History of the Falkland Islands Union condemned Britain's "act of international piracy" in establishing a colony in the Falkland Islands. Diplomatic relations between Britain and Argentina were broken but resumed in 1976. In October 1975, the British Government tasked Lord Shackleton (son of the Antarctic explorer Sir Ernest Shackleton) with an economic survey of the Falkland Islands. The Argentine Government reacted furiously and refused permission for Lord Shackleton to travel via Argentina. Later the ship transporting Shackleton to the islands, the RRS "Shackleton", was fired upon by the Argentine destroyer ARA "Almirante Storni". In 1976, after a military "junta" took control of the country, Argentina
Economy of the Falkland Islands Economy of the Falkland Islands The economy of the Falkland Islands, which first involved sealing, whaling and provisioning ships, became heavily dependent on sheep farming from the 1870s to 1980. It then diversified and now has income from tourism, commercial fishing, and servicing the fishing industry as well as agriculture. The islands use the Falkland pound, which is backed by sterling. During the 19th century, the supply and maintenance depot for ships at Stanley developed into a port serving ships rounding Cape Horn. There was also trade in cow hides from the wild descendants of cattle introduced by French settlers