SOLUTION TO THE FALKLAND ISLANDS CRISIS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83T00966R000100030008-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 20, 2016
• Document Release Date: October 17, 2007
• Sequence Number: 8
• Publication Date: January 1, 1982
• Content Type: REPORT

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FROM: Henry. S. Rowen, Chairman
National Intelligence.Council
7E62 Hqs. CIA
Paul Wolfowitz, Director
Policy Planning Staff
Room 7311 State Department
(632-2372)
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Solution to the Falkland Islands Crisis
Note: Any proposal must comprehend four elements that seem to me
1. Cessation of hostilities, and prevention of imminent
hostilities;
2. Some appropriate penalty upon the Argentinians for
having used armed force to seek to settle an interna-
tional dispute;
3. An ultimate turnover of the Islands to Argentinian
sovereignty, as the British are said to be prepared,
and to have been prepared for some time, to do; and
4. Adequate protection of the cultural and political
preferences of the British residents of the Falkland
Islands in a humane and indeed generous fashion.
Main Elements of the Solution
1. All Argentine armed forces are to withdraw immediately from the
Falkland Islands. The British fleet is to turn around and return to its
normal stations.
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2. An enclave in the nature of a large compound on the Falkland
Islands is to be created, which will house an Argentinian Resident (not
"Governor" or "Ambassador") and an office staff, to provide information
and any other governmental liaison with the residents of the Falkland
Islands. That enclave/compound will be an area of Argentinian sovereignty,
and the Argentinian flag will fly in it. In that enclave/compound, the
Argentinian law only will apply, and no British administrative powers will
be applicable. The Argentinian Resident will have diplomatic immunity.
3. British administration of the Islands with the exception of the
enclave/compound mentioned above, will. immediately resume, for three years.
4. For a period of three years the inhabitants of the Falkland Islands
will be given a chance to consider whether they wish to remain on the
Falkland Islands or whether they wish to relocate to an area of British
jurisdiction, either in the UK or elsewhere under British sovereignty, with
a relocation grant of $100,000 per person. (It is likely that many resi-
dents will find this a sufficient inducement to relocate to some other area,
perhaps in Scotland or elsewhere where conditions may be similar to the
Falkland Islands.) Any residents who do not wish to relocate will be free
to remain and become Argentinian citizens at the end of three years.
The cost of the relocation grants to be paid to any residents of
the Falkland Islands wishing to relocate elsewhere will be borne fifty/
fifty by the Argentinian and British governments. It should be noted that
the expense of the relocation grants, if every one of the 1800 residents of
the Falkland Islands took up the offer (it would have to be residents alive
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now or within the next six months, to avoid a population increase not
intended by the offer) would be less than $200,000,000, which would be one-
half of the cost of published estimates of the dispatch of the British
fleet alone.
5. After three years, the Islands will become Argentinian.
6. Argentina will pay a suitable indemnification to the UK for
all damage done by its invading forces, including the period of occupation
of the Islands by those forces. Furthermore, Argentina will pay compensation
to the UK for the property of British citizens or of the British government
in the Falkland Islands, including any investment in land and structures,
sheep, et cetera, which will remain in the Falkland Islands after the three
years.
Both amounts will be determined by an arbitral panel consisting of
three countries, for example, Malta, Austria, and Finland; or Malta, Switzer-
land, and Austria; or the like.
The amount of the arbitral award for compensation and indemnification
will be paid by Argentina to Great Britain over ten years in equal installments.
.7. In the event of off-shore oil deposits being found in the exclusive
economic zone of 200 miles around the Islands, the exploitation thereof will
be a joint venture between the UK and Argentina, with costs and profits
shared fifty/fifty. The UK will undertake to make available its technological
know-how for such exploitation on normal commercial terms to the joint venture.
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8. The administration of this disengagement and settlement agreement,
as well as its interpretation, will be carried out by the arbitral panel of
three countries, who will each dispatch a resident officer to the Falklands
forthwith to implement this agreement. The arbitral panel will have
binding and definitive authority in all matters respecting the interpretation
and implementation of this agreement, and its decision shall not be
appealable. At the conclusion of its work it shall render a report to
Argentina and the UK and to the United Nations Secretary General, but
the panel shall not be in any respect under the authority of the United
Nations or to take any instruction from the United Nations or to be
considered subject to its authority in the performance of its work. It
shall have the authority to engage any expert assistance it may desire
from any source, and its expenses shall be borne fifty/fifty by the UK
and Argentina.
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