188 Chapter 2
place on May 7, 1968, when Argentine jets flew over the contested territory and
naval assets from both countries stood nearby, ready for combat. However, diplo-
matic efforts continued over the next several years, and on July 22, 1971, Chile and
Argentina agreed that the Queen of England would establish the border based on the
technical decision of a five-person arbitration panel.
MID#2081
Dispute Number: 2081
Date(s): July 14, 1977 to February 20, 1978
Participants: 155 Chile/160 Argentina
Outcome (and Settlement): Unclear (Negotiated)
Fatalities: None
Narrative: For more than 100 years, Argentina and Chile had both claimed sov-
ereignty to the islands Pacton, Lennox, and Nueva that are situated at the eastern
entrance of the Beagle Channel, off Tierra del Fuego. In 1971, both countries agreed
to submit their dispute to arbitration by Queen Elizabeth II of Great Britain, and on
May 2, 1977, the Queen’s decision was announced—she awarded sovereignty of the
islands to Chile. Argentina refused to accept the validity of this decision and publicly
rejected it, while Chile accepted the decision and began to include the ownership of
those islands within Chilean territory on new maps.
The dispute militarized when, on July 14, 1977, a Chilean navy patrol boat encir-
cled an Argentine naval vessel and a Chilean naval aircraft had “buzzed” an Argen-
tine patrol boat several times in the disputed area. From that point on, both countries
continued to build forces and participate in military maneuvers and further displays of
force, including one on February 10, 1978, in which an Argentine naval exercise took
place in the disputed Beagle Channel. The exercise included an Argentine aircraft car-
rier taking part in a display of force with over 50 other Argentine naval vessels. Ten
days later, on February 20, the presidents of the two countries met and signed the Act
of Puerto Montt, laying out a plan to solve their differences.
Coding changes: End Date changed from February 10, 1978. Outcome changed from
Unclear. Settlement changed from None.
MID#2082
Dispute Number: 2082
Date(s): August 18, 1978 to January 8, 1979
Participants: 160 Argentina/155 Chile
Outcome (and Settlement): Unclear (Negotiated)
Fatalities: None
Narrative: This dispute continues the actions in MID#2081 between Argentina and
Chile over the Beagle Channel islands of Picton, Lennox, Nueva, and Hornos. On
May 2, 1977, the Queen of England’s arbitration had awarded the islands to Chile,
but Argentina rejected the result and both countries engaged in shows of force to back