Gypsy Cove and the smaller Yorke Bay lie in its southern part to the northwest of Port Stanley Airport.
The first surprise attack on the islands, on 30 April-1 May was aimed at the main runway at Port Stanley Airport.
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The bombs were intended to cause damage to Argentine installations, especially Port Stanley Airport; it being hoped that the attacks would cause the defenders to switch on defensive radars, which would then be targetted by the missiles.
As such this is the busiest waterway of the Falkland Islands and frequently visited by cruise ships, freighters and navy vessels, although this has lessened since the building of the two airports at RAF Mount Pleasant and Port Stanley Airport.
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The peninsula on which Canopus Hill, Port Stanley Airport and Gypsy Cove lie, together with a narrow spit of land known as Navy Point, effectively divides Port William from Stanley Harbour.
It is located one-half mile north of Port Stanley Airport, four miles to the northeast of the capital city of Stanley, on a peninsula connected to the mainland by the Boxer Bridge and a narrow isthmus known as "The Neck".
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