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Attitude of the People of Gibraltar

4.

Mr Joe Bossano (leading Trade Unionist and opposition politician) is opposed to the process envisaged in the Lisbon

Agreement. But the Chief Minister and the leader of the

Opposition support the Lisbon process and have encouraged public

opinion to see the agreemet as a realistic way forward.

Partial lifting of Restrictions

5.

Since 15 December 1982 Spaniards, Gibraltarians resident

on the Rock and in the Campo (ie just across the border) as well

as other British passport holders resident in Gibraltar have

been allowed to cross the border once a day on foot. There are

a total of about 9,000 crossings a day. Non-Spanish tourists

and other visitors to Gibraltar are unable to cross. Because of

this, and because Gibraltarian recreational spending in Spain is

greater than Spanish spending in Gibraltar, the Territory's economy is suffering. Net loss about £100,000 per week. Gibraltar has therefore imposed a quota on bread imports,

reduced import duties on cigarettes and is considering further

defensive measures, including a departure tax.

Spain/EC

6.

The restrictions on movement which exist between

Gibraltar and Spain are incompatible with the obligations which Spain will assume as a member of the Community. Partial opening

of the frontier does not by itself solve this problem. We have

made this clear to the Spaniards and in public.

Spain/NATO

7.

The Spanish Government are committed to freezing negotiations on the terms of Spain's membership of NATO and to

holding a referendum on Spain's continued membership. They

appear to favour membership outside the integrated military

structure, on French lines. They have also shown some signs of linking progress over Gibraltar to a more favourable attitude

towards NATO.

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