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Falklands: Britain Refuses US Offer Of Help

"We don't think that's necessary," the Prime Minister's spokesman said after US Secretary of State Hillary Clinton indicated Washington's readiness to step in if required.

"We welcome the support of the Secretary of State in terms of ensuring that we continue to keep diplomatic channels open but there is no need for that (direct involvement)," he told reporters.

He spoke after Foreign Secretary David Miliband updated the Cabinet on the latest developments and stressed that "self-determination of Islanders is the key issue".

"He emphasised that we have a strong ongoing working relationship with Argentina, particularly around G20," Mr Brown's spokesman reported back from the weekly meeting at Downing Street.

But the UK believed the oil drilling was "both the right thing to do and is entirely legitimate".

Argentine president Cristina Fernandez earlier asked for US help sorting out the renewed sovereignty dispute under a United Nations framework set up after the 1982 war.

Read entire article at Sky News