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THE Navy has intercepted an Argentine warship in our waters in the first head-to-head of the Falklands row. Destroyer HMS York spotted the vessel up to ten miles inside the disputed "oil zone" around the South Atlantic islands. York's crew monitored the progress of the Argie ship, a smaller corvette named ARA Drummond, before radioing her to change course. The Drummond came within just 65 miles of the islands before complying. She was sent packing with no further action taken. Sources insisted her crew made an "innocent navigational blunder" and were embarrassed. ARA Drummond ... 'navigational blunder' But the incident...

It was a headline I never expected to read: “US refuses to endorse British sovereignty in Falklands oil dispute.” Washington has declined to back Britain in its dispute with Argentina over drilling rights in the waters surrounding the Falkland Islands, South Georgia and the Sandwich Islands. President Obama’s position is one of strict neutrality, refusing to take sides. According to the State Department: We are aware not only of the current situation but also of the history, but our position remains one of neutrality. The US recognises de facto UK administration of the islands but takes no position on the...

Britain said it "firmly rejects" a new Argentine law that defines the Falkland Islands, over which the countries fought a war in 1982, as part of its territory. The British government delivered its protest to the Argentine chargé d'affairs in London, a Foreign Office minister, Chris Bryant, said in a statement to Parliament. The Falkland Islands, which are known as the Islas Malvinas in Argentina, are a source of tension in relations with the U.K., which won the brief war in 1982. Reports that there may be large oil reserves in waters around the islands are adding to the strains.