§ The Minister of State, Foreign and Commonwealth Office (Baroness Symons of Vernham Dean)Air links between the Falkland Islands and the South American mainland are the subject of two understandings reached between HMG and the Argentine Government, under a sovereignty umbrella (which protects both sides' positions on the question of sovereignty). Following the UK/Argentine Joint Statement of July 1999, LAN Chile resumed its weekly flight between Punta Arenas (in southern Chile) and the Falkland Islands. Once a month this flight makes a
40WSstopover in each direction in Rio Gallegos (in southern Argentina). In February 2001 a further understanding was signed to permit private flights. Under these arrangements aircraft, including Argentine aircraft, can undertake private flights between Argentina and the Falkland Islands. These arrangements continue in place and are unaffected by developments set out below.
In recent years there have also been a number of charter flights to the Falkland Islands, mostly originating in Chile and servicing tourist cruise ships. These charter flights are not covered by either of the two understandings described above. They require permission to use Argentine airspace between Chile and the Falkland Islands. Until this season Argentina has not raised any difficulties with these charter flight authorisations, though it had periodically indicated that it would wish to review the situation at some point.
On 3 November 2003, without warning, Argentina announced the suspension of permission for charter flights to use Argentine airspace and proposed that a scheduled air service between Argentina and the Falkland Islands by an Argentine carrier be put in place. The weekly LAN Chile scheduled flight was not affected by this announcement.
We made clear to Argentina that while we were prepared to enter into discussions about ways of building on existing arrangements for air links between the Falkland Islands and the South American mainland, any future arrangements must be acceptable to the Falkland Islanders, and that the Falkland Islanders were not prepared to accept a scheduled service by an Argentine carrier. We also made clear that such discussions needed to take place against the backdrop of charter flight authorisations proceeding normally.
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. This means that there is little prospect of charter flights to the Falkland Islands being authorised to overfly Argentine airspace for the rest of this tourist season. Unless such an understanding can be reached with the Argentine Government, it seems likely that charters for the next tourist season will also be affected. Falkland Island councillors have been kept fully informed of our exchanges with the Argentine Government.
The cancellation of the charter flights will obviously have some negative impact on the tourist industry in the Falkland Islands. However, Falkland Islanders believe that there are principles at stake here which outweigh short-term economic costs. We respect and agree with that view. 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.