<s docid="FT921-1950" num="25"> But Balza declares: 'I don't see that there is any possibility of another armed conflict with Britain.</s>

<s docid="FT921-1950" num="33"> Even so, the UK now spends only Pounds 69m a year on the defence of the islands, less than 7 per cent of the rate of spending in the three years after the war.</s>

<s docid="FT921-1950" num="39"> Ten years ago this week, the UK was apparently unaware of a series of key meetings between General Galtieri and an officer attached to the Chiefs of Staff, General Mario Benjamin Menendez.</s>

<s docid="FT921-1950" num="75"> More remarkably, it also exchanges information with British forces on movements in the South Atlantic.</s>

<s docid="FT921-1950" num="83"> Although Argentina's President Menem today speaks eloquently about his commitment to the new international order, the same Menem was elected President after labelling the British the 'pirates of the world'.</s>

<s docid="FT921-1950" num="88"> Some island officials agree at least to attend talks between Britain and Argentina on issues such as fishing and oil exploration.</s>

<s docid="FT931-16104" num="7"> THE ACRIMONIOUS dispute over fishing around the Falkland Islands loomed large as Mr Douglas Hurd, Britain's foreign secretary, made a five-day visit to Argentina this week, the first by a senior UK politician since the Falklands war.</s>

<s docid="FT931-16104" num="8"> Despite defeat in the 1982 conflict, Argentina never surrendered its claim to the islands.</s>

<s docid="FT931-16104" num="10"> Just before Christmas, after fishing talks with Britain, Argentina said it would start selling fishing licences of its own, breaking the islands' lucrative fishing monopoly.</s>

<s docid="FT931-16104" num="20"> For years after the war, Argentina would not even negotiate with Britain.</s>

<s docid="FT931-16104" num="21"> As it was, nationalistic laws banned foreigners from fishing in its waters, even though the small local industry showed little interest in the South Atlantic.</s>

<s docid="FT931-16104" num="22"> All this changed with the resumption of diplomatic relations in 1990.</s>

<s docid="FT931-16104" num="24"> Last October, Argentina changed its laws to allow foreign ships into its waters, as required under a USDollars 1bn five-year fishing agreement with the European Community.</s>

<s docid="FT931-16104" num="35"> British officials doubt, moreover, that Argentina can police its waters or monitor fish stocks adequately.</s>

<s docid="FT931-16104" num="47"> Argentina's ultimate objective is to negotiate the islands' sovereignty - which London refuses even to discuss.</s>

<s docid="FT922-3165" num="6"> TEN YEARS ago on Sunday, Argentina endured the worst moment in its history as its humiliated armed forces surrendered to British troops in the Falkland Islands.</s>

<s docid="FT922-3165" num="19"> Argentine diplomats argue that as their country becomes a respected member of the international community by creating a stable, prosperous and democratic system open to international trade and investment, the Falklands' rejection of ties with Argentina - culminating in full integration - will therefore appear increasingly unreasonable.</s>

<s docid="FT922-3165" num="27"> Talks with London over the Falklands have moved on from sterile bickering over sovereignty to mundane, but more productive discussions over fishing rights and oil exploration regimes.</s>

<s docid="FT922-3165" num="28"> Meanwhile, both sides have simply agreed to disagree over the underlying issue of sovereignty.</s>

<s docid="FT922-3165" num="29"> Mr Guido di Tella, the foreign minister, has even gone so far as accepting the importance of recognising the islanders' rights, rather than their interests - an important distinction which demonstrates an Argentine willingness to compromise.</s>

<s docid="FT922-3165" num="32"> Bilateral trade is still to reach the level at which it stood in 1981: Pounds 298.1m.</s>

<s docid="FT922-3165" num="33"> Officials want to attract UK investment in Argentina's aggressive privatisation programme.</s>

<s docid="FT922-3165" num="35"> Buenos Aires believes growing British exports and investments will help reduce the Falklanders' suspicions of all things Argentine.</s>

<s docid="FT922-3165" num="36"> They also hope UK companies with business in Argentina could counteract the highly effective anti-Argentine Falklands lobby in Whitehall and Westminster.</s>

<s docid="FT922-3165" num="37"> However, the potential for expanding trade is limited by the lack of British government export insurance cover.</s>

<s docid="FT922-3165" num="38"> British officials say coverage will only be resumed once Argentina establishes a track record in honouring international financial commitments.</s>

<s docid="FT932-6577" num="7"> Eleven years after its defeat in the 74-day conflict with Britain, the country's overriding foreign policy aim is winning sovereignty over the islands.</s>

<s docid="FT932-6577" num="15"> Eventually, London will have sufficient confidence in Argentina to consider transferring sovereignty.</s>

<s docid="FT932-6577" num="19"> In 1991 the UK agreed to co-operate to conserve fisheries.</s>

<s docid="FT932-6577" num="22"> London has remained unyielding in its insistence that co-operation with Argentina does not imply any recognition of its claim to the islands.</s>

<s docid="FT932-6577" num="23"> The UK foreign office says this policy will change only if and when the islands' fewer than 2,000 inhabitants agree to a change in their status.</s>

<s docid="FT932-6577" num="24"> Last month, Argentina suffered another diplomatic slap in the face when Britain announced it would extend territorial waters to 200 miles around the remote and uninhabited South Georgia and South Sandwich island groups, which Argentina also claims.</s>

<s docid="FT932-6577" num="26"> The Falklands are believed to have big oil and gas deposits and Argentina wants to tie Britain into a joint oil regime.</s>

<s docid="FT932-6577" num="27"> London has ignored Argentina's arguments, and last year licensed two companies to carry out seismic exploration in two blocks around the islands.</s>

<s docid="FT932-6577" num="28"> Britain refuses to discuss oil co-operation until studies confirm the region does have hydrocarbon reserves in commercial quantities.</s>

<s docid="FT932-6577" num="31"> And Britain has still not lifted its arms embargo on Argentina.</s>

<s docid="FT932-6577" num="32"> London has also successfully persuaded Washington not to sell two squadrons of ageing Skyhawk fighter bombers to Argentina.</s>

<s docid="FT932-6577" num="33"> However, talks are planned later this year to resume training courses for Argentine officers at British military academies.</s>

<s docid="FBIS4-11575" num="21"> Now, 12 years after the lost war, Balza insists that the Falkland Islands belong to Argentina.</s>

<s docid="FBIS4-11575" num="34"> Looking back, he knows that the war was lost because the Argentine Armed Forces were very weak compared to those of the United Kingdom.</s>

<s docid="FBIS4-11575" num="43"> Relations with the British are "excellent," Balza declares.</s>

<s docid="FBIS4-11575" num="56"> Now, he says, the Armed Forces' relations with the president are characterized by absolute cordiality and mutual respect.</s>

<s docid="FT922-8324" num="21"> International agreements: Argentina has professed an intention to comply with a wide range of these that it had previously refused to sign.</s>

<s docid="FT922-8324" num="41"> These had been broken with the invasion of the Falkland Islands 10 years ago.</s>

<s docid="FT922-8324" num="43"> With the issue of sovereignty under a so-called umbrella - meaning both sides retain their claim to sovereignty - fairly cordial discussions between London and Buenos Aires have moved ahead on the practical issues of fishing rights and aviation.</s>

<s docid="FT922-8324" num="44"> There has been less progress on the more difficult issue of oil exploration rights.</s>

<s docid="FT931-16617" num="7"> The Falklands may have become a peripheral issue in Britain, but Argentina remains obsessed with the islands and clearly hopes that Mr Hurd's five-day visit will signify another step on the tortuous road to 'recovering' the islands, this time through diplomatic means.</s>

<s docid="FT931-16617" num="8"> The British have publicly disabused their hosts of any belief that the Falklands is up for negotiation.</s>

<s docid="FT931-16617" num="11"> Britain and Argentina re-established diplomatic relations in 1990, a year after President Carlos Menem took office.</s>

<s docid="FT931-16617" num="12"> Since then relations have improved steadily to the point where they co-operated militarily during the 1991 Gulf war.</s>

<s docid="FT931-16617" num="14"> The economy has settled down to rapid growth and its privatisation policies have involved British banks, consultancy firms and industrial companies, the most notable being British Gas's leading position in the consortium which took control of the Buenos Aires gas distribution company last month.</s>

<s docid="FT931-16617" num="24"> The two sides have also worked out a fisheries conservation agreement for 1993, and are now working on a more permanent arrangement.</s>

<s docid="FT931-16617" num="25"> UK and Argentine scientists have started joint research on fish conservation.</s>

<s docid="FBIS4-56741" num="21"> Since 1983 and 1990, when relations with Great Britain were restored and, especially, with President Carlos Menem's administration and the implementation of Domingo Cavallo and Guido Di Tella's foreign policy, what has changed is our concern over the islanders' interests.</s>

<s docid="FBIS4-56741" num="27"> In fact, during all our meetings with the British and the islanders, we have fully respected their interests.</s>

<s docid="FBIS4-56741" num="43"> This problem has still not been solved with Great Britain who still refuses to sell us spare parts and military equipment.</s>

<s docid="FBIS4-56741" num="57"> Therefore, oil is not the problem, the problem has to do with the jurisdictional and legal aspects of the UK's unilateral exploration and exploitation in the Malvinas.</s>

<s docid="FT934-2085" num="8"> Argentina and the UK agreed in October substantially to raise next year's catch of the prized illex squid, the most sought-after resource in the waters surrounding the Falkland Islands.</s>

<s docid="FT931-932" num="40"> It agreed with Britain last December to limit this season's number of licences.</s>

<s docid="FBIS3-33035" num="19"> Great Britain approved legislation two years ago allowing the Falklands Islands Government to start seismic studies in the area.</s>

<s docid="FBIS3-33035" num="20"> Argentina reacted by sending "letters of discomfort" [preceding three words in English] to oil companies warning them that any activities carried out in the waters around the Malvinas Islands without its consent could lead to a legal conflict in the future.</s>

<s docid="FBIS3-33035" num="26"> The first thing they learned was that Gaffny Klain, a British consultant with an office in Houston that advises the Argentine Government on oil matters, had recommended the purchase of the survey made by Geko Prakla and Spectrum.</s>

<s docid="FBIS3-33035" num="35"> When Great Britain began the search for oil in the islands without consulting Argentina, Foreign Minister Guido Di Tella said it would be impossible for Great Britain to continue the process on those terms because no oil company would risk millions of dollars in waters that are under disputed sovereignty.</s>

<s docid="FT922-15099" num="8"> Senior Falklands government officials have been told by the Foreign Office that further steps towards developing an oil industry in the area - such as full-scale exploration - must await agreement between London and Buenos Aires.</s>

<s docid="FT922-15099" num="13"> Argentina, which does not recognise the islands' government, claims sovereignty over the surrounding waters.</s>

<s docid="FT922-15099" num="19"> Mr Sampson said local councillors had been 'made aware by the British government' that in the 'longer term there will have to be a much closer co-operation with Argentina in the exploration of oil'.</s>

<s docid="FT922-15099" num="20"> UK-Argentine talks in Buenos Aires in February about oil were inconclusive, but further negotiations are planned for in London in June.</s>

<s docid="FT943-6372" num="6"> Argentina reacted furiously when the UK government last week announced a seemingly innocuous decision to extend control over a 547 square mile patch of ocean outside fishery control areas around the Falkland Islands.</s>

<s docid="FT943-6372" num="15"> They have learned to co-operate over protecting squid, to preserve what has become a very big industry.</s>

<s docid="LA021690-0066" num="11"> Britain agreed to lift by March 31 a 150-mile military protection zone enforced around the islands since Argentina invaded them in 1982.</s>

<s docid="FT943-14758" num="11"> Mr Menem often repeats his prediction that the Falkland Islands - over which the UK and Argentina fought a brief war in 1982 - will be Argentine by the year 2000.</s>

<s docid="FT943-14758" num="14"> Meanwhile, talks move ahead over fishing - a longer-term agreement is being discussed to replace the current one-year accord - and oil in the Falklands waters.</s>

<s docid="FBIS3-51041" num="16"> [Text] Argentina has made an offer to the United Kingdom to clear the mines planted by the Armed Forces in 1982 in the Falklands.</s>

<s docid="FBIS3-51041" num="31"> The communique, recalling the 161th anniversary of the occupation, also ratifies Argentina's "incontrovertible right to its sovereignty" and reiterates its "firm purpose to continue with the progress of dialogue and negotiations with the United Kingdom with an eye to strengthening mutual confidence and expanding bilateral cooperation in the Southwestern Atlantic".</s>

<s docid="FT934-13954" num="8"> Britain wants to replace a one-year accord struck last December with a long-term agreement that protects the Falkland islands' revenues, while Argentina wants to increase substantially its fishing effort.</s>

<s docid="FT934-13954" num="9"> The unresolved dispute over the Falklands, which Argentina claims despite defeat in its 1982 conflict with Britain, charges the talks with considerable political significance.</s>

<s docid="FBIS3-59016" num="16"> Aires: "British Offer Over Falklands Oil"] [Text] The British Government has indicated its readiness to allow Argentine companies to take part in the development of oilfields in the Falkland Islands' territorial waters provided they acknowledge that any oil extracted belongs to Britain.</s>

<s docid="FBIS3-59016" num="19"> The disclosure of Britain's position follows a recent request from Buenos Aires for a meeting of senior foreign ministry officials to discuss joint development of oil resources.</s>

<s docid="FBIS3-59016" num="21"> Reaching an oil accord with the UK is Argentina's next important policy objective, but it is unlikely to accept terms that implicitly recognise Britain's sovereignty over the islands.</s>

<s docid="FT942-12805" num="7"> Britain and Argentina are to hold talks in July on joint oil exploration in waters surrounding the Falkland Islands, two years after a previous round of oil talks collapsed.</s>

<s docid="FT942-12805" num="13"> A UK official said successful joint management of fish stocks showed the sovereignty dispute could be put aside while both sides pursued practical interests, but Argentina's foreign ministry argues oil is different because it is a non-renewable resource, with important legal and tax ramifications.</s>

<s docid="FT942-12805" num="14"> Both sides fear concessions over oil would imply recognition of the other's sovereignty claim.</s>

<s docid="FT911-3135" num="7"> Mr Guido di Tella, Argentine foreign minister, met representatives of British companies and financial institutions, including Baring Brothers, the merchant bank, and ICI, in London yesterday, to discuss the privatisation programme and encourage UK investment in Argentina.</s>

<s docid="FT911-3135" num="15"> 'Exports from the UK to Argentina, which had been lagging, have been picking up'.</s>

<s docid="FT932-9729" num="10"> Argentina reacted angrily to Britain's decision to extend territorial waters and will be doubly displeased by a unilateral move to charge vessels for the right to fish there.</s>

<s docid="FT932-9729" num="12"> In statements issued over the weekend, Argentine officials said the new 200-mile limits would indirectly grant Argentina a role in fishing policy because both island groups fell within the ambit of the 22-nation Commission on Conservation of Antarctic Marine Living Resources, of which both Argentina and Britain were members.</s>

<s docid="FT932-9729" num="13"> British officials dismissed that suggestion, however, insisting that they would not accept any Argentine role that implied recognition of its territorial claims.</s>

<s docid="FT921-13397" num="7"> It emerged yesterday that the Ministry of Defence has turned down a request from Argentina to allow a limited supply of UK-manufactured spare parts to the Argentine navy, begun during the Gulf war, to continue.</s>

<s docid="FT921-13397" num="8"> Whitehall has also vetoed a plan for an Argentine military transport aircraft to fly to Britain next month to collect some cargo assembled by the naval attache's office at the Argentine embassy in London.</s>

<s docid="FT921-13397" num="11"> Military ties between the two countries have been governed officially by an arms embargo imposed by Britain on Argentina following the outbreak of the Falklands war in 1982.</s>

<s docid="FT921-13397" num="12"> During the Gulf war, however, London agreed to the supply of Rolls-Royce spare parts to the Argentine navy which operated with the allied forces.</s>

<s docid="FT924-12286" num="20"> Argentina, Britain and Falkland officials will hold a new round of their biannual fishery talks in London next month.</s>

