CONFIDENTIAL
FM GIBRALTAR
TO IMMEDIATE FCO
TELNO 32
OF 25173OZ JANUARY 1990
INFO IMMEDIATE MADRID
CONFIDENTIAL
054160 MDHIAN 3959
(PART 1 OF 2)
MR MAUDES VISIT: MEETING WITH THE CHIEF MINISTER: 25 JANUARY
SUMMARY
"
1 A RELAXED BUT BUSINESSLIKE MEETING. BOSSANO GIVES AN ACCOUNT OF DEVELOPMENT PROPOSALS, INCLUDING PROBLEMS OF RESTRUCTURING, AND OF MOROCCAN WORKFORCE. WISH FOR PROGRESS ON THE AIRPORT, BUT NO ACCEPTANCE OF THE POLITICAL PRICE. ALSO DISCUSSED HONG KONG, RIGHTS OF RESIDENCE DIRECTIVE, AND AN APPEAL FOR ODA HELP WITH UNSTABLE ROCKS. MR MAUDE EXPLANINED POSITION ON EFFECT OF GARRISON
RESTRUCTURING.
DETAIL
2. BOSSANO GAVE AN UPBEAT ACCOUNT OF THE STRUCTURAL ADJUSTMENT OF THE ECONOMY HIS GOVERNMENT HAD EMBARKED UPON, INVOLVING THE REDEPLOYMENT AND LAND RESOURCES. EMPLOYMENT IN THE PRIVATE SECTOR WAS NOW FOR THE FIRST TIME OUTSTRIPPING THAT IN THE PUBLIC SECTOR.. THERE WERE PROBLEMS WITH THE AGING MOROCCAN WORKFORCE, FOR WHOM THE PROSPECT OF REDUNDANCY WITH NO MARKETABLE SKILLS CREATED OBVIOUS DIFFICULTIES. TOURISM HAD SHOWN NO GROWTH IN 1989, AND A SUBSTANTIAL DECLINE WAS EXPECTED IN 1990. BUT THE TRANSFER OF PUBLIC SECTOR SERVICES (EG ELECTRICITY AND TELEPHONES) TO THE PRIVATE SECTOR WAS A SUCCESS. AND LAND RECLAMATION WAS GOING AHEAD WELL (THE WEST SIDE - HARBOUR NOW NEARLY COMPLETE, AND A DECISION ON THE EAST SIDE EXPECTED IN FEBRUARY).
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