Diplomatic relations between the UK and Argentina resumed in 1990, but differences remain. Argentina maintains a peaceful claim to the islands, but the UK says sovereignty is not open to negotiation.

About 1,000 British troops are posted in the Falklands and are involved in patrolling the islands as well as road building and monitoring minefields.

Except for defence, the 2,955 islanders are self-supporting. The sale of fishing licences provides most income, but farming is also important. The possibility that large oil fields exist is being explored.

Tourism numbers are growing, with about 50,000 cruise ship visitors every year. Many are attracted by wildlife including large colonies of penguins.