The Defence Secretary has said there is a real opportunity to build positive relations between the UK, the Falkland Islands and her South American neighbours.
Mr Fallon, making the first visit by a UK defence secretary to the Falklands in more than a decade, spent time with islanders and MOD personnel in the capital Stanley and other sites.
He witnessed first hand some of the construction work which is taking place as part of a £180m, 10-year commitment to modernise the defensive infrastructure of the islands.
There are currently around 1,200 military and civilian personnel based in the Falklands supporting defensive air, naval and land assets including RAF Typhoon aircraft, helicopters, Royal Navy patrol vessels and an Army infantry company.
The £180m upgrade package includes £60m to improve the power station at Mount Pleasant Camp, £22m to improve facilities at the berths in Mare Harbour, and £20m of work on accommodation at Radar Heads.
He confirmed that the £60m contract for the new Mount Pleasant power station will be awarded in May.