TNAG-1218-FCO40-1523-Future-of-the-Dependent-Territories-1983 — Page 219

The Economy

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12. Whilst the Spanish restrictions continue, the economy remains heavily dependent on the local expenditure of the MOD and PSA (about £28 m per annum), and the ODA-financed aid programme (about

£4m per annum). There has been a modest revival of the tourist industry and services to merchant shipping in the past year or two. Apart from an acute housing shortage, standards of living are general comparable with those in the United Kingdom. There is a shortage of land for economic and social development, much of it being too

steep for most uses, or reserved for defence purposes. There is

negligible unemployment.

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Gibraltar's Relations with the United Kingdom

13.

There is only one issue of importance on which there is a significant divergence of views between the Government of Gibraltar and of the United Kingdom. The British Government's proposal in the recent White Paper that Gibraltarians should become Citizens of the British Dependent Territories under a new nationality law is unpopular in Gibraltar. The Gibraltarians wish to become British Citizens, the status reserved for United Kingdom belongers. under existing proposals. They have made extensive representations, which have been carefully considered by the Home Secretary.

Defence Facilities

14. The facilities serve both NATO and national purposes. They are manned by about 2,000 uniformed personnel, and about 3,000

civilians, and consist of:

(i)

(ii)

(iii)

(iv)

(v)

a naval dockyard, with three dry docks and facilities for refitting certain types of major warships;

a naval base capable of supporting operations, and with local training facilities;

a maritime headquarters, mainly serving the NATO command

(Com Gib Med) at Gibraltar;~

a resident infantry battalion, and artillery, engineer

and signals units;

the Gibraltar Regiment, mainly a reserve force, locally

recruited;

/(vi)