Britain has signalled to Argentina that it could be prepared to ease an arms embargo imposed after the Falklands war sixteen years ago.

Referring to a United Nations peacekeeping mission where British and Argentine troops are serving alongside each other, the foreign secretary, Robin Cook, told the BBC that some aspects of the embargo were plainly daft.

The comments come on the eve of a visit to Britain by President Carlos Menem -- the first by an Argentine head of state in four decades, and a sign, correspondents say, of asteady thaw in relations.

President Menem's visit has aroused great debate in both countries about the sovereignty of the Falklands -- an issue President Menem has promised to address during his visit.

But the British prime minister, Tony Blair, has said the question is closed because the Falklands are British.