CONT NITAL

On timing, such a move would be particularly awkward. Until f Suarez S resignation last week we were as well placed to secure the early implementation of the Lisbon agreement as we have ever Clearly the present crisis means that some delay is inevitable; but the Political Director who handles Gibraltar in the Foreign Ministry has assured the Ambassador at Madrid that

hat ever the outcome of the crisis the Ministry's efforts to implement the Lisbon agreement would continue (Madrid telegram number 44).

7. From SED's point of view and in ignorance of the parliamentary arithmatic, the compromise step of a largely unsolicited concession over administrative measures seems likely to give us the worst of all possible worlds: wetting rather than satisfying Gibraltarian appetite and annoying the Spaniards, possible to the point where they decide once and for all not to implement the Lisbon agreement.

11 February 1981

Mongol With

RJA Martin

You SED

AF

>

Cc: Mr Fergusson

CONFIDENTT AL

=

C

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