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The ongoing tension between the two countries over the islands increased on 19 March when a group of hired Argentine scrap metal merchants raised the Argentine flag at South Georgia, an act that would later be seen as the first offensive action in the war.
Argentina had been in the midst of a devastating economic crisis and large-scale civil unrest against the military junta that had been governing the country since 1976. In December 1981 there was a further change in the Argentine military regime bringing to office a new junta headed by General Leopoldo Galtieri (acting president), Brigadier Basilio Lami Dozo and Admiral Jorge Anaya. Anaya was the main architect and supporter of a military solution for the long standing claim over the islands