Re: Terrifying
@ TheOtherHobbes
I don't think that citizenship for the islanders would have solved the diplomatic dilemma, given Argentina's insistance on their claims of ownership, which they continue to make today.
Your second point is, in my opinion, right on the money. Without the presence of HM forces ( the navy would have been the obvious choice for that ), the chance to present Britain with a fait accompli was too tempting to resist.
A further endorsement for your second point comes from the present garrision of the islands, which is enough of a deterrent to maintain peace in the south Atlantic.