I hope that the Telegraph have been careless in the use 'blokade' when referring to the Argies. A Blockade is a hostile act - qv the Cuban Missile Crisis when the US established a 'quarantine' around Cuba - even they didn't use the word blockade!
The idea of settling retirees to consitute a reserve force in times of invasion or insurrection is nothing new. In the late Georgian and Victorian Eras, 'Fencibles' - retired regular troops - were granted a house, land, weapons, uniform and acoutrements in return for Parading a couple of times a month, and a liability to be mobilised. In spite of the incorrect entry in Wkipedia, they served in Ireland, India and New Zealand with distinction, and units were alseo established in Southern England to repel teh french. Who knows? There's be a fair few ex Servicement who'd fancy living in the FI, raising sheep and carrying a gun.