Capitalists@Work have been leaked a secret memo which has been doing the rounds between the FCO and the Treasury. In it it reveals a shocking discussion that the Government is considering secret negotiations to sell the Falkland Islands to Argentina; I will upload the document to wikileaks later today.
Although the first drill by Desire Plc was not successful, it is still believed that theere may be up to 60 billion barrels of oil off the Falkland Islands. This is estimated to be about 20% recoverable which means up to 12 billion barrells of oil reserves.
The ownership fo the Falklands has of course long been disputed and was the subject of a war. However, Government mandarins believe that as long as gaurantees for the safety and self-Government of the Islands can be assured, then the sale to Argentina should go ahead. It is believed that the Argentines are prepared to pay $25 billion for the Islands and to enter into an agreement which ensures Britain would get a small share of future oil revenues.
The negotiations are still secret as the Government of the Falkland Islands has not been informed, but they are trying to get the deal signed just before the election is called in the UK next week.
The money raised would be used to help reduce Britiains large deficit. of course once this deal is done, I fear that it won't be long before we are also hearing about similar discussions surrounding Gibraltar and Spain.