CONFIDENTIAL
OTHER CONCERNS
16. On Gibraltar (Serial 5) there are two main FCO concerns over
future MOD reductions:
the potential difficulty of convincing Gibraltarians, the UK Gibraltar "lobby" and the Spaniards that such cutbacks are an operational matter and do not represent any reduction in our commitment to Gibraltar;
the economic impact on the territory.
It
Significant cutbacks seem inevitable over the next 2-3 years. will be important for the MOD and FCO to keep in close consultation. The Gibraltar Government are reconciled to further cuts, and have embarked on a vigorous policy of diversification based on tourism and financial services. They have so far been remarkably successful in attracting new businesses, but it remains to be seen whether
RAF withdrawal from success will be sustainable in the longer term. the airfield would place a particularly heavy burden on the Gibraltar Government.
17.
The future of the Gurkhas (Serial 6) has been the subject of close consultation between the FCO and MOD over several years.
The
MOD Options paper, recommending a reduction in the Brigade to 2,500 men, is about to go to OPD. We are content with this level of reduction and its implications for Hong Kong, but not with any
The decision will, proposal to abolish the Brigade altogether. however, need careful presentation to the Nepalese Government to whom the reduction will come as a shock. Discharged Gurkhas should be offered a suitably generous redundancy package.
18. On the related issue of Gurkhas in Brunei (Serial 7) it is too
The decision soon to predict what the situation will be after 1998. on whether to renew the agreement beyond 1998 cannot be made until 1995/96. That will be a joint FCO/MOD decision.
If the Gurkhas
were to be withdrawn from Brunei, or their numbers significantly reduced, this would have a profound effect on UK relations with