ARGENTINA (Hansard, 14 January 1976)

The Secretary of State for Foreign and Commonwealth Affairs (Mr. James Callaghan)
With your permission, Mr. Speaker, and that of the House, I will make a statement on our relations with Argentina.
Our traditional friendship with Argentina is marred only by issues arising from the Argentine claim to sovereignty over the Falkland Islands, whose inhabitants wish to remain British. Successive British Governments have undertaken to respect their wishes. At the same time they have recognised that the long-term interests of the Islanders must lie in practical forms of association with the Argentine mainland. It was to this end that, between 1971 and 1974, Her Majesty's Government and the Argentine Government negotiated a series of arrangements designed to improve communications between the Falkland Islands and the Argentine mainland. During 1975 a further significant development took place, namely recognition by all concerned, including the Islanders, that the future development and diversification of the Islands' economy could take place only in a spirit of co-operation with Argentina.
This is the background to the series of discussions I have had with successive Argentine Foreign Ministers. When I saw Senor Robledo, the then Argentine Foreign Minister, in New York last September, I put to him the proposition that our two Governments should consider discussing the possibilities of economic co-operation in the South-West Atlantic region. I reminded him of what I said to his predecessor about the report of Professor D. H. Griffiths on the hydrocarbon prospects of the region, a copy of which I had had made available to his predecessor. I informed him that we were setting up an economic survey of the Falkland Islands. Its purpose is to quantify the options for future economic development.
As the House knows, this survey is being held at the request of the Islanders. My right hon. Friend the Minister for Overseas Development obtained the services of the Economist Intelligence Unit as consultants for the survey, and we were fortunate in securing a highly qualified 392 leader in the person of Lord Shackleton. However, after the nomination of Lord Shackleton in October, the Argentine Government stated that the survey would not be welcome to them.
On 17th December I had the opportunity, while in Paris, of reviewing developments with the new Argentine Foreign Minister, now Senor Arauz Castex. I gave him a full explanation of the essentially independent nature of the economic survey. Unfortunately, it has not so far been possible to find the means of bridging the gap between my proposals for talks on economic co-operation and Argentine insistence on simultaneous negotiations about the transfer of sovereignty.
As the House is aware, the Argentine Government have stated that the Argentine ambassador, who returned to Argentine in October, will remain in Buenos Aires until further notice and that, in view of the present state of affairs over the Falklands question, it would be advisable for the British Government to withdraw our ambassador. I have also received personal messages from the Argentine Foreign Minister to which I shall be sending a substantive reply in due course. Meanwhile, I shall shortly be recalling Her Majesty's ambassador for consultations.
It remains my conviction that, given good will on both sides, Britain and Argentina should be able to transform the area of dispute concerning sovereignty over the Islands into a factor making for co-operation between the two countries which would be consonant with the wishes and interests of the Falkland Islanders.

§ Mr. Maudling
This is a rather serious development. Is the right hon. Gentleman aware that we entirely share his objective of getting agreement with the Argentinians, bearing in mind always our responsibility to the Falkland Islanders? Can the right hon. Gentleman say to what extent he thinks that this development is a transient phenomenon related to Argentine domestic problems? How does the Shackleton mission stand now? Can it carry out its task? Finally, can the right hon. Gentleman say who will look after British interests and British subjects when the ambassador is recalled?

Mr. Callaghan
I do not want to comment on any internal reasons which had led to this decision by the Argentine Government. Their stated public reason is our refusal to discuss the transfer of sovereignty of the Islands, and that is what they will stand on. As for our representation when our ambassador leaves, I am sorry to say that I cannot yet give the right hon. Gentleman an answer to his question. I will make the answer public as soon as I can. Lord Shackleton is carrying out his survey at present and can do that unhindered. He will report to us in due course, when he returns.

§ Mr. Thorpe
Is the right hon. Gentleman aware that those who wish to remain British ought to be allowed to do so? Can he say whether the Argentinians have made any suggestion to the effect that they would wish in any way to be associated with the Shackleton mission—or did they oppose it from the beginning?

Mr. Callaghan
There are two contradictory positions concerning the right hon. Gentleman's first point. There is the United Nations resolution which urges Her Majesty's Government and the Argentine Government to proceed with negotiations to find a solution to the problem. That is what we have been seeking to do, trying to get economic co-operation between the two Governments. I believe that this could lead to other changes if we work together economically. So far I have not been able to convince the Argentinian Government of that.
The second, contradictory, resolution is No. 1514 of 1960 which enshrines the principle of self-determination. That is the one on which we stand. The talks I had with the Argentine Foreign Ministers were confidential, but I can say without breaching the confidence that at one stage I was hopeful that there might be some co-operation in the fulfilment of this mission.

§ Mr. Conlan
Will my right hon. Friend recognise that this unilateral action by the Argentine Government will be seen as a piece of extreme provocation and that the 2,000 British inhabitants of the Islands will view it with grave anxiety? Does he recognise that this development will increase the likelihood of armed aggression by regular or irregular forces? 394 What steps is he taking to safeguard the interests of the Islanders against incursions from the mainland?

Mr. Callaghan
I realise that this development will cause grave anxiety to the inhabitants of the Islands, especially as they realise that, in their isolated position, co-operation with Argentina is necessary if they are to survive and thrive. The only alternative to the air services is a ship which now calls only four or five times a year. This is why I am trying to avoid heightening tension in this matter. For the same reason, I am sure the Argentine Government would not resort to armed attack. There was an attempt by some irregular forces to try this, but the Argentine Government dealt with the matter. I am sure that they would continue to take the necessary action in the same way. I should have known the answer to the question put by the right hon. Member for Chipping Barnet (Mr. Maudling). I can tell him now that after our ambassador leaves, the embassy will remain under the chargé d'affaires.

§ Sir Bernard Braine
Is the right hon. Gentleman aware that the Islanders' main anxiety—and this has existed for a long time—is that Argentina controls their air communications with the outside world? These people are wholly British and if they are to be allowed to remain so, as they wish, does he realise that there is an imperative need to provide a replacement airfield with runways long enough to enable planes with the appropriate payloads to take off to countries other than Argentina?

Mr. Callaghan
There is an airfield on the Islands and since 1971, under an agreement with the then British Government, Argentina has operated regular air services between the Islands and Argentina. It was right to encourage that development. The simplest and best way of travel for the Islanders in their exposed corner of the world, 480 miles north-east of Cape Horn, is through Argentina. Any other way is extremely expensive. At a time when we have many other considerations in hand, and the hon. Member is never backward in calling upon us to rein back public expenditure, he is now suggesting expenditure of many millions of pounds. He has to take this into account. I hope he will 395 look at the matter against the same background as that against which I try to look at it. We should try to get Argentina to recognise that economic co-operation is the way forward if they want good relations with the Falkland Islands.

§ Mr. Dalyell
Has the Foreign Secretary's Minister of State warned him of the awkward fact that it is not only Argentina but also other countries in South America which take a strong view on this matter? Would it be so terrible if the Falkland Islands were to link up with Patagonia, which, like so much else in life, is run by the Welsh?

Mr. Callaghan
I do not know whether my hon. Friend is trying to make trouble between me and the Minister of State by asking what he has warned me about. I talk to my hon. Friend so aften that I am not always sure of what he has said to me. As regards a link between the inhabitants of the Islands and elsewhere, they must be free to choose their own destiny in this matter. [Hon. Members: "Ah!"] I have no doubt that if a referendum were held in the Falkland Islands, it would show an almost 100 per cent. desire to remain with Great Britain. If a referendum were conducted here about whether Scotland should remain part of the United Kingdom, I leave it to others to say what the result would be. It is the same situation. I hope that we shall not have very many more "Ahs". On the question of the Welsh running these matters, I can only say that they are in very good hands. It makes a bit of a change from the Scots, anyway.

§ Mr. Luce
Is the Foreign Secretary aware that I welcome the fact that he has reaffirmed that there will be no change in the sovereignty of the Falkland Islands without the full consent of the Islanders? Does he agree that since the 1971 Buenos Aires communications agreement, there has been a marked improvement in social and economic co-operation between Argentina and the Islands? However, does he accept that the unilateral action of the Argentine Government and their poor treatment of the Shackleton mission, is putting that improved co-operation in jeopardy, and will he put that point of view in robust terms to the Argentine Government?

Mr. Callaghan
I agree with what the hon. Member has said. Social and economic argument is vital for the future of the Islands, if they are to thrive. It would also be helpful to both Argentina and Great Britain if there were economic co-operation between our two countries. I am not saying whether the balance of advantage would lie more with Argentina or with Great Britain, but such a development would be advantageous and I have made this point on many occasions to three successive Argentinian Foreign Ministers.

§ Mr. James Johnson
I do not wish to minimise the diplomatic difficulties and niceties inherent in a situation so long disputed as this, but is my right hon. Friend aware that we all wish him to stand steadfast behind the 2,000 Islanders, who are people of our own stock? They are basically dependent on about 1 million sheep, but is my right hon. Friend aware that a firm in my constituency, Thomas Boyd and Sons, surveyed these waters and, besides the likelihood of oil being found, there are enormous stocks of South Atlantic cod, and in view of our difficulties with limits in the North Atlantic, will my right hon. Friend bear this in mind, not only for our own future but also for that of the 2,000 people on those Islands?

Mr. Callaghan
I am aware of this fact. It is one of the specific propositions I put to the Argentine Foreign Minister in September. I suggested that there should be joint research into the fishing of krill and other resources off South Georgia and elsewhere where there is considerable room for exploitation. I was hoping that we could have proceeded along these practical lines. Although I put these arguments forcefully, they did not find acceptance because of the insistence by the Argentine Government that we must discuss the question of sovereignty. I even said that although I was not empowered by Parliament or the inhabitants of the Islands to discuss the question of sovereignty, I would advise our representatives to listen to anything they had to say without entering into a dialogue about it, but that was also found to be unacceptable.

§ Sir John Gilmour
The southern part of Argentina is populated not only by a number of Welsh people but very largely by Chileans, and this makes the claim 397 of the Argentine to sovereignty over the Falkland Islands rather hollow. I have had the good fortune to visit the Falkland Islands over the last two months and that leads me to suggest that the greatest assurance the right hon. Gentleman could give the Islanders would be to ensure the presence of one of Her Majesty's ships in these waters in the coming months.

Mr. Callaghan
The "Endurance" is there at present with the Shackleton mission, and two other ships are available. I believe that the greatest assurance we could give, if only it were possible to attain it, would be that we can get good relations with the Argentine in economic co-operation. That, I believe, would be the greatest assurance for this isolated community.