MercoPress. South Atlantic News Agency

UK and Spain friends, despite Gibraltar

The continuing dispute over Gibraltar will not sour otherwise good relations between Britain and Spain, the two countries insisted this week.

The 300-year-old row was raised at talks in London between Foreign Secretary Jack Straw and his Spanish counterpart Ana Palacio. Mr Straw emphasised that these were not Brussels process talks and the meeting did not produce a date or commitment for further talks on Gibraltar.

Ms Palacio said that Gibraltar is always in the background, "but it is the will of the two governments that this should not obscure bilateral relations between our countries and our cooperation within the European Union, and of course in what is international relations in general." "We have discussed the subject, we have broached the subject, it has not been the centre of the conversation."

On whether Spain will go to the European Court of Justice she said that Spain "will not waive its responsibilities and at each and every step it will take the decisions that will seem opportune and necessary in order to protect the interests, the defence of which has been vested on us."

Mr Straw said that Britain's position regarding the European Parliament and Gibraltar is very clear.

"It followed the Mathews Judgment in the European Court of Human Rights in Strasbourg which required that Commonwealth citizens in Gibraltar should be provided with the franchise, as well as other matters, and that has now been reflected in our legislation."

Mr Straw said that Gibraltar did not feature largely in the discussions, "of course it was mentioned, and for the avoidance of any doubt, this meeting and the lunch which took place today was not part of any Brussels process.

Speaking after the meeting, Ms Palacio said: "This should not obstruct bilateral relations and co-operation within the EU.''

"Inadmissible" threat

PSOE senator for Cádiz Region José Carracao said suggestions of Gibraltar leaving the European Union and not coming within a European framework represents a threat to ?go underground' which he says is ?inadmissible'.

In a parliamentary session, Mr. Carracao, asked the Spanish Government to comment on Gibraltar's proposals for a new tax regime and said these proposals do not harmonise the territory with other EU member states.

Mr. Carracao said Spain must put pressure on the Rock to compete fairly in the European market and harmonise their economy with the rest of Europe by applying VAT to products, and regulating the local finance centre to curb the existence of ?innumerable opaque companies'.