The population of the Falklands Islands could have been relocated to Scotland under a secret CIA plan, it has been revealed.

The US planned to step in and hand the islands to Argentina following the 1982 invasion.

Early indications by the CIA pointed to Britain 'underestimating' the Argentinian military in a war which was fought 8,000 miles away from London.

The US planned to step in and hand the islands to Argentina following the 1982 invasion

CIA top secret papers reveal that security bosses prepared to offer islanders the choice of relocating to Scotland or to stay and become Argentinian citizens

The then chairman of the National Intelligence Council, Henry Rowen, wrote the plan which was one of 12 million documents published on the CIA's website this week

CIA top secret papers reveal that security bosses prepared to offer islanders the choice of relocating to Scotland or to stay and become Argentinian citizens.

The then chairman of the National Intelligence Council, Henry Rowen, wrote the plan which was one of 12 million documents published on the CIA's website this week.

Rowen writes: 'For a period of three years the inhabitants of the Falkland Islands will be given a chance to consider whether they wish to remain on the Falkland Islands or whether they wish to relocate to an area of British jurisdiction, either in the UK or elsewhere under British sovereignty, with a relocation grant of $100,000 per person.'

He adds it is 'likely that many residents will find this sufficient inducement to relocate to some other area, perhaps in Scotland or elsewhere where conditions may be similar to the Falkland Islands'.

'Any residents who do not wish to relocate will be free to remain and become Argentinian citizens at the end of three years.

'The cost of the relocation grants to be paid to any residents of the Falkland Islands wishing to relocate elsewhere will be borne fifty/fifty by the Argentinian and British governments.'

Last month Argentina and Britain agreed to identify the bodies of 123 Argentine soldiers buried on the Falkland Islands

Early indications by the CIA pointed to Britain 'underestimating' the Argentinian military in a war which was fought 8,000 miles away from London

The cost of relocating the islanders would not be exceed half that of the cost Britain spent dispatching troops to the region, the paper, which was addressed to Paul Wolfowitz, a Department of State advisor to Ronald Reagan.

The CIA document, titled 'Solution to the Falkland Islands crisis', added that Argentina would also have to pay penalties to Britain for damage caused during the invasion.

Last month Argentina and Britain agreed to identify the bodies of 123 Argentine soldiers buried on the Falkland Islands.

The two countries, which went to war over the islands in 1982 and have had strained relations for decades, also agreed to try to increase the number of flights to the remote islands.

Britain has been keen to improve relations with Argentina since pro-business President Mauricio Macri took over from Cristina Fernandez in December, although Argentina continues to claim sovereignty over the islands.