and in Spain if our intention to close the dockyard were to leak prematurely. Alternatively I would welcome it if you preferred to have an early meeting at which you and I would be present. But I believe that, at least initially, these policy issues are best considered between our two Departments, and possibly also the Ministry of Defence, rather than in the more widely representative body proposed in the second paragraph of Douglas's letter. The functions of the wider Committee would presumably be to manage the study as a whole.
The arrangements for the proposed reorganisation of respon- sibility for Gibraltar within the FCO is already in hand. It was agreed that before putting the changes into effect the Government would inform Sir Joshua Hassan and test his reactions. In view of your wish for the earliest possible transfer of responsibility for aid, the Governor was instructed to sound out Hassan before he came to London. In the meantime prelimin- ary work on the economic study can no doubt proceed in advance of the formal transfer of responsibility.
cc: PS/PUS
Mr Cortazzi Mr Hibbert
(Frank Judd)
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