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Talk of Falklands oil boom as war anniversary nears

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http://www.guardian.co.uk/business/blog/2012/feb/16/talk-falklands-oil-boom-tensions-anniversary

Talk of Falklands oil boom heightens tensions as war anniversary nears
Up to 8.3bn barrels of oil could be up for grabs, ramping up tensions as the 30th anniversary of the war between the UK and Argentina approaches

A banner outside Government House in Buenos Aires reads ‘Brits get out of the Malvinas’. Photograph: Enrique Marcarian/Reuters
Tensions are rising in the Falkland Islands as the 30th anniversary of the war between Argentina and the UK approaches. Even Sean Penn has waded into the simmering row over sovereignty of the islands, calling Britain’s presence in the Falklands “colonialist, ludicrous and archaic” as he criticised Prince William’s deployment there.

Growing talk about an oil boom in the contested islands doesn’t help.

Some 8.3bn barrels of oil are thought to be up for grabs in the waters around the Falklands. That compares with UK proven reserves of 5.6bn. However, some believe the prize could be much bigger: some estimates put it at up to 60bn barrels. That dwarfs the 21bn barrels thought to be remaining in the UK sector of the North Sea.

Analysts at Edison Investment Research said: “None of these figures have of course been proven, although we do know that Sea Lion is already approaching the size of the single largest field discovered in the UK North Sea this century, namely the Buzzard field where total recoverable reserves of more than 550m barrels have been estimated.” Sea Lion, estimated at just shy of 450m barrels, is the largest oil discovery in the Falklands so far, and is owned by UK-listed explorer Rockhopper.

An oil boom is set to transform the Falklands. A report by Edison, Kicking up a Storm in the South Atlantic, says the islands could reap up to $180bn (£115bn) in royalties and tax as oil companies get drilling. Good news for the UK government, but Argentina’s president, Cristina Fernández de Kirchner, must be fuming.

This year oil companies start drilling in the southern basin of the Falklands. Ian McLelland, one of the Edison analysts, told the Guardian that the total 60bn barrel estimate for the region “doesn’t seem like an unreasonable estimate” given that four wells in the south alone are expected to yield 7.8bn barrels and “there are dozens of fields”.

Every time drilling results from the four wells are released – they will come 45 to 60 days apart – tensions are bound to rise. The first results are expected in mid-March. “The potential prize from tax revenues could weigh heavily on [UK-Argentina] relations if 2012 exploration is successful,” the Edison report says.

In the Falklands drilling race, Rockhopper has been leading the way in recent years, undaunted by initial setbacks.

But this is just the start. The southern basin could prove much more lucrative. The Edison analysts say that the largest prospect in the southern basin, Loligo, contains estimated resources of 4.7bn barrels, making it the largest drill target anywhere in the world in 2012, and over 10 times the size of Rockhopper’s Sea Lion.

The report concludes: “In 2012, the focus shifts firmly to the southern basin explorers where success for Falkland Oil and Gas Limited or Borders & Southern Petroleum will be a game changer for the region. Rockhopper and Falkland Oil and Gas offer the most compelling upside for investors. The biggest winner, however, could be the Falklands itself, with a near $180bn potential prize in royalties and tax on the horizon if 2012 drilling proves successful.”

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Robert Falcon Scott’s skis returned

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http://www.theaustralian.com.au/news/world/robert-f-scotts-skis-return-57-years-on/story-e6frg6so-1226267667324

Robert Falcon Scott’s skis return 57 years on
BY JACK MALVERN
From:The Times
February 10, 2012 12:04PM

TWO pairs of skis belonging to Robert F. Scott of the Antarctic that went missing from his hut 57 years ago have been recovered after an amnesty on “lost” items.

The wooden skis with leather bindings are thought to have been used by the explorer himself during his fateful expedition in 1910, which ended with his death as he returned from the South Pole.

Their whereabouts have been a mystery since the end of the Second World War.

When Scott’s party moved on from the hut they left the skis behind for use by future expeditions, but they disappeared shortly after scientists established bases in Antarctica during the 1950s.

One of the souvenir hunters was an unnamed member of Operation Deep Freeze, the American military mission that set up a presence on the continent in 1955. He took the skis and other items from the hut in 1957 when the American expedition became one of the first to visit the site since Ernest Shackleton’s last Antarctic voyage in the early 1920s.

He shared some of his finds with Dave Baker, a young dog-sled driver, who used the items as props when he told people about his adventures. Captain Baker, who served in the US Navy, said that he treasured the objects, but realised that he had to return them when he heard about the conservation work being done by the Antarctic Heritage Trust.

“Since 1957 I have spoken to over 50,000 people about my experience and the skis have been a key part of that presentation,” Captain Baker said. “It is now time to return them to their rightful place.”

He also returned some smaller objects, including a bottle of cod liver oil and a tin of Fry’s pure concentrated cocoa.

Nigel Watson, executive director of the trust, said that the skis and 1300 other items would be returned to the hut in the Antarctic summer of 2012-13 after conservators based in New Zealand have had a chance to study them.

“The skis are overall in very good condition,” he told The Times. “There is some minor corrosion of metal components and one pair does not have a complete binding set.”

He believes that the skis would have been used by Robert Falcon Scott’s ill-fated expedition of 1910-1912, when the British explorer was beaten in a race to the South Pole by the Norwegian Roald Amundsen.

There is evidence that the skis were also used by Shackleton’s team during his second expedition of 1914-17, when his men used Scott’s hut in Cape Evans as a base.

“Whilst one pair bear the initials of Aeneas Mackintosh, leader of Shackleton’s Trans-Antarctic Ross Sea Party, which occupied Scott’s hut at Cape Evans, the other pair is unmarked,” Mr Watson said.

“The leader, Captain Mackintosh, died crossing sea ice trying to reach the safety of Scott’s hut.”

THE TIMES
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‘Let him sink’ statement outrages Norway

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http://www.sail-world.com/Australia/Stowaway-or-not?-and-Let-him-sink-statement-outrages-Norway/93921

Stowaway or not? and ‘Let him sink’ statement outrages Norway

Was he invited or did he stow away? Reports from different ends of the globe disagree about whether Busby Noble, 53, a 150 kilo Mauri activist who is sailing to Antarctica with Norwegian controversial adventurer Jarle Andhoey had left on the Nilaya with Andhoey’s permission or not.

Andhoey claims he denied Noble permission to accompany him and he stowed away in the bow. Noble told political colleagues in New Zealand that he had been invited, and that he wanted to go to pay respects to a friend, one of the three killed on the last voyage while Andhoey and Samuel Massie were riding quad bikes to the Pole, which they never reached.

Andhoey left Auckland last month on a controversial mission to find the remains of the last yacht, the Berserk, thought to have sunk in McMurdo Sound on or about 22nd February last year.

The Nilaya has now, apparently illegally, passed the 60 degree line and has reached the Antarctic ice shelf, according to Noble.

Director Jan Gunnar Winther of the Norwegian Polar Insititute told media outlet Dagbladet it is highly unlikely that the new expedition has been given permission to cross the border. ‘They have not received permission from Norway, New Zealand and Russia. We can not rule out that they have received permission from other countries, but we expect that the country had made itself known now,’ he said. (Andhøy told the media that he has Russian permission, which the Norwegian Polar Institute has since disproved.)

That the yacht has reached the Antarctic was also confirmed by spokesman for Andhøys new expedition, Rune ‘Supern’ Olsgaard, a former crew member. Norwegian media outlet Dagbladet claims that the yacht is currently at Franklin Island, owned by Australia, and located at around 76 degrees south, having had a slow trip through lack of wind.

The transgressions of the crew appear to be multiple. ‘Stowaway’ Noble is reported to be travelling under an illegitimate Tino Rangatiratanga passport instead of his New Zealand one, to which he is entitled. Noble insists he was ‘paying his way’ on the voyage by undertaking mechanical repairs.

Reports to both New Zealand and Norway confirm that the yacht, a steel-hulled yacht purchased in New Zealand from previous owners Marlene and Doug Easton, has enjoyed excellent weather during the voyage south. The Eastons refused to confirm or deny whether the yacht was strengthened for ice-breaking conditions when asked by Sail-World.

Andhøy says he wants to find out if there is still remaining equipment from Berserk on the anchorages at Horseshoe Bay and Backdoor Bay. The equipment should have been put in depots shaped like cairns, he says, and if the equipment has been removed Andhøy believes that the crew must have been ordered to do so.

If the conditions are good enough that Andhøy and the crew can sail into the area where Berserk disappeared, the first priority is to look for these repositories. Although the ice has remained thick this year, one report from Antarctica is that a path has been cleared, and the Nilaya should be able to enter.

Apparently the plan is that they will start searching where the beacon was triggered. They have brough electronic equipment to search the ocean floor, says Olsgaard, and they also have satellite photos of the area, which were not used by the searching New Zealand authorities.

Both Andhøy and lawyer Nils Jorgen Vordahl have tried to get answers from New Zealand authorities if they have seen the equipment or remove it. ‘We have not seen any equipment at Horseshoe Bay and Backdoor Bay,’ wrote head of infrastructure and operations at Scott Base, Iain Miller, in an e-mail to Dagbladet.

In the meantime, New Zealand multi-millionaire Gareth Morgan, who has chartered a former Russian ice breaker Spirit of Enderby, to explore the Ross Sea, has caused outrage in Norway by saying he hopes Andhoey sinks in Antarctica and that he will not go to help him if he does.

Asked what response they would have if they saw Nilaya, Morgan replied: ‘Let it sink. It’s about collective responsibility. This cowboy has opted out.’

In an email to Norwegian media, passed on by Morgan’s staff, the economist also said Andhoey’s real mission was to attract as much press as he possibly could and sell books and sponsorships as a result.

‘Clearly Andhoey is out to test the resolve of the international agreements that protect Antarctica from the random risks of errant behaviour like his,’ Morgan said in a blog.

by Sail-World Cruising round-up

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Sean Penn accuses UK of ‘ridiculous colonialism’ over Falklands

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Sean Penn accuses UK of ‘ridiculous colonialism’ over Falklands

LAST UPDATED AT 09:39 ON TUE 14 FEB 2012

AFTER enlisting the help of her fellow South American nations in a blockade of the Falkland Islands, Argentine President Cristina Kirchner has unveiled the latest weapon in her efforts to force Britain to negotiate over the sovereignty of its overseas territory: Sean Penn.

The Hollywood actor, anti-imperialist and friend of Hugo Chavez, has accused Britain of “ridiculous colonialism” over its refusal to join United Nations talks over ownership of the Falklands.

Meeting Kirchner at the Casa Rosada presidential mansion in Buenos Aires, Penn referred to the Falklands by their Spanish name: “I know it is a very sensitive moment in terms of diplomacy between Argentina and the UK over the Malvinas Islands,” he said, according to the Buenos Aires Herald.

“I hope that diplomats can establish true dialogue in order to solve the conflict as the world today cannot tolerate ridiculously archaic demonstrations that aim to continue colonialism.

“Dialogue is the only means to achieve a better solution for both nations.”

Penn’s primary objective in visiting Kirchner was to secure Argentine aid for survivors of the Haiti earthquake of 2010. The Caribbean island bestowed the title of “ambassador at large” on the actor in recognition of his humanitarian efforts a fortnight ago – so perhaps he can be forgiven for making ingratiating noises on behalf of Kirchner.

Nevertheless Falkland Islanders have made their opposition to talks with Argentina clear – and Prime Minister David Cameron has made his support for the territory’s self-determination equally clear.

That hasn’t stopped Kirchner from embarking on a diplomatic offensive which has garnered the support of the Latin American trading bloc Mercosur for a blockade against ships flying the Falklands flag. Last week Argentina complained to the UN that Britain was “militarising” the South Atlantic by sending a state-of-the-art warship to the Falkland Islands.

Penn is well-known for his support for Latin American self-determination against US hegemony. Not surprisingly, some are asking on Twitter why he doesn’t consider self-determination for this tiny overseas territory as important.

Read more: http://www.theweek.co.uk/americas/falkland-islands/45308/penn-accuses-uk-ridiculous-colonialism-over-falklands#ixzz1mLn64aCW

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Argentine union to boycott UK ships

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http://www.bbc.co.uk/news/world-latin-america-17022603

14 February 2012 Last updated at 02:24 GMT
Falklands dispute: Argentine union to boycott UK ships

Argentina’s transport workers’ union says it will boycott ships flying the British flag because of the dispute over the Falkland Islands.

The union – which includes dock workers – said the measure would apply to all UK vessels reaching Argentina.

It is not clear how much impact the boycott will have.

Tension between the UK and Argentina over the Falklands has been rising in recent months as the 30th anniversary of the Falklands war approaches.

“We have resolved to boycott any ship with the British flag, or with the lying and invented flag of the Falklands, or with any flag of convenience which the British pirates use,” the Argentine Confederation of Transport Workers said in a statement.

The announcement is the latest in a series of measures aimed at pressing Argentina’s claim to sovereignty over the islands, which it calls the Malvinas.

In December, the South American trading bloc Mercosur closed its ports to ships flying the Falkland Islands flag.

And last week Argentina took its case to the UN general assembly, where it accused the UK of “militarising” the region and sending a nuclear-armed submarine to the South Atlantic.

The UK government has dismissed the claim of militarisation as “absurd” and says its defence posture in the Falklands has not changed.

It says there can be no negotiations on sovereignty as long as the Falkland Islanders wish to remain British.

Actor intervenes
The latest figure to back the Argentine cause is the Hollywood actor and activist Sean Penn.

After meeting Argentine President Cristina Fernandez de Kirchner in Buenos Aires, he urged the UK to join talks on the dispute.

“I think that the world today is not going to tolerate any kind of ludicrous and archaic commitment to colonialist ideology,” the Oscar-winning actor said.

His intervention has caused bemusement among the islanders.

“Ha Ha if Penn supported UK Brits would probably ask what gives an actor the right to have an opinion on the Falklands?” Lisa Watson, editor of the Falklands newspaper the Penguin News wrote on Twitter.

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Prince William in Falklands for 6-week tour

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http://www.newsday.com/news/pilot-prince-william-in-falklands-for-6-week-tour-1.3499089

Pilot Prince William in Falklands for 6-week tour
Originally published: February 2, 2012 12:31 PM
By The Associated Press CASSANDRA VINOGRAD (Associated Press)

LONDON – (AP) — Prince William arrived in the Falkland Islands on Thursday for a six-week deployment as a search and rescue helicopter pilot, British officials said, amid an escalating sovereignty dispute with Argentina over the territory.
The Ministry of Defense confirmed that William, known in the service as Flight Lt. Wales, landed on the British outpost as part of a four-member Royal Air Force crew.
It said William will assume his duties “shortly” following a period of briefings and a familiarization flight.
The prince’s visit has riled Argentina, which claims the islands 290 miles (460 kilometers) off its coast that it calls Las Malvinas. Britain’s defense ministry has insisted William’s deployment is routine, but Argentina’s foreign ministry likened the move to a conquistador’s arrival.
Britain and Argentina have been trading barbs in the run-up to the 30th anniversary of Argentina’s April 1982 invasion. The 10-week war that followed ended in British victory and killed 650 Argentine troops, more than 250 British personnel and three islanders.
Britain still maintains about 1,000 troops in the territory, whose 3,000 residents overwhelmingly wish to remain British.
Last month, Argentina persuaded Brazil, Uruguay and Chile to join a Mercosur trade group resolution to turn away any ship flying the Falklands’ flag — which depicts a sheep and a ship along with the United Kingdom’s red, white and blue Union Jack.
That action prompted British Prime Minister David Cameron to accuse Argentine President Cristina Fernandez of having “colonialist” aims on an island population that wants to remain a British dependency. She accused Cameron of “mediocrity bordering on stupidity.”
Argentina’s foreign ministry last week accused Britain of militarizing their sovereignty dispute by announcing that it is sending an advanced warship to the islands along with William “in the uniform of a conquistador.”

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January – Falklands criticized over refusal to let ship dock

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Falklands criticized over refusal to let ship dock
Published January 17, 2012
Associated Press

BUENOS AIRES, Argentina – The Falkland Islands came under further criticism Tuesday for refusing to allow a cruise ship with an outbreak of stomach flu to dock, as passengers complained about their missed travel plans and an expert called the decision an overreaction.
Tourists on the Star Princess told The Associated Press they were forced to cancel long-planned trips when officials in the disputed British territory off Argentina refused them entry Saturday, saying an outbreak could strain the archipelago’s medical resources.

About 74 passengers and crew among the more than 3,500 people on board were reported ill with norovirus, 20 of them with symptoms like vomiting and diarrhea.
Briton John Sturgeon and his wife had been looking forward to the visit as one of the highlights of the South American cruise, saying they wanted to see the islands to remember the upcoming 30th anniversary of Argentina’s invasion of the colony. Argentina and Britain continue to be in a diplomatic row over the islands, which Argentina calls the Malvinas.
“I had already booked a tour with someone in the Falklands,” he said as the couple disembarked for a stop in Buenos Aires. Sturgeon said the ship’s captain considered the refusal to allow them to dock “very unreasonable and unprecedented.”
There were also several hundred Argentines among the passengers, who had paid thousands of dollars for the cruise in order to visit the graves of their fathers. A cemetery on the island is filled with the tombs of Argentine draftees killed in the ill-fated 1982 war.
Argentine passenger Liliana Rodriguez said some of the passengers had been planning to pay respects to loved ones buried on the island.
“There was a young guy who brought a shield for the tomb of his father there,” Rodriguez said. “There was all of these people and so many more, because we didn’t get the chance to have contact with everyone because there were at least 300 Argentines.”
The Falklands has defended its decision as being made “in the wider interests of the public and tourism industry,” according to a statement from the island’s chief medical officer. “An outbreak in the Falkland Islands would put enormous pressure on our limited medical resources and jeopardize other scheduled cruise visits,” the statement said.
Norovirus is highly contagious and spreads through the stool or vomit of infected people. The virus can linger on surfaces like door handles, carpets and tabletops. It can also spread when people share the food, drinks or eating utensils of an infected person.
But Norman Noah, an infectious diseases expert at London’s School of Hygiene and Tropical Medicine, described the Falklands’ decision as “over the top.”
He has previously investigated norovirus outbreaks and said the illness normally passes within a couple of days and is unlikely to overwhelm hospitals.
Princess Cruises has called the decision “totally unwarranted.”
The virus is the most common cause of gastroenteritis in the U.S. About 1 in 5 of norovirus outbreaks reported to the U.S. Centers for Disease Control and Prevention occurred on cruise ships or in vacation settings. The CDC has documented about a dozen outbreaks a year on cruise ships worldwide.
The U.S. CDC’s Vessel Sanitation Program never advises that ships cannot dock, though they might issue a “no sail order” in the case of repeated or large outbreaks with little controls in place. That doesn’t seem to be the case with the Star Princess, which according to CDC records, hasn’t had a norovirus outbreak since 2003.
Even if the ship had been allowed to dock in the Falklands, experts weren’t sure the infected passengers would have spread the virus very far.
According to guidance from Britain’s Health Protection Agency, any passengers on board a ship who have norovirus should be isolated in their own cabin until at least 24 hours after their symptoms have passed. There are more stringent recommendations for sick crew members.
The agency does not advise that ships with infected patients be prevented from docking, but says certain measures should be in place when the ship arrives into port, like thoroughly cleaning and disinfecting the vessel before it sails on.
“If you’re suffering from vomiting and diarrhea, you probably won’t be sightseeing,” Noah said. “Chances are you’ll be staying in your cabin by yourself.”

Read more: http://www.foxnews.com/world/2012/01/17/falklands-criticized-over-refusal-to-let-ship-dock/#ixzz1mKYgAZGd

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Why is Kirchner reopening Falklands wounds?

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http://www.guardian.co.uk/world/2012/feb/10/why-fernandez-reopening-falklands-wounds?newsfeed=true

Why is Cristina Fernández de Kirchner reopening old Falklands wounds?
The popular Argentinian president has no need of nationalistic stunts. The reason may lie partly in her Patagonian roots
Rory Carroll and Uki Goni in Buenos Aires
guardian.co.uk, Friday 10 February 2012 15.16 GMT

Cristina Fernández de Kirchner was a young crusading lawyer when she watched anxious military conscripts tramp through the cold and wind of her adopted home town, Rio Gallegos, on their way to invade theFalkland Islands.

She was from La Plata, a city near Buenos Aires, and had moved to this Patagonian outpost because it was the home of her husband, Nestor, a fellow lawyer. It had been originally settled in the 1880s by British settlers from the Falklands, 300 miles offshore, and now Argentina’s military junta was sending traffic in the other direction.

Ten weeks later, in June 1982, British forces expelled the Argentinians and Britain’s prime minister, Margaret Thatcher, gloried in her reputation as the Iron Lady. Fernández made her way to Plaza de Mayo in Buenos Aires to join protesters in front of the presidential palace against Argentina’s blundering dictators.

Three decades later time wrought its ironies. Thatcher returned to Argentina this week not on television news as a triumphant conqueror but in cinemas as a pitiful, senile character played by Meryl Streep. And Fernández, 58, used a new crisis over the Falklands to strut the presidential stage as a powerful leader at the height of her powers.

“I have instructed our foreign minister to protest at the UN the militarisation of the south Atlantic which implies a grave risk for international security,” she told generals, senators, business leaders and war veterans at the palace’s Hall of Latin American Patriots. “I want to ask the British prime minister to give peace a chance; give peace a chance, not war.”

The speech flashed around the world as the latest escalation of a row which has seen Argentina apply an intense diplomatic and commercial squeeze over the disputed south Atlantic islands it refers to as Las Malvinas.

It followed Britain’s “routine” decision to send HMS Dauntless to replace an older ship, as well as Prince William, a search and rescue helicopter pilot. “There is no other way to interpret the decision to send a destroyer, a huge and modern destroyer, to accompany the royal heir, whom we would have loved to see in civilian clothing instead of a military uniform,” said Fernández. She recently herded much of Latin America into banning ships flying the Falkland Islands flag from their ports.

David Cameron, on a visit to Sweden, felt forced to reiterate Britain’s sovereignty over the territory. “As long as the people of the Falkland Islands want to maintain that status, we will make sure they do and we will defend the Falkland Islands properly to make sure that’s the case.”

Despite heated political rhetoric and media coverage from both sides analysts agree the odds of renewed military conflict are negligible.

So why is Fernández reopening old wounds on the eve of the 30th anniversary of the conflict?

Unlike the junta generals, who launched their adventure to distract from economic and political woes, Fernández has no obvious need for nationalistic stunts. “She is the most popular and most powerful president since the return of democracy in 1983,” said Graciela Romer, one of Argentina’s leading political analysts.

She buried rivals in last October’s election, winning a second four-year term, and is cruising on 70% support in latest polls. Her popularity rests largely on wage improvements and social subsidies, notably universal child allowance, pension increases and unemployment benefits, introduced during her first term. “People feel their pocket money has kept ahead of the real yearly inflation rate,” said Romer.

Why, then, pick a fight over a distant, windy archipelago of 3,000 souls who enjoy Marmite and fish fingers and quietly go about their business? Many Argentinians, especially those born after the war, do not give priority to reclaiming islands Britain has held since 1833.

One reason is Fernández’s roots in Patagonia, which traditionally has cared more about the issue than cosmopolitan Buenos Aires. She moved there soon after marrying Nestor, her law school boyfriend, in 1975. Both active in the Peronist youth movement, they kept a low profile in Rio Gallegos during the 1976-83 dictatorship. She said this week she did not join jubilant crowds in the main square to cheer the invasion but certainly felt pity for the conscripts. “We saw many soldiers leave from Rio Gallegos and some didn’t return.”

While Nestor became mayor of Rio Gallegos in 1987 and then governor of the surrounding province, Santa Cruz, his wife was elected to congress and acquired respect as a fiery anti-corruption legislator. She was more famous and dashing than her husband but in 2003, as Argentina reeled from economic collapse, it was Nestor who catapulted to the presidency over a divided field. Cristina, as she was known to the nation, became first lady.

Nestor scorned orthodox IMF prescriptions and international creditors and presided over a vibrant recovery fuelled by soy exports to China. Generous social subsidies and the reopening of trials for dictatorship-era human rights violations clinched his popularity.

He was favourite to win re-election but stepped aside to let his wife run in 2007. “She is better at communicating with the people than her opponents,” he told Horacio Verbitsky, a leading journalist and close ally. Verbitsky was sceptical at first. “I personally didn’t expect her to be so successful when she ran … but Nestor Kirchner used to tell me she would prove even more capable than he had been, and he was right.”

Fernández inherited not only a popular government but a relatively united Peronist movement, reconstructed by her husband, while the opposition remained fractured and demoralised.

For all her stern demeanour – she refuses all press interviews and shuns opposition figures – the president can be disarmingly open about private matters. She once surprised an audience relating how she and her husband had just rediscovered the joys of eating pork. “Well, you know, incredible! Everything went very well all weekend. Plus, having a little roasted pork is better than taking Viagra.”

She stumbled, however, in 2009. An economic downturn and clashes with farmers and media barons lost her a congressional majority in mid-term elections and hammered her approval ratings down to 19%. Nestor’s death from a heart attack the following year prompted immense public sympathy and, amid her grief, a comeback. To this day the president wears only mourning black in public. A recovering economy did the rest, restoring her congressional control and ratings in time for re-election.

Like a certain former British prime minister, showing weakness, in any context, is anathema. When she tripped in front of TV cameras last year, causing a nasty gash on her head, the president immediately bounced back up to her feet. “Luckily I got up fast so they couldn’t film me on the floor!”

Patagonian roots aside, the president’s main interest in escalating the Falklands row may be to deflect looming domestic difficulties. The government is attempting to untangle expensive state subsidies which will hurt its blue-collar base. Analysts say inflation is more than double the official figure. The government is so desperate to massage the numbers it has prohibited economic consultancy firms publishing private inflation estimates.

Compounding that unease, a constitutional ban on a third term means Fernández could soon be embroiled in a fraught effort to change the constitution so she can run again. The alternative will be to watch her authority gradually ebb.

“A Peronist president without the chance of re-election becomes a lame duck. Once the Malvinas issue fades back into the background, the fight of succession will come to the fore and her monolithic power could reduce her flexibility when it comes to dealing with the Peronists,” said Romer, the analyst. “Her great strength could become her greatest weakness.” Tapping semi-dormant passions over the Falklands is a largely cost-free way to consolidate her base and deter would-be successors from moving too soon.

Fernández has also been emboldened by the zeitgeist: South America has discovered it can, perhaps for the first time in its history, safely challenge the old colonial powers. A “pink tide” of nationalistic leftwing governments senses the region’s time has come after centuries of marginalisation. China’s rapid rise as a trading partner has further weakened European leverage.

“South America doesn’t have the respect it used to have for Europe. It feels it is on top now and is flexing its new muscles,” said a senior European diplomat.

Brazil’s Luiz Inácio Lula da Silva made a global splash railing against western bankers, Venezuela’s Hugo Chávez did the same railing against western imperialism and the Falklands gave Fernández her own cause, said Romer. “She is using Malvinas to expand her visibility on the international arena.”

Lucrative fishing concessions have made the Falklands wealthy, and when in 2010 four British companies announced they were going to search for an estimated 8.3bn barrels of oil in Falkland waters, it added resource nationalism to the combustible mix of history and wounded pride. London’s blunt dismissal of Argentinian concerns over financial and environmental implications aggravated Fernández all the more.

Rio Gallegos remains cold and windy but nobody expects to see a new generation of conscripts tramping aboard Falkland-bound planes. Fernández is not desperate or stupid. She is simply extracting advantage from a clump of islands her compatriots consider unfinished business. And in the process becoming, for many, Argentina’s own iron lady.

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Argentina plotting Falklands blockade?

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http://www.guardian.co.uk/uk/2012/feb/01/argentina-falklands-economic-blockade?newsfeed=true

Argentina accused of plotting Falklands blockade
Rory Carroll, Jonathan Franklin in Santiago and Uki Goni in Buenos Aires
guardian.co.uk, Wednesday 1 February 2012 17.13 GMT

British diplomats have accused Argentina of plotting an economic blockade of the Falklands amid fears that Buenos Aires is attempting to stop all flights from Chile reaching the islands.

The government of Cristina Fernández de Kirchner has publicly threatened to halt the weekly flight operated by a Chilean-owned airline between Punta Arenas and Port Stanley.

It is the islands’ only air link with South America and their main connection with the outside world. British officials believe the service will disappear in an attempt by Argentina to make the Falklands too expensive for Britain to maintain.

“If the LAN Chile flight is cancelled it would be pretty difficult to resist the already credible thesis that there is an economic blockade of the civilian population of the Falklands,” said a senior British diplomat in the region on Wednesday.

The move, which diplomats predicted would come soon, would further isolate the disputed island chain and ratchet up tension with London on the eve of the 30th anniversary of the war between Argentina and Britain.

British officials said that if LAN resisted, Argentina would simply ban the use of its airspace.

Fernández signalled the escalation in a speech to the UN last September, when she said Buenos Aires might block the flights, negotiated during a thaw in relations in 1999, if David Cameron’s government refused to discuss sovereignty of the islands – which Argentina refers to as Las Malvinas. “We’ll wait a little longer, but otherwise we’ll be forced to review the standing provisional agreements,” she said.

Cameron has continued to refuse to hold talks and recently angered the Argentinian government by accusing it of “colonialism” in its campaign to win back the islands. Argentina says Britain stole the territory, 300 miles off its south Atlantic coast, in 1833.

Argentinian commentators reported last week that Buenos Aires was squeezing LAN, a view which is shared by British officials. The cancellation of the route would leave the Falklands entirely dependent on the twice-weekly 8,000-mile military flight from London via Ascension Island, a volcanic island near the equator.

Barry Elsby, a member of the Falkland Islands’ legislative assembly, said: “This has been rumbling for many months. It’s a possibility we live with on a daily basis. It would be sad, especially for the Chileans who work and live here, because they would have to leave. And it would be a shame for a nation like Chile to be dictated to.”

Instead of a 560-mile flight home to southern Chile, the islands’ estimated 250 Chileans would have to travel via London.

Elsby said relatives of Argentina’s 600 war dead would also suffer by losing cemetery visits. Once a month the LAN flights stop in Rio Gallegos, Argentina.

He played down the economic and political implications of the 3,000-strong population losing its main link to the outside world. “It would be an inconvenience but nothing that would harm the Falklands,” he said.

Others have been less sanguine and warned of damage to tourism and exports.

The row puts LAN, which has one of the region’s biggest fleets of aircraft, and Chile’s conservative president, Sebastián Piñera, in an awkward position. Neither can be seen to bow to a neighbour’s bullying, but there is commercial pressure for an accommodation.

The Falkland Islands flights are a profitable but tiny part of operations for LAN, which requires Argentinian co-operation for much of its international business. The airline, which Piñera part-owned before becoming president, has been unsuccessfully seeking permission from Argentina for a Buenos Aires to Miami flight.

Argentina has cancelled landing rights at Aeroparque, the capital’s domestic airport, for LAN’s flights from the Chilean capital, Santiago, and São Paulo, Brazil. It has transferred these to Ezeiza, the city’s international airport, a major drawback for LAN because it is farther outside the city and deters potential passengers. Chilean commentators speculated this was done to gain leverage over the airline.

Fernández is understood to have raised the issue of Falklands flights with Piñera during a UN meeting in New York last September. She was expected to do so again earlier this month in Santiago, but the visit was pushed back because of her thyroid treatment.

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Falklands oilfields could yield $176bn windfall

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http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9076530/Falklands-oilfields-could-yield-176bn-tax-windfall.html

A report predicts the potential tax riches for Falklands Islands oilfields are likely to reach just shy of $180bn.
By Nathalie Thomas9:30PM GMT 11 Feb 2012

A study to be handed to the UK Government this week will lay bare the potential riches on offer from drilling in waters within the 200-mile exclusion zone set up during the 1980s Falklands War to mark the boundaries of British territory.
A group of UK-listed companies is involved in exploring four major prospects this year, with the largest, Loligo, potentially holding more than 4.7bn barrels of oil. By comparison Catcher, the biggest discovery in the North Sea of the past 11 years, is believed to hold only 300m barrels.
The report by oil and gas analysts at Edison Investment Research predicts that if all four prospects were drilled, the potential tax riches are likely to reach just shy of $180bn.
At present, the Falklands’ main industry is fishing, which generates just $23m a year. Beyond that, the territory receives only $16m in tax receipts a year from other business sectors.
The most developed prospect, Sea Lion, already appraised by Salisbury-based Rockhopper Exploration, is forecast to produce 448m barrels over the next 20 years.
Ian McLelland, co-author of the report, said the opportunity offered by the seas around the islands is colossal: “With current tax and fishing incomes in the region of $40m , the islands look set to be transformed by the oil industry.”
But he cautioned that the recent political posturing by Argentina could prove a major barrier to securing the vital investment needed to get the prospects to where they are actually producing oil.
“The proverbial spanner in the works that remains is the ongoing political dispute between Britain and Argentina regarding sovereignty of the Falklands,” he said.

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