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2.

GIBRALTAR

(Previous Reference: OPD (66) 43rd Meeting)

The Committee considered memoranda by the Foreign Secretary (OPD(67) 16) and by the Minister of State for Commonwealth Affairs (OPD(67) 17) on the dispute with Spain over Gibraltar.

THE FOREIGN SECRETARY said that since the Committee last considered the question on 28th October 1966 (OPD(66) 43rd Meeting, Minute 1) the

Spanish Government had, on 14th December 1966, rejected our proposal for a

reference of the legal issues to the International Court of Justice and

the question had subsequently been debated the same month in the General

Assembly of the United Nationa. A compromise Resolution, for which we had

voted, had there been adopted which called on the two parties to continue

their negotiations, taking into account the interests of the people of Gibraltar, and asking the administering Power to expedite, in consultation

with the Spanish Government, the decolonisation of Gibraltar.

We had since

held talks with the Spanish Government, but there had so far been little

sign that the Spanish Government would call off their campaign against us,

and they might soon put further pressure on Gibraltar by completely closing

the land frontier, cutting off the supply of Spanish labour and even by

interfering with our military use of the aerodrome.

There were three courses open to us which the Committee had previously

considered at their meeting on 28th October 1966. These were either simply

to maintain the present status of Gibraltar or to settle on the Spanish

terms; or decolonisation. We had however last December voted for the

Resolution which called on us to expedite decolonisation, and we must now

follow this course. We should therefore plan to hold a referendum in

Gibraltar this year which would give the Gibraltarians a choice between

(a) passing under Spanish sovereignty (according to Spain's

proposals); and

(b) being in free association with the United Kingdom (under new

constitutional arrangements).

In preparation for this referendum we should first consult Gibraltar Ministers,

then offer to talk to the Spanish Government about our plan, offering them

facilities to explain their own proposals to the Gibraltarians before

the referendum; we should in addition invite the Commonwealth, Spain and

the United Nations Secretary General to nominate observers of the referendum;

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