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.

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 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".

[7] 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.

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;[7] 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.

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.

When the Governor took his departure, the British flag remained flying, and all those formalities were observed which indicated the rights of ownership, as well as an intention to resume the occupation of that territory, at a more convenient season.