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Happened during the Falklands War.

There are peacetime rules and war time rules, war time rules are best summarised as “government does what it wants and justifies it after the fact”.

I just clicked through to some of the listed ships and it appears they were all flying a British flag in 1982 before being requisitioned.

It’s not at all clear to me a government would have that power about a foreign flagged vessel, even if the shipping line owning it might be British.

Maybe not legally, but most of the countries used as a flag of convenience are tiny, what could the Marshall islands do about it?