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2.

HMG's policy is one of neutrality.

We do not accept

either Morocco or Polisario claims to the disputed territory,

and we recognise neither the Polisario nor the self-declared

'Sahara Arab Democratic Republic'. We do not wish to disturb

our good relations with Morocco or Algeria. We keep in close

step with the Twelve. At UNGA in 1985 the Moroccan resolution

was withdrawn and the Algerian resolution calling for direct

talks between Morocco and the Polisario received overwhelming

support (91 (Spain and Greece) - 6 43 (rest of Twelve).

3.

The controversy over the refugees' status is an extension

of the territorial dispute. Since the conflict began much of

the population has settled in refugee camps at Tindouf which is

situated in Algerian territory. The Moroccans claim that the

camps are nothing more than training bases for the Polisario.

They have not so far substantiated any of these claims and the

UNHCR representative based in Algiers who has visited the camps,

has said that there was no evidence to believe the Moroccan

claims.

4.

Further background:

(i)

(ii)

Rabat telno 149 of 6 June;

Algiers telno 137 of 15 June;

(iii)

Rabat telno 160 of 19 June.

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