TNAG-0378-FCO40-424-UK-policy-on-the-future-of-Hong-Kong-after-1997-1973 — Page 37

CONFIDENTIAL

(f)

purely in presentational terms, so that, for

example, the Council of Ministers became a

municipal or provincial Council; although nothing

of substance would be altered this might prove a

useful gesture and one not entirely unacceptable

to the Gibraltarians;

the Spaniards would seek to improve their relations

with the Gibraltarians and, at the same time, we

would encourage the Gibraltarians to respond to

these advances. We could undertake to reduce our

financial support for Gibraltar as the Spaniards

removed their restrictions;

(g) in amplification of (f) we would encourage local

economic co-operation between Gibraltar and Spain,

co-operate with Spain in the suppression of

smuggling from Gibraltar (a problem which would

only be revived with the re-opening of the frontier),

possibly provide for the Spanish Government to be

officially represented in Gibraltar, and encourage

the use of Gibraltar dockyard by the Spanish Navy;

it would be necessary for the Spanish restrictions

at Gibraltar to be dismantled and the border re-opened; :

since the Spaniards base these on Article X of the

Treaty of Utrecht, which would be abrogated, this

(h)

should offer no difficulties of principle for them.

Southern European Department

Foreign and Commonwealth Office

8 August 1973

3-

CONFIDENTIAL

: