Both St. Helena, where Britain exiled and imprisoned defeated French emperor Napoleon Bonaparte, and the Falkland Islands are U.K. overseas territories. Argentina invaded the Falklands in 1982 and was beaten back in a 74-day war but never gave up its claim on the islands.

Analysts said the government's decision to restart tendering for an airport to link volcanic St. Helena Island with the South Atlantic's potentially oil-rich Falklands appeared driven by concerns over a continuing tense stand-off with Argentina.

Officials, however, said St. Helena deserved to have its own airport to become self-sufficient.

An airport on the island would be cheaper than building a new naval ship that could adequately defend and support the territory, officials said, citing a ship's cost at $100 million. The airport project was halted two years ago by the previous Labor government just as contracts were to be signed to start work.

St. Helena currently gets funded by a $30 million annual cash inflow from London.

The 47-square-mile island is about 3,812 miles or seven hours and 40 minutes flight time away from the Falklands. But, analysts said, in relative terms that was closer than in the present state of isolation from London for both St. Helena and the Falklands.

New technology called "engineered material arresting system" would allow the airport to receive larger aircraft with shorter runways, Secretary of State for International Development Andrew Mitchell said in a statement.

Analysts said the airport would partly address one of the largest worries for Britain's defense establishment -- how to defend the Falklands amid renewed Argentine claims on the territory. This month Argentina intensified its efforts to deny independent shipping trade access to the Falklands ports, a move condemned by Falklanders as a violation of their human rights.

Bob Russell, Liberal Democrat lawmaker and head of an all-party parliamentary Island of St. Helena lobby group, said news of the airport was "wonderful news" that would boost the overseas territories' economies and tourism.

"St. Helenians are currently several days' distance by ship to either Ascension Island or South Africa," Russell said. "An airport will mean they will be only hours from London and this will transform the economic viability of St. Helena and its people."

More than 400 St. Helena natives currently live in the Falkland Islands. Since the tense stand-off with Argentina began in 2009 Britain has built up its military presence in the South Atlantic.

Sukey Cameron, U.K. representative of the Falkland Islands government, told the Guardian newspaper in June British defense costs on the islands offered "good value." He calculated the ordinary cost of that defense, about $110 million during 2010-11, would represent less than 0.5 percent of the United Kingdom's total defense budget.

"This represents extremely good value given that the security of the islands (is) assured and the (Ministry of Defense) has access to a first class tri-service training area that helps ensure that all branches of the British armed services are fully prepared for operational duties," Cameron said.

U.K. forces destined for combat duty in Afghanistan and Iraq have been training in the Falklands. An airport in St. Helena would significantly facilitate traffic between the Falklands and destinations in the United Kingdom and beyond, analysts said.

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