Washington sees the disputed islands as leverage to pressure London to spend more on the military, the paper has reported
The US has threatened to reconsider its stance on Britain’s control of the Falkland Islands to push London to spend substantially more on its military, The Daily Telegraph reported on Friday, citing sources.
The reported attempt to pressure the UK comes amid mounting disagreements between the two long-time allies over defense, Iran, and the strategically vital Chagos Islands.
The UK and Argentina have been at odds over the Falklands for almost 200 years, with the matter coming to a head when Argentina’s military junta ordered an invasion of the islands in 1982. Britain’s Margaret Thatcher dispatched a naval task force and retook them in 74 days of fighting.
The US – which backed the UK during the conflict – recognizes Britain’s de facto administration of the islands but takes no position on the competing sovereignty claims.
Now, according to The Telegraph, the US may oppose Britain’s sovereignty claim unless it hikes defense spending. In this vein, Britain is expected to receive “special attention” in a Pentagon review examining whether NATO members have credible paths toward the bloc’s new spending target.
A senior US official told the Telegraph that discussions on the matter were candid and that “nothing is being ruled out” as Washington searches for ways to push allies into shouldering more of Europe’s defense burden.
While Washington sees Britain’s new defense investment plan as a “step in the right direction,” it is not enough, the official told the paper. “Given the scale of challenges facing us and our allies, we need allies like the United Kingdom to step up in major, fundamental ways. Fortunately, some already are. We strongly encourage the UK to do likewise,” he added.
Most NATO members have agreed to spend 5% of GDP on security by 2035, with the British officials pushing for the 3% threshold by 2030. However, Britain’s new defense investment plan, unveiled in June, would leave core defense expenditure at just 2.7% of GDP through 2029-2030. In addition, the British government is still struggling to find £4.7 billion ($6.3 billion) for the budget amid fiscal pressures.
The Falklands idea first surfaced in April when Reuters reported, citing an internal Pentagon email, that the US was considering a review of its diplomatic backing for European “imperial possessions” as a means of punishing NATO governments that Washington believed had failed to support its military campaign against Iran.
Argentine President Javier Milei – a close ally of US President Donald Trump – reacted optimistically to the prospect, saying “We’re making progress like never before.”
Meanwhile, London and Washington are locked in a tortuous back-and-forth over the Chagos Archipelago in the Indian Ocean, home to a joint US-UK military base. Britain agreed in 2025 to transfer sovereignty to Mauritius while retaining the base under a 99-year lease, but put the plan on hold in April after Trump branded the arrangement a “big mistake.”
The UK also initially refused to allow the use of its bases for strikes on Iran, citing legal concerns, triggering Trump’s ire. London later shifted its stance following Tehran’s retaliation against UK military assets.
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