The passing of this act is widely believed to be a precursor to the Falklands War, as the Argentines interpreted it as disengagement, and believed that the British were willing to back away if the islands were invaded. Full UK citizenship was restored to Falkland Islanders by British Nationality Act 1983.
The Act has been superseded by the British Overseas Territories Act 2002 which granted full British citizenship to all British overseas territories including the Falkland Islands.