TNAG-0378-FCO40-424-UK-policy-on-the-future-of-Hong-Kong-after-1997-1973 — Page 35

CONFIDENTIAL

PROPOSALS FOR A SOLUTION OF THE GIBRALTAR QUESTION

THE MAIN SOLUTION

A

1. There should be a formal and titular transfer of sover-

eignty over Gibraltar to Spain, but with retention of the

status quo in practice, by means of a lease of Gibraltar to

Britain. The lease would be entrenched and legally watertight

so that the transfer of sovereignty did not diminish the security

of the British presence, eg by providing for the automatic

reversion of sovereignty if the lease were infringed by Spain.

The lease, granting Britain full rights of administration, as

well as a military base, would be automatically and perpetually

renewable, unless the Gibraltarians opted otherwise (ie in a

periodically recurrent referendum). Article X of the Treaty

of Utrecht would be abrogated.

2.

The above would seem to correspond in effect to the concept

of "token sovereignty" which was floated (but without particulars)

by the Spanish Ambassador in London in 1971. In other words,

Spain's case would be conceded de jure, while Britain's needs

were met de facto.

THE ISTHMUS

3.

A solution to the problem of the Rock would pre-suppose

a solution to the problem of the Isthmus, where our claim is

differently based and possibly more open to dispute. This

would be on parallel lines. It would involve the abandonment

of British sovereignty over the "British Neutral Ground"

together with its lease by Spain to Britain, retaining existing

British facilities.

OTHER INGREDIENTS FOR A SOLUTION

4. There are a number of other measures which have, in the

CONFIDENTIAL

/past,