[3] Despite these efforts, both Latin American countries continued to expand their presence in Antarctica, building more bases and installing new sovereignty markers.

[5] As part of its summer campaign of 1952-53, the Argentine Navy dispatched several ships to Antarctica to rotate garrisons, resupply and repair their bases, and begin the construction of a new facility in Deception Island to perform scientific work.

[5] Construction finished on the 17th, and the base was inaugurated early on the 18th by Captain Rodolfo N. Panzarini, commander of the Argentine Navy's Antarctic Task Force.

The base was named "Teniente Cándido de Lasala"[2] after a Navy officer who died in the British invasions of the River Plate.

[8][9] It would be garrisoned by four men- one officer (Lieutenant Jorge D. Chihigaren)[5] two sailors (Corporals Acosta and Blázquez) and one scientist (Geologist Luis Vullo).

[10] On 23 January, Chilean ships Lientur and Leucotón moored close by and began building their own base 200 meters (660 ft) west of the Lasala installation.

[11] They surrounded the Lasala base and took Acosta and Blázquez prisoner; the Argentine flag was lowered and seized, along with weapons, ammunition, documentation and Vullo's scientific equipment.

[10] The Navy tried to launch reconnaissance flights from Deception Station using two Grumman G-21 Goose flying boats, but bad weather made it impossible.

In Port Belgrano Naval Base, the Argentine Navy began to increase its state of readiness in preparation for a broader conflict, but the Chiefs of Staff announced that a decision had been made to resolve the incident diplomatically.

Together with Chilean President Carlos Ibáñez del Campo, they issued a strong protest to the British embassy, demanding an apology, and discussed a possible joint response.

The Chilean Foreign Minister insisted on sending ships to Deception Island, and resigned when Ibáñez del Campo ultimately decided not to, calling it a "cowardly" decision.

[3] Avro Lincoln bomber aircraft of the Argentinean Air Force overflew Deception Island on 25 February; two days later, tensions reached their peak when warning shots were fired at ARA Chiriguano.