Falkland Islands

Thereafter, the archipelago was visited only by fishing ships; its political status was undisputed until 1820, when Colonel David Jewett, an American privateer working for the United Provinces of the Río de la Plata, informed anchored ships about Buenos Aires‘ 1816 claim to Spain’s territories in the South Atlantic. Since the islands had no permanent inhabitants, in 1823 Buenos Aires granted German-born merchant Luis Vernet permission to conduct fishing activities and exploit feral cattle in the archipelago. Vernet settled at the ruins of Puerto Soledad in 1826, and accumulated resources on the islands until the venture was secure enough to bring settlers and form a permanent colony. Buenos Aires named Vernet military and civil commander of the islands in 1829, and he attempted to regulate sealing to stop the activities of foreign whalers and sealers. Vernet’s venture lasted until a dispute over fishing and hunting rights led to a raid by the American warship USS Lexington in 1831, when United States Navy commander Silas Duncan declared the dissolution of the island’s government.

Buenos Aires attempted to retain influence over the settlement by installing a garrison, but a mutiny in 1832 was followed the next year by the arrival of British forces who reasserted Britain’s rule. The Argentine Confederation (headed by Buenos Aires Governor Juan Manuel de Rosas) protested against Britain’s actions, and Argentine governments have continued since then to register official protests against Britain. The British troops departed after completing their mission, leaving the area without formal government. Vernet’s deputy, the Scotsman Matthew Brisbane, returned to the islands that year to restore the business, but his efforts ended after, amid unrest at Port Louis, gaucho Antonio Rivero led a group of dissatisfied individuals to murder Brisbane and the settlement’s senior leaders; survivors hid in a cave on a nearby island until the British returned and restored order. In 1840, the Falklands became a Crown colony and Scottish settlers subsequently established an official pastoral community. Four years later, nearly everyone relocated to Port Jackson, considered a better location for government, and merchant Samuel Lafone began a venture to encourage British colonization.

Stanley, as Port Jackson was soon renamed, officially became the seat of government in 1845. Early in its history, Stanley had a negative reputation due to cargo-shipping losses; only in emergencies would ships rounding Cape Horn stop at the port. Nevertheless, the Falklands’ geographic location proved ideal for ship repairs and the “Wrecking Trade”, the business of selling and buying shipwrecks and their cargoes. Aside from this trade, commercial interest in the archipelago was minimal due to the low-value hides of the feral cattle roaming the pastures. Economic growth began only after the Falkland Islands Company, which bought out Lafone’s failing enterprise in 1851, successfully introduced Cheviot sheep for wool farming, spurring other farms to follow suit. The high cost of importing materials, combined with the shortage of labor and consequent high wages, meant the ship repair trade became uncompetitive. After 1870, it declined as the replacement of sail ships by steamships was accelerated by the low cost of coal in South America; by 1914, with the opening of the Panama Canal, the trade effectively ended. In 1881, the Falkland Islands became financially independent of Britain. For more than a century, the Falkland Islands Company dominated the trade and employment of the archipelago; in addition, it owned most housing in Stanley, which greatly benefited from the wool trade with the UK.