Falkland oil firms' drilling 'wholly within their rights'

Companies drilling for oil off the Falkland Islands are acting "wholly within their rights" under international law, said David Miliband.

The Foreign Secretary stressed the Government had "no doubt" about Britain's sovereignty over the islands amid heightened tensions with Argentina.

He said the best way of encouraging "legal and appropriate" economic development was by upholding the rule of international law.

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Mr Miliband was speaking following Downing Street's rejection of an offer of direct diplomatic help from US Secretary of State Hillary Clinton, on a visit to Buenos Aires, to resolve the row between Britain and Argentina.

Desire Petroleum began drilling 60 miles north of the islands as Argentina announced new shipping controls.

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