proposal was rejected by Argentina. The third and longest phase, running from the beginning of 1981 until December 1983, after Argentina's return to democracy, was characterized by long periods of stalled negotiations. The most significant developments during this period were the Argentine repudiation of the 1972 General Treaty; the subsequent effort to fill the juridical vacuum resulting from that repudiation; and the Falklands war, which set the stage for the return to democracy in Argentina. The final phase began when Raúl Alfonsín assumed the presidency in Buenos Aires at the end of 1983 and ended with the signing of the 1984 Treaty of Peace and Friendship. The papal proposal of 1980 On 12 December 1980, the Pope received both delegations and communicated to them his proposal for resolving the controversy, the terms of which had been developed entirely in secret and should be kept secret in order to avoid debilitating public debate that might diminish confidence in the proceedings and limit the freedom of action of both governments. But on 22 August 1981 the Argentine newspaper La Nación published the terms of the proposal. Chile would retain all of the islands and Argentina would be entitled to maintain certain limited facilities (common radar and weather stations) on some islands and would receive important navigation rights. Most important, however, was the creation of an ocean area known as the Sea of Peace. In this area, extending to the east and southeast from the disputed chain of islands, Chilean territorial waters would be limited to a narrow territorial sea, in which it would be obliged to share with Argentina equal participation in resource exploitation, scientific investigation, and environmental management. Beyond the Chilean territorial waters would be a much broader band of ocean subject to Argentine jurisdiction, but also subject to the same sharing provisions that applied in Chilean waters. Chile accepted the papal proposal, despite some reservations. Argentina never formally replied to the proposal. However, on 17 March 1981, Argentina delivered a note to the Vatican expressing grave misgivings about the proposal, both because it failed to award any islands to Argentina and because it allowed Chile to maintain a presence so far into the Atlantic. Argentina renounced a 1972 Arbitration treaty On 21 January 1982, Argentina announced the withdrawal from the 1972 bilateral treaty providing for recourse to the International Court of Justice in case of disputes. In Argentina, the judicial