BACKGROUND
CONFIDENTIAL
The Border
1.
Spanish hints about lifting restrictions are the most promising
for some time. But they have not announced a firm date and show
reluctance to do so either in the context of NATO accession or the
Spanish Prime Minister's possible visit on 18 December. A Spanish
failure of nerve can by no means be ruled out.
Defence Review
2. A Cabinet Committee of officials has been established to work out a way to implement the Defence Programme in Gibraltar consistent with the 'support and sustain' commitment. A paper is being prepared,
and should be submitted to Ministers in the next 2/3 weeks, setting
out the options and inviting Ministers to choose their preferred
solutions. Consultation with the Gibraltar Government can then
begin. Consultants contracted on behalf of the Gibraltar Government by ODA have produced a report making clear the serious implications of closure of the dockyard for the Gibraltar economy and examining prospects of converting it to commercial use.
Foreign Affairs Committee Report
3.
The Government's reply will give some comfort to the Gibraltarians,
who were alarmed at the FAC Report's bias towards Spain and feared that it might lead to a weakening of Britain's commitment to Gibraltar. The Governor has seen the proposed reply and is aware that its presentation to Parliament is being delayed to avoid embarrassing the Spanish Government during the Cortes debate on Spanish accession to NATO. Parliamentary privilege prevents him from tell Gibraltar
Ministers.
Nationality
4. The Commons will be considering Lords Amendments to the Nationality
Bill on 26 October. The Home Secretary will almost certainly attempt
to overturn the amendment on Gibraltar in order to preserve the
uniformity of CBDT.
CONFIDENTIAL