Lawmakers at the British Parliament said that reduced British defense spending in the Falklands has emboldened Argentina to take its current tough stand on oil exploration in the islands' waters.

Military expenditure on the Falkland Islands was cut in half over six years, from about $229 million in 2005-06 to $110 million in 2010-11, said conservative Party MP Andrew Rosindell, secretary of an all-Party Falkland Islands group in Parliament.

A greater commitment of funds to the Falklands have been pressed for by the British Conservatives and pro-military and pro-Falkland lobbyists to protect the islands against Argentina, which has reignited controversy over the Falklands' sovereign status since last year's launch of oil prospecting in the seas around the South Atlantic islands.

In 1982 a war was fought between Argentina and Britain over the islands which witnessed the loss of 900 lives.

Expected to be the largest after Saudi Arabia's reserves, the Falklands basin waters have been marked by scientists as a potential major hydrocarbons resource. Lawmakers and lobbyists argue Britain's heavy defense cutbacks are behind a resurgence of Argentine interest in reasserting sovereignty over the islands. (With inputs from Agencies)