Heard about this little episode and did some research
Basically a joint SF raid was planned to act as a diversion for a 2 Para attack. During the raid, an Argentine Hospital ship turned it’s lights on to the attackers.
I am under the impression that this breaks the rules, and also places the hospital ship under threat (including any casualties on board!!!) as her actions bring her in to the fight, and thus become a legitimate target.
Anyone know for sure what would happen in this situation?
The raiders aborted the attack, which still succeded in acting as a diversion, and actually headed straight back to the hospital ship. The Argentines leaded up the hospital ship in their attempt to shoot up the four rigid raiders!!!
As the main force advanced on Stanley, the SBS and SAS shared a joint action. On 12th June, 2 Para attacked Wireless Ridge, while five miles west of them a six-man team from 3 SBS formed a volunteer raiding party with D and G Squadrons SAS, to divert enemy attention from the main thrust by creating a diversionary assault from the sea. The task was unplanned and a spur-of the-moment operation.
The SBS team spent a day in an observation post, before moving across the Murrell River in Rigid Raiders with a troop from D Squadron, SAS, which were driven by men from the Royal Marines 1st Raiding Squadron. The raiders were hidden off Kidney Island until they were ready for the assault.On the night of 13-14th June, the men approached the target area, bypassing the berthed Argentinean hospital ship Bahia Paraiso. As they did so, the hospital ship turned on its searchlights, spotting the raiders and opened fire with everything they had, certain they faced a full-scale sea borne assault.
The raiders withdrew, with one of the craft badly damaged. The raiders reached the shore, with an SBS corporal and two SAS troopers having been wounded. The effort provided the needed diversion for 2 Para and saved some lives by diverting Argentine attention from the Para’s assault.
From http://www.britains-smallwars.com/Falklands/sbs.htm
Although it seems to imply the hospital ship was shooting at the raiders!!!
The hospital ship was a converted ice breaker and was marked with red crosses as per the regulations regarding the marking of such a ship.
A international red cross representitive was ferried to the ship after the war finished by a RN wasp, to inspect the ship.
She had been converted to hospital ship in late April but had been used to ferry troops and stores for the invasion.
On 24 March the Bahia Paraiso arrived in Leith and unloaded more stores, together with a troop of Argentine marines under the command of Captain Alfredo Astiz.
from http://www.falklands.info/history/history6.html
pictures of it normally.
and as a hospital ship.
According to http://www.histarmar.com.ar/Armada%20Argentina/Buques1900a1970/BPolares/BPBParaiso.htm She also rescued some of the shipwrecked sailors from the ARA General Belgrano and recovered bodies.
Arranged its transformation in hospital ship, while these were made in Naval Base of Belgrano Port, the 27 Abr was arranged weighed anchor without them to have terrninado, being to the front of the Department Health in Combat the medical lieutenant commander D. Paschal Pellicaro, secundado by three rnédicos heads and eighteen officials, three odontólogos officials, two biochemical officials, 58 sergeant majors and 14 marine nurses, plus a civil doctor and two technicians and two helicopters PUMA of the Argentine Army for its use like heliambulancias.
My bold, blimey 58 Sgt Majs on a hospital ship 
!!!
It appears that it also met with a bad end, as it ran aground and sank in the Antartic on 28 ENE 1989. The name in English literally means “bay paradise” so in English would be “paradise bay”
Edit to fix pics