}

SECRET

C

Comments on the Spanish Document

The first step would be to let the Spaniards have

some comments on the proposals contained in the document

given to Sir J lassan. A summary of these is attached.

These proposals are basically unacceptable to us. I

D

attach a paper rejecting them in language designed for Spanish

eyes. I see no reason why Sir J Russell should not be

instructed to hand such a document over by 23 August.

would be preferable first to obtain the comments on it of

Sir J Russell, the Governor, Gibraltar and Sir J Hassan.

An Eventual Solution

It

E

8. But this would not satisfy the Spaniards. We should not

be returning their ball, but driving it into the net. Only

substantive proposals from the British side are likely to be

effective in maintaining the dialogue. We should then quickly

enter the phase of negotiation which we have so long sought

to avoid. But I do not believe that we can any longer play

for time without real damage to our interests.

Sr Lopez Bravo

suggested on 9 May that we should consider acknowledging

Spanish sovereignty over the Isthmus. As directed by the

Secretary of State, we have studied this carefully. I believe

that such a partial solution would have every disadvantage

of a complete solution and none of the advantages. Indeed,

since it would not satisfy the Spaniards except as an interim

measure we might well be obliged, if we were to reach agreement

with them, to make greater concessions over the Isthmus than

over Gibraltar as a whole; these could involve abandoning

SECRET *Z**

2:10

/absolute

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