World

Argentina and Britain are still the Hatfields and the McCoys when it comes to the issue of sovereignty over the Falklands. But at least the two nations have agreed to abandon their antagonism and settle most of their remaining differences. After three days of talks in Madrid, Argentina announced last week that it was formally ending its state of hostility with Britain, seven years after London made a similar gesture.

The rapprochement includes an immediate resumption of consular ties, restoration of air and sea links between London and Buenos Aires and the lifting of all financial restrictions between the two countries. Britain also removed its prohibition on Argentine merchant and fishing ships within a 150- mile radius of the Falklands and agreed to help Argentina repair economic links with the European Community.

Nonetheless, Britain refused to reduce its 2,500-man garrison in the Falklands. And the best either side could do on the sovereignty issue was to agree not to tackle the problem just yet. But the omens are good for their next meeting, at which they expect to renew diplomatic ties: they will reconvene on Valentine's Day.