13. The British took additional steps to stop losses to the Exocet missile
The naval losses and the threat they posed to the two aircraft carriers were of deep concern by late May. Loss or incapacitation of either of the British carriers would have crippled the invasion even after ground troops were ashore. The Admiralty and the Secret Intelligence Service (SIS) conducted operations to stop the flow of Exocet missiles to the Argentines. SIS agents were sent to various hot spots on the global arms market. They posed as arms dealers buying weapons for the Argentines, diverting the weapons from reaching genuine arms dealers working on their enemy’s behalf. They also used their infiltration of the trade to prevent known stocks of the weapons from reaching Argentine agents.
Diplomatic pressure was exerted on the French to stop sales of the Exocet to Peru, which SIS agents identified as supplying the Argentines. British agents exposed the sale to Peru – which was legitimate – as being funded with deposits of $200 million in the Andean Lima Bank. The bank was owned by Banco Ambrosiano, an Italian banking firm. According to British intelligence, the funds were Argentina’s and the contract to deliver 52 Exocets was signed by Argentine Naval officer Carlos Alberto Corti. France agreed not to deliver the missiles to Peru during the conflict, and in effect cancel the contract. Nonetheless during the war technicians from Dassault – builder of the Exocet – worked alongside the Argentines preparing and programming the missile.