Falkland Islands 'was nearly shared by Britain and Argentina'

"On this basis, Her Majesty's Government propose that, if the Argentine Government agree, official or preliminary official talks should take place in Buenos Aires as soon as possible."

James Hutton, the British ambassador to Argentina, handed the note to Alberto Vignes, the Argentine foreign minister, at a meeting June 11, 1974.

When the Argentine president was informed of the offer, he reacted with "euphoria", said Carlos Ortiz de Rozas, a diplomat in the Peron administration.

"(Vignes) confided in me that Peron had told him: 'Let's accept. Once we have one foot in the Malvinas nobody will get us out and before long Argentina will have full sovereignty'" said Mr Ortiz de Rozas, 85.

However, Peron died from a heart attack having suffered pneumonia on July 1, and was succeeded by his dancer wife, known as Isabel. She proved incapable of uniting the country, and the military junta toppled her from power in a coup in 1976.

In 1980 Mr Ortiz de Rozas became ambassador to Britain, a position he still held when Argentina invaded the Falklands.

"As well as being a tragedy, the war was the wrong path, because concrete steps had been taken to resolve the problem of sovereignty through peaceful means," he said.

A Foreign Office spokesman said: "This (document) does not detract from Argentina's illegal and unjustified act of aggression in invading the islands, nor from our belief that the Falkland Islanders should have the final say in their own futures."

Tensions between the two countries have escalated in recent months in advance of April's 30th anniversary of Britain's successful war to liberate the Falklands.

Argentina's industry minister last month called for British imports to be banned, in the latest attempt to compel Britain to negotiate over the sovereignty of the islands.

Jeremy Browne, Foreign Office minister, on Tuesday denounced Argentina's "economic blockade" of the Falklands.

"Britain's position on this matter is very clear. We do not seek a dispute with Argentina," Mr Browne said.

"But we have an absolute belief in the principle of self-determination. And we do not believe that an economic blockade of the Falklands is the right thing to do."