The increasing significance of Beagle channel region led to various incidents and confrontations between Chile and Argentina around transit and fishing rights, which could potentially lead to full-scale war.
[2] Chile declined, stating it wasn't necessary because there was a complete cartography of the channel and the previous treaties awarded the islands depending on their location.
The lucrative centolla fishery around Tierra del Fuego led to an incident in August 1967 when the Argentine schooner Cruz del Sur was found fishing 400 metres (1,300 ft) from Gable Island and had to be ordered by a Chilean Patrol Boat Marinero Fuentealba[4] to retrieve her nets and leave the zone escorted out of Chilean waters.
On 3 February 1968 the USCGC Southwind in emergency conditions headed to Ushuaia via the eastern entrance of the Beagle Channel without notification nor permission of the Chilean Government.
[5] On 8 June 1978 Chile sent a diplomatic objection to Argentine activities off the eastern mouth of the Magellan Strait and reserving rights there.
In September 1980 an offshore oil rig authorized by Argentina was warned by a Chilean warship and then by military helicopter to abandon the area.