MercoPress. South Atlantic News Agency

Argentina's foreign ministry rejects the UK guidance for companies in the Falklands

Foreign Minister Pablo Quirno has filed three criminal complaints covering ten companies and their directors

Argentina's foreign ministry expressed its “strongest rejection” on Tuesday of the guidance the British government published the previous day for companies conducting economic activity in the Falklands, and said it would continue applying its legislation against firms operating hydrocarbons in the area without Argentine authorization.

What Buenos Aires says

The ministry said the archipelagos and their corresponding maritime areas “are an integral part of its national territory and are illegitimately occupied by the United Kingdom.” Its response covers, beyond the Falklands, South Georgia and the South Sandwich Islands, a wider scope than the British document, which refers only to the first archipelago. Argentina argues that the issuing of regulations, unilaterally granted licenses, calls for suppliers and British commercial promotion breach UN General Assembly Resolution 31/49, which urges both countries to refrain from unilateral modifications while a solution remains pending. It also warned that the planned hydrocarbon activity could have irreversible effects on non-renewable resources. These are Argentine government positions, contested by the United Kingdom.

What the guidance said

The document, titled “Doing business with the Falkland Islands,” was published on Monday by the Foreign, Commonwealth and Development Office together with the British business and trade department. It states that London has no doubt about its sovereignty, that Argentina exercises no jurisdiction and its domestic law does not apply in the islands, and that regulating economic activity is a matter for the islands' government. It offers assistance to companies receiving Argentine correspondence and says it cannot see the basis on which courts in third countries could exercise jurisdiction over those measures. These are British government positions, contested by Argentina.

The diplomatic move

Following the final investment decision by Rockhopper Exploration, British-owned, and Navitas Petroleum, Israeli, on the Sea Lion project in the basin north of the archipelago, the ministry summoned the British and Israeli ambassadors to hand them formal protest notes. There are precedents: Argentina summoned the British mission in 2010 over the start of drilling in the area, and London lodged a formal protest when the law providing for penalties against oil companies was passed.

The campaign so far

According to the ministry, it has sent around 180 warning and risk-assumption notices to individuals and companies in 30 countries, opened 60 administrative proceedings, and Foreign Minister Pablo Quirno has filed three criminal complaints covering ten companies and their directors. None of the allegations has been proven and no proceeding has yet resulted in a penalty.

The framework

The resolutions Argentina invokes are General Assembly texts and carry the status of recommendations, without binding force. Resolution 2065, of 1965, invites both states to negotiate; the Argentine government reiterated its willingness to resume a “constructive and substantive” dialogue. London conditions any discussion of sovereignty on the islanders' wishes; in the 2013 referendum they chose to retain the status of a British overseas territory with 99.8% of the vote.