Interests of The Parties
The mediator acted to defuse the situation by negotiating an agreement that stopped the immediate military crisis. Then, the Vatican crafted a six-year process that allowed the parties to grapple with increasingly difficult issues, including navigation rights, sovereignty over other islands in the Fuegian Archipelago, delimitation of the Straits of Magellan, and maritime boundaries south to Cape Horn and beyond.
- Chile considered the Arbitral Award of 1977 "…fully operative and obligatory in law…" as expressed by the Court of Arbitration after the Argentine Refusal.
- Argentina repudiated the International Arbitral Award that the government of Alejandro Lanusse had solicited in 1971.
- Argentina extended its claim to all territories southward of Tierra del Fuego and eastward of the Cape Horn-meridian. That is, Argentina claimed the islands Horn, Wollastone, Deceit, Barnevelt, Evouts, Herschell, etc.
The 1978 military mobilization revealed other latent international relations issues between the two countries that had been previously overlooked or ignored.
Read more about this topic: Papal Mediation In The Beagle Conflict
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