Regions and territories: Falkland Islands

The isolated and sparsely-populated Falkland Islands, a British overseas territory in the south-west Atlantic Ocean, remain the subject of a sovereignty dispute between Britain and Argentina, who waged a brief but bitter war over the territory in 1982.

Argentine forces, who had landed on the Falklands to stake a territorial claim, were ejected by a British military task force.

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Argentina says it has a right to the islands, which it calls the Malvinas, because it inherited them from the Spanish crown in the early 1800s. It has also based its claim on the islands' proximity to the South American mainland. But it has stressed that its claim to the territory is nowadays entirely peaceful.

British forces remain stationed in the Falklands

Britain rests its case on its long-term administration of the Falklands and on the principle of self-determination for the islanders, who are almost all of British descent.

The windswept and almost-treeless territory is made up of two main islands, East Falkland and West Falkland, as well as hundreds of smaller islands and islets.

The islands are said to have been sighted in the 1500s. An English captain made the first recorded landing in 1690 and France, Spain and Britain subsequently established settlements.

In 1820, newly-independent Argentina claimed sovereignty, and later founded a settlement. Britain claimed sovereignty in 1833 and expelled the remaining Argentine settlers. The Britons who settled thereafter made up the islands' first permanent population.

Argentina continued to press its claim to the islands, which intensified in the 1960s. In 1965 the UN designated the territory as a "colonial problem" and called on both countries to negotiate a solution.

Talks, held on and off for more than 17 years, failed to resolve the issue. After months of sabre-rattling, Argentine troops set foot on the islands on 2 April 1982.

Rock Hopper penguins on hillside, Falkland Islands

The islands are a breeding ground for millions of penguins

Britain dispatched a military force to eject them. The Argentine garrison commander in Port Stanley surrendered on 14 June. The fighting cost the lives of 655 Argentine and 255 British servicemen.

London and Buenos Aires restored diplomatic relations in 1990, but the status of the Falklands remains a sore point, with disagreements over flights to the islands and fishing rights.

Fishing and sheep farming are the main economic activities. The territory has a small tourist industry; one of the main draws is the islands' wildlife, including the penguins that breed there in their millions.

The seabed around the islands is thought to contain substantial oil reserves. They have yet to be exploited.

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Territory: Falkland Islands. Also called Las Malvinas by Argentina
Status: British overseas territory, claimed by Argentina
Population: 2,379 (census, 2001)
Capital: Stanley
Area: 12,173 sq km (4,700 sq miles)
Major language: English
Major religion: Christianity
Life expectancy: n/a
Monetary unit: Falkland Islands pound (equal in value to British pound)
Main export: Fish
Internet domain: .fk
International dialling code: +500

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Head of state: Queen Elizabeth II, represented by Governor Alan Huckle

Chief executive: Dr Tim Thorogood

The islands are self-governing, although foreign affairs and defence matters are handled by the British government.

The 1985 constitution - amended in 1997 - allows for an Executive Council of six members and a Legislative Council made up of eight elected members. There is no party-political activity on the islands.

In November 2008, a new constitution intended to enhance the powers of the Executive Council was approved. It is due to come into force on 1 January 2009.