There has been angry reaction in Britain and Gibraltar to the British Government's official confirmation that it is ready to share sovereignty of Gibraltar with Spain.
This is an issue of vital interest to the Falkland Islands, which, like Gibraltar, has been given UK promises to safeguard sovereignty. And Argentina will take encouragement from what they regard as a weakening of British resolve over Gibraltar that might influence the UK's so far implacable rejection of Argentina's sovereignty claim to the Falklands.
The announcement came publicly for the first time from the Foreign Secretary, Jack Straw, in the House of Commons. He said that after twelve months of negotiation Britain and Spain are in broad agreement on many of the principles to reach a lasting settlement of the dispute. This included shared sovereignty by Britain and Spain over Gibraltar including the disputed territory of the Isthmus.
The Government was immediately denounced by the Opposition Conservative Party, whose foreign affairs spokesman, Michael Ancram, called it a "shabby, dishonourable process" conducted in secret talks behind closed doors.
Criticism in Gibraltar was even more scathing. Its politicians condemned it as surrender to Spanish blackmail in which the blackmailers are being given the key to the door. Gibraltarians, asked their reaction in the street, called Jack Straw a scoundrel and said the British Government is not to be trusted. They questioned what the British Government hoped to achieve as it has given a pledge that any agreement would be subject to approval by the 30,000 population in a referendum, and Gibraltarians have overwhelmingly indicated there is no way they will agree.
There are also still serious differences between Spain and Britain. Britain considers an agreement on shared sovereignty as binding while Spain regards it as only a step towards the full sovereignty they want.
Spain also fears that a referendum for Gibraltar would encourage the Basque separatists to demand a similar referendum for them in Spain.
Britain also wants to retain its vital military establishments in Gibraltar which Spain opposes.
Despite the progress which Jack Straw has now signalled in Parliament, there is little chance of an early settlement.
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