Falkland Islands / Islas Malvinas

Peru has stood for years by Argentina in its dispute over the ownership of the Falkland Islands, even sending fighter planes to Argentina during its 1982 war with Britain over control of the islands. The U.K. is the second largest source of foreign investment in Peru.


On Monday, Peru reversed an earlier decision by Congress to allow a routine visit of the HMS Montrose to the Port of Callao. The move was taken in solidarity with Argentina in its claims over the Falkland Islands, which are controlled by the United Kingdom.

The dispute could harm relations between the two nations, which have important trade and business ties.

“This has been perceived by the people of the United Kingdom as ‘not an act of friendship,'” the embassy said, adding that the U.K. is the second largest source of foreign investment in Peru.

Political analyst Juan Velit said in a television broadcast Friday the statement from the British embassy is “a veiled warning.”

From Dow Jones Newswires