In 1982, after Argentina invaded the Falkland Islands, Haig tried to solve the crisis peacefully by bringing UK Prime Minister Margaret Thatcher and Argentinian dictator Leopoldo Galtieri to negotiate. No solution was reached and the crisis ended with the full blown Falklands War between the two countries. The British won the war, and Galtieri's regime collapsed. In July 1982, Haig retired from the State Department. Reagan nominated George Schultz as the new Secretary of State.