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The town was founded on July 28, 1865, when 150 Welsh immigrants arriving aboard the clipper Mimosa named the natural port Porth Madryn in honour of Sir Love Jones-Parry, whose estate in Wales was named "Madryn".
Trelew's foundation is linked with Welsh settlement in Argentina, the leaders of which were Captain Sir Love Jones-Parry of Madryn and Lewis (Luis) Jones, who acted as spokesmen to deal with the Argentine government in the beginning of the 1860s.