Gunboats in the South Atlantic

By George George Russell. Reported by Nina Lindley/ Buenos Aires and Frank Melville/London

Argentina invades and dares Britannia to rule the waves

At first the incident seemed mischievous, what British political aides in London were calling a "little local difficulty." But suddenly the fight became all too real. Some 2,500 Argentine troops, backed by an aircraft carrier, three missile destroyers and other warships, swooped down on a scattering of chilly South Atlantic islands. Waiting helplessly near the settlement of Port Stanley was a defense force consisting of a mere 40 British Royal Marines. After three hours of sporadic gunfire, in which one invader was killed and two others were wounded, the battle was over. Argentine forces also invaded the island of South Georgia. The British announced that a small contingent of their marines had destroyed an Argentine helicopter and damaged a warship in the action. The Argentine government speedily appointed a military governor for the captured territory and declared that its sovereignty over the Falkland, South Georgia and South Sandwich Islands, a trio of archipelagos extending 400 to 1,500 miles from the South American coast, was "assured."

The lightning attack humiliated and outraged Britain, which instantly broke relations with Argentina. At an emergency session, the United Nations Security Council voted 10 to 1 in favor of a British draft resolution demanding Argentine withdrawal from the Falklands. Britain froze Argentine assets in the country, worth some $1.5 billion, and Argentina re sponded by freezing British assets, estimated at $5.8 billion. The House of Commons held its first weekend emergency session since the Suez Canal crisis of 1956. Irate Tory and Labor members were virtually unanimous in directing the Conservative government of Prime Minister Margaret Thatcher to recover the islands by force if intensive diplomatic efforts should fail. In a reference to Mrs. Thatcher, Ulster M.P. Enoch Powell said: "In the next week or so we will learn what metal the Iron Lady is made of."

A 40-vessel naval task force, carrying more than 2,000 troops, began to assemble off the British coast. Its orders were to proceed to the South Atlantic and establish a blockade of the islands. The navy's aim was to peacefully evacuate the Argentine invaders and restore British sovereignty. But Defense Secretary John Nott declared on Sunday that Britain was prepared to fight to regain control of the islands. Argentina's President, General Leopoldo Fortunate Galtieri, warned that his nation would not retreat and that, if attacked, would "present battle with all the means at its disposal."

First British vessel to sail was the nuclear-powered submarine H.M.S. Superb, followed by two aircraft carriers. Queen Elizabeth's middle son, Prince Andrew, 22, was among the helicopter pilots recalled from leave for duty on the carriers. In spite of its swift and energetic response, Britain's warships would need upwards of five days to reach the Falklands.

The disputed islands, some 200 rocky outcroppings barely suitable for the chief local industry, sheep raising, hardly seemed worth the effort. But for nearly 150 years they have been the focus of controversy between Britain and Argentina. The main island grouping, the Falklands, was discovered by the British in 1 592, tak en over by the Spanish in 1770 and reclaimed as a crown colony in 1833. Ever since Argentina won its independence from Spain in 1816, it has claimed the islands, even though the 1,700 Falkland residents today are overwhelmingly English-speaking British subjects.

For years, London has said it would cede the territory to Argentina only if the islanders were willing. So far, they have been opposed to the idea, preferring a distant relationship with Britain to union with chronically unstable Argentina.

For the Argentines, ownership of the Falklands is primarily a matter of national pride, although promising oil discoveries have been made in nearby ocean waters. More immediately, the invasion was prompted by a shaky domestic political situation in Argentina. The military government that took power in 1976 faces severe economic problems; it has an inflation rate of 143% and 13% unemployment. In order to bolster popular support for his rule, General Galtieri vowed last December to take over the Falklands.

When the Argentine armed forces began massing for an assault, President Ronald Reagan phoned Galtieri for 50 minutes and argued against the use of force, but to no avail. After the Argentine invasion, forward." Reagan said: "I wish it had not gone In Buenos Aires, some 5,000 ban ner-waving supporters gathered in front of the presidential palace to hear Galflies" tieri's over boast the that "the Falklands. But Argentine flag British Prime Minister Thatcher is hearing clamor of a different kind: demands that Britannia return to ruling the waves, at least in one far-off corner of the South Atlantic. -- -- By George George Russell. Reported by Nina Lindley/ Buenos Aires and Frank Melville/London

With reporting by Nina Lindley/ Buenos Aires and Frank Melville/London

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