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our critique of the Spanish proposals, explaining our thinking in general terms, to Sir J llassan and obtain

his views;

(b) that a paper outlining our ideas of an

eventual

solution on the lines of that I attach should be sent

to Sir J Russell and the Governor with a request for

their own comments and for the latter's comments on

Sir J Hassan's likely reaction to it, preparatory to

further Ministerial consideration in London;

(c) that Sir J Russell be instructed subsequently to hand

to the Spanish Foreign Minister our comments on the Spanish proposals. It would be necessary for HM Ambassador to make clear, when handing over our comments, that we had some counter-proposals up our sleeve, although in view of the August holiday period we should not be

19.

able to meet Si. Lopez Rodó's deadline for tabling them. He should give no hint to what these counter-proposals

might be.

Gibraltar and General Department concur.

The

Department's Legal Adviser has seen this submission in draft; he has no comments at this stage; the paper outlining our

ideas for an eventual solution would require careful con- sideration by the Legal Advisers before any communication

were made to the Spanish authorities. The Ministry of Defence, at official level, have also raised no objection to this submission, which incorporates some comments from

/them;

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