The three thousand permanent residents of the Falkland Islands are not concerned about the recent escalation of tensions between the British and the Argentine governments, an island group councillor, Jan Cheek, has told Radio Netherlands Worldwide.

Tensions between the two nations erupted earlier this year after plans to start oil exploration in the waters surrounding the Falklands were unveiled by the British government . Argentina lodged a formal protest with Britain - arguing that the oil prospecting is illegal - and has threatened that any company exploring for oil or gas in the waters around the territory will not be allowed to operate in Argentina.

On Tuesday, President Cristina Fernandez signed a decree requiring all vessels travelling through Argentine waters en route to the Falklands, to first apply for a permit. Councillor Cheek said that the president's move was an attempt to win back waning popularity.

Argentina invaded the islands in 1982 but, after a short war which claimed the lives of 649 Argentine and 255 British soldiers, the UK seized back control. Buenos Aires is furious that London continues to skirt United Nations resolutions calling on both governments to renew a dialogue on the sovereignty of the Falklands.