CONFIDENTIAL
northern products.
In the Prime Minister's reply to
M Thorn's letter on the Inventory of Problems of
Enlargement, we had also raised the question of
Gibraltar. We had hoped that the frontier would by now
have been open under the terms of the Lisbon Agreement.
Ministers had made it plain in Parliament that it was
inconceivable that there should be a closed frontier
between two Member States. We had reserved our right
to raise the issue in the relevant chapters of the
accession negotiations. We still hoped that the
frontier would be opened for reasons that had nothing
to do with accession. If not, there would be a
problem. Dr Salquiero said that it would be logical
for the Spaniards to make a move after the election.
Mr Hannay said he hoped the Portuguese would
5.
stand by their request for VAT Zero Rating on
foodstuffs and agricultural inputs. Their request was
entirely justified as regards foodstuffs, although
there was less certainty as regards agricultural
imputs.
6.
Dr Salguiero said that it was difficult for
Portugal to put together a bilan on the costs of
accession. They could not contemplate being net
contributors. They would need to take advantage of the
Community mechanisms and funds.
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CONFIDENTIAL