David Miliband: Firms 'within rights' to drill for oil off Falklands

COMPANIES drilling for oil off the Falkland Islands are acting "wholly within their rights" under international law, MPs were told yesterday.

Foreign Secretary David Miliband added the government had "no doubt" about Britain's sovereignty over the islands.

He was speaking following Downing Street's rejection of an offer of direct diplomatic help from the United States to resolve the row with Argentina.

The heightened tensions were sparked by Britain allowing Desire Petroleum to begin drilling 60 miles north of the islands after Argentina announced new shipping controls.

Mr Miliband told MPs: "

There can be no negotiations on the sovereignty of the Falkland Islands until islanders wish it, and they have made clear they have no such wish.

"The best way of supporting legal and appropriate economic development around the Falkland Islands is to uphold the rule of international law. That is what we are doing in the case of the hydrocarbons exploration.

"The companies are acting wholly within their rights and the legality of international law."