CODE 18-77
11
69
*
CONFIDENTIAL
77)
Reference
Quantrill
Mr Quantrill, HKGD
Nclarbe $224/10
POLICY TOWARDS DEPENDENT TERRITORIES
1. Your circular minute of 10 October.
I attach as annex A a
draft survey, on the lines requested in your para 3.
Reserved Powers
2. Your subpara 5(i). I attach as annex B an extract from the circular despatch of 1969 showing what are the present reserved powers of the British Government in Gibraltar. We are not at present contemplating devolving further powers on Gibraltarian ministers.
Aid Policy
3.
Wage levels in the public sector (65% of all civilian employees) are now the same as in UK; aid is given for political, not economic, reasons mainly in fulfilment of the British Government's undertaking to "support and sustain" Gibraltar in the face of Spanish restrictions. There is no commitment to continue it after these are lifted, although there obviously could not be an abrupt aid cut off. With restrictions removed, Gibraltar ought to be able to achieve at least the standards of living of the neighbouring parts of Spain; with Spain in the EEC EEC programmes of regional aid should ensure that the standard of living approximates to general European standards, (and probably surpass that of parts of UK).
Defence
4.
Any settlement with Spain of the Gibraltar question would have to take into account the defence installations in Gibraltar, which primarily serve a NATO purpose, (or, in the case of the dockyard, a national UK purpose), and have implications beyond what is needed for the defence of Gibraltar's own territory.
23 October 1978
лабый
W H Fullerton
Southern European Department
itxa
RECEIVED
025/2
790. $1
1 4 NOV 1978
DESK OFFICER
INDEX
но
PA
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REGISTRY Vation Taken
CONFIDENTIAL