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President Donald Trump said Monday that the United States is reviewing its position on the Falkland Islands, after reports that Washington threatened to oppose Britain’s sovereignty if it does not increase defence spending.

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The proposal concerning the South Atlantic archipelago, over which Britain and Argentina went to war in 1982, was among measures being drawn up by the Pentagon to incentivize NATO allies to meet spending pledges, the Daily Telegraph reported last week.

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“I always review every position. That’s just one of many,” Trump told reporters in the Oval Office when asked if the United States was reviewing its position on the Falklands.

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Asked if he wanted the government of new British Prime Minister Andy Burnham to increase its current spending pledges, Trump replied: “The U.K.’s got some problems but they’ll get solved.”

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Washington officially recognizes de facto U.K. administration of the Falkland Islands — which Argentina calls “Las Malvinas” — without taking a side on the conflicting sovereignty claims.

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The U.S. State Department told AFP in April when the first reports emerged of a possible review that “our position on The Islands remains one of neutrality.”

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But the Pentagon review aimed at getting U.S. allies to hit a five per cent defence spending target could give Britain “special attention” by threatening to oppose British sovereignty outright, the Telegraph said.

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Four decades after the conflict, tensions are still high between Britain and Argentina.

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Argentina players held up a banner saying “The Falklands are Argentine” after beating England 2-1 in the World Cup semi-final earlier this year. FIFA later fined the Argentinian Football Association US$321,000.

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Argentine forces invaded the British overseas territory, which resulted in then-British prime minister Margaret Thatcher sending a naval task force to reclaim them.

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The war left 649 Argentines, 255 Britons and three islanders dead.

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Then U.S.-president Ronald Reagan initially took a neutral stance, but after peace talks broke down Washington gave Britain military and intelligence support.

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