CONFIDENTIAL
(f)
purely in presentational terms, so that, for
example, the Council of Ministers became a
municipal or provincial Council; although nothing
of substance would be altered this might prove a
useful gesture and one not entirely unacceptable
to the Gibraltarians;
the Spaniards would seek to improve their relations
with the Gibraltarians and, at the same time, we
would encourage the Gibraltarians to respond to
these advances. We could undertake to reduce our
financial support for Gibraltar as the Spaniards
removed their restrictions;
(g) in amplification of (f) we would encourage local
economic co-operation between Gibraltar and Spain,
co-operate with Spain in the suppression of
smuggling from Gibraltar (a problem which would
only be revived with the re-opening of the frontier),
possibly provide for the Spanish Government to be
officially represented in Gibraltar, and encourage
the use of Gibraltar dockyard by the Spanish Navy;
it would be necessary for the Spanish restrictions
at Gibraltar to be dismantled and the border re-opened; :
since the Spaniards base these on Article X of the
Treaty of Utrecht, which would be abrogated, this
(h)
should offer no difficulties of principle for them.
Southern European Department
Foreign and Commonwealth Office
8 August 1973
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