British ministers sought to develop oil around the Falklands before and after the 1982 conflict, declassified British government the documents show.
In a previously unpublished letter former chancellor Norman Lamont said the Falklands oil revenues should go to the British government and not the people of the Falkland Islands.
“I have no doubt that in in event of big oil find, tax revenue should go to the UK Treasury. This seems to me fair only in view of a very significant financial as well as other victims that the UK has made … to ensure freedom of Falkland Islands,” Lamont wrote to then-foreign secretary Douglas Hurd, on October 21, 1991
Lamont added: “We wouldn’t want to give credibility of the charge that our operation in the Falklands was motivated by the belief that oil found in The waters of the Falklands, which would be completely untrue.
However, he and other cabinet ministers, including prime minister John Major and Hurd agreed that Britain should get the most of any oil revenues, claiming 1991 overseas and protection policy cabinet committee document stating: “If oil found in commercially recoverable quantities, HMG [Her Majesty’s Government] … should take such measures as are necessary to ensure what HMG can provide access to the essential share of related income.
The newspaper asked: “Should the Falkland Islanders be the exclusive beneficiaries of of what can be a comparatively great wealth?” In conclusion: “We should search only access to oil-related income when it clear what financial the benefits will outweigh the political hardships.”
The ministers agreed to allow the islanders to carry out seismic surveys for sizing of oil fields and then solve how to share income. On November 22, 1991, the UK declared its right to up up to 200 nautical miles of seabed and subsoil around the islands. Falkland Islands government started auctioning oil exploration licenses in 1996, but all income since then has gone to the Falklands. government, not Britain.
Official documents for years after 1991 have not yet been declassified, but the result suggests that the British government came to the conclusion that the value of oil revenues did not outweigh political embarrassment of declaring them.
Declassified Documents show that Britain has long been interested in in oil around the Falkland Islands. In 1975, the energy department official wrote: “Our ministers are very interested in possibility of offshore oil production around the Falkland Islands.
Before the Falklands War, Britain vigorously defended its claims to potential oil reserves around the islands. UK formally protests when Argentina commissions seismic survey off Argentine coast in early 1977. Department of Energy official wrote that “the worst thing would be to do nothing”, as this might lead to our cottage up without even whispering ownership of any oil that may be at the bottom of the sea outside 200 meter line.
UK protested again in 1981 when Argentina put up for auction more exploration licenses. Ministry of Foreign Affairs official wrote: “We must assert that any oil in The Falkland Islands continental shelf belongs to Britain, without specifying whether we mean that HMG or the Falkland Islands have the right to exploit it. The important thing is that it is ours, not Argentine.”
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In July 1980 Margaret Thatcher government held secret negotiation with Argentina and proposed a “leaseback” deal under which sovereignty of the islands will be transferred to Argentina, but then leased back to the UK.
While ministers were pondering the idea, Energy Secretary David Howell wrote to Foreign Secretary Lord Carrington. on February 5, 1980, saying: “I hope … you will not lose sight of of conservation, if at all possible, access for UK to any oil or gas that may be found in Waters of the Falkland Islands.
He repeated it plea in letter to Thatcher later that month. Protection of the cabinet and abroad policy commission, which included Thatcher, agreed on November 7, 1980, to be approved by the islanders. of leaseback transaction.
Ministers noted: “It would be important to take satisfactory measures for any oil that might be discovered… Further reflections should to be given to ways in that the United Kingdom could be guaranteed the right to a substantial of income.”
