Capture of Port Egmont The Capture of Port Egmont on 10 June 1770 was a Spanish expedition that seized the British fort of Port Egmont on the Falkland Islands , garrisoned since 1765 . The incident nearly led to an outbreak of war between Great Britain and Spain , known as the Falklands Crisis . The Spanish authorities in Buenos Aires , having been made aware of the British settlement , began issuing warnings to the British to leave Spanish territory . The British issued similar warnings to the Spanish to leave British territory . The British were under orders from their Admiralty to order citizens of countries that were not at war with Britain to leave the Islands . If they refused to leave , the British were not allowed to use force , unless it was in self - defence . British refusal to leave was met by Spanish force . Some 1 , 400 Spanish soldiers in five ships were dispatched from the Argentine mainland to drive the British out of West Falkland . The British contingent could not resist such a force , so after firing their guns , they capitulated on terms , an inventory of their stores being taken , and were permitted to return to their own country in the " Favourite " . Background . The Spanish were aware of the British presence on the Falklands before they took control of the French colony at Port Louis and renamed it Puerto Soledad in January 1767 . On the 28th of November , 1769 , the officer in charge of the garrison on Saunders Island , Captain Anthony Hunt , observed a Spanish schooner hovering about island surveying it . He sent the commander a message , by which he required of him to depart . An exchange of letters followed where each side asserted sovereignty and demanded the other depart . Hunt stated categorically that the Falkland Islands belonged to Britain and demanded that the Spanish leave . Spanish capture . A squadron of frigate s was dispatched by Francisco Bucareli , the governor of Buenos Aires , to expel the British . General Juan Ignacio de Madariaga ’ s frigates " Industria " , " Santa Bárbara " , " Santa Catalina " , and " Santa Rosa " , plus the Xebec " Andaluz " carrying 1 , 400 soldiers and a siege train under Colonel Don Antonio Gutiérrez , surprised the British settlement at Port Egmont . Although the British had erected a wooden blockhouse and an eight - gun battery of 12 - pounders , they were no match for the Spanish force . The Spaniards waded ashore and , after a token exchange of shots , Commander William Maltby and Commander George Farmer sued for terms . They and other settlers were detained for 20 days then permitted to sail for England aboard their sole remaining vessel , the 16 - gun " Favourite " ( the " Swift " had sunk at Port Desire three months before ) . The new occupiers renamed the town Cruzada and took over ownership . When news reached Britain it produced a public outcry . Aftermath . News of this forcible eviction created much commotion in Britain . The British government was outraged at what it considered to be a despicable act , and the incident nearly led to an outbreak of war against Spain . The secretary of state , Lord Weymouth , addressed to the court of Madrid demanded : " the instant restoration of the colonists to Port Egmont , and for reparation of the insult offered to the dignity of the British crown , by their forcible removal from that place " . To these demands the Spanish court at first gave evasive answers , endeavouring to change the question at issue into one respecting the right of sovereignty over the islands . Lord Weymouth , however , refused positively to discuss that or any other matter , until the restoration and satisfaction which he demanded had been made ; and the preparations for war which had been already commenced were prosecuted with vigor . Whilst there was pressure for war on both sides , rationality prevailed , when France , Spain ' s ally , refused to back Madrid in its predicament and the Spanish court was obliged to back down . It alleged the seizure had been done without Charles III ’ s authorisation and offered to restore Port Egmont as it existed before being captured . Prince de Maserano , the Spanish ambassador at London , declared , in the name of his sovereign , that " no particular orders " had been given to the governor of Buenos Aires on this occasion , though that officer had acted agreeably to his " general instructions and oath " as governor , and to the general laws of the Indies , in expelling foreigners from the Spanish dominions ; and that he was ready to engage for the restoration of the British to Port Egmont , without however ceding any part of His Catholic Majesty ' s claim to the Falkland Islands ; provided the king of England would in return disavow the conduct of Captain Hunt in ordering the Spaniards away from Soledad , which he asserted , had led to the measures taken by Bucareli . The agreement finally took place on 15 September 1771 , six months after the eviction , restoring the status quo as it existed before the capture of Port Egmont . By April the 32 - gun frigate " HMS Juno " of Captain John Stott arrived to resume British rule , accompanied by the 14 - gun " Hound " and the storeship " Florida " . The short time frame is significant . Spain ' s military actions at Port Egmont aroused fears of war on the Continent , and in the context of Britain ' s overwhelming military superiority , the Spanish were more than willing to seek an early and amicable solution with their " injured " counterpart . The British withdrew from the islands in pursuance of a system of retrenchment in 1774 , leaving behind a flag and a plaque representing their claim to ownership . However , the British Charge d ’ Affaire later noted in a protest in 1829 : The Spanish reoccupied Port Egmont during the Anglo - Spanish War , but progressively lost control of its colonies . Spanish troops remained at Port Louis , known then as Port Soledad , until 1806 when Governor Juan Crisóstomo Martínez departed , leaving behind a plaque claiming sovereignty for Spain . The remaining Spanish settlers were removed in 1811 by order of the Spanish Governor in Montevideo .