[A-List] Argentina: struggling for Malvinas

["Michael Keaney" <michael.keaney@xxxxxx>]

UK-Argentine tensions rise over Falklands impasse
By Christopher Adams in London and Joshua Goodman in Buenos Aires
Financial Times: February 13 2004

A diplomatic quarrel has erupted between Britain and Argentina over air
access to the Falkland Islands, causing the first dispute about the
territory in recent years.

The stand-off appears to be the result of manoeuvring by Néstor Kirchner
(pictured), Argentina's president, to raise the rhetoric in the
centuries-old disagreement over control of the islands.

In a sign of the UK's concern, a Foreign Office minister will use a visit to
Buenos Aires next week to try to resolve the impasse and smooth relations.

The spat stems from Argentina's decision late last year to ban charter
flights to and from the Falklands crossing its airspace. Most of the flights
originate in Chile, and service tourist ships. Buenos Aires is proposing a
scheduled service by an Argentine carrier be put in place and argues there
was never any agreement about charter flights.

Britain, however, believes the move was sprung without warning and threatens
the islands' economic well-being.

The archipelago, 400 miles off the South American mainland in the south
Atlantic, is increasingly dependent on the millions of pounds a year in
tourist revenue generated by the flights and cruise ships. The islanders
have been pressing for more vigorous backing from London.

The UK fears that, after three months of fruitless behind-the-scenes
negotiations, there is little prospect of a swift resolution.

In an attempt to break the deadlock, Bill Rammell, Foreign Office minister,
will meet Rafael Bielsa, Argentina's foreign minister. They are due to
discuss economic reform and the ban will be on the agenda.

Mr Rammell is expected to offer talks on extending air services, but to
insist on an immediate resumption of charter flights first.

There is speculation that the decision to suspend permission for charter
flights is politically motivated and an apparent gesture by an emboldened Mr
Kirchner to his core nationalist vote.

Argentina appears at last to be emerging from a prolonged economic slump
after the severe collapse of two years ago, but its stock market is volatile
and the government is in dispute with foreign creditors.

The dispute over air access comes against the backdrop of renewed debate in
Argentina about the islands' sovereignty, an issue London is not prepared to
revisit. Mr Kirchner is reported to have revived in a recent speech the
issue of Argentina's claim to the Falklands, a development said to have
alarmed some islanders.

As former governor of Santa Cruz province in Patagonia, where most Argentine
combatants were deployed during the 1982 conflict, Mr Kirchner has taken to
heart the issue of the islands' sovereignty.

Since taking office in May, he has reiterated the country's sovereignty
claim before the UN, supported an application for regular flights by an
Argentine carrier and even suggested a special passport for Argentines
visiting the islands.

In an interview last month, Mr Bielsa said the dispute with the UK would not
disappear "until the islands were once again Argentine territory", even if
it took 400 years. He added that the government did not reject the idea of
new flights to the islands, but only the exclusion of Argentine carriers
from landing there.

The UK government is in agreement with the islanders, who are determined not
to give ground on an issue of principle.

In a little noticed statement to parliament last month, Mr Rammell told MPs:
"Regrettably, despite considerable efforts it has not been possible to reach
agreement with the Argentine government on opening talks on air services on
acceptable terms."

He added: "Argentina is fully aware of our position and we hope that an
acceptable arrangement can be reached in the interests of all parties to
resolve the charter flight issue."

Both countries have recently taken steps to improve co-operation after a
thaw in relations.

Five years ago, at around the time a package of confidence-building measures
was agreed, Argentina said it would not oppose direct flights between the
islands and other south American countries "so long as Argentine citizens
are not discriminated against".