By Clive Richard Ellerby Thesis Submitted to the Faculty of Modern History, Oxford University, for the Degree of Doctor of Philo
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BRITISH INTERESTS II THE FALKLAND ISLAIDS; ECQffQMIC DEVELOPMENT, THE FALKLAND LOBBY ABD THE SOVEREIGNTY DISPUTE. 1945 TQ 1989 By Clive Richard Ellerby Thesis submitted to the Faculty of Modern History, Oxford University, for the degree of Doctor of Philosophy Hilary Term 1990 Exeter College, University of Oxford A.S.L.I.B. ABSTRACT Clive Richard Ellerby, Exeter College, Oxford. D.Phil. Thesis in Modern History. Hilary Term 1990, British interests in the Falkland Islands: economic development, the Falkland Lobby and the sovereignty dispute. 1945 to 1989 The aim of the thesis is to study the circumstances which influenced the policy of the British Government towards the decolonization of the Falklands from 1945 to 1989. A comprehensive approach to the subject enabled an examination of the inter-relationship between the various forces which defined the nature of the dilemma. The themes included economic development, the form of landownership in the Colony, Falkland politics, the strategic value of the Islands, Anglo- Argentine trade and the Antarctic dimension. The thesis presents an original interpretation of how volatile and unpredictable pressures defined the dispute. A pattern emerges which shows that Government policy consisted of responses to different situations. The structure is based on a chronological approach which concentrates on the seven major turning-points in the dispute and how they were perceived in Britain and the Falklands. It also includes three original case studies. First, there is a socio- economic study of the peculiar approach to the colonization of the Falklands in the nineteenth century which provides a background to later developments. Secondly, the 1982 Conflict shows how the problems of the last British colonial territories can be in inverse proportion to their size. Thirdly, the examination of the Falkland Lobby gives a detailed account of how a successful British pressure group is organized. The primary sources used were Foreign and Colonial Office files at the Public Records Office (Kew) for the period up to the 1950s, and the archives of the Falkland Islands Association for the period from the mid-1960s. These were supplemented by private papers, the records of the Falkland Islands Company in London, interviews with prominent people, contemporary newspapers, official documents and secondary sources. (I) ABSTRACT Clive Richard Ellerby, Exeter College, Oxford. D.Phil. Thesis in Modern History. Hilary Term 1990. British interests in the Falkland Islands: economic development, the Falkland Lobby and the sovereignty dispute. 1945 to 1989 The decolonization of the Falklands has presented an intractable problem since it was placed on the British political agenda in the mid-1960s. The Anglo-Argentine sovereignty dispute is based on the conflicting principles of Argentine territorial integrity and the right of the Islanders to self-determination. However, its course was guided by pragmatism. In an international context a negotiated settlement seemed a logical step in Britain's withdrawal from Empire. The Falklands had a precarious economy, which could not sustain independence, and were isolated by their geographical position. When the internal situation in the Falklands is considered, a transfer of sovereignty would appear unthinkable. The roughly 2,000 Islanders are almost exclusively British in their culture and racial extraction. The Islands are about two-thirds the size of Vales with enormous potential for economic development which could be of direct benefit to Britain. The sovereignty dispute resembles a complex Jigsaw puzzle composed of numerous issues. A number of the main aspects have been covered by authoritative works, Mary Cawkell (1960) and lan Strange (1985) studied Falkland economic development, H. S. Ferns (1960) and Professor David Rock (1982) examined Anglo-Argentine economic relations, Max Hastings and Simon Jenkins (1986) and Cardoso, Kirschbaum and van (II) der Kooy (1983) wrote about the 1982 Conflict, and P. V. Quigg (1983) and Dr. Peter Beck dealt with the Antarctic dimension. However, these works do not provide a overall perspective of the Falklands 1 dispute. They also do not cover the role of the Falkland Lobby or the post-1982 economic development of the Falklands and its historical context. The aim of this thesis is to study in depth the policy of the British Government towards the Falklands from 1945 to 1989. It is original because the comprehensive approach adopted to the subject enabled an explanation of the inter-relationship between the various forces and pressures which influenced the Government. The themes include economic development, the form of landownership in the Colony, Falkland politics, the strategic value of the Islands, Anglo-Argentine commercial relations and the Antarctic dimension. Each reappraisal of the British Government's policy is assessed in the context of relevant developments such as the price of wool, the internal Argentine political situation and British public opinion. The thesis includes three original case studies. First, as a socio-economic study of the Falklands - in the context of British settlement in Australasia, Canada and Southern Africa - it presents a peculiar pattern of economic development. Secondly, the 1982 Conflict - which cost the British Government about £3te billion and resulted in the deaths of over 1,000 Argentines, Britons and Islanders - shows how the problems of the last British colonial outposts can be in inverse proportion to their size. The difficulties encountered in the decolonization of the Falklands were paralleled by Gibraltar, Hong Kong and British Honduras. Thirdly, the thesis gives an original case study of a successful British pressure group. The Falkland Lobby was a (Ill) crucial factor in the transformation of the dispute. The verbal assault in the House of Commons on Nicholas Ridley in December 1980, when he attempted to explain the Government's sovereignty leaseback initiative, is accepted as an important turning-point in the failure to reach a peaceful settlement with Argentina. This thesis is the first detailed study of the aims, organization and achievements of the Falkland Lobby- It is relevant to both the nature of British politics and the future of the Falklands. The topic was shaped by the material available. The primary sources used were Foreign and Colonial Office files at the Public Records Office (Kew) for the period up to the late 1950s, and the archives of the Falkland Islands Association for the period from the mid-1960s. These were supplemented by private papers, the records of the Falkland Islands Company in London, interviews with prominent people, contemporary newspapers, official documents and secondary sources. A visit to the Falklands in November 1988 gave an invaluable insight into the Islanders' perspective of the dilemma. There were obvious limitations. First, it is difficult to comment with authority on Government policy after 1960 due to the closure of official records for thirty years. Extended closure was also applied to many earlier Foreign and Colonial Office files which related to sensitive subjects such as the sovereignty of the Falklands and the Dependencies. Secondly, there was a danger that the papers in the Falkland Islands Association archive gave a distorted view of events because they were concerned with the preoccupations of a pressure group. Nevertheless, the material presented an ambitious and challenging basis for a thesis. The restrictions on the official (IV) records could be circumvented to some extent by the close examination and interpretation of the accessible sources. Oral history gives an invaluable insight into events which will not be available when the relevant records are open to the public. A detailed study of the Falkland Lobby's perception is justified because it was a very important factor in the sovereignty dispute between 1968 and 1982. Finally, the thesis is meant to be a contribution towards placing both the present 9 uncertainty about sovereignty and the rapid economic development of the Falklands in an historical context. A chronological approach was adopted because it showed the progression of events. Chapters one and two set the scene in 1945 and chapters three and four examine the developments up to the mid-1960s. Each subsection explains how the major aspect of the issues had evolved. Britain annexed the Falklands in 1833 due to their strategic value on an important trade route around Cape Horn. Port Stanley was established as a 'Harbour of Refuge 1 to provide fresh supplies and ship repair facilities. The military value of the Falklands to the Royal Javy was shown in both world wars. The sovereignty dispute was not a significant factor in Anglo-Argentine relations until the 1880s when Argentina consolidated its control of Patagonia. It would seem that the Argentine Government did not pursue its claim to the Islands in an aggressive manner because Britain was a major source of investment from the 1880s and was a vital market for meat exports. The complementary Anglo- Argentine trade relationship began to breakdown in the 1920s. The 1933 Roca-Runciman agreement gave Britain various trade concessions in exchange for maintaining the level of Argentine meat imports. However, it contributed to the rise of Argentine nationalism and demands for the (v) restitution of the Falklands. The dispute was extended to Antarctica in 1908 and 1917 when South Georgia, a segment of the continent and a number of sub-Antarctic islands were declared dependencies of the Falklands. In 1943 the British War Cabinet decided to establish permanent bases in response to Argentine incursions. The approach adopted to the colonization of the Falklands in the nineteenth century defined the nature of the Colony until the 1980s. Port Stanley was the primary concern of the Colonial Office. The development of the hinterland was left to private enterprise with little regard for the long-term consequences. The land was divided into vast ranches which were leased and sold to the Falkland Islands Company (which was granted a Royal Charter in 1851) and a handful of settlers.