United Kingdom protested this proclamation in 1829 and seized control in 1833. Goebel, supra at 433–456. In 1982, Argentina unsuccessfully attempted to recapture the Falklands. Since then, the United Kingdom has exercised sovereignty over the Falklands, which is currently designated a non-self-governing territory since 1946 under the U.N. Charter.

Claiming the Falklands: International Legal Principles

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