By Nicolas Misculin

DARWIN, Falkland Islands, June 15 (Reuters) - British officials and a Falklands War veteran paid homage to Argentine dead at an island cemetery on Friday, despite lingering divisions between the nations 25 years after the conflict.

"They went through the same war as us, they shouldn't be forgotten," said former combatant Graham Clark, 45, who participated in a wreath-laying ceremony with Prince Edward, the youngest son of Queen Elizabeth, and British Armed Forces Minister Adam Ingram.

Thursday was the 25th anniversary of Argentina's surrender to Britain 10 weeks after invading the islands, which are just a few hundred miles east of South America.

The 73-day war -- started by Argentina's then military government -- killed 649 Argentines and 255 British and left 2,000 more wounded.

"We've forgiven, but not forgotten. It's a long time ago and we need to honor people and remember them," Clark said.

Many of the grave markers for the 234 dead in the cemetery are for unidentified bodies and read only "Argentine soldier known only to God."

An Argentine veteran stood with reporters and observed the ceremony from outside the bleak cemetery, but he did not want to give his name.

The cemetery in Darwin, 60 miles (100 km) from the island capital Stanley, does not have an Argentine flag and in April some Falklanders were upset after Argentine veterans posed for photographs at the cemetery with their nation's flag.

Only some 3,000 people live in the islands and many feel fervently British.

Argentine President Nestor Kirchner said on Thursday that the Islas Malvinas, as Argentines call the islands, would be regained by his country by peaceful means.

Argentina has tried to put pressure on Britain through international bodies to start bilateral talks over the islands' sovereignty, but Britain refuses to discuss the matter and has established a large military base there.

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