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FALKLAND ISLANDS

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The Government is anxious to secure a prosperous and durable

future for the Falkland Islands. We held the first round of negotiations with Argentina from 13 to 15 July, in accordance with the terms of reference given to the House by my Rt Hon Friend

(Dr David Owen) on 26 April. This round was devoted to an examination of each side's views about the nature of the dispute

and the best method of making progress in future meetings. We left the Argentines in no doubt that any eventual settlement would have to be fully acceptable to the Falkland Islanders themselves and to Parliament. It was agreed that the next round should be at the beginning of November.

(i) Government's policy towards the Islanders

As my Rt Hon Friend made clear to the House on the 1st of March, we believe that a framework of greater political and economic co-operation in the region of the South West Atlantic

is necessary if we are to have any prospect of achieving a prosperous and durable future for the Falkland Islanders. policy is to seek to create such a framework.

(ii) Consultation with the Islanders

Our

As my Rt Hon Friend made clear to the House on the 1st of March, there will be full consultation with the Islanders during the course of the negotiations with Argentina.

(iii) Agreement of the Islanders to inclusion of sovereignty

in talks with the Argentines

The Island Councillors approved that formal negotiations with the Argentines would be concerned with the twin themes of political relations and economic co-operation. They accepted that sovereignty would have to be discussed in this context. B

(iv) What is behind the discussion of sovereignty?

There is nothing sinister about discussing sovereignty.

The sovereignty umbrella protects our position fully. To face up to the problem which the sovereignty dispute raises does not represent a weakening of our own position.

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