Historias Gibraltar

1 This section is the responsibility of the Editor and not that of the FOGHS From LEAFAR’S DESK Issue No 75 October TORPEDO JUAREZ PROTEST • ‘Keep out of it’ says Opposition Juan Carlos Juárez, the Mayor of La Línea, vented his anger last weekend on hearing news that the Royal Navy was sending a nuclear submarine to Gibraltar as part of the Battle of Trafalgar celebrations next week. “There is growing indignation in the Campo de Gibraltar and specifically in La Linea at the British Government’s arrogant attitude and the constant provocation of visits by nuclear powered submarines to these waters,” he said in a statement on Sunday. But Sr Juárez appears to have jumped the gun because according to official British military sources, there will be no submarine visit next week. The root of the misunderstanding is a press advisory notice issued by Headquarters British Forces last week, in which a visit to an SSN’ - military speak for a nuclear submarine – was tentatively pencilled in. Were it not for the sensitivities north of the border, it would have been a simple media trip: a visit to a Trafalgar class submarine to mark the 200th anniversary of the Battle of Trafalgar. Yesterday, a second statement from HQBF tried to clear the air of controversy. “A prominent politician in the Campo de Gibraltar has suggested that a British nuclear submarine will arrive in Gibraltar on 28th October,” the statement said. “The Ministry of Defence wishes to confirm that no submarine visits to Gibraltar are envisaged to commemorate the Battle of Trafalgar.” OPPOSITION ANGER While that clarification from the British MoD might help to ease concerns in the Campo de Gibraltar, it came too late to stop political reaction in Gibraltar to the La Línea mayor’s comments. “Sr Juarez appears to be incapable of understanding that the frontier between Gibraltar and La Linea is an international frontier demarcating the national sovereignty between his country and ours,” said the GSLP/Liberal opposition in a statement. “Spanish territory ends at La Linea and British territory commences and applies from the moment that people show their passport and exit Spain.” “Clearly, if such considerations apply as regards the area of the frontier and the airport where British military aircraft come and go as they please without having to seek the permission of Spain (notwithstanding the Spanish myth that the isthmus belongs to Spain) it applies with even greater strength and logic to visits by British naval vessels of whatever type to the naval base.” “The British military presence in Gibraltar and the use of British military facilities in Gibraltar is a matter entirely for the people of Gibraltar and the British Government and has nothing to do with Sr Juarez simply because he happens to be near us.” “Just like we in Gibraltar do not interfere in the visits that may be made by warships at nearby Spanish ports, including American nuclear powered vessels.” And in a statement bound to rankle with the Spanish mayor, the opposition alliance also questioned Sr Juárez’s sense of history. “It may interest the Mayor of La Linea to know that Gibraltar was not obtained as a result of the Battle of Trafalgar,” the GSLP/Liberal statement said. “It was already under British control 100 years before then.” “The British military presence in Gibraltar was of great assistance to Spain when they were in the process if being conquered by Napoleon.” “Indeed, if the British had not intervened to defend Spain against domination by France, who knows whether the Spanish nation might have ended up under French control to this day.” “In which case we would have found ourselves with a better neighbour than the one we have had to put up with for the last 300 years.” NELSON’S SUB? In his statement this weekend, the Mayor of La Línea asked himself why the British military would want to bring a nuclear submarine to Gibraltar as part of the Trafalgar celebrations.

2 “As far as we know, there were no submarines in that battle, let alone nuclear ones,” he said. Technically speaking he is, of course, correct, but new documents have surfaced suggesting that submarines were very much on Horatio Nelson’s mind prior to that famous battle at sea. According to an article in the Sunday Times, those documents show that Admiral Lord Nelson “held secret talks at Downing Street on sinking Napoleon’s ships with submarines, mines and rockets.” “The plan involved towing the mines, referred to as “infernal machines”, across the Channel on high-speed catamarans and then detonating them beneath the French vessels,” the article reported. The weapons meeting in Downing Street was also attended by Robert Fulton, a pioneer in submarine design. “Fulton gave the meeting expert advice on the use of catamaran-mounted torpedoes,” the newspaper article stated. “Previously he had designed the first “submarine boat”, the Nautilus, in Paris, but when he approached Napoleon’s ministry of the marine with a plan to blockade the mouth of the Thames with them, it scornfully dismissed him.” “Fulton crossed secretly to England, where he demonstrated his design to [prime minister] Pitt.” Details of the meeting have been published in a new biography of the admiral by Roger Knight, visiting professor of naval history at Greenwich University. Mr Knight told the Sunday Times that Nelson’s interest in new weapons, which came too late to affect Trafalgar, stemmed from his worries that the war against Napoleon was near deadlock. xxxxx ‘NO NEGOTIATION ON GIB’S FUTURE’ – EUROPE MINISTER There are currently no negotiations between the UK and Spain on the future of Gibraltar. That is the position as stated in the House of Commons by Europe Minister Douglas Alexander. Mr Alexander said that the Trilateral Forum, created through a joint statement by the Governments of Spain, the United Kingdom and Gibraltar on 16 December 2004 gives an equal voice for all three parties to discuss matters relating to Gibraltar. Any party may raise any issue relating to Gibraltar in this forum, he said. He added that so far, the forum has concentrated on areas of possible local co-operation, including expanded use of the airport, telephones, pensions and problems at the border. xxxxx Airport and telecommunications raised at Gibraltar Day in London IMPROVED RELATIONS WITH SPAIN GOOD FOR ECONOMY – CARUANA By Alice Mascarenhas from London “There has been a significant thawing in relations between Gibraltar and Spain where it is likely that an early fruit of this process will be agreements that will allow more extensive useful and international air services connections with the Gibraltar Airport, and also the resolution of some current difficulties in telecommunications,” Chief Minister Peter Caruana announced to businessmen, accountants, lawyers, property developers and finance centre players, at the start of Gibraltar Day in London yesterday. Mr Caruana also stated that the Gibraltar Government expected these agreements to be positive for the economy of the Rock. The setting for his speech was the now traditional Finance Centre lunch hosted by the Chief Minister at the Royal Automobile Club, where many of Gibraltar’s top businessmen and professionals were also present. Mr Caruana made clear Gibraltar continued to be engaged in negotiations with the UK to further modernise the Rock’s constitution, eliminating from it the last vestiges of colonialism, but at the same time reassuringly stating that Gibraltar would retain its British sovereignty and close constitutional links with Britain, as an overseas British territory enjoying the maximum degree of self government. Earlier he had spoken of how Gibraltar enjoyed a highly developed and much respected

3 professional infrastructure, where he asserted that the Rock’s lawyers, bankers and accountants “think and create globally” whilst being constantly innovate with new services and opportunities tailor-made for different industries and different purposes in different countries. Mr Caruana assured that despite the challenges posed by the EU Taxation of Savings Directive, the banking sector continued to grow and to diversify. “It now employs some 700 people and we continue to welcome important newcomers.” Mr Caruana said that insurance and insurance intermediation was the fastest growing sector – enjoying EU single market passporting rights. Locally licensed insurance companies have grown from 13 to 45 in just four years. A new sector too is the pan-European Pension, where the government expects a golden opportunity. The Chief Minister pointed to new legislation which would allow Gibraltar to become an efficient jurisdiction of choice to establish corporate pan-European corporate pension schemes. He also briefly mentioned the intended establishment of a stock exchange, which he said would be backed by important EU financial institutions, These diversifications, away from the traditional brass plates and simple depositing business, to all of these much more sophisticated, and creative skills based financial services, according to Mr Caruana, have been instrumental in the huge and successful repositioning of Gibraltar’s finance centre over the last 10 years, into what he described as “a truly on-shore off-shore international and European finance centre.” Mr Caruana was confident that as world markets had increasingly globalised, the Gibraltar government had also ensured that the Rock remained at the forefront of EU and international standards of legislation, anti-money laundering and serious crime. Gibraltar he insisted valued its good working partnership with multilateral bodies such as the IMF, OECD and FATF, but at the same time, he added, remained committed to fiscal competitiveness and to respect for bona fide privacy and confidentiality. IMF TO VISIT Meanwhile he announced that Gibraltar had agreed to a further IMF assessment in March next year. Mr Caruana then spoke of the deficiency in drafting which had raised some doubt among some EU member states as to whether Gibraltar companies were intended to -benefit from three EU directives in relation to - Parents and Subsiduaries, Mergers and Acquisitions, and Internet and Royalties, which the EU has now confirmed would also apply fully to Gibraltar. Mr Caruana concluded that Gibraltar would continue to welcome financial services providers. “Those who share our vision of the importance of high standards and reputation; we will continue to be innovative in the legislative framework that provides new opportunities for our finance centre; we will remain committed to the principle of No or Low tax, and with the help of so many leading financial services institutions provide an environment, for the safe and prosperous provision of financial services throughout the EU and the world,” he reiterated. xxxxx

4 Gibraltar Day in London CARUANA CALLS ON MOD TO HONOUR ROCK’S LOYALTY From Alice Mascarenhas in London As the Ministry of Defence prepares to negotiate the possible contractorisation of some of its core functions in Gibraltar, Chief Minister Peter Caruana, warned of the importance of reciprocating the relationship that Gibraltar had delivered over the years, and that the base remained a good responsible employer. Delivering his main speech to over 1000 guests at the Guildhall Art Gallery, Print Room and Old Library, at the main celebration of Gibraltar Day in London on Monday night, where Armed Forces Minister Adam Ingram, outgoing Conservative leader Michael Howard, top Military personnel, and for the first time ever a present serving Governor of Gibraltar along with former Governors, Mr Caruana declared jobs should be for the loyal residents of Gibraltar who welcomed and supported the presence of the base and should not through contractorisation be allowed to drift for the benefit of cross-frontier workers from the neighbouring country who opposed the presence of the base, do not want it there and complain every time a nuclear submarine comes to visit. But Mr Caruana, choosing his words carefully, stated Gibraltar’s dispute with the MoD would continue to be treated as a dispute between friends. The MoD, he declared, would continue to be a valued part of the Gibraltar community and economy. On the issue of visits to Gibraltar by nuclear submarines, the Chief Minister said his government rejected the complaints by other neighbouring countries of the use of Gibraltar as a base for British nuclear submarines recreational and operational visits. He reassured: “We welcome that through our contribution to the British defence effort we too can contribute to the global collective effort of what we regard as the greater British family of which we are a part of. As far as we are concerned they are hugely welcomed and should regard themselves as their home from home.” The Ministry of Defence he insisted remained economically important to Gibraltar which continued to make huge economic, social, and political progress, despite being small, facing threat and challenges on an international scale. “Gibraltar is a British success story in the Mediterranean,” he reiterated. In a message to Spain in reference to the current ongoing bilateral talks he said. “Everybody knows that Gibraltar values hugely and wishes to retain its exclusive British sovereignty. It is a matter of affinity, mutual regard, and respect for that most fundamental and democratic political rights, which is the right of the people of Gibraltar to freely and democratically decide its own future. “This does jot mean that we turn out backs on our neighbours Spain and do not seek with them, the best, most cordial, most cross-border co-operative relations that we have.” To demonstrate this Mr Caruana spoke of the new trilateral process of dialogue which he reassured was not a negotiation about sovereignty but one of open agenda and where the government of Gibraltar was present on an equal basis with the other two participants, Britain and Spain. For the second time he announced that an early fruit of this process will be agreements that will allow more extensive useful and international air services connections with the Gibraltar Airport. During his speech Mr Caruana reflected on the long-lasting effects of what had happen as a result of the Battle of Trafalgar. “Britain would not have established unquestioned dominance of the global seas and nor would it have been saved from the risk of invasion. “We in Gibraltar have no doubt that if Nelson had not triumphed at Trafalgar Gibraltar would not have endured with British Sovereignty for the next 200, from which the Rock has also gained. “We understand the historical links such as Trafalgar which for so many people is simply history, for us in Gibraltar it is something which enables us to be what we subsequently became and all that we have also enjoyed. “Britain’s dominance post Trafalgar of the world enabled expansion and consolidation of global trade and empire, it allowed the global reach of some of the things of value which we in the Anglo-Saxon world hold dear still to this day. Without Trafalgar British values, institutions, language, the system of Justice and administration, political and democratic process, which we all take for granted, in the most remote corners of the globe would not have endured to establish the consensus right way to do things in so many countries all

5 over the world.” As a result of their commitment to Exercise Jebel Sahara just a handful of soldiers from the Royal Gibraltar Regiment were present at the event but the military and navy presence was felt throughout in this Bicentenary year of the Battle of Trafalgar. The gathering was welcomed by Sheriff Alderman, John Stuttard, of the City of London. Music was provided by the Band of the Royal Artillery which also undertook the Sunset Ceremony, with a parade from the Fort Cumberland Guard. An old naval tradition from the Nelson era was re-enacted during the ceremony when soldiers and marines dressed in period dress entered the Guildhall carrying a Baron of Beef and presented it to the Chief Minister just like it would have happened on board ship. Back then the Captain would reply to the question “is it your wish that this should now be served” before the meat was cooked – on this occasion it was Mr Caruana who gave the go ahead. The guests this year also included all the Chief Ministers of the Overseas Territories, in London for an annual consultation meeting with the FCO, in which Mr Caruana will also participate later today. Governor Sir Francis Richards, the first serving Governor to be invited to participate in Gibraltar Day, said he was glad to be a part of the event. Speaking in support of event, Sir Francis said he happened to be in London for a meeting, and had been invited by the Chief Minister to attend. He said, “This is about the ties that make Gibraltar British.” “If you are a place like Gibraltar you have to make sure you are visible. You are a bit like a small yacht loose in shipping lanes with vast super tankers and vast aircraft carries around, and if you do not make a bit of noise, make sure people can see you and that your friends know you are there, I think you risk getting forgotten. Gibraltar Day is certainly part of government strategy for making sure that does not happen, and I can see the force of that.” Meanwhile the Chief of Defence Staff, Sir Michael Walker, confirmed there was no truth in the rumour that he was being tipped as the next Governor of Gibraltar. “It certainly has not been on my radar screen at all,” he said. On the contractorisation issue the Major General commented how there were at present contractorisation arrangements across all of the armed services in the UK. Contractorisation is the way forward, he said. “As you know the in-house bid is being prepared and there is an opportunity for that to be part of competition.” From a union perspective, Prospect General Secretary Paul Noon, said the union was profoundly concerned about the issue although he felt things were moving in the right direction. “I feel we are at present where we should have been nine months ago. If the government had done it properly we would not have had the necessity for a legal challenge but I think things may be back on track even though we have to iron out the details. Meanwhile today Chief Minister Peter Caruana takes a break and joins members of the Manchester United Gibraltar Supporters Club, of which he is Patron, in Manchester to see the match against Lille. Tomorrow evening he travels to Oxford where he will be addressing the Law Society at Oxford University on Gibraltar’s Financial Centre and its legal/ political situation as a small territory in Europe. xxxxx SOVEREIGNTY STATUS QUO WILL BE UNALTERED BY AIRPORT DEAL Rafael Estrella, the PSOE parliamentary spokesman for Foreign Affairs, has declared that the tripartite forum will be in a position to announce an agreement on the airport, the Spanish pensions issue and improved frontier flow in a period of “two to three months.” Speaking in Algeciras this week Sr Estrella said that the negotiation on the airport is unconnected to the Spanish sovereignty claim, while the presence of Spanish police at the airport had been discarded. Sr Estrella said he was moderately optimistic on an airport agreement and said there were technical matters still pending conclusion. The forum based its initial work on the Basle airport in Switzerland which has frontier exits to France. “We are discussing technical problems that will not alter the status quo on the airport’s sovereignty,” he declared. Sr Estrella indicated that the negotiation was advancing toward “a joint use airport that

6 included joint commercial management of the airport.” There will be no sovereignty advantage for Spain with this agreement since this is outside the script, said Sr Estrella. The Spanish politician said that the Madrid Government will also study the pensions proposal that emanates from the forum, but that the pensioners will have the final say on any eventual agreement and there would be no reduction in the sums of money they are claiming. “We are dealing with the historical rights of the pensioners and the only discussion refers to the various formulae that can be applied for the payment.” Sr Estrella also admitted that to date, “the British Government has not formally accepted” to pay the pensions but said the negotiating process was “on the right track.” As regards frontier flow the Granada MP said the negotiations aimed to establish more rational and objective mechanisms to “improve the quality of life” of the citizens on both sides of the border. xxxxx GIB LOSES OUT ON MED PRESIDENCY TO FRANCE *Poggio Re-elected Vice-President by Alice Mascarenhas Albert Poggio was re-elected Senior Vice President for another three-year term of office at MedCruise General Assembly. 15 countries presented their candidature for the election to the office of Senior Vice President; Gibraltar was elected unanimously. But Gibraltar which was also in the running for the presidency of the association lost out to France. The assembly was held in Limassol, Cyprus. MedCruise is the association of Mediterranean ports which has 64 port members across 17 countries. Commenting on not achieving the presidency Mr Poggio speaking from Cyprus said that there had no doubt been some tactical voting preventing Gibraltar from succeeding. But he added in the second round of voting for the Senior Vice Presidency Gibraltar was one of 15 countries competing the vote for him to remain in the chair had been unanimous. Mr Poggio said he was pleased to be re-elected as it placed Gibraltar at the very top of the cruising industry the potential of which was increasing each here. “We will again be at the forefront,” he said. Meanwhile the next MedCruise Assembly will be held in Gibraltar next year. Chief Executive of the Gibraltar Tourist Board Peter Canessa delivered a presentation in Cyprus on Gibraltar. xxxxx

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GIBRALTAR OXFORD UNIVERSITY ALUMNI ASSOCIATION Following the successful visit by the Oxford University Amateur Swimming Club team and the probable visit next year by Oxford University Amateur Hockey Club it has been decided to reform the GOUAA. The current list of members includes L.G Andlaw, Pembroke 1951, Miss G. Arias, Oriel 2000, Dr John Cortes, Magdalen 1979, D. Delgado, St Catherine’s 1995, David Dumas QC, Exeter, 1977, Joshua Gabay, Pembroke 1953, A. Griscli-Soler, St Anne’s 2000, Peter Isola Senior, Pembroke, 1947, J. Mockett, New, 1945, D. Palmer, Lincoln 1999, Fabian Picardo, Oriel 1990, Christopher Pitaluga, St John’s 1980, C. Skinner, Keble 1980, A. Vasquez, Pembroke 1976, N. Vasquez, St Benet’s 1997, R. Wallace, Queen’s 1951. xxxxx CADOGAN MOVES After fifty years in Sloane Street Cadogan Travel has relocated to modern new premises in Lowndes Street, Knightsbridge. The new office incorporates a unique, vibrant design coupled with state of the art technology. The premises are designed to offer comfortable and stylish surroundings for their clients to relax in whilst arranging their holiday. Bert Hyett, branch manager, is delighted with the new look. “We have managed to create a wonderful blend of the latest style and technology, whilst still retaining the calm and professional environment that our customers have come to enjoy. Between the team, we have over 100 years experience in the industry and we are proud to continue to be able to offer a truly specialist service to each and every one of our clients”. The new offices are located at 28 Lowndes Street which is near to the Carlton Tower Hotel. xxxxx MONSIGNOR GERALD CHIDGEY The Daily Telegraph, in its obituary of this eminent cleric, reveals that ‘ Chidgey was twice passed over for a bishop’s mitre. In 1970 his name was unsuccessfully put forward for auxiliary bishop in Cardiff to Archbishop John Murphy, but Chidey’s temporary illness at the time may have been a factor. In 1973 he was tipped to become Bishop of Gibraltar but a Gibraltarian was appointed instead”. xxxxx GIBRALTAR DAY One of the highlights was to see three octogenarians deep in conversation; they were Lord Merivale, 89, Pepe Forbes, 88, and Sir Robert Peliza, 85. What memories this trio have of the Gibraltar problem. Talking of which, a senior member of the Gibraltar Parliamentary lobby told this Dateliner that despite the euphoria generated by the talks between the three governments in the Trilateral Forum, all Gibraltarians must remain in a state of total vigilance. He warned that within the Foreign Office are the next generation of Emyr Jones Parry clones who are just waiting for the moment when the Joint Sovereignty proposals can be returned to active politics. The intense political lobbying must not be relaxed. xxxxx ALBERT MORILLO Albert Morillo is to remain as manager of the Investec Asset Management fund. xxxxx CADOGAN TRIUMPHS The Gibraltarian owned company has scooped the award for ‘Top Short-haul Specialist Tour Operator 2005’ at the Travel Bulletin Awards ceremony at the Millennium Gloucester Hotel.This is eighth year in succession that Cadogan has won this award. xxxxx GIBRALTAR IN TOP FIVE The Economist reports that that the five most densely populated territories in the world are Gibraltar, Macau, Monaco, Hong Kong and Singapore. xxxxx HELP WANTED Michael Ellul is a Maltese architect and architectural historian who is seeking material for an article on the use of Malta stone outside the George Cross island. He wishes to know whether there are any buildings on the Rock constructed with Malta stone and whether any Maltese masons were employed in the local building trade during the late 19th and early 20th centuries. Michael’s email address is [email protected]. xxxxx

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GB AIRWAYS EXPANDS EVEN FURTHER This month sees GB Airways launch new flights to Sharm El Sheik and Hurghada in the Egyptian Red Sea Riviera and also Innsbruck in Austria. John Morgan, commercial director, told the Gibraltar Chronicle: ‘This month we will not only be adding new winter sunspots but also introducing our first venture into the ski market by operating scheduled services to Innsbruck’. xxxxx MAJOR DOUGLAS Many readers will remember Major James and Mrs Douglas and their three children who used to live on top of the Swiss Watch shop in Convent Place. This is now The Angry Friar. Alas both Charles and Carlos died last year. Susanne told this Dateliner that Charles was born on 23 October 1919 and educated at Sherborne College and Keeble College, Oxford. He was called up in 1939 and after the end of hostilities returned to finish his degree reading Modern Languages. During the war he was captured in the Far East and spent several years in a Japanese Prisoner of War camp. After Oxford a post was accepted teaching French at Midhurst Grammar School where he remained all his working life. Carlos was born on 26th December 1935 and was adopted whilst still a baby. He was educated in Gibraltar and was awarded a scholarship in 1956 to RADA. His distinguished career as actor is best remembered by his portrayal as a Spanish waiter in the Sitcom ‘Duty Free’. Suzanne has interred the ashes of her brothers into their mother’s grave in Midhurst. In memory of the Douglas family she has presented the Gibraltar Heritage Trust with her brother’s mess tin which he used in the Prisoner of war camp. Charles was sent by his parents a postcard of the classic silhouette of the Rock . A fellow POW somehow was able to engrave a copy of this post card onto the mess tin. It is an incredible work of art. It has survived all these years and remains in a pristine condition; in fact it is as good as new. xxxxx OFFSHORE RED Part of an editorial in the financial services magazine ‘Offshore Red’ reads: ‘And if some jurisdictions were outside its (Brussels) remit, others were damned sure that they were not going to comply. Gibraltar was in a difficult corner. Apparently, it did not need to observe aspects of the directive. But Europe as a whole does not seem to be terribly clear about what Gibraltar can and cannot do. The Commission would cheerfully shut Gibraltar’s financial sector and , given half a chance, merge the jurisdiction into Spain against the wishes of the overwhelming majority of the population. It is engaged in another battle of the Rock’s tax status and when – and if – it can adopt zero-ten. In the end, membership of the EU should be made to work for Gibraltar. There is no reason why a flamboyant jurisdiction cannot be included as a full member of the EU’. xxxxx NEW MEDIA OFFICER FOR BRITISH FORCES GIB British Forces Media Officer, Captain Katherine Prudhoe will be handing over to Captain Keith Carroll after the Trafalgar commemorations, a CBF spokesman said yesterday. Captain Katherine Prudhoe has been Media officer for two years and is moving on to become the military French instructor at the Defence School of Languages. The spokesman said: “Capt Keith Carroll has just come from 3rd Battalion, The Royal Irish Regiment and has been stationed in Armagh for the last 6 years on continuous operations. He was serving with his Regiment as a Rifle Company Second in Command prior to taking over as S03 Media Ops. The Regiment has long historical links with the Rock and is proud to be affiliated with the Royal Gibraltar Regiment. Capt Carroll has been accompanied to Gibraltar with his wife Jane and two children O’Reilly and Antonia. He says, ”I am looking forward to my tour in Gibraltar. On a professional level it is as a challenge that is completely different from anything I have previously done. It is also an ideal opportunity to exploit Gibraltar’s location to pursue both travel and leisure interests.”

xxxxx FEETHAM CHALLENGES BOSSANO OVER AIRPORT Gibraltar deserves to be told exactly what Mr. Bossano proposed to Spain over the airport, Daniel Feetham has said. The GSD member and former Labour leader says that it would be “politically dishonest for Mr Bossano to criticise the Government for not keeping people

9 informed about the detail of current negotiations but then keep his own supporters, and Gibraltar, in the dark about (a) the fact he was prepared to do a deal with Spain over the airport and (b) the detail of his own proposals.” The remarks are made in a letter to the Chronicle. AIRPORT PLAN Dear Sirs, Twice now in the space of less than a week the Chief Minister and his Government have alluded to Mr Bossano having attempted to enter into an Airport Agreement with Spain when he was in Government. Will Mr. Bossano continue to keep his silence or will he come out publicly stating whether this is true or false? If it is true, Gibraltar deserves to be told exactly what Mr. Bossano proposed to Spain over the airport. It would be politically dishonest for him to criticise the Government for not keeping people informed about the detail of current negotiations but then keep his own supporters, and Gibraltar, in the dark about (a) the fact he was prepared to do a deal with Spain over the airport and (b) the detail of his own proposals. Let the people decide whether the concessions Mr. Bossano was prepared to make on the airport (if any of course) were good for Gibraltar and compare these with any proposals that may emanate from the Tri-partite process. A public statement from Mr.Bossano as to his own alleged proposals over the airport would be helpful and honest. Yours Daniel Feetham xxxxx Monarch flight forced to Malága by ‘mystery’ airplane incident MADRID PRESSED TO EXPLAIN RETURN TO TANGIER DIVERSION Two Spanish military jets that strayed from their operational area east of Ceuta and an as yet unidentified small aircraft, spotted south of the Rock later by the RAF control tower, combined yesterday to force the Monarch flight from Luton to land in Malaga. And the journey of the 153 passengers was later further frustrated in what appears to have been a collapse in the ‘goodwill’ arrangement to allow diverted aircraft direct flights from Malaga to Gibraltar. There was furious military and diplomatic activity into the evening as each party tried to unravel the series of events. The fact that the affected flight was diverted to Tangier was being held up by the Opposition party as a caution against placing any trust in Madrid’s intentions in the current trilateral process. Gibraltar Government had made no statement on the incident on going to press whilst the Convent limited itself to confirming that it was aware of the problem and is taking it up with the Spanish authorities. Madrid in turn was understood to be analysing the incident and awaiting detailed reports from all involved. Last night the Spanish Foreign Ministry declined to comment on the refusal to allow the direct re-departure to Gibraltar from Malaga, although a statement is expected today. A spokesman however said that that the events that had led to the aircraft being diverted to Malaga are being established by them, “We have no knowledge that any Spanish military aircraft activity was the cause of making the plane land in Spain.” The incident comes as Jose Pons, the Spanish Director for Europe and a leading figure in the trilateral process arrives tomorrow in Algeciras to give a talk on Gibraltar – Spain relations to the University of Cadiz. RAF REPORT EXPECTED Whilst the contents of a report from the RAF control tower are expected to be released today the following details emerged: The Manchester and Luton Monarch flights were due in to Gibraltar at 11.30am and 11.15 am respectively. They were near Ceuta in their approach to Gibraltar when the Luton aircraft was close to reaching its ‘diversion fuel level’ and was allowed to fly ahead by the Manchester flight. Diversion fuel levels allow aircraft to make attempts at various airports but it is understood the rules disallow this from being used for holding purposes. MOD confirmed that the reason the aircraft were holding was as a result of the fact that two Spanish jets from an authorised military exercise east of Ceuta had strayed south of Europa Point into the flight path area of the Monarch flights which were awaiting clearance from

10 Seville to proceed once these jets had been moved on. MOD says that the two jets did not pose a danger but that subsequently the RAF tower spotted an unidentified high-wing twin propeller aircraft. It is understood to have been detected both on radar and visually through binoculars but no confirmation as to its identity has been available. MOD sources said that neither Gibraltar nor Seville had been in contact with the aircraft. In the past there have been incidents with small craft including Moroccan military, maritime patrol and the Guardia Civil. The Chronicle understands that this was a small craft and some 4 to 5 miles south of the Rock and refused to respond to calls from Gibraltar airport traffic controllers. The prevailing wind being easterly meant that the Monarch flight would have had to circle in for an approach from the west. Instead it was instructed to divert to Malaga and refuel. MONARCH REACTION Monarch issued a letter to passengers apologising to them and confirming that they had to go via Tangiers “due to Spanish government rulings”. The company invited passengers to make a written complaint if they wished to do so. It also followed this later with a statement that set out the delays. This said that the Monarch scheduled flight ZB602 operating a Boeing 757 between London Luton and Gibraltar was forced to divert to Malaga in the morning after it was unable to land at Gibraltar Airport “due to military activity” in the surrounding airspace. The letter to passengers had specified Spanish military activity. The flight carrying 153 passengers subsequently diverted to Malaga airport landing at 12.14 pm. Monarch say that the flight re-departed Malaga at 2 pm “however airspace restrictions between Spain and Gibraltar meant that the aircraft must operate to Tangier before continuing its journey to Gibraltar.” The plane arrived at the Rock at 4pm. The return flight to Luton departed Gibraltar at 5pm with 174 passengers. OPPOSITION WARNING Commenting on the Monarch flight incident the GSLP/Liberal Opposition noted that permission was sought from, and refused by, the Spanish authorities for the plane to fly directly from Malaga to Gibraltar. “On a recent occasion when a plane which had to land in Malaga was given permission to fly here directly from Malaga, this was welcomed as evidence of the alleged goodwill which existed on the part of the Spanish Government. It would appear that the goodwill, if it ever existed at all, has been very short-lived,” said a statement. “This new incident must raise doubts in people’s minds as to whether there is anything new in the Spanish Government’s approach to Gibraltar, or we are still back to the long established strategy of the stick and the carrot. Most people in Gibraltar still remember that there has been a long history, by coincidence, of the Spanish Government creating problems whenever negotiations involving Gibraltar are underway. This latest episode must make one wonder if it reflects a new round of arm-twisting by Madrid to try and extract further concessions from Gibraltar in the alleged remaining 1% still to be settled of the airport deal.” The Opposition added that “independent of the legitimate doubts that may rise in people’s minds in the light of the Spanish attitude of allowing Malaga-Gibraltar flights following diversions, what it puts into perspective is the whole approach of Spain to the question of the restrictions imposed against Gibraltar where the temporary relaxation of such restrictions is presented as exceptional acts of goodwill. When they behave as normal neighbours, in a manner that is consistent with normal practice between EU neighbouring states, we are supposed to throw street parties at their so-called exceptional acts of good will.” xxxxx KENT TAKES OVER THE MED The Bland Group announced yesterday that Joss Kent would be taking on the role of nonexecutive director of their interests in the Western Mediterranean, including Blands in Gibraltar. He will also continue to be actively involved in Cadogan Holidays, the Group’s UK tour operator. Earlier this month, Mr Kent was appointed Chief Operating Officer of the international travel company, Abercrombie and Kent, established by his father Geoffrey Kent and now owned by the North American corporation, Intrawest, one of the world’s

11 leading destination resort and adventure travel companies. He will take up this role in January 2006. Blands Chairman, James Gaggero, said he was “delighted that Joss would be able to contribute to the continuing success of the Bland Group’s activities in the Western Mediterranean, as well as Cadogan in England.” xxxxx Spanish port blockade GIB CLEARS CRYSTAL PASSENGERS A major logistical operation was put in motion yesterday after the cruise ship Crystal Serenity made an unscheduled call at Gibraltar to avoid a blockade at the port of Barcelona. The ship was unable to call at the northern Spanish port because fishermen had blocked the entrance as part of nationwide protests against the high cost of fuel. The cruise ship, which is operated by Crystal Cruises, had been due to carry out a turnaround operation in Barcelona, meaning it should have discharged on load of passengers and embarked another. Yesterday, that operation was carried out in Gibraltar instead. Paul Imossi, director at Smith Imossi, the local agent for Crystal Cruises, said about 700 passengers were ferried from the ship to Málaga airport, from where they were flown to Barcelona to connect with their final flights home. A further 900 passengers due to embark in Barcelona were flown to Málaga and then coached down to Gibraltar, where the ship was waiting. "Everything has worked smoothly," Mr Imossi told the Chronicle. The fishermen's protests in Spain brought major ports on the Mediterranean and Atlantic coasts to a standstill for several days. Early yesterday morning, officials in Gibraltar had thought that additional passenger ships might make their way to Gibraltar if the protests continued. But most of the blockades were finally lifted last night an 18-hour negotiation with the central government in Madrid, which agreed to increase fuel subsidies to nearly 10 cents per litre. xxxxx Monarch incident: no policy change by Madrid, says Pons MALAGA-GIB ACCESS ON ‘CASE BY CASE’ BASIS Spain’s refusal to allow Wednesday’s diverted Monarch flight to go straight to Gibraltar airport from Malaga does not reflect any change of policy on Spain’s part, Jose Pons, the Spanish Foreign Ministry’s Director for Europe said yesterday (Dominique Searle reports). Sr Pons told the Chronicle that there was no novelty in this and that what Madrid had authorised had been the use of Malaga as an alternative when aircraft could not land at Gibraltar. “This was done,” he said After the September incident, when a GB Airways flight was allowed to fly straight back, Mr Caruana said the direct flight from Malaga was a development that could be read in the context of the improved climate created by the tripartite process of dialogue. A year ago almost to the day the Anglo-Spanish statement that started the tripartite process stated in its annex that Spain would “allow the inclusion of Spanish airports as alternative airports in the flight plans whose final destination is the airport of Gibraltar”. But Sr Pons emphasised that direct flight for diverted aircraft were only being considered on a case by case basis and that in the September incident this had been in the context of the Gibraltar radar being down and a diversion after landing had not been possible because of the weather. “We did not convert it into a norm although we are working towards making this possible,” he said explaining that this would be envisaged in the context of an overall airport agreement. “There is no change in the Spanish position,” said Sr Pons adding that people should not read any “strange manoeuvres” into the decision on Wednesday. Yesterday it was confirmed that the British Embassy in Madrid has raised with the Spanish Foreign Ministry the issue of Spanish military aircraft having operated outside their designated exercise area after this disrupted Thursday’s Monarch flight from Luton to Gibraltar. However Sr Pons said that he is still awaiting a series of reports including from the military, Spanish civilian aviation, the pilot and Monarch. But he said that when the flight had arrived in Malaga there had not been any report from the pilot other than of low

12 visibility in Gibraltar. “As far as I know there had not been any danger to anyone.” xxxxx SPAIN STILL PRESSING UK ON SUBMARINE REASSURANCE Jose Pons, director for Europe at the Spanish Foreign Ministry, this weekend said that Spain cannot stop vessels from docking at the British naval base. But he said that Madrid will continue to press for a written reassurance that it will not be UK policy to take troubled nuclear powered vessels to the Rock. xxxxx EXCLUSIVE: Spanish negotiator at forum analyses relations with Gib PONS ATTACKS NATIONALISM AND THE DYNAMICS OF FEAR • Gib airport and Algeciras port could lead regional economic boom F. Oliva reports Spain's Director General for Europe Jose Pons yesterday declared that the time had come for the three sides involved in the Gibraltar question to show "political, human and mental courage." Quoting one of the founding fathers of the European Union Jean Monet, Sr Pons said the three sides had to think that "the future belongs to all." During an end of term conference for law students at the University of Cadiz on Friday night, Sr Pons declared that in the face of an anomaly such as the existence of a colony like Gibraltar, it was important that "at least people on both sides could get on with their normal business, obtain benefits and not just the disadvantages of an anomalous situation." And he said the function of the Tripartite Forum after the tensions and verbal escalation of the Tercentenary, was "to search for normality for citizens in a situation which is anything but normal." Sr Pons argued that isolated, inconvenient problems as may come up occasionally, should not be magnified or be seen as throwing the current diplomatic process into a crisis. Referring to the Monarch flight diversion, he said the Spanish Foreign Ministry was still investigating the incident, and reiterated that important and much wider matters were still under negotiation. But Sr Pons assured Gibraltarians that there was no-one in the Spanish Foreign Ministry who woke up each morning with the malicious thought 'what can I do today to harm the Rock?' or believed in making life as difficult as possible for Gibraltar. "We are all European citizens with rights and there is much more that unites us than separates us. Spain does not intend to impose or bully anyone. This is not the political reality we move in." He also called for the emergence of a new relationship that can be built on mutual understanding, respect, the need to overcome permanent frustration and confrontation, and not based on "the dynamics of fear that does not lead anywhere." Sr Pons said that if we carry on the way we are, "we can look forward to another 300 years of sovereignty claim, more disagreement, more obstacles and more problems for all." He argued: "The future of Gibraltar is not independent of Britain and Spain [whatever some may want], because we have the Treaty of Utrecht and UN resolutions that say what they say, and not what some others would like them to say. That is the reality." Sr Pons said Gibraltar is not a nation nor a state, but a non-self governing territory that has its rights. However, these rights are not exercised in a vacuum, and have to be placed in a political, legal, social, and human framework that cannot be done away with. "Obviously everyone can ask for the moon, and they have the theoretical right to do so. But to ask for what cannot be attained simply produces a feeling of melancholy. One cannot lose sight of what the terms of reference are." He continued: "Clearly, Spain could not one day fulfil its aspirations without taking account of Britain's legal and political realities and therefore against the will of the people of Gibraltar. At the same time, Gibraltar could not achieve its aspirations without counting with Spain." Sr Pons said that Britain's obligation to negotiate with Madrid to resolve a colonial situation did not nullify or eliminate the people of Gibraltar, and it was absurd to think Gibraltarians were citizens without a voice, without feelings or without preferences. The great challenge, he remarked, is to find "a meeting point" between the demands of all the sides.

13 "There is something that certainly unites us above all: to achieve prosperity and progress for the region," he declared. THE TRIPARTITE FORUM Sr Pons proposed that the role of the Tripartite Forum be analysed in the negative and posed the questions "where and how would we be if the Tripartite Forum did not exist? What was the situation a year and a half ago?" which he then proceeded to answer. He said the prevailing political climate was one of confrontation and disagreement, even of insults, [recalling how the Chief Minister had been called an ape], where it was impossible to negotiate or advance on any issue and with our backs turned on each other. By contrast, now all sides were talking, working to obtain practical and beneficial agreements and sharing an interest in the well being of citizens on both sides. This was being done, he continued, without any side giving away their basic positions and without any violations of what diplomatic jargon calls "the red lines." "The forum works, it is going to yield results and the measure of success that is obtained depends only on its participants," he declared. Sr Pons said that if we achieve a good airport deal and reached a good co-operation agreement between the ports of Gibraltar and Algeciras [the latter would require a strong legal basis which would allow it to operate], plus modern road and railway infrastructure to the area, "it would be possible to imagine a much better communicated zone with a large space for the re-export of goods that would generate important [valued added] benefits to the region." He said it was this type of thinking that could generate practical results, wealth and economic development that was of interest to the citizens, and welcomed the constructive approach from Chief Minister Peter Caruana and the British Government. Sr Pons proclaimed that the present was "a time for hope," while the future should be seen as one of "coming together." NO TO NATIONALISM We should all work so that the future is "a future of agreement" where we discard everything that has proved to be useless. "Nationalism," he said, "is no good. Neither Gibraltarian nationalism nor Spanish nationalism in exacerbated form. This only produces ideological and emotional entrenchment, fear and frustration and that is precisely what we all have to overcome." He said the first thing that nationalists do is to "invent a past" that never existed, make claims that are wholly impossible in the present, and imagine a rosy, marvellous future which is unattainable. "That cannot be the basis to build a future of agreements," he stated. Sr Pons went on to analyse the emergence of nationalism in Gibraltar and attributed it to the frontier closure of 1969, noting that the Spanish Government had been moved by "healthy and unhealthy" reasons just as there were healthy feelings and more complicated feelings on the Gibraltar side. "But that does not get us anywhere," he declared. THE TREATY OF UTRECHT Sr Pons said that at the risk of stating the obvious, some things needed to be said. Firstly that Gibraltar was not Spanish "even though not everyone follows this line of thinking and some in Spain might think it is, but that we cannot have the Rock in our hands." He said the territory - except the isthmus - had been ceded under Utrecht to Britain in perpetuity (article 10) in 1713, while Spain had been granted first option to recover it if Britain ever wanted to relinquish possession. From that point of view, there can be no further discussion. Secondly that Gibraltarians "do not have to naturally want to become Spanish", since nobody wants to modify the features of their identity or the legal status that identifies them, and that can only happen through a process of consent not by decree. "We should not think that by saying why don't they want to be Spanish - this is something we can analyse at a later stage - that they are going to become Spanish. It is not a natural process," he said. Thirdly, he referred to the existence of two Gibraltars, the fortress and castle ceded under Utrecht, and the isthmus that was subsequently occupied by Britain and for which it has no legal title to justify sovereignty rights. Sr Pons said it was an incorrect interpretation to deny historical validity to the treaty, because some of its aspects such as the ban on Jews and Moors taking up residence in

14 Gibraltar, are no longer valid or make any sense. "If Utrecht did not exist, tomorrow we could send in the Guardia Civil or the army to recover territory that was occupied by a foreign power during a war, to regain it in the same way even if it was 300 years later. Clearly, that is not our intention in any way." Sr Pons argued that the treaty was still valid because it was recognised by the British Government, the United Nations, and the international community and that to refuse to accept this leads to frustration. BRUSSELS AND AIRPORT AGREEMENTS The Spanish diplomat later referred to the Brussels Agreement of 1984 which was the first time UK had agreed to initiate a process that included not just negotiations of sovereignty in the plural, but also a mechanism for cross-border co-operation. However, he noted that when this is "demonised" by Gibraltar the second chapter of the agreement which refers to the setting up of co-operation and dialogue between the Campo and the Rock, is ignored or forgotten. Some people had also believed that with the opening of the frontier it would be easier to reach agreements since Spain was now a democracy. However, this had turned out not to be the case. He said that within the climate of frustration some optimism was generated as a result of the 1987 Airport Agreement but eventually this also failed to materialise as it was vetoed by the local government. The election of the GSLP government puts an end to Gibraltar participation in the UK delegation. Now as a result of the tripartite forum negotiations on the airport, Sr Pons said he had found out many things from that time, and was making sure they did not repeat the same mistakes. A new joint use airport agreement was "on course" and could be just months away, he added. PENSIONS AND FRONTIER FLOW Sr Pons concluded his intervention expressing confidence that a once and for all solution acceptable to the three sides for the payment of updated pensions to former Spanish workers on the Rock would be agreed by the forum. He said this was a sensitive human issue of maximum priority. As regards frontier flow he said it was impossible to avoid congestion at peak times like in any other city, but with goodwill and resources the delays would be improved. Greater mechanisms for police co-operation were also envisaged toward this aim. Gibraltar, he said, could contribute to alleviate the traffic density by increasing taxation on alcohol and tobacco. Conceding that governments can run their affairs as they want, he remarked that nowadays tobacco should not be a mainstay of an economy. Progress towards an element of solution on the issue of telecommunications was also coming through. xxxxx NOVEMBER Pons spells out “lights and shadows on Gib” NEVER AS CLOSE TO A DEAL AS IN 2002, SAYS TOP SPANISH DIPLOMAT Spain’s Director General for Europe Jose Pons has declared that “we had never been as close to an agreement as we were at the time of the 2002 joint sovereignty negotiations.” However, Sr Pons has expressed the hope that “we can get even nearer this time.” He also described Gibraltar as an extremely sensitive issue for Spain and that the sovereignty claim was a permanent feature of Spanish foreign policy. Sr Pons acknowledged that history cannot be altered or re-written, it would be a mistake to try and change it, and must be assumed as what it is, “with the good and the bad, the things we got right and the errors that we made.” And speaking about the future, Sr Pons said we must learn from history so that “we can build something of which we are proud.” In his exposition of Spanish diplomatic thinking on the Gibraltar question at the University of Cadiz, Sr Pons reviewed the 300 year old dispute giving a century by century account of major events, with special emphasis on its historical, political and legal aspects. Gibraltar he said had also been a permanent “irritant” that distorted and conditioned AngloSpanish diplomatic relations, and noted how in the past 20 years Spain had held bi-lateral

15 summits with all other major European countries except UK. Sr Pons regretted that relations with Britain were not more intense and meaningful and that this was “a kind of punishment in bi-lateral exchanges because of the Rock.” For Spanish ministers it had been a stone in the shoe for ever, while for their UK counterparts, a twice yearly visit to the dentist for a tooth extraction. Referring to a recent Chronicle editorial about the Rock battle-scene engraving that decorated an office in the Spanish Foreign Ministry, Sr Pons said that the building is undergoing works and in the meantime as he has changed office, he misses the portrait and cannot wait for it to be back. The capture of the Rock, Treaty of Utrecht, Spanish UN doctrine, and what he described as “the lights and the shadows” of Spanish attitudes toward the Rock came under discerning scrutiny. He also analysed Gibraltar’s evolving position in the European Union, the origins of the Brussels Agreement, the separate treatment and development of the claim on the isthmus, the lead-up to the co-sovereignty agreement “carried out at lightning speed,” and the breakdown in relations after the 2002 referendum. xxxxx GSLP reacts to Pons lecture GIB AND SPANISH IDENTITIES WILL NEVER BE FUSED, SAYS BOSSANO Leader of the Opposition Joe Bossano has rejected the lecture on Gibraltar by Spain’s director general for Europe Jose Pons as a “distorted view of history and reality.” Mr Bossano also defends local nationalism from Sr Pons’ criticisms and describes it as “the emergence of a national consciousness among the Gibraltarian people which goes back a long time in our history.” The GSLP/Lib leader argues that the only basis for a true friendship between “the Gibraltarian nation and the Spanish nation state is accepting each other’s separate and distinct identity which will never be fused.” In a statement the Opposition said: “We note the strong views against “nationalism” expounded by the Spanish negotiator in the “trilateral forum” Jose Pons at a meeting in Algeciras where he was preaching to the converted. Mr Pons, whilst going out of his way to try and demonstrate how different Spain is today from what it was in the past, then went on to defend the Treaty of Utrecht as the foundation stone of Spanish policy on Gibraltar.” “He responded to the position taken by Joe Bossano in the United Nations, that the Utrecht is an out of date, defunct Treaty which was predominantly about slavery and which was used by Spain to legitimise its indefensible position on Gibraltar. Mr Pons went as far as to say that although Spain is today by implication too civilised to invade us and attempt a “Reconquista”, what is stopping them is not apparently the British obligation to defend Gibraltar, in the same way as they defended the Falkland Islands in 1982, but the fact that it would be illegal to do so under Utrecht.” “Mr Pons needs to brush up his knowledge of Spanish history. Otherwise he would be aware that Spain tried to take Gibraltar back by force on numerous occasions, in breach of the Treaty of Utrecht, and they were defeated, so there is no evidence that respect for the Treaty is what has kept Spain at bay in the past. One can only assume that like other attempts by Mr Pons himself and some of his predecessors, this is an attempt to influence Gibraltarian opinion so that we see the Treaty as something that legitimizes the British presence in Gibraltar and protects us against Spain’s aggressive tendencies. The Opposition rejects this distorted view of history and reality.” “Mr Pons also has strong views about Gibraltarian nationalism, equating it with Spanish nationalism. Gibraltarian nationalism is in fact the emergence of a national consciousness among the Gibraltarian people which goes back a long time in our history to the beginnings of the foundations of the AACR and the efforts of Sir Joshua Hassan. If Mr Pons was familiar with the history of Gibraltar, he would know that we have trodden the same path as every other British colony in this emergence of a sense of identity and the expression of nationalism as a way of emerging from colonial rule. Again this was the point made by Joe Bossano in his recent speech to the 4th Committee which Mr Pons appears to be keen to counteract.” “This is not the equivalent of the nationalism of the central Government in Madrid which has to do with frustrating the aspirations of the national identity of the different peoples that make up the Spanish state, and in the past with imperial aspirations outside Spain’s frontiers. That central Government right-wing nationalism certainly should have no place

16 in the modern Spain and its international dimension appears now to be reduced to the “Reconquista” of Gibraltar.” “There is a different kind of national identity within the Spanish state of which Mr Pons seems to be unaware notwithstanding the fact that it is playing a pivotal role in the debate on the Spanish constitution. This is the sense of national identity of the Catalan people, whose links with Gibraltar go back to their participation in the 1704 conquest of the Rock and who are in fact seeking a new constitution which recognizes that they are a nation in their own right. This kind of nationalism, far from being dead, is on the increase in Spain but is not designed to impose itself on anyone else or deny their national identity. It has nothing to do with absorbing into Spain a territory that ceased being part of Spain 301 years ago, and which will never again be incorporated into the Spanish state.” “Therefore Mr Pons should advise his Government that the only basis for a true friendship between the Gibraltarian nation and the Spanish nation state is accepting each other’s separate and distinct identity which will never be fused. In any event, if Mr Pons finds the concept of Gibraltarian nationalism so objectionable, perhaps he should raise it at the next meeting of the “trilateral forum” given that it was Mr Caruana who went out of his way to tell our people at Casemates on 10 September this year that we are a nation.” xxxxx ROYAL HOSPITAL CHELSEA General Sir Michael Walker will succeed General Sir Jeremy Mackenzie as Governor of the Royal Hospital, Chelsea with effect from October 1 2006. xxxxx FOGHS; VISIT TO THE FOREIGN OFFICE The FOGHS was fortunate in being granted a slot to see round the Foreign and Commonwealth Office. Graham Barnet showed the party round and was a brilliant lecturer whose love for the building, its architecture, the furniture, paintings and floor coverings was apparent with every sentence spoken. As a bonus the party was taken into the former East India Company’s managing director’s office (now occupied by a junior minister and then the office of the secretary of state. The former office has the unique feature of having two doors side by side which were used to enable two Indian princes of equal rank to enter simultaneously. The latter is the size of a badminton pitch and looks out over St James’ Park. One member of the party had been in this office several times on official business and his experience of foreign secretaries and ranged from the diminutive Michael Stewart to Douglas Hurd. FOGHS members present were: Field Marshal Sir John and Lady Chapple, Mike and Brenda Brufal, Vivian Azzopardi and John Mattison, Stuart and Conty Brown, Jock Craven, Maggie Galliano, Maximme Torrents del Prats, Colonel Peter and Anne Watson, Maurice and Marianne Xiberras, Alexandra Gaggero, Clare Campbell-Lamerton. xxxxx PRINT David Duggleby, the Scarborough auctioneers, recently put up for sale a print, 50cms x 77cms, published in 1799, engraved by W. Sharpe. It was after the painting by John Turnbull of the Sortie to destroy the French and Spanish floating batteries made in the morning of 27 November 1781. The print had been purchased at auction from the effects of the late Earl Minto whose family name is Eliott. The garrison was under the command of General George Eliott. The print sold for £100. xxxxx MOMY LEVY The Jewish Chronicle reports that Gibraltarian, Solomon Levy, laid a wreath of poppies shaped as a Star of David at the 71st Ajex remembrance parade at the Cenotaph. xxxxx THE PEOPLE The People is advertising its own ‘Christmas Shopping Cruise to the Sun’ with calls at La Coruna, Cadiz, Gibraltar, Tangier, Lisbon and Vigo. Those participating are advised to buy tax-free cigarettes and spirits in Gibraltar. The advertisement is dominated by a photograph of the Rock. xxxxx

17 PAPAL VISIT TO SPAIN A senior Vatican official confirmed that Pope Benedict XV1 will attend the Fifth World Meeting of Families next July. This will be held in Valencia. xxxxx THE NEWS OF THE WORLD The News of the World is also offering its readers a cruise south to the sun. This uses another photograph of Gibraltar to illustrate the cruise. This goes to Lisbon, Algarve, Gibraltar, Tangier, Cadiz, Vigo and La Corunna. Gibraltar is described as having the advantages of a foreign country yet with all the familiarity of home. xxxxx RABBI DR ABRAHAM LEVY The Spanish Ambassador, the Conde de Miranda, hosted a lecture about Maimonides at the Instituto Cervantes. This was delivered by a Spanish Professor. Afterwards 100 guests were invited to the Spanish Embassy for a glittering reception at which Rabbi Dr Abraham Levy was invited to talk about Maimonides who was born in Cordova. xxxxx GB AIRWAYS GB Airways is to launch direct twice weekly scheduled flights to Dalaman in Turkey in May 2006. xxxxx DAILY MAIL EXPLAINS A letter of complaint was written about the misnaming of the Strait of Gibraltar in a recent travel article. The Travel Editor failed to reply let alone publish a correction. Robin Esser, Executive managing Editor, writes; I am very sorry that the Travel Editor has not replied. He is normally very punctilious in responding but he has just left the Daily Mail for promotion elsewhere. I must apologise that he did not make arrangements to see all his post was dealt with. We do have sub editors whose task it is to correct such mistakes before publication. However I fear this one passed through due, I believe, to the pressure of time when this page was changed some minutes before deadline. I have pointed out the error to the department and the senior executive concerned and made sure the record is corrected’ As can be see from this photograph the same mistake is repeated at the top of the cable car. Should Gibraltar also put its house in order? xxxxx ADMIRAL LORD NELSON After the unveiling of the statue John Doubleday drew the editor’s attention to two features that so far have gone un -remarked. The first is that Admiral Lord Nelson sported a pigtail, a fact which many are not aware; the second the size of his muscular calves which is due to the many years spent standing on deck. Both can be seen on the statue. xxxxx HELP PLEASE Jim Clark writes from Skegness to ask what has happened to the old Spanish fountain that was used a font at the Sacred Heart Church? This fountain had played a key role during the Great Siege and is very much a part of Gibraltar’s heritage. Jim also has two photographs of Archbishop Peter Amigo taken during a visit to Richmond. xxxxx STICKERS Eileen and Roger Hume report that during a visit to the Launceston Steam railway station they found a ‘Keep Gibraltar British’ sticker stuck onto one of the upper panes of glass on the buffet entrance door. The buffet manager said that he did not know who had stuck it there but it remained because it was a cause well worth supporting xxxxx LIGHT-TOUCH FUND STRUCTURE International Investment magazine reports that Gibraltar has become the latest offshore centre to allow the establishment of funds for professional investors which have less onerous registration requirements than retail funds. Experienced Investor Funds (EIF) are designed for professional, wealthy and experienced investors. The investors in these funds need to have a net worth in excess of 1

18 million euros or the fund has to have a minimum investment of 100,000 euros. xxxxx ARCHBISHOP PETER AMIGO The paragraphs about the proposed plaque to be erected in honour of Archbishop Peter Amigo have resulted in almost all the money being raised. Many mebers have commented on the Archbishop’s efforts on behalf of the evacuees during the Second World War. He frequently attended the camps and schools in London. Furthermore he helped arrange for special temporary schools to be set up including one inside the Victoria and Albert Museum. Several groups of Gibraltarians were confirmed by Archbishop Peter Amigo. He also took a leading role in persuading the British Government from sending evacuees from the Mother Country to the West Indies. He considered the proposed merchant ships to be unsuitable in addition to the danger from U boats. xxxxx ANGLICAN BISHOP OF GIBRALTAR The Universe published a photograph of Archbishop Nichols, Bishop Geoffrey Rowell, Denis Riches, Peter Jennings, Father Chavasse, Father Robert Byrne and Abbot Cuthbert Johnson at the press launch of ‘Benedict XV1 and Cardinal Newman’. The Anglican Bishop of Gibraltar is a leading expert on Cardinal John Henry Newman. xxxxx PEREZ TO BE NEW ROYAL GIB REGIMENT CO Major John Perez will be the next Commanding Officer of the Royal Gibraltar Regiment and assumes command early in the New Year, 6 January 2006. The announcement of his future appointment was officially released by British Forces Gibraltar on Friday. On his appointment Major Perez MBE will be promoted to Lieutenant Colonel. xxxxx PARISH MEP SET TO CHALLENGE REFINERY The Conservative MEP for the South West and Gibraltar is taking up the concerns about the Campo refinery with the European Commission. Neil Parish MEP was in Gibraltar yesterday and met with representative of the Environmental Safety Group (ESG). Mr Parish who visits Gibraltar some four times a year is investigating the standards at the CEPSA refinery and has claimed that they are shrugging off regular fines from the European Commission because of the profitability given high oil prices. According to Mr Parish a similar refinery in Denmark is currently undertaking considerable work to reduce its impact on the environment. He told the Chronicle that the refinery is fined twice a year but nothing is happening. “The fines have to be ratcheted up,” he says adding that they should be forced to follow the Danish example to cut emissions and be more environmentally friendly. Mr Parish will be talking with Danish MEPs to pursue this issue. “Once I have the detail I will be presenting the information to Stavros Dimas, European Commissioner responsible for Environment,” said Mr Parish who believes that simply imposing a fine hardly makes a commitment to the environment. “Getting improvements to the refinery would be good for the people of Gibraltar and those in the Campo.” Mr Parish was also meeting with a constituent who raised the issue. Meanwhile he is convinced that having directly elected representatives has improved Gibraltar’s representation in that Commission officials have to take greater notice and are directly answerable. “If I ask to meet a Commissioner he will meet me within 10 days,” says Mr Parish who will be meeting with Glynn Ford MEP (Lab) and Graham Watson MEP (Lib Dem) to discuss the refinery. The MEP works with his Labour and Liberal democrat colleagues for the region and expects that they will be able to pursue this issue on a consensus basis to reduce the pollution levels. On other issues the MEP is convinced that, so long as British sovereignty is safeguarded an agreement on the airport would be a good opportunity and could attract financial support from the European Commission. “Sovereignty is not up for grabs,” he says adding that at the same time he tells Spanish colleagues in the parliament that a more conciliatory approach will help resolve problems. Mr Parish says he is now beginning to hear increasingly from Gibraltar constituents. His

19 website is: www.neilparishmep.org.uk Neil is a farmer and continues to live on the 300 acre family farm in Pawlett, Somerset, which he has helped to run since he was sixteen. xxxxx DECEMBER UK TRIPARTITE TALKS MAN TO BE MADE HIGH COMMISSIONER Dominick Chilcott, the UK diplomat at the current tripartite talks is to be promoted to a new mission, the Chronicle has learned. It is understood that after April 2006 Mr Chilcott is to be made British High Commissioner in Sri Lanka. Prior to his current position Mr Chilcott came very close to being made Deputy Governor at Gibraltar but then took a different posting. xxxxx GOVERNOR RESPONDS TO OPPOSITION OVER SPANISH FISHING Governor Sir Francis Richards has responded to calls from the Opposition regarding Spanish fishing in Gibraltar waters. In a statement yesterday afternoon the Convent said that it had seen comments by the GSLP/ Liberal alliance on the claim by EFSA, Gibraltar that Spanish commercial fishing vessels have been fishing in British Gibraltar Territorial Waters. “There is an Agreement dated 3 February 1999, which was made public at that time and is publicly available now, between the fishing sector of the Campo de Gibraltar and the Government of Gibraltar on this issue. This Agreement is consistent with respect for Gibraltar legislation; the Royal Gibraltar Police are well aware of their obligations in this context, which they fulfil actively and conscientiously,” said the statement. The fishermen had complained about Spanish commercial fishermen using drift nets in the waters around the Rock. xxxxx After Madrid alleges non-cooperation FOREIGN OFFICE DEFENDS GIB STANCE ON CRIME • Gib ready to discuss crime co-operation at talks UK Government has rejected allegations by the Spanish Interior Ministry that Gibraltar is not responding in the fight against crime. It confirmed that the British Embassy in Madrid will raise these latest allegations with the Spanish authorities. And it has been confirmed that co-operation on tackling crime is an issue Gibraltar is ready to raise at the trilateral forum. A Foreign Office statement noted the recent statement from the Spanish Minister of Interior in response to a Andalusian parliamentary question that the Government of Gibraltar has offered “practically nil collaboration” in helping the Guardia Civil to pursue investigations relating to “money laundering, tobacco smuggling and fraud”. In its statement the UK Government says that it fully supports the actions taken by the Government of Gibraltar in tackling organised crime “including by keeping abreast of evolving international standards. Gibraltar’s legislation meets with all current EU and international requirements in this field, as do police, judicial and administrative procedures for enforcement.” The UK Government also said that it noted that effective communication between Gibraltar and Spain is complicated by the arrangements that require all formal communications between Spain and the Gibraltar competent authorities to pass through a third party. “Co-operation to tackle organised crime would be much improved if the Spanish authorities were to agree to speak directly to the competent authorities in Gibraltar. The UK Government understands that, in the spirit of trilateral dialogue, Gibraltar is ready to meet Spanish officials to clarify co-operation procedures.” “The UK Government also notes, as the Gibraltar Government has already done, that Gibraltar has responded positively to each and every request from Spain for judicial or police assistance that complies with the relevant international treaty and bilateral agreement.” xxxxx DEAD SERVICEMAN CONFIRMED RAF - MOD The Ministry of Defence yesterday confirmed that the dead serviceman found in Devil’s

20 Tower Camp on Monday was a member of the Royal Air Force stationed in Gibraltar. “We can confirm that a member of the Royal Air Force serving in Gibraltar has been found dead in their accommodation,” said Headquarters British Forces Gibraltar in a statement. “The cause of death has not yet been confirmed.” “The next of kin have been informed but they have requested a period of grace before further information is released.” xxxxx GOVERNMENT STANDS BY 1999 FISHING AGREEMENT Peter Caruana, the Chief Minister, said the government stood by the 1999 agreement allowing Spanish fishermen to fish in Gibraltar waters, adding that there were no plans to change it. Speaking to the Chronicle during a reception at the Cormorant Camber Boat Owners’ Club, he also questioned why the GSLP/Opposition had highlighted the issue six years after the agreement was signed. “The agreement is clear,” he said. “It’s there, people can see it, people can see what it allows and what it doesn’t allow.” “The government is not going to enter into a polemic.” “We are content with the agreement, we ratify the agreement, we have no intention of changing it [and] we have no intention of asking the governor to ask the RGP to alter the policing approach, which we think has worked very well for Gibraltar.” “I think the police have been responsible and are to be congratulated.” “I hope that they continue to police the agreement in the way that they have been doing over the last six years, which has been hugely in Gibraltar’s interests.” The issue hit the headlines last week after the European Federation of Sea Anglers complained to the RGP over commercial fishing in Gibraltar waters by Spanish boats using ‘illegal’ drift nets. That prompted a statement from the GSLP/Liberals, which in turn generated reaction from the Chief Minister last night. “There have been Spanish fishing boats fishing in compliance with the agreement on a daily basis since 1999,” he said. “The opposition, unless all they know how to do is jump on other people’s bandwagons, didn’t have to wait for the EFSA statement to comment about the fishing agreement if they had wanted to.” “I think everyone in Gibraltar welcomed that the agreement put an end to what was a very unpleasant crisis.” “The government of Gibraltar stands by it and regrets that there are people who, for reasons better known to themselves, think that this is a good opportunity to try and create problems.” xxxxx CARUANA REJECTS SPANISH POSITION OUTRIGHT Peter Caruana, the Chief Minister, last night categorically rejected any suggestion that Gibraltar does not co-operate fully with Spain on law enforcement matters. “If the Spanish government is saying that the Gibraltar government or the Gibraltar authorities do not cooperate with Spain in the way that we co-operate with all other European and international countries…then that is simply not true,” he told the Chronicle. Mr Caruana also expressed surprise at the manner in which the matter had been raised, adding that Spain had never complained about this issue despite many meetings over the past year within the context of the trilateral forum. “If they were concerned [about this], they’ve had many opportunities to raise it with us, [either] in the trilateral forum, [or] bilaterally with the UK, and they have not done either,” Mr Caruana said. “If the Ministry of the Interior in Spain believes that the co-operation between Gibraltar and Spain is not working as they would like it, then I would urge them to raise it with the government of Gibraltar and not complain about it in the press.” Spain had raised some concerns within the tripartite forum about the so-called post box system through which the communications between Spain and Gibraltar go via the UK. But those concerns did not relate to law enforcement issues. Mr Caruana said that as long as the requests made through that system were “properly

21 addressed”, then Gibraltar always treated them promptly in line with international rules. It is here that the problem might lie, however, in that some past requests for information have been wrongly addressed to the UK authorities because Spain fails to formally recognise Gibraltar’s own authorities. “What we will not do is genuflect to their refusal to recognise our constitutional authorities by pretending that Gibraltar has no police force of its own, that Gibraltar has no customs department of its own, has no court system of its own, insisting on pretending that the UK system is the one responsible for Gibraltar and then expecting Gibraltar to comply,” Mr Caruana said. “That is not the UK’s definition of compliance, and it’s not ours, because we would lose the protection of the international treaties and local laws.” xxxxx Fight against crime and tax fraud MADRID INSISTS ‘GIB NOT CO-OPERATING’ The Spanish Government has challenged Britain over what it alleges is its failure to provide information and evidence from Gibraltar in support of the Guardia Civil in the battle against organised crime, money laundering and tax evasion. Madrid last night restated the view, expressed in the Andalusian parliament last week, that information being sought by its policing authorities in the fight against crime, including fiscal crime, is not forthcoming from Gibraltar. Peter Caruana , Chief Minister, and the British Government have roundly rejected the allegations. In what was a direct response to the Foreign Office position, the Spanish Foreign Ministry issued a press release that clearly reinforced the reply given by the Spanish Interior Ministry last week to an Izquierda Unida parliamentarian, Antonio Romero, where they stated that there was “almost no co-operation from Gibraltar at all”. Madrid has clearly taken exception to Britain’s “positioning itself as a third party” in what Spanish officials see as London distancing itself from arrangements to which it is an integral part. It said that the arrangement of the competences is one of Britain’s own making, an obvious reference to the Constitutional position. Spain makes such requests through the British Government in what is known as a ‘postboxing arrangement’ devised to circumvent political sensitivities. Spain asks London and London asks Gibraltar and then the information trails back that way. In the statement yesterday Madrid “totally” confirmed the statements by the Interior Ministry and the view that there is “hardly any co-operation.” It went on to say that Spain seeks co-operation from Gibraltar via the procedures agreed with the UK “as the party responsible for the external relations of the non-autonomous territory of Gibraltar, by sending official communications, formal legal requests and petitions through the Foreign Office’s Gibraltar desk.” It said the issue had been raised in the tripartite forum and, picking up on the Foreign Office’s statement, the Spanish Foreign Ministry said that it “noted the positive disposition, as stated by UK, on this matter and looks forward to this translating into a prompt and efficient co-operation in the battle against organised crime.” But on Tuesday the Foreign Office has said that the British Embassy in Madrid would raise these latest allegations with the Spanish authorities. Madrid has focused carefully on the post-boxing arrangement and equally noted that in the Ballena Blanca case it had not made requests for information. However, the Guardia Civil are maintaining that they do not get the flow of information and material they want in fighting money laundering, nor intelligence on fiscal fraud in the form of people evading tax due to ‘Hacienda’. It was in fact on police and judicial co-operation that the first version of ‘two flags, three voices’ talks was attempted during the GSLP Government’s office under the so called ‘Seville process’ which collapsed after several attempts at the time when Cesar Braña was Gobernador Civil of Cadiz. A Foreign Office statement on Tuesday said that it fully supports the actions taken by the Government of Gibraltar in tackling organised crime “including by keeping abreast of evolving international standards. Gibraltar’s legislation meets with all current EU and international requirements in this field, as do police, judicial and administrative procedures for enforcement.”

22 The UK Government also said that it noted that effective communication between Gibraltar and Spain is “complicated by the arrangements that require all formal communications between Spain and the Gibraltar competent authorities to pass through a third party”. “Co-operation to tackle organised crime would be much improved if the Spanish authorities were to agree to speak directly to the competent authorities in Gibraltar. The UK Government understands that, in the spirit of trilateral dialogue, Gibraltar is ready to meet Spanish officials to clarify co-operation procedures.” “The UK Government also notes, as the Gibraltar Government has already done, that Gibraltar has responded positively to each and every request from Spain for judicial or police assistance that complies with the relevant international treaty and bilateral agreement.” xxxxx HERITAGE TRUST DECRIES ‘RAPE OF ROSIA’ Gibraltar Heritage Trust (GHT) has entered the fray over housing development stating that affordable housing should and must be built, but well away from such a sensitive heritage site as the Rosia Bay area. And they have been critical not only to what they see as ‘ironic’ affront to Nelson’s ‘immortal memory’ but also the “multi-storey monstrosity” being built at the Naval Grounds. The apparent breaking of silence on these issues appears to have been prompted by comments in emails being circulated in relation to the South District Committee’s campaign to halt the development at Rosia development, but this has not been attributed to the Committee itself. Campaigners were out yesterday collecting signatures in the Piazza ahead of plans to step up their protest and in the wake of a meeting with one of the developers. In a Letter to the Editor entitled by them ‘The Rape of Rosia Bay’ (below), the GHT trustees describe as “ludicrous”, in heritage terms, the idea of increasing the height of buildings for parking. “The Trust is bound to accept the need to build housing for those who cannot afford the inflated prices of the private housing market, but opposes any building, of any sort, in areas of heritage value, such as the town area, where it has expressed its views strongly in the proper forum against the proposal to build a high-rise annexe to The Eliott Hotel.” The trust is concerned that development will detract from what remains of the heritage of Rosia Bay, overshadowing Parson’s Lodge and the Victualling Yard, and further despoiling the area, as well as putting paid to Gibraltar’s efforts to be named a UNESCO World Heritage Site. The trust also argues that there are now alternative sites – “Windmill Hill, perhaps, or even, though it would hardly be ideal, the Naval Grounds, where a relatively modest building, erected out of concern for those in need of housing rather than to line a developer’s pocket, would be more acceptable than the multi-storey monstrosity that it has been proposed to build there”. THE ‘RAPE’ OF ROSIA BAY Dear Sir, Monday’s Chronicle carried a front page story on the proposed development of “affordable housing” on the Rosia Water tanks, and the concerns of the residents of the area, which seem to centre more on the loss of a view and of parking spaces, than in any Heritage concerns. The reaction of the developers, ludicrously from the Heritage point of view, is to offer to increase the height of their proposed building in order to accommodate more cars! The Trust is bound to accept the need to build housing for those who cannot afford the inflated prices of the private housing market, but opposes any building, of any sort, in areas of heritage value, such as the town area, where it has expressed its views strongly in the proper forum against the proposal to build a high-rise annexe to The Eliott Hotel. However, an email is being circulated, presumably by certain residents of the area, accusing the Heritage Trust of apathy in failing to oppose the proposed development. As far as we can tell, the authors of this email have not shown any interest in Gibraltar’s heritage in the past, and this reaction would appear to be an example of the NIMBY (Not In My Back Yard) syndrome rather than any real concern for our Heritage. The real issue is that such a building would detract from what remains of the heritage of Rosia Bay, overshadowing Parson’s Lodge and the Victualling Yard, and further despoiling the area, as well as putting paid to Gibraltar’s efforts to be named a UNESCO World

23 Heritage Site. It is deeply ironic that this project is announced just after we have finished commemorating Nelson’s victory at Trafalgar: The Immortal Memory, indeed! The Government, without any doubt, has the obligation to provide housing, but it also has an obligation to preserve Heritage for future generations; these two obligations should not be exclusive. Yes, affordable housing should and must be built, but well away from such a sensitive Heritage site as the Rosia Bay area, which has already suffered, and continues to suffer, from the depredations of the developers – Engineer Battery, Nelson’s Anchorage, Rosia Plaza (do the authors of the emails live there?). There are now alternative sites – Windmill Hill, perhaps, or even, though it would hardly be ideal, the Naval Grounds, where a relatively modest building, erected out of concern for those in need of housing rather than to line a developer’s pocket, would be more acceptable than the multi-storey monstrosity that it has been proposed to build there. The Trust fights, and will continue to fight, for the preservation of our heritage. The routing of the Funicular project has shown how much we can achieve if we enjoy public support. Those who choose to use it as a whipping boy whenever their own private interests are impinged on do the cause of Gibraltar’s Heritage no service at all. Yours faithfully Board of Trustees GIBRALTAR HERITAGE TRUST xxxxx CARUANA HOPES TRIPARTITE TALKS ADVANCED BEFORE CHILCOTT MOVE Peter Caruana, the Chief Minister, this week praised the important role that Dominick Chilcott, the senior UK diplomat responsible for Gibraltar affairs, has played in discussions about the Rock. Mr Caruana was reacting to news that Mr Chilcott had been appointed British High Commissioner to the Democratic Socialist Republic of Sri Lanka and, in a non resident capacity, also appointed British High Commissioner to the Republic of the Maldives. In an interview with the Chronicle, Mr Caruana also expressed some unease about the potential impact of Mr Chilcott’s departure on delicate negotiations with Spain and the UK. The Chief Minister hoped that some of the key initiatives under discussion could be closed be Mr Chilcott left to take up his new post. “Dominick Chilcott has done his best for Gibraltar during the years that he’s been in this job and we will sorely miss him,” Mr Caruana said. “I think Dominick Chilcott and indeed his whole team at the southern European and Gibraltar desks of the Foreign Office have been excellent for Gibraltar.” “I think there is a good team now representing Gibraltar interests in the Foreign Office and it’s always a pity to see such people move on.” “We are hopeful that his replacement will be of the same mind, but you never know.” The Chief Minister recognised that changes at such senior diplomatic level could have a bearing on the progress of ongoing talks with both the UK and Spain. Mr Chilcott, who is Director for Europe (Bilateral Relations, Resources & Mediterranean Issues) at the Foreign and Commonwealth Office, has played a central part in the tripartite forum and in discussions toward a new constitution. He has a close working rapport with both Mr Caruana and Jose Pons, his counterpart at the Spanish Foreign Affairs Ministry. “I just hope that we can bring some of the big projects in hand to fruition before he moves on, not least the constitutional reform process which has really been in his hands,” Mr Caruana said. “It would be a pity if we had to start [over]…or if there had to be a handover period.” Mr Chilcott, who takes up his new post next April, has had a long and distinguished career in the British diplomatic service. He started in 1982 as an assistant desk officer in the FCO’s Southern African Department, working through a variety of posts – including director of the Iraqi Planning Unit in the run-up to the last Gulf War – before taking up his current position. xxxxx ROSIA RESIDENTS WELCOME HERITAGE STANCE South District Committee, the Rosia residents currently campaigning against Government

24 plans to build 900 homes in the area, yesterday greeted with applause the Gibraltar Heritage Trusts cry of ‘rape’ over the potential impact of the housing blocks. They described the letter to the Chronicle from the Trust ‘The rape of Rosia’ as a “forthright statement coinciding with the views of the South District Committee, the Friends of the Earth and thousands of petitioners objecting to the development at Rosia Tanks”. The committee says it had no doubt that the Heritage Trust would take this position “as would any reasoned observer and would further wish to confirm that it has not criticised the initial silence of the Trust”. But the Trust said that it has experienced an element of frustration on behalf of some residents of the area as a result of a comment made by OEM, the developers of the Rosia Tanks project, at a meeting which took place on Monday in which OEM reportedly stated that the Heritage Trust had vetted the scheme and would not be objecting to it. As a result of this, the South District Committee sought to meet the Trust to clarify the position and have not made any public comments prior to doing so. “The Heritage Trust’s statement has clarified the position and we look forward to working with the Trust in any manner possible,” said the committee. “This is an issue of concern to all residents of Gibraltar and is not an objection concerned with the fact that “affordable housing” is to be built in the South District or elsewhere. Our position is that we support affordable housing projects but that any scheme wherever it is sited must be sensitive to the area in which it is sited from heritage, traffic, parking, schooling and every other relevant consideration. Our view is that the Rosia Tanks development fails each of these tests and should be rejected accordingly”. Meanwhile the South District Committee said that at their meeting with the developers OEM were unable to give any reassurances that any of the key issues –heritage, schooling, traffic congestion and over-crowding - were issues that they as the developer needed to address. OEM is said to have expressed the view that these were problems that would need to be solved by the Government. “They also confirmed that no impact studies have to date yet been conducted either by themselves or by the Government on the effects on the South District of the building of these 900 homes. On the parking issue their solution is to build a higher building (isn’t it high enough already?) or to do away with the Dolphins Youth Club (the only social facility in the area for our youth and itself a listed building) and build a multi-storey car park!” The Committee says it will continue to campaign strongly against the siting of this particular massive block of 200 homes in one of Gibraltar’s major historical sites and appreciates the ever-growing support from the community at large. xxxxx GSD celebrates 15 years CARUANA LOOKS FORWARD TO ‘NEW AIRPORT AGREEMENT’ • ‘We have won UK and Spain’s respect’ • ‘I will stay as long as you want me’ Upper echelons of the GSD and the party membership gathered at a celebratory dinner in the International Casino last night to hear their leader and chief minister Peter Caruana rehearse a list of the party’s triumphs and values as they marked 15 years since their formation largely to oust the then GSLP Government. But it was foreign affairs and recognition from Britain and Spain that topped Mr Caruana’s rallying cry as he declared his readiness to serve the party for as long as they and Gibraltar wishes this. “I, and others, have worked tirelessly to ensure that we have done justice to this honour, privilege and responsibility – no less than the social, economic and political wellbeing and the future of Gibraltar, and political rights and aspirations of its people. I will continue to do so for as long as the party and the people of Gibraltar consider that I am the right man for the job”. To a warm reception he declared that by standing firm in a position of ‘no’ to bilateral dialogue, but ‘yes’ to reasonable dialogue, they had, in the end, achieved success for their policy of trilateral dialogue. “And we now stand poised to usher in very substantial constitutional reform and modernisation. For the first time ever, there are early signs of movement in our direction at the United Nations.” PSEUDO NATIONALISM Rejecting “pseudo-nationalist political opponents” he said the GSD had won the people’s

25 trust as well as “unprecedent levels of respect for Gibraltar from the UK and Spanish Governments; from public and political opinion in the UK and from the world at large”. “The world looked on in admiration as we led this small community in a successful and dignified defence of our political rights, wishes and aspirations in the battle against the joint-sovereignty done deal. And Gibraltar has emerged from that battle politically stronger as a result,” he said. As he declared that the Government looks forward to doing a new airport agreement Mr Caruana lunged into his long-standing opponent, Opposition leader Joe Bossano. “We will not make any sovereignty, territorial or jurisdictional concessions. Mr Bossano, who I know likes to think of himself as a handbrake on GSD progress in the external policy front, is very quiet about all this. And well he might be, since he is the only Chief Minister of Gibraltar ever to have signalled a willingness to negotiate sovereignty with Spain, to have told the UN that the decolonisation of Gibraltar and the exercise of our right to selfdetermination have to be negotiated with Spain, and supported a failed attempt at a new airport agreement.” “Mr Bossano’s own past record may not (as it should) stop him from trying to pull on what he calls “the political handbrake”, but he should put on his political crash helmet when he does so, because there will be no hiding place for his political inconsistencies and opportunism when the time comes.” ROSIA ROW As Government endeavours to minimise the electoral impact of their decision to build 900 homes in the Rosia area Mr Caruana stressed he would not shun from taking difficult decisions. In words that might have been taken from a Blair speech Mr Caruana said that “no good, responsible Government can govern for 10 years in the true interests of Gibraltar and our future generations, without sometimes making decisions that will be unpopular with a sector of our community.” He said that in mature democracies, such as Gibraltar, people want leadership. “People want Government to exercise considered, informed and balanced judgements on their behalf in relation to Gibraltar’s affairs in the short, medium and long term interests of our country and its people. And we will do that.” Government, he said, had the courage and humility to recognise mistakes and shortcomings and the skill, ability and commitment to rectify them – affordable housing being his example. GOLDEN RULES Mr Caruana said that in 10 years of government GSD policies have been guided by four well publicised golden rules: Firstly, to make capital Investment in order to create and maintain jobs and living standards and to modernize and upgrade Gibraltar’s physical fabric and amenities for the future; Secondly, to invest in public services generally, and care services in particular; Thirdly, the maintenance of prudent public finances; and Fourthly, to return surplus monies to taxpayers through tax cuts. They had started in May 1996 by working hard to reposition and restore Gibraltar’s international reputation and investor confidence and the size of Gibraltar’s economy has grown by nearly two thirds, and jobs increased by 3000 or nearly 25%, he said. TAX DOWN Mr Caruana said the tax burden on the typical, average wage earner has been cut by more than 40%; and over £175 million of public funds have been in vested in areas such as the new hospital, the new Health Centre, the new Mount Alvernia, the refurbishment and beautification of Varyl Begg, Laguna, Glacis, Calpe and many other public housing Estates; the restoration and salvaging of Harbour Views Estate, the on-going remedial works to Brympton and Gib V Estates; the building of Bishop Canilla House, the lift installation programme, the investment in Edinburgh House; the Westside Promenade; Bruce’s Farm, the new Bus Service; the Retreat Centre; Casemates Square, John MackIntosh Square; the Coach and Ferry Terminals; the beautification of Catalan Bay, Main Street, Sir Herbert Miles Road, Sir Winston Churchill Avenue, Lovers Lane, Waterport Road; the magnificent new sports complex at Bayside; the new small boat marina for local boat owners at Coaling Island; the new halls in our schools; among many other capital investments. “As we speak, work progresses at varying stages of our housing schemes; the King’s Bastion Leisure Centre; the Swimming pool for the elderly and disabled; the new prison;

26 the upper town urban renewal scheme; new road refurbishment schemes, new roads and multi-storey parking facilities in the town, upper town and south district areas; and on a new modern workers hostel; the Eastside Development at over £1 billion represents, by a very large margin the biggest ever single investment ever in Gibraltar, which will hugely boost our economy, jobs and public revenue in the future, enabling still more tax cuts,” he said. “The Opposition may seek to minimise and tarnish the Government’s record and each and every one of our considerable achievements through petty, orchestrated and contrived criticism (sometimes using third parties to do so), but the people of Gibraltar are not stupid. They can judge for themselves. Memories are not so short that people cannot compare the Gibraltar of 2005 with the Gibraltar of 1995!” xxxxx MADRID PLAYS DOWN CHILCOTT FACTOR The Spanish government has played down the impact on the trilateral forum of the forthcoming departure of Dominick Chilcott, the senior British diplomat who leads the UK delegation at the talks. Mr Chilcott is due to take up a new post as High Commissioner to the Democratic Socialist Republic of Sri Lanka as from next April. “The negotiations do not depend on individuals, but on Spain, the UK and Gibraltar,” diplomatic sources in Spain told Europa Press. “The representatives at the talks could be the ones at present or others, because the important thing is the negotiating framework and the points under discussion.” “Diplomats often change posts and this does not affect the stability of relations and negotiations.” xxxxx Outline agreement on MoD cuts process UNIONS AND MOD MOVE CLOSER TO IN-HOUSE BID Local trade unions and British Forces Gibraltar have reached an outline agreement in respect of talks toward an ‘in-house option’ as the alternative to privatisation at the Naval Base. The agreement, known officially as a Heads of Agreement, sets out basic common ground between the two sides and will serve as a foundation for future discussions. If the negotiations ultimately succeed, civilian workers at the base should be able to keep the same terms and conditions they presently enjoy as Ministry of Defence employees. At the same time, the MoD would achieve the cost savings it requires and which lie at the root of the long-running row over privatisation. As part of this latest move, the unions have discontinued their legal case against the MoD pending the outcome of the talks. But union officials insist they remain fundamentally opposed to any privatisation at the base and reserve their rights on the outcome of the talks. Union officials and senior MoD staff are scheduled to give a joint press conference this morning at which further details of the agreement will be released. In a letter to its members on Friday, the unions said the agreement would allow “progress on the in-house option against the fait accompli proposals presented by the MoD in February 2005 that stated the only solution available to the MoD in Gibraltar was the contractorisation of functions within the HM Naval Base.” “In consideration of the Heads of Agreement, the trade unions have discontinued the legal action, but within the Heads of Agreement, negotiations toward an in-house option will be legally binding,” the letter added. “Notwithstanding the Heads of Agreement, the trade unions maintain their solid opposition to contractorisation and therefore will reserve their rights on the final outcome of this exercise.” The letter added that negotiations between the MoD and the unions would be on an ongoing basis. “Members will be asked to cooperate in the development of the in-house option that should guarantee their direct jobs are retained under the MoD terms and conditions of employment,” it said. xxxxx

27 VICE CHIEF OF THE DEFENCE STAFF VISITS GIB MOD The Vice Chief of the Defence Staff, General Sir Timothy Granville-Chapman on Monday paid his first visit to British Forces Gibraltar since taking up post in July this year. General Granville-Chapman had not visited the Rock for over twenty years and wished to update, underpin and reaffirm his knowledge of Gibraltar to assist in his role of running Defence business. The visit saw the VCDS officially open the new restaurant in Devils Tower Camp that forms part of the sustained investment and refurbishment programme. This was followed by a command brief on the continued strategic operational role and importance of Gibraltar to the Armed Forces. General Granville-Chapman then moved to the Convent where he met with the Governor Sir Francis Richards and with Peter Caruana. The Commander British Forces Gibraltar, Commodore Allan Adair said, “We welcome visits such as these from high-ranking defence staff officers to show how the work at the coalface here in Gibraltar continues and highlights the importance of Gibraltar to the Ministry of Defence”. xxxxx GOVT URGES MOD TO GIVE ‘IN-HOUSE OPTION Protection of pensions sought Gibraltar Government has called on the British Government to open up to accepting an inhouse bid from MOD workers in Gibraltar and to base this on a fair and factual assessment. In a statement yesterday No 6 warmly welcomed the MOD local command’s stated preference for an in-house option. “This preference is not capricious. It is based on the local Command’s ability to assess local factors and circumstances and constitutes value for money and viable savings in local circumstances. The Government hopes that MOD in UK will take that advice and prefer any in-house option that is put up by the Unions in good faith and which delivers reasonable and realistic efficiency savings,” said No 6. The Government says it welcomes and supports the agreement between MOD and TGWU/ACTS and Prospect/GGCA to try and achieve reasonable efficiency savings through an in-house option that leaves employees directly employed by the MOD. This is the approach that the Gibraltar Government and Unions have jointly worked towards during the last nine months, said a statement. “The Gibraltar Government and Trade Unions have recognised from the outset MOD’s rights to seek efficiency savings, so long as these are achieved in a negotiated manner that avoids unnecessary socio-economic harm to Gibraltar and preserves remaining jobs in the MOD for residents to the greatest possible extent. This agreement provides the opportunity to achieve this in a manner satisfactory to all sides.” The Government says it will maintain its opposition to privatisation of MOD jobs and therefore hopes that these negotiations will be successful. Government will continue with plans to introduce legislation to protect pensions rights of workers that may be affected by any privatisation in any future circumstances. “The Government will continue to work closely with the Trade Unions during the next phase of this matter – i.e. the negotiations and creation of the in-house option.” Government also said it had noted that some sources within the MOD have said that it costs MOD seven times more to run its estate in Gibraltar than elsewhere. “The intended, implicit suggestion is that it costs MOD seven times more to run its estate in Gibraltar than a comparable estate elsewhere. This statement is false and constitutes a deception on the basis of a fraudulent manipulation and presentation of statistics. The MOD must make its case for efficiency savings on the basis of factual, fair and reasonable considerations.” xxxxx US NUCLEAR SUB SAILS INTO GIB BAY A US Navy Los Angeles class nuclear powered submarine sailed into the Bay of Gibraltar early yesterday afternoon to carry out a transfer of personnel, equipment and stores. The submarine was assisted and escorted by vessels from the Gibraltar Squadron. “The transfer was successful and entirely uneventful,” said a spokesman for Headquarters British Forces Gibraltar. “British Forces Gibraltar are always operationally ready to assist our allies as witnessed last week by the short notice arrival of two US Navy frigates.” The name of the submarine was not released. xxxxx

28 AVIATION SAFETY CLAUSE EXCLUDES GIB Two British Conservative MEPs this week slammed into a report in the European Parliament on aviation safety where a clause was added to exclude Gibraltar’s airport from the provisions of the proposed legislation designed to co-ordinate air safety throughout the EU. Philip Bradbourn, MEP Conservative Transport Spokesman in the European Parliament, and Neil Parish MEP, who represents Gibraltar in the Parliament, both derided the decision as a petty attempt to raise the profile of the dispute between the UK and Spain over the colony’s future. “This proposal shows the petty nature of those who would compromise air safety in the colony for the sake of making a political point about the disputed territory of Gibraltar,” Mr Bradbourn said, commenting after the vote. Gibraltar is part of the EU and part of the United Kingdom and as such should benefit from measures being proposed; yet we now have a piece of legislation which specifically excludes the colony. The people of Gibraltar should be rightly angry that they are being denied these measures to improve air passenger safety simply out of political spite” “Labour and the Lib Dems have not only undermined the sovereignty of Gibraltar as a constituent part of the EU but have also put the safety of Gibraltarian air travellers at risk,” Neil Parish MEP commented. This vote yet again proves that the Labour government is prepared to sell Gibraltar down the river to the Spanish, despite the fact that in 2002, almost 99% of Gibraltarians rejected Spanish sovereignty in a referendum”. xxxxx ALL SIDES WILL HAVE TO MAKE ‘CONCESSIONS’ FOR AIRPORT PACT, SAYS PONS Tripartite talks with Spain will seek to conclude a package of measures but not with being agreements announced piecemeal, it was confirmed yesterday by Jose Maria Pons, the Director for Europe at the Spanish Foreign Ministry. He made the remarks to a session with journalists at the Spanish Foreign Ministry. Sr Pons made clear that key issues such as the pensions and the airport would be expected to be announced together. And in a carefully phrased remark he welcomed Chief Minister Peter Caruana’s recent remark on GBC that there would have to be concessions made on the airport albeit not on red line issues. Sr Pons described the remarks as “bold and spot on” (valiente y acertado). “That does not mean he will concede on fundamentals nor that we will. But in any real negotiations there must be some concessions and we will all have to make concessions if we are to bring the positions closer,” he said. With his statements in Algeciras, a fortnight ago, largely the reference point for Madrid’s public stance on the trilateral process it is evident that the eagerness to play down the possible impact of Dominic Chilcott’s departure next April when he takes up the post of High Commissioner in Sri Lanka, is being played down. Other significant issues remain the Spanish insistence of a written assurance that Britain will not carry out Tireless type repairs in Gibraltar and concerns over planned expansion of land reclamation both on the eastside and near the Westside of the airport. Spain is seeking assurances from the British Government that pensions will be paid to former Spanish workers but has also indicated that within the context of such an agreement the Spanish Government will contemplate contributing to this. xxxxx AGREEMENT IS POSSIBLE WITHOUT RED LINES BEING TRANSGRESSED ESTRELLA Rafael Estrella interviewed by Dominique Searle With Campo observers anxious that talks may be threatened by a visible, albeit low level, tension in Gibraltar-Spain relations Rafael Estrella, the Spanish parliamentarian who is the political link between the party in Andalusia and the Spanish Foreign Minister, believes that the opportunity for agreement remains strong. WILL DOMINICK CHILCOTT’S DEPARTURE AFFECT THE PROCESS? Along with Jose Pons, Dominic Chilcott has been one of the key parts of the process to the

29 extent that mutual understanding has allowed confidence between them and with Peter Caruana. I hope that the most important and relevant parts of the process of negotiations are achieved before he departs. IS THE SUBMARINE ISSUE A MAJOR PROBLEM? It is a problem to the extent that it is patently obvious that Gibraltar is not a suitable place for repairs to the nuclear sector of nuclear submarines to be carried out. That is recognised by the British authorities who have a classification under which Gibraltar is not included. There is the Basle compromise and we want that in writing. That should not be difficult. The previous British Ambassador recognised in writing the verbal commitment made by Cook to Pique and I think that before this process is over that commitment from UK should be produced. WHAT DO YOU MEAN IN SAYING THAT IT IS FOR BRITAIN TO SHOW A RED CARD IN RELATION TO THE CONSTITUTIONAL REFORM TALKS? No. What I am saying is that it is not for Spain to give opinion on the internal debates in Gibraltar. That is part of the relationship between Britain and its colony, as I understand it. So whilst Gibraltar has shown desire for such change Britain has been making clear in its parliament that it will not take any decision, that it is not going to back any change of Gibraltar’s status quo without also having Spain’s acquiescence. I am sure that the UK is going to maintain that position. WHAT ARE THE ISSUES HOLDING BACK AN AIRPORT AGREEMENT? That is a very complex issue. It had the failure in 1987 of not having taken into account the Gibraltarian position. And now the opinions of the Gibraltarians are being heard and are a key element in that agreement. So clearly we are seeing that this issue has many perspectives and complex technical issues to be resolved. If one looks at how Geneva airport operates it is like clockwork. It is used to go to and from France even though it is on Swiss territory and under Swiss control. But underlying that arrangement is a series of extremely complex agreements at technical level. JOE BOSSANO SAYS THAT WHAT IS BEING EXPLORED IS THE 1987 AGREEMENT IN A DIFFERENT WRAPPING? What is being looked as is an agreement for joint use and of shared commercial management of the airport. Bossano says that… but it is like the arrangement in Geneva in any case. Not that 1987 was a bad arrangement. What was wrong with that is that it was done without including the Gibraltarians. That is a fundamental difference for me. SPAIN APPEARS TO BE UNHAPPY WITH THE EASTSIDE PROJECT AND OTHER LANDFILLS? Any project that has an environmental impact that could, say, provoke a change in the currents or the costal area worries us. What we want is that nothing is done until there is a guarantee that it will not have a negative impact on the zone. WHAT ABOUT THE PP. THERE ARE DISCORDANT VOICES THERE. CAN AGREEMENT BE REACHED BETWEEN GIBRALTAR, BRITAIN AND SPAIN WHICH THEY WILL SUPPORT? Yes. When PP was in power the co-sovereignty project was pursued and we started out saying we wanted to know what this was and to have proper briefing to answer our doubts. But we supported the government of the day. That should happen now. If not that would indicate that matters of state interest them very little. If the PP is not capable of assigning a number of interlocutors who represent the party in discussions with the Government to hear, in all it complexity, the details of the process and to see that no red lines are being altered on the traditional Spanish position, that the status quo is not altered, then it would be saying that they do not have people who are of the level to understand these issues or that they are not interested in reaching any agreements that even if these are matters of state. DO YOU FEEL UK IS SUPPORTIVE OF THE PROCESS? YOU MAKE NOISES HERE ABOUT THE MOD…. In this case (unlike the co-sovereignty which was driven by UK) the process is not being driven by UK. Instead it has arisen from a shared perception, amongst Spaniards, Gibraltarians and people of the area, that without altering the status quo there were issues that affect the daily lives of citizens that could be addressed. UK has joined this process with a certain reticence. Why? Well, because they are not the ones driving it. But, as far as the Foreign Office is concerned, it is being done with quite a commitment, but that may not yet have gone as far as being a position of commitment of

30 the entire British Government. ARE YOU OPTIMISTIC THAT WE WILL SEE A MEETING INVOLVING STRAW, MORATINOS AND CARUANA? The agreements signed last year foresee a ministerial meeting which I understand can and should go ahead in the first months of next year. The UK presidency of the EU has meant that the Europe Minister David Alexander has been very out of the issue and I think that once the presidency is over he can take more responsibility on this issue and that that meeting will take place. WITH AGREEMENT? Evidently if that meeting takes place it should be, if not the one where agreements emerge, then one in which produces the basis for these to be agreed. xxxxx GBC POLL SET TO SHAKE POLITICAL SCENE GSD ‘holds power by under 300 votes’ The governing GSD party is holding on to power by a 1.5% margin, according to a GBC poll out this morning. The poll will bring some comfort to Chief Minister Peter Caruana in that a Panorama poll saw the GSLP Opposition ahead of him in a poll published a year ago. Details are expected as from this morning’s bulletin. The neck and neck result comes after a sample of 600 people of whom 561 returned completed questionnaires, that’s 3.3% of the electorate. Meanwhile other results are likely to set mobiles ablaze in the political community, the top levels of which were already digesting the news last night after a courtesy preview. There is also understood to be an almost 50/50 divide in the GSD over its merger with Labour with the against just a whisper ahead of the votes in favour. The poll asks about the party leaderships and their continuation as well as succession issues.

31 “Plans for increasing the future income from this source will now be lost,” he told the meeting but added that the Government had agreed to compensate the trust by the payment of the sum of £30,000 per annum, which will be available to the trust once the lease has been surrendered. The Chronicle understands that there are plans to move several activities to the ancient yard including the relocation of the veterinary clinic. On the Rosia Tanks Development he affirmed that the trust is bound to accept the need to build housing for those who cannot afford the inflated prices of the private housing market, but opposes any building, of any sort, in areas of Heritage value, such as the town area, where it has already expressed its views strongly in the proper forum against the proposal to build a high-rise annexe to The Eliott Hotel. “The real issue is that the proposed building would detract from what remains of the heritage of Rosia Bay, overshadowing Parson’s Lodge and the Victualling Yard, and further despoiling the area, as well as undermining Gibraltar’s efforts to be named a UNESCO World Heritage Site. It is deeply ironic that this project is announced just after we have finished commemorating Nelson’s victory at Trafalgar,” he emphasised. His list was long, and at the start of his address Mr Ballantine first spared no punches when he declared that without a doubt the question which most concerned the trust in the past year had been the proposal to construct a funicular railway from Casemates to the top of the Rock. A great deal of work he said had fallen upon the trustees, as well as on other entities in Gibraltar to whom it became allied, in an effort to convince all concerned that this was not a good idea. Mr Ballantine congratulated what he described as “the good sense of the people of Gibraltar in general for supporting the joint efforts of the Trust, the GONHS and the ESG, for pinning their faith in us and for their perspicacity in being able to sift through the many aspects of the case that appeared in the press from both sides of this issue and coming to the conclusion that they did.” He highlighted the efforts of his predecessor in office Joe Desoisa, who agreed to spearhead the efforts of the trust at the time. “Believe me this work entailed great dedication on the part of those concerned, and they must all be congratulated for a job well done,” he added acknowledging the 7000 signatures which were collected. Mr Ballantine was also keen to correct what he termed as wrong press which the trust had received on two separate issues. “Firstly, it was blamed for the felling of a tree of significant sentimental value to the Belilo family. The Trust has subsequently re-affirmed that it had no connection whatsoever with the decision to cut down the tree. Secondly, the campaigners against the Rosia tanks housing development were wrongly told that the Trust had been consulted and agreed with the project.” The Chairman said the trust was also concerned with unauthorised works. There were he claimed quite a number of cases where unauthorised works are carried out on premises all over Gibraltar. “It would be invidious to name any individuals but it must be stressed that action to rectify must be taken as a matter of priority. It is contended by the relevant department that it is not equipped, in terms of staff, to deal with this matter. There is nevertheless a necessity to address this question as a matter of urgency since not doing so will only encourage more illegal works being carried out. May we suggest that the current list is prioritised and action taken on a case-by-case basis, and not globally, so that the department can deal with it serially. That is ‘one at a time’ with a time limit for success!” On King’s Bastion he stated that the restoration of this “jewel in the crown” is being conducted with its preservation, protection and refurbishment very much in mind. “In co-operation with the Heritage Division of the Government, all works are being supervised and nothing is touched unless it has been authorised by those involved. I know that the Chief Minister, himself, has taken a great interest in this development and we have found an ally in him in this delicate enterprise of substantial heritage value.” Mr Ballantine added that the old Generating Station had now been demolished and a better assessment of the restoration as well as of the necessary reconstruction works can now be made. Mr Ballantine said that the Trust was also engaged in discussing with the Government a review of its annual grant so that much needed extra staff can be recruited to cope with an increase in the workload. xxxxx

32 GBC poll result GIBRALTAR BACKS GOVT'S TRILATERAL PROCESS •Moratinos says new climate could lead to sovereignty resolution •Britain says any agreement would go to referendum Gibraltar Government's policy on relations with Spain received a boost yesterday as GBC published the second part of its opinion poll and revealed that 54% of people would like to see an airport agreement. It also gave 58 % approval to the trilateral forum with 18% not approving and 39% not knowing. However the electorate are not convinced that the Brussels process has been killed off even though the Gibraltar Government has argued that it is now redundant. In the poll 37% said Brussels would be killed off, 24% that it would not and 39% 'don't know'. Gibraltar is clearly split 50/50 as to whether an airport agreement is possible that has no sovereignty implications but 65% of people believe that if an agreement is reached a condition should be that other issues such as frontier flow, Spanish pensions and telecommunications should be resolved. The poll is published as Miguel Angel Moratinos, Spanish Foreign Minister, reportedly told journalists at a breakfast session that the current negotiations taking place with Britain and Gibraltar on a variety of issues will allow Spain to tackle sovereignty at "an opportune moment." Journalists were told that the current process has created confidence between the parties that did not exist in the past. "A mutual confidence is coming about between all parties to focus better on the issue and, at the opportune moment, to negotiate what we all desire to, which is the sovereignty of Gibraltar." Sr Moratinos made clear that Spain will continue to pursue sovereignty in a clear and convincing manner. He indicated that talks at ministerial level - Caruana, Straw and himself - are now expected early in the New Year and that he hoped concrete results would be announced there given that the talks so far had advanced considerably. "This is an intense, productive negotiation and it will have results," he said. Sr Moratinos emphasised that PSOE had roundly supported the PP on Gibraltar when it was in government and discussing joint sovereignty. "Now we are creating an atmosphere of dialogue and understanding and they (PP) tell us that we are traitors and that we are selling out Spain's interests," he said adding that former Foreign Ministers Fernando Moran, Abel Matutes and Josep Pique had advised that to find a definitive solution to the Gibraltar question a climate of confidence must be created. He recognised that the referendum in Gibraltar had put paid to the co-sovereignty project. Meanwhile the British Government has said that its aim remains to secure a more stable and prosperous future for Gibraltar. "We believe that a lasting resolution to the dispute with Spain can only be achieved through dialogue with Spain and with Gibraltar," the Foreign Office told Robert Chitty in a letter. Mr Chitty a veteran visitor to Gibraltar and keen supporter of the Rock had written to Mr Straw on the Gibraltar question. In its response the Foreign Office added that "the principle of consent is fundamental to the (British) Government's approach. We have always been clear that there will be no change in the sovereignty of Gibraltar against the wishes of its people. We have made it equally clear that, if we were ever to reach agreement with Spain on a comprehensive settlement, the whole package would be put to the people in an referendum and they would decide." The poll questions and results: - Do you approve of the trilateral forum for dialogue on Gibraltar? Yes 58%, No 18%, Don't know 24% - Has the trilateral forum killed off the Brussels process? Yes 37%, No 24%, Don't know 39% -Would you like there to be a new airport agreement? Yes 54%, No 32% No, 14% Don't know - Do you believe an airport agreement is possible that has no sovereignty implications? Yes 41%, No 41%, Don't know 18%. - Should a new airport agreement be conditional on the resolution of other issues (eg frontier flow, the Spanish pensions problem, telecommunications)? Yes 65, No 35. xxxxx

33

LIBERAL MAYOR AND FOGHS MEMBER VISITS GIBRALTAR Hilary Wines, who was the first Liberal Democrat Mayor of Southwark, is in Gibraltar for a short visit. Hilary has been a staunch supporter of Gibraltar for many years. She was instrumental in the tabling of a resolution in support of self-determination for Gibraltar at the Liberal Democrat party conference in Brighton a few years ago. During her time in Gibraltar Hilary paid a courtesy call on the Leader of the Liberal Party Dr Joseph Garcia. Speaking in Gibraltar Hilary Wines said: “It was very good to have come to Gibraltar a few weeks ago as part of the FOGHS and participate in the activities organised to commerate the Nelson Bicentenary. I was also very pleased to see the Gibraltar float with Lord Nelson at its head during the Lord Mayor’s Show in London.” xxxxx Newspapers come out in support of Cameron TORY PRETENDERS VOW TO BACK GIBRALTAR As they enter the last week of canvassing – including for some 40 votes from residents on the Rock - David Davis and David Cameron have both made a pledge to the Rock that they will stand by the existing Conservative commitments including defending sovereignty. With voting in the postal ballot for Tory leader closing on December 5, the Chronicle understands that Mr Cameron is likely to get the bulk of votes from Gibraltar. A member of the local Conservative Party said that this is because they feel he is most likely to take the party into Government even though Mr Davis’ commitment to Gibraltar is appreciated. Buoyed by Thursday’s declarations of support from former leader William Hague and defeated rival Liam Fox, Mr Cameron is arguing that he is the only candidate capable of attracting floating voters to the Tory cause. The executive of the Conservative Party in Gibraltar recently asked the two potential leaders to confirm their support, if elected. “If elected as leader, David will continue the current Conservative policy of not allowing any discussions with Spain over sovereignty or related issues without Gibraltar’s full and continuing agreement and participation,” said David Davis a one time Foregin Office Minister responsible for Gibraltar who visited the Rock in the early 1990s. David Cameron said that if elected he would honour the following pledge: “Under my leadership, the Conservative Party will continue to stand by and stand up for Gibraltar. The Conservative Party would never agree to surrender Gibraltar’s sovereignty without the specific mandate of the people of Gibraltar. We will not let Gibraltar down.” Everyone eligible to vote locally will have received the ballot papers by now and if they have not already done so they are being urged to return them immediately. “Whatever differences in style there may be between the two candidates, they both seem equally robust in the defence of the interests of the Gibraltarians,” said Bernard Hazel the local chairman. xxxxx DECEMBER ‘LUSTY’ SAILS SOLO INTO PORT The Royal Navy's Fleet Flagship, the aircraft carrier HMS Illustrious, arrived in Gibraltar yesterday morning and made history in the process. With horns blaring as she sailed in, 'Lusty' became the first aircraft carrier to berth at the Rock without the help of tugs. It might sound like an insignificant fact, but this is a truly massive ship. Her crew deliberately understated the manoeuvre, describing it as "a tight fit" and "slightly tricky". But bringing HMS Illustrious alongside unaided is no mean feat. The ship's captain, Commodore Bob Cooling, was unmistakably proud as he talked to reporters on the flight deck yesterday afternoon. "Handbrake turns are my stock in trade," he joked. There is, of course, a serious underlying reason why the ship docked without tugs. There are ports in the world where assistance is unavailable when it comes to bringing the carrier alongside, so the crew never wastes an opportunity to practice its ship handling skills. Yesterday, the conditions were perfect for just such a run through. Lusty and her escort, the destroyer HMS Exeter, will be in Gibraltar for the best part of a week to provide rest and recreation for their respective crews.

34 The navy flagship was involved in ceremonial duties during the recent Commonwealth events in Malta, including hosting Her Majesty the Queen on board. She also made history there too, becoming the first ship to fire a 21-gun salute inside Valetta harbour. HMS Illustrious has strong links with Malta. One of the current ship's predecessors played a vital role in enabling convoys to reach the island during World War II. The Maltese repaid the favour by repairing her after she was hard hit by German aircraft. Commodore Cooling, who yesterday hosted lunch on board for a number Gibraltar dignitaries including the Governor, described the ceremonial events in Malta as "an amazing and privileged experience." But it was a tiring experience too, and the crew is now looking forward to a few days ashore in Gibraltar, which is a popular destination for navy personnel. Commodore Cooling himself has been on the Rock 15 times and clearly enjoys being here. "How could you not have a good time in Gibraltar?" he said. "You'd have to be a seriously boring person." From here, HMS Illustrious will head back to the UK for most of the winter, before sailing back through the Mediterranean next spring en route to India, where she will participate in a range of training exercises with the Indian navy. Yesterday, local press aside, the ship's crew of 1000 - average age 23, three quarters of them male - also enjoyed an unusual visit from three young females and a lone male model. They were posing for a Christmas spread to appear in a UK national newspaper - the Chronicle agreed not to print its name - and provided an entertaining and eye-catching break from normal routine for the crew. "We are an equal opportunities employer so we want that [male/female] balance," Commodore Cooling joked. "They are young, attractive and vibrant and I know my sailors very much enjoyed their presence." xxxxx EU court advised to dismiss Tireless case MILITARY LOOPHOLE: EU FAILING ON BASIC PROTECTION – ADVOCATE GENERAL The British Government was not legally obliged to alert Gibraltarians as to how to protect themselves against the dangers that repairs to the nuclear submarine HMS Tireless could have posed, the most senior legal adviser to the European Court of Justice said yesterday. Adrian Geelhoed, the court’s Advocate General, reached that conclusion as he advised the court to dismiss a case brought by the European Commission against the UK in relation to the Tireless incident. But he said he had considerable sympathy for the commission’s case, adding that he believed it would be difficult to argue that military interests could be damaged by the provision of basic information to citizens. He said the European directive requiring governments to provide such information could not be applied to the military and described the commission’s case as “irremediably flawed”. And in a statement that could have implications beyond the Tireless case, Mr Geelhoed suggested that this legal loophole pointed to a failure by the EU to fully protect the general public’s health. The commission had asked the court to declare that the UK breached an EU directive by failing to give Gibraltarians information on how to protect themselves in the event of a radiation emergency during the Tireless repairs. But the Advocate General said that a previous legal case had clearly established that the European Atomic Energy Community Treaty, from which the directive stems, was not applicable to the use of nuclear energy for military purposes. “It follows that the inevitable consequence of the Court’s judgement [in the previous case] is that, for as long as the Community has not made use of its competence under the EC Treaty to legislate in this sphere a gap exists in the protection of the health of the general

35 The directive that the UK is accused of breaching sets out the minimum standards of information on protective measures that governments must provide to communities at risk from potential radiation leaks. But existing case law made clear that the Treaty, and by extension the directive, “cannot apply to nuclear radiation from military sources, without exception,” Mr Geelhoed said in an opinion document released yesterday. He said the British Government could have easily satisfied the obligations set out in the directive by posting a copy of the GIBPUBSAFE plan, which provides information on procedures in the event of an accident involving a nuclear-powered warship, through each letterbox in Gibraltar. “Needless to say, this seems a negligible burden when compared with the essential importance of the public health protection interest aimed at by the [directive],” Mr Geelhoed said. “On the facts of the present case, therefore, the position of the United Kingdom…refuting the existence of such an obligation is plainly unattractive.” But all those arguments were academic because the law simply did not apply, Mr Geelhoed concluded. He advised the court to dismiss the commission’s action and order it to pay the UK’s costs. The court, although not bound, generally heeds the advice of its advocate and is unlikely to reach a final judgement in the Tireless case until next year. CAMPO ‘DECEIVED’ OVER TIRELESS Verdemar and Ecologistas en Accion, the Campo environmental campaigners yesterday reacted to the ECJ ruling by declaring that Britain had deceived everyone with Tireless and that Gibraltar was not properly equipped to deal with nuclear repairs. They declared that although graded to allow visits by nuclear submarines they were not entitled to put the lives of 250,000 people at risk. xxxxx SUBMARINE BAY TRANSFER Yesterday afternoon a Trafalgar class submarine, HMS Torbay, conducted a bay transfer of personnel, equipment and stores assisted by the Royal Navy Gibraltar Squadron. “The transfer was successful and entirely without incident. This is a routine event as witnessed recently by the assistance offered to the US Navy submarine USS Norfolk,” said the MOD. xxxxx DPC meeting ROSIA TANKS PROJECT APPROVED •We have listened to complaints, says Holliday Development and Planning Commission yesterday approved by majority vote the go ahead of the Rosia Tanks housing development in the face of protests from residents in the area. And a unanimous vote has seen the Cumberland housing project get the go ahead. This was the third meeting on the Rosia Tanks application. The project approved by DPC is the original submission from OEM International, although a reduced size presentation is due to go before the Commission following Government’s public statement that the building will be smaller than originally planned. The reduced version will have to go before DPC but that is essentially a formality now that the larger project is accepted. Also pending submission is the less controversial North Gorge Development which will provide 500 homes and is expected to be a significant development. A geo-technical study is currently underway. Joe Holliday, DTI Minister chaired the meeting and said later that the considerations had been very detailed with all aspects including schooling, traffic, heritage and parking. “We cannot be accused of ignoring complaints,” said Mr Holliday. Amongst those sitting on the Commission is the Heritage Trust chairman Joe Ballantine. Last month the Heritage Trust wrote a letter to the Chronicle entitled ‘The Rape of Rosia Bay’ saying that the proposed building would detract from what remains of the heritage of Rosia Bay, overshadowing Parson’s Lodge and the Victualling Yard, and further despoiling the area, as well as putting paid to Gibraltar’s efforts to be named a UNESCO World Heritage Site. On Tuesday Government acknowledged the petition handed to it by the “South District Committee” but said that many of the 3,000 signatories had been misled by the “false and

36 exaggerated” claims of some people who have been motivated principally by a variety of self interests. In stead it said that these projects are socially advantageous to Gibraltar, cause no harm or damage whatsoever to any heritage in the area and do not raise any of the concerns that have been expressed for schooling, sewage, traffic circulation or parking in the area. Government and the Developer have agreed that both the Rosia Tanks building (Nelsons View) and the Cumberland Road building (Cumberland Terraces) will each have two floors less than previously announced. xxxxx SDGG Gibraltar Award A PROUD MOMENT FOR RISSO’S FAMILY by Alice Mascarenhas Alberto Risso’s family yesterday accepted the Gibraltar Award 2005 presented by the SelfDetermination for Gibraltar Group in recognition of his enormous contribution to the emancipation and political development of the Gibraltarians. Albert Risso was a trade unionist and one of Gibraltar’s first politicians. He was also instrumental in the creation of the GLP/AACR party. At a short ceremony yesterday, Mr Risso’s nephews, Louis and Victor Risso, accepted an inscribed crystal bowl, presented by Willie Serfaty of the SDGG. Also present was his niece Maruchi Risso, and great nephews and niece: Major Colin Risso, Andrew Abrines and Anne Coelho. The ceremony took place at the John Mackintosh Hall in the Charles Hunt Room. The SDGG described Alberto Risso as a campaigner for the right of Gibraltarians to participate in the Government of Gibraltar from a time when Gibraltar was governed entirely by persons nominated by the Governor, Alberto Risso is said to have been a humble, modest, unassuming, quiet, kind and considerate man by his nephews Louis and Victor, who obviously remember him with great affection. Having no children of his own, Louis and Victor, spent much time with him. “I remember him as a terrific person. A very good uncle and very down to earth,” Louis commented. “He was very human, who, like my father and all the family were people for whom the poor came first. I personally am very pleased because for years I have thought about what people had against him because he was ignored and all he wanted to do was good. I am very happy that it has happened now when young people are more aware. When we were young, people were not aware,” said Victor. And Louis added, “I have had second thoughts because respecting his wishes he may have had something to say about receiving an award. He always refused honours, and glory and public attention.” Both acknowledged the work he did both in the union and in government. “How far we have come locally… it all began with him.” For his part Willie Serfaty said how he remember Alberto Risso as an unassuming person who used to help campaign for the AACR when he was a child. “He was thought of really as the lynchpin of the whole ACCR idea. He represented the unions who were the voting base of the AACR and the respect he commanded was tremendous.” Also at the ceremony was former trade unionist Henry Pinna who spoke of Mr Risso’s strong grass-roots in the workers movement at the time and how he had devoted all his life to the emancipation of the working class and the Gibraltarians as a whole. Throughout next year the SDGG will collect documentation on the life of Alberto Risso designed to inspire a biography. Meanwhile the SDGG is considering making the award for 2006 to a collective, the Coal Heavers of 1886, who by their actions changed the economic structure of Gibraltar. Editor’s note. FOGHS member, Victor Risso, is Colin’s uncle and Alberto’s nephew. xxxxx

37 Nuclear visits SPAIN ASSURED OF HIGHEST STANDARDS The Spanish Government has maximum guarantees from Britain that the highest standards are maintained when nuclear powered vessels visit Gibraltar. In a written answer to the Congreso in Madrid the Spanish Government also conceded that it cannot stop the visits by such vessels since these are under British jurisdiction inside the port. It says that HMS Tireless was recognised as an exceptional incident and that Spain is kept informed of all visits. It also stated that specialist monitoring teams are deployed 48 hours before a submarine docks and that to date no radioactivity has been registered. xxxxx ELIOTT BRINGS EXPANSION PROJECT DOWN TO EARTH The O’Callaghan Hotel Group has resubmitted a planning application for a new hotel in the Old Town, but has cut the height of the building by over half compared to its original proposal. The group’s first application, which was knocked back by the Development and Planning Commission [DPC], outlined a striking 95-metre high building that would have towered over its surroundings. Last week, the hotel group submitted fresh plans to build an annexe to the Eliott Hotel measuring 42 metres in height, about the same as the existing hotel. Architects have managed to mitigate the loss in height by including plans to build rooms above a link bridge crossing from the present building to the new site in Cannon Lane. Those rooms were not present in the first proposal. The planned hotel will cost £9 million to build and will have 90 high-quality rooms with en suite bathrooms. The application for Outline Planning Permission describes the annexe as a “very ambitious and challenging project creating a new major landmark in the centre of Old Gibraltar.” It will also provide much-needed high quality business hotel suites and associated facilities, the application adds. The application, which was submitted on December 15th and can be viewed at the Office of the Town Planner, will be assessed by the DPC early in the New Year. xxxxx FINANCE CENTRE AGREEMENT OPENS UK MARKET Gibraltar and UK governments have concluded agreements relating to passporting of investment services and to exchange of information. Following the joint press statement with the UK government on July 1 this year the Governments of Gibraltar and the United Kingdom yesterday evening concluded two separate agreements. One enables investment services firms established in Gibraltar to passport (that is to market and sell) their products and services into the UK market. The other agreement provides for the exchange of information between the UK and Gibraltar along the lines of EC Taxation of Savings Directive as it applies to the Crown Dependencies, namely, that people may choose between exchange of information or the payment of withholding tax. It is understood that the impact on the industry will be mitigated by the ability to adjust to these new circumstances. The exchange of information/with holding tax agreement comes into operation on April 1 2006. No 6 said yesterday that there are transitional arrangements which exempt income from existing fixed deposits and arrangements up to April 1 2007. A copy of that agreement is now placed on the Gibraltar Government website. The investment services passporting agreement is expected to come into effect by March 2006 when Gibraltar has passed some necessary legislation. Chief Minister Peter Caruana said that the banks have been closely consulted during these negotiations. “The tax agreement is not challenging to any significant on-going business of the finance centres. On the other hand the confirmation obtained that the Parent & Subsidiary, Interest & Royalties and Mergers & Acquisition EC directives do apply to Gibraltar companies, and also the agreement that Gibraltar firms can now sell and market their investment services and products into the UK market, will be very positive for our finance centre,” he said.

38 • Website for agreement: http://www.gibraltar.gov.gi/latest_news/press_releases/press_releases_index.htm xxxxx £1.8 MILLION MOUNT BARBARY GIVEN TO GOVT Mount Barbary, one of the most exclusive military properties on the Rock, was last week transferred to the Government of Gibraltar under the terms of the 2004 land deal with the Ministry of Defence. Mount Barbary has been traditionally assigned to the top military officers on the Rock. Now it is due to be sold on the private market along with other properties that are being transferred from MoD ownership to the Gibraltar government. They will be sold by tender to the highest bidder. Momy Levy, a veteran of Gibraltar’s property sector, yesterday estimated that Mount Barbary could be worth up to £1.8 million at current house prices. The house was built in the 1960s and commands impressive views over the Strait of Gibraltar. It is surrounded by lush gardens and has its own swimming pool. With its prime location in the select area of Mount Road, the house is sure to fetch a hefty price. For now, though, it lies empty. Its last military tenant, Commodore Alan Adair, Commander British Forces in Gibraltar, moved out of the luxurious residence at the beginning of November. He now resides in an adjacent property, formerly known as Air House but recently renamed Rooke House after a short spell as Darwin House.

xxxxx ‘EVERYTHING SHORT OF INDEPENDENCE, GIBRALTAR’S WEAPON AGAINST SPAIN’ - BOSSANO There is no role for Spain in Gibraltar’s decolonisation. That is the main message flagged by Opposition Leader Joe Bossano in a political broadcast last night. His eve of Christmas message is that Gibraltar must achieve a status that is a whisper away from independence and that keeping Gibraltarians living and working on the Rock must be a key aim. “We already have a roadmap to our country’s future. It’s the constitution we have proposed to UK and which everyone, now supports,” says Mr Bossano adding that he has always opposed the UK and Spain’s attempts to negotiate our decolonisation. “There is no role for Spain,” he said adding that there is no valid reason why Gibraltar should not have settled the issue by now. “In the September talks with UK officials, we went through the whole constitution, again. The time is therefore fast approaching when UK will have to decide whether it is going ahead with our decolonisation or not,” he said. Mr Bossano argues that, once approved in a referendum which would be the exercise of the right to self-determination, the constitution will give Gibraltar a new international status as a British Territory, associated with UK, to leave intact, the EU membership terms. At the same time it would provide a level of self-government beyond which there would only be independence, he said. “Nothing that Spain might offer us, now or in the future, could ever match this. Not that we are remotely interested in anything they might have to offer, to persuade us to become a part of Spain. Spain would be left clinging to its totally discredited interpretation of The Treaty of Utrecht,” said Mr Bossano. This, he said, is a prize worth pursuing, not what was dangled before Gibraltar by Peter Hain in 2001. “Forty years ago, we were almost there, but Franco’s Spain blocked us by pressuring UK into backing out. It remains to be seen whether the present Spanish government, with its new approach, reacts in the same fashion and again puts pressure on UK, to stop our decolonisation,” he said. On the tripartite process Mr Bossano said that Gibraltarians have been constantly regaled with a flow of propaganda about the new climate, the creation of mutual trust and understanding, the confidence building measures, the cordial and friendly atmosphere. Spain, says Mr Bossano, has medium and short-terms objectives. “The latter is to show concrete results, involving a package of measures. This includes a deal which allows them to authorise flights from Spain and claim that they are doing so

39 because they are obtaining basically what was achieved but never delivered by the 1987 Airport Deal. This was always said to be sovereignty neutral, to try and get us to implement it.” “This is the position as explained by Sr Pons, Spain’s negotiator in the Tri-partite Forum. Explained and replayed 6 times on Spanish TV and once on GBC.” PENSIONS Mr Bossano highlights that the other basic demand is on Spanish pensions. “Sr Pons has made clear it will be paid to pensioners and surviving relatives. Only last week Senator Carracao met with the British Embassy in Madrid and will now be briefing Campo pensioners. It is quite incredible that we in Gibraltar, whose pensions have also been frozen will, it seems, be the last ones to find out what is going on.” He says that as far as the Opposition is concerned “what is very clear is that any up rating of Social Security pensions must apply equally to all those who have received frozen pensions and their surviving relatives as it does to pre 1969 Spanish workers.” On Spain’s medium-term objective Mr Bossano says that this is that when the new climate and mutual cooperation have had the desired effect, it will then be the opportune moment to retake the negotiations on the issues of sovereignty in the spirit of Brussels, picking things up where they were left in 2002. “Now that we know, straight from the horse’s mouth what Spain is aiming for, our objective is to ensure that we have a strategy to defeat and frustrate the achievement of their objective. Clearly our deconolonisation would be one element,” he says. Mr Bossano says that the other has to be retaining Gibraltarians living and working in Gibraltar. “The avalanche of frontier workers continues unabated with more and more sectors of the economy becoming dependent of them. Now, we are even seeing public sector jobs going the same way. In our economy it seems the beneficiaries increasingly are outsiders, whilst our own people have to look elsewhere for their future.” FAMILY “The Gibraltarian way of celebrating Christmas has always been a family gathering, the extended family, neighbours and workmates. It is a tradition that is perhaps less strong now than in years gone by, when we all had less but shared more… but it is still there,” Mr Bossano. He argues that every year many young Gibraltarians finish their studies and stay abroad because there is nothing here for them. “Happily in many cases you have them with you at least at this time of year. Their absence is not good for the economy or our community and we are pledged to guarantee a place for all our graduates who wish to come home at the end of their studies. We should rely less on outside experts and make better use of our own people.” “Also away from home, but just across the way, living under Spanish sovereignty because they cannot afford to live in their homeland, are hundreds of Gibraltarians. At least they are close enough to share Christmas with their families here, but this mass exodus of our younger generation is bad for Gibraltar and has to be reversed.” xxxxx SHELL DAVE The news that the MOD is to transfer ownership of ‘Mount Barbary’ serves a timely reminder that many decades ago the late D.B. Davis, general manager of Shell, Gibraltar persuaded the MOD to grant the Shell Company of Gibraltar a lease on barren land to enable a palatial house to be built for the general manager. This was agreed provided that the house would be handed back to the MOD in the event of the position of Shell General Manager being downgraded. This downgrading duly happened some years after his retirement and the Mount Barbary was returned to the MOD. DBD moved to Churt and called his new house ‘Little Barbary’ in memory of the opulence he had left behind on the Rock. It was the redoubtable Shell Dave who thought up the name ‘Mount Barbary’. xxxxx OXFORD HOCKEY X1s Nick Thomas reports that the Oxford University Amateur Hockey Club is sending

40 a male and a female hockey team to Gibraltar 31 March – 3 April . The 30 plus team will be staying at the Retreat Centre. The newly formed Gibraltar Oxford University Society will be taking a great interest in the visit. xxxxx GIBRALTAR CAMBRIDGE UNIVERSITY SOCIETY Whilst Oxford is older than Cambridge the light blues, following the example of the Coldstream Guards, are second to none. However the Gibraltar Cambridge University Society appears to have fallen by the wayside. A decision has been taken for it to be revived. At present the only Cambridge graduates on the Rock appear to be Sir Francis Richards, Charlie Gaggero and the editor. Would all those who would like to register for the dinner to be held this year please email [email protected] with Name, College and Matriculation year. xxxxx NELSON AND WELLINGTON History recalls that Lord Nelson and the Duke of Wellington only met once and this interview took place at the Colonial Office in September 1804 just before Admiral Nelson left England for the last time on 13 September. Although it was a chance meeting the two military giants subsequently were painted by Samuel Williams Reynolds the Younger. The full length studies show Nelson and Sir Arthur Wellesley, as he then was, standing in a study in the Colonial Office. Nelson, wearing his gold laced Admiral’s uniform and Nile medal, stands beside a table covered by a heavy embroidered cloth, pointing to a map of Spain, Gibraltar and the Mediterranean. Wellesley wears his military uniform, gold sash, short blue cloak and carries his cocked hat in his hand. In the background is a fireplace with a clock on the mantelpiece. The artist has used poetic licence as the two in the picture are roughly the same height whereas in real life the Soldier was considerably taller the Sailor. The painting now hangs in the Army and Navy Club in St James’ Square. The painting was so popular that permission was granted for a limited number of prints to be published of the painting. There are believed to be some three prints hanging somewhere on the Rock. Benzaquen Antiques managed to get hold of a copy and needless to say it was sold before it could be placed in the shop window. xxxxx ANGLO-SPANISH TERTULIA The annual Anglo-Spanish tertulia was held in the Guildhall, London last November. This forum is to discuss the state of Anglo-Spanish relations and not the on going Gibraltar problem. There were many mentions of Gibraltar, in particular the Airport Agreement, but these took place in the margins and not on the formal agenda. The original tertulia was set up when John Major was Prime Minister and relations between the Spanish and British Governments were not good. The Ambassadors at the time were Alberto Azar and David Brighty and they decided that relations must improve and an important step would be to get together those from both sides who could discuss for a weekend the pluses rather than the minuses in the relationship. The first Tertulia was a huge success and today they are held on alternate years in the Spanish and British capitals. xxxxx LORD BARBER The recent death of Lord Barber and the many obituaries has raised the question of his mysterious flight from Gibraltar during the Second World War. Tony Barber was a fighter pilot and a writer is seeking information about this flight. It is believed that Tony flew from Gibraltar on 25 January 1942 in a Spitfire with long range tanks. Can any reader provide some or all of this factual information? Confirmation of the date, the aircraft mark and serial number and the fuel load and any other information. Please email to [email protected] xxxxx GB AIRWAYS GB Airways is to introduce a new twice weekly service from Manchester to Heraklion, Crete next summer in addition to an increased service from London, Gatwick. xxxxx

41 ARCHBISHOP PETER AMIGO Hilary Wines, a former mayor of Southwark, is to donate towards the costs of erecting the plaque in memory of the former Gibraltarian Archbishop of Southwark. xxxxx HOWLERS Pepe Rosado has a collection of Howlers – a series of 40 cigarette cards issued by the Imperial Tobacco Co. ‘Nelson was born a weak and sickly man. He grew up to be a weak and sickly boy – unfortunately he had his eye shot out by Napoleon. He is now a statue in Trafalgar Square and he has his hand out saying “Lest we forget.” One day Nelson and the English Army were looking along the coast of Africa the French Army and at last found it. On that day the Battle of the Nile was fought. The Battle of Trafalgar was fought on sea and therefore it is sometimes called Waterloo. Nelson was mortally killed at the Battle of Trafalgar and died after it. Nelson’s arm came off and his eye came out.’ xxxxx TRAFALGAR PRISONERS A reader asked the Daily Mail this question – ‘How were the 20,000 prisoners taken at the Battle of Trafalgar transported to Britain? What became of them?’ Part of the answer concerned Gibraltar as 4,799 Spanish military were released on parole in Gibraltar in November 1805. A few French prisoners were also paroled in Gibraltar. Does any reader know what happened to these paroled prisoners? Were they eventually returned to Spain and France and were they given the option to remain on the Rock and become Gibraltarians? xxxxx FATHER DANNY HERNANDEZ The December issue of the Forces Catholic News carries a photograph of Father Danny and Bishop Tom Burns, during a visit to Iraq by the Bishop of the Forces. xxxxx MEDLIFE The winter issue of Medlife, the inflight magazine of GB Airways, publishes an article by Elena Scialtiel about Casemates, the social heart of Gibraltar. Its three pages are illustrated by some wonderful photographs. xxxxx MISING SPANISH PUMP Further to John Clark’s request for information about the Spanish pump he has sent a map of where it used to be. The site of the pump is on Lime Kiln Road near Lime Kilm Steps. It had no connection with the Sacred Heart Church. The pump played a key role on the Great Siege in particular during the attack by the Floating batteries. xxxxx NELSON’S DIRECT DESCENDANT John Tribe has written this song to mark the 200th anniversary of the death of Admiral Lord Nelson. ‘Let hosannas be sung, though they’ll be mixed with Tears, for most of the dead are of young tender Years, look up to the heavens, past clouds, smoke And spray, give thanks for our Royal Navy this glorious Day. Though canvas may split and timber will rot, the Deeds done this morning will not be forgot. To that host of dead heroes, let our prayers never cease. With Horation Nelson – may they rest in peace.’ xxxxx UN POSITION ON GIB ADOPTED Acting on the recommendation of its Fourth Committee (Special Political and Decolonization), the General Assembly recently adopted, by consensus, a decision on the question of Gibraltar. Among the texts adopted by recorded votes was one on the

42 implementation of the Declaration on the Granting of Independence to Colonial Countries and Peoples, and one on the Second International Decade for the Eradication of Colonialism. Taking action on 12 decolonization texts (seven by recorded votes), the Assembly adopted by consensus a resolution on the question of Tokelau, by which it noted that the legislative branch of that Non-Self-Governing Territory had decided to hold a referendum on selfgovernment. Also by consensus, the Assembly adopted resolutions on the question of Western Sahara, as well as on several small island Territories; and a decision on the question of Gibraltar. On the question of Gibraltar the Assembly would urge the governments of Spain and the United Kingdom, “while listening to the interests and aspirations of Gibraltar”, to reach a definitive solution to that question. It welcomes the establishment of a new tripartite forum for dialogue under the 16 December 2004 statement made jointly by the Governments of Spain, the United Kingdom and Gibraltar. xxxxx MILITARY GOVERNOR BEING CONSIDERED Gibraltar could have a military Governor once again in 2006. The Chronicle understands that names being considered for the post which becomes vacant in the summer include several senior military men. Sir Francis Richards leaves in July having extended his stay for a couple of months. The tradition of a military governor dating pack to the early 18th century was first broken with the appointment of Sir Richard Luce, who is now the Queen’s Lord Chamberlain at Buckingham Palace. Whilst Sir Richard was a former politician and Foreign Office minister, his successor was Sir David Durie, a former civil servant from the DTI. Sir Francis was one of Britain’s highest level civil servants having come to Gibraltar from being head of GCHQ. Although technically the same the effect of a military governor at the Convent has tended to pass more of the political role of the day to day Convent business into the hands of the deputy Governor. The trawl for a potential governor can take up to six months and has to be approved at the highest level in UK. Soundings are already taking place. The favourite is the present First Sea Lord Admiral Sir xxxxx

43 JANUARY 2006 New Year’s Honours CBE FOR GIBRALTAR’S TOP CIVIL SERVANT Veteran civil servant and Chief Secretary and Administrative Secretary for over two decades Ernest Montado tops the list for the New Year’s Honours 2006 with the award of the CBE. Mr Montado has served under four chief ministers – Hassan, Canepa, Bossano and Caruana - and has been present at most of the key meetings affecting Gibraltar’s future be they with UK, Spain or both. Meanwhile Gibraltar’s ‘ambassador’ in UK, Albert Poggio the head of the GIB in London, awarded the MBE after he first took over the London role a decade ago now receives the OBE for services to Gibraltar’s interests in the UK. The year also brings recognition in the form of the MBE to both Leslie Zammitt and Joseph Catania. Dr Zammitt, former Bayside headmaster receives his for services to drama in Gibraltar and Mr Catania for services to the Gibraltar Health Authority. This comes after the GHA has gone through a considerable period of change as the new hospital and systems came on stream in light of a major review. Governor’s Awards are being presented to Norma Delgado well known from the Spanish language programmes on GBC radio, Diego Balbuena for services to the Gibraltar City Fire Brigade, Barbara Dunn (GSPCA) a veteran campaigner for the prevention of cruelty to animals and Lance Corporal Aaron Smith for services to the Royal Gibraltar regiment and to relations between the British and Moroccan Armed Forces. Lance Corporal Smith has served with the Regiment for nearly 7 years in the Catering Platoon. In addition to his normal job, he has acted as an interpreter and liaison officer while deployed on exercise in Morocco. It was during this role that his outstanding qualities came to the fore. Normal daily duties for him throughout the exercises involved endless rounds of mediation, negotiations and confidence-building sessions in what could potentially have become politically sensitive situations. Throughout his dealings Lance Corporal Smith was diplomatic and courteous whilst maintaining a firm and robust stand to achieve what was being demanded of him by his superiors. The Commanding Officer of the Royal Gibraltar Regiment, Lieutenant Colonel Mark Randall proudly stated “Lance Corporal Smith has demonstrated the highest of standards and tenacity in fulfilling a very difficult role over the years, outside the parameters of what is reasonably expected of a junior soldier. His mastery of Arabic and of numerous dialects is exceptional and this talent has been indispensable during the Anglo/Moroccan planning meetings”. So much so that the Defence Attaché in Rabat and the General de Brigade on numerous occasions commended Lance Corporal Smith to his Commanding Officer. His importance to this unusual secondary role for such a junior soldier was very evident during this year’s battalion exercise, when the General commanding the 2nd Parachute Brigade asked specifically for Lance Corporal Smith to be present at all meetings. Sir Francis said of Lance Corporal Smith’s notable achievement “I am delighted that Lance Corporal Smith is being recognised in this way. I have seen a good deal of him in the course of two visits to the Regiment in Morocco, and know how much his skill, tact and humour have contributed to the success of those exercises. He is an excellent ambassador for the Regiment, and for Gibraltar”. NEW YEAR’S HONOURS LIST Her Majesty the Queen has been graciously pleased to give orders for the following awards: Commander of the British Empire (CBE) Ernest George John Montado For public service in Gibraltar Order of the British Empire (OBE) Albert Poggio For services to Gibraltar’s interests in the UK Member of the British Empire (MBE) Joseph Catania For services to the Gibraltar Health Authority Dr Leslie Zammitt For services to drama in Gibraltar His Excellency the Governor has awarded the Gibraltar Award in recognition of exceptional services in Gibraltar to: Gibraltar Award Mrs Norma Delgado For services to broadcasting in Gibraltar Mr Diego Balbuena For services to the Gibraltar City Fire Brigade Mrs Barbara Dunn For services to the Gibraltar society for the Prevention of Cruelty to

44 Animals. (GSPCA) Lance Corporal Aaron Smith For services to the Royal Gibraltar Regiment and to relations between the British and Moroccan Armed Forces. xxxxx New Year Message 2006 CHIEF MINISTER’S NEW YEAR ADDRESS 2006 I hope that you have had a happy and peaceful Christmas and festive season with your family and friends, and that you will enjoy a healthy prosperous and happy 2006. 2005 was another good year for Gibraltar, as we continued to progress successfully along our political, economic and social path as a community. Despite the challenges that we face the economy is very well set for 2006, and if others play their parts, this year should prove to be a politically significant year for Gibraltar. Our economy continues to perform very well indeed and to grow handsomely. And public finances remain in very good shape. As I recently announced, in the year to March 2004 the economy grew by 8% in real terms, and it has nearly doubled in size in the last 9 years. Since 1996, when we came to office, this growing economy has produced over 3000 extra jobs. Latest statistics show that there are now nearly 16,000 jobs in our economy, compared to nearly 13,000 in April 1996. So, contrary to what some people tell you, there have never been more jobs, nor of more quality, or better paid jobs, for our graduates to return home to and for our school leavers to move into. This is one of the many positive fruits of our very successful economy. And they are dignified and real jobs and not meaningless, demeaning, politically invented jobs. In fact, gaming companies, banks and other financial services companies are constantly telling Government that they cannot find enough local people to recruit. It is therefore ridiculous to suggest that cross frontier workers may be taking jobs that might be suitable for returning graduates who as a result cannot find work to return to in Gibraltar. And the growth in job numbers will continue. During 2006, the Government will, as it has done during 2005, continue to support MOD workers, and their trade unions representatives, to get fair and reasonable deal from the MOD. As I have said before, the MOD is a very welcome part of this community and we are glad that Gibraltar can host valuable defence facilities for the MOD, but that sentiment has to be reciprocated in the way MOD treats its loyal workforce here. International investor confidence in Gibraltar remains at an all time high. We are now reaping the rewards of 10 year’s worth of carefully nurtured economic policy. This inward investments and international confidence is vital to our economy, and therefore to our social prosperity and to our political stability and security, precisely because it creates good jobs for our youth and not so young. It also generates revenue for the Government, revenue that Government then uses to carry out public infrastructure projects, to deliver and improve our education, health, social and other public services, to pay good public sector wages – and of course to lower personal taxes as we have done every year since 1996. Everyone benefits from inward investment and developments – without it, we would not enjoy the Gibraltar, the economically and socially prosperous Gibraltar that we enjoy today, nor could we build the politically, economically and socially secure homeland and future that we are building for our children, grandchildren and future generations. And, of course, it is this economic success story that enables us to invest in our public services and to lower taxes, while at the same time maintaining budget surpluses, keeping record levels of public reserves, and low levels of public debt. And so, we continue to deliver on our longstanding 4 - pronged economic policy of public investment in capital projects, public services improvement, tax cuts and sound public finances. One of the fruits of our successful economy continues to be our health service. I promised you at the time of the last elections that we would focus, this term, on modernising and improving our health service, and I am delighted by the progress that we have made to date. The root and branch clinical review of our medical standards, the new professional, qualified management, and the new extra doctors and nurses, coupled with our magnificent new hospital have greatly improved clinical standards as well as facilities for patients and working conditions for our health workers. Private practice is a thing of the past – and the elimination of public waiting lists is the next objective. I would like to take this opportunity to thank our health care workers, the vast majority of

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whom have grasped this new opportunity, this new start, to transform our health service for the benefit of their own job and career satisfaction – but primarily to give this community the health service it pays for and deserves. Having renewed the Ambulance Service, the Health Centre, and the hospital and clinical standards, the next and final phase of reform will see the modernisation and overhaul of our Mental Health Service. 2005 saw a continuation of the Government’s on-going programme to refurbish all public housing estates and to install lifts where possible. This very significant investment in our public housing stock, which improves the living environment of thousands of people, will continue in 2006, and indeed until we have refurbished the entire housing stock. I promised you that, in addition to focusing on health reforms and improvement, I would focus on building affordable homes, accessible in price terms to a wide cross section of our community. 400 such homes are already under construction by the Government at Waterport Terraces. The analysis of the applications is now complete, and we will make an announcement this month about the allocation process. In addition to those, around 1000 other affordable homes will be built at Nelson’s view, Cumberland Terraces and North Gorge. Our housing policy consists of four main elements. Three are already under way, namely, refurbishment of the existing public housing stock and lift installation, home ownership opportunities and reform of housing rules and legislation. The fourth strand is expanding the rental housing stock and we will announce our plans for this during the first quarter of this year. Another area where excellent progress has been made is in our caring or social services. Last year, we inaugurated the splendid, newly refurbished Mount Alvernia building where the capacity had been almost doubled and the nature and quality of the service and loving care of our elderly folk has been transformed beyond recognition. This too is the fruit of our policy of investment in the modernisation of Gibraltar’s public services. Mount Alvernia is no longer an institution but a loving and dignified last home for our elderly. Later this year we will announce our further plans for the development of elderly care provision in Gibraltar. Much has been said recently about our youth. Certainly it is true that in this day and age, the attitude of youth everywhere to authority of all kinds be it police, teachers, parents or even just other grown ups, is very different to what it was in past times. Successful parenting, teaching and policing are, as a result becoming more difficult, and I say this not as Chief Minister, but as a parent of teenage children myself. That said, I do not think that it is as right or fair to generalise about our youth. I believe that the vast and overwhelming majority of our youth in Gibraltar are fine young people, who grow up to become valuable and upright members of our community. If a handful of youngsters (or grown ups for that matter) misbehave on certain occasions it should be dealt with as a law enforcement issue, and the Government certainly welcomes and supports the RGP’s new zero tolerance approach to this aspect of policing. This year will also see a start to building of new roads and new parking facilities in several places around Gibraltar. But our policies to invest the financial fruits of our economic success to modernise and transform Gibraltar is not limited to roads and parking facilities, the economy, health, housing and social services. It includes also Sports and Leisure. This year we will complete the major new £8 million plus multi sports complex at Bayside, and we will continue with construction of a fine leisure centre at King’s Bastion, following its start by the demolition of the old generating station buildings. A statement about the Leisure Centre will be made shortly. The newly exposed northern face of King’s Bastion will remain exposed. And, as promised, when the new housing and leisure centre are well under way, we will continue with the rebuilding of a new Theatre Royal of which Gibraltar will be proud for many years to come. And so, as you can see, Gibraltar is progressing rapidly on a very broad range of fronts. The same is true of our relationship with the UK, and of our relations with Spain. I said earlier that 2006 could be a politically important year for Gibraltar. When we arrived in office in 1996 there was a general clarion call for self determination, but no vision of what that meant in practice or how it might be achieved - no specific target or vision for our Constitutional advancement. This Government has plugged that obvious gap with our policy of decolonisation through Constitutional Modernisation, i.e. establishing a modern,

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non-colonial constitutional relationship between Gibraltar and the UK. There will of course, be no change in Sovereignty under this constitutional Reform – it will remain British. Nor will there be any change to the fact that, for international legal and political purposes, we will remain a non-independent, dependency of the UK. But under our proposals the relationship between Gibraltar and the UK, reflected in a modernised constitution, would not be colonial in nature. That is what decolonisation would mean for us. I am delighted that this Government policy has obtained unanimous cross party support in the House of Assembly as shown by unanimous resolutions and the fact that Government and Opposition have worked together to thrash out the details of the proposals. We shall know during the first quarter of this year, I think, the outcome of these Constitutional negotiations with the UK. Similarly, when we arrived in office there was no safe and dignified process of dialogue with Spain on any issue, even simple cross border matters. Indeed, there was no dialogue at all. There had however been failed attempts before 1996 to establish open agenda, trilateral dialogue. When we came to office, and for nine years this Government stood firm in rejecting any dialogue which was structured bilaterally between the UK and Spain. And it is important to remember the reason for that firmness, for such bilateral dialogue constitutes the very denial of our political rights as a people. But we did not camp on a position of rejection of dialogue. Instead we advocated a fair, safe and dignified process of dialogue in which all parties, including Gibraltar, could take part without prejudicing their positions on politically fundamental issues. This was finally achieved in December 2004 with the establishment of the Trilateral Forum, which has an open agenda, and is not sovereignty focused, in which we take part with our own separate voice on the same basis as UK and Spain, and in which nothing can be agreed unless we specifically agree to it. Gibraltar has never achieved this degree of security and respect in any process of dialogue. This represents a big achievement, which those who now try to undermine it (without actually openly and clearly opposing it) themselves tried and failed to achieve when they were in office. For example, despite the considerable amount of information publicly provided after each round of talks, and despite knowing that the detail of such international negotiations is necessarily confidential until agreements are nearer, the Opposition complains that the Government provides them with no information. But what is the reality? Well, since the Trilateral forum was established in December 2004, the Opposition has asked a total of 1907 questions in the House of Assembly. Not a single one of them has been about discussions in the Trilateral Forum. Also, the Opposition have had 4 opportunities to bring motions to debate those matters in the House and seek information. They have not moved any motions in the House, nor written to me on any such matter. As I have said on many occasions before, the Trilateral Forum is not engaged in any discussion about Sovereignty or related issues. Spain, the UK and Gibraltar all maintain their different positions in relation to Sovereignty, and the Gibraltar Government of course maintains its position in relation to our right to self determination, that is the right to freely decide our own future, which is inalienable and Gibraltar will never give up or compromise. Even though the agenda of issues is extensive and the issues themselves complex, and even though progress is delayed by events and circumstances often outside Gibraltar’s control, I hope that, following a year’s hard work by all parties, agreements will emerge early this year on a number of issues: namely on expanded use of our airport, on Spanish pensions, on telephones, and cross border traffic flows. Agreements on these issues will be good generally for Gibraltar, good generally for the people of the neighbouring Campo area and good for relations between Gibraltar and Spain based on mutual respect. Does this mean that all problems between us will disappear and that things that should not happen will never happen? Of course it doesn’t. But that is not a reason for not making mutually beneficial, politically safe progress where and when it is possible to do so. You know, the easiest thing for a Chief Minister to do is to enflame anti-Spanish sentiment, appeal to our rawest nationalist instincts, and make no credible attempt to improve relations with our neighbour. That is easy, but it is not in Gibraltar’s interests and it passes the baton of unresolved problems and unnecessary tension to our children and future generations. That is not leadership, nor is it an adequate vision for our future, nor is it fair or responsible

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to our children and grandchildren. Well, it’s not my approach to this job and it’s not what I’m in politics for. I have always regarded it, continue to regard it, and will always regard it as my first and foremost duty to defend, uphold and promote our political rights as a people, our sovereignty, our right to self determination and to prevent others from doing deals affecting the sovereignty or any other aspect of our homeland against our wishes. I hope that you will not think it too forward of me to say that I believe that I and my colleagues in this Government, have demonstrated over recent years that we are both able and willing to do these things sensibly, courageously and successfully – whatever it takes and wherever it has to be done, without undermining our all important economy and social stability in the process. But that said, done and achieved, I believe that it is the duty of Gibraltar’s political leaders to work to bring as much normality as possible into our lives for the benefit of ourselves and our future generations, and this includes resolving those problems with our neighbours that can be resolved, and it includes establishing the best relations possible with Spain in general, and the Campo and Andalucia in particular, that our serious disagreements will allow. These things will bring significant improvements to the prosperity and quality of lives of people in Gibraltar and the Campo, without political strings attached to either side. It will resolve problems that affect people on both sides. There are some people in Gibraltar who appear to believe that Gibraltar is only safe when there is open hostility between Gibraltar and Spain. This is neither sensible, or true or in Gibraltar’s interests, or in anyone else’s. We have to break this psychosis. Some tension is inevitable because of our serious disagreements on fundamental issues and because of certain continuing attitudes towards us in certain quarters of Spain – but an intelligent and modern conduct of our interests and affairs is one that achieves both defence and promotion of our political rights and aspirations and other interests as a people on the one hand, and the best possible, mutually beneficial relations with our neighbours, Spain on the other hand. I believe that we have demonstrated and are demonstrating that this is both true and possible, and that it is the sensible way forward. It is in this context that we are negotiating a possible agreement that will allow for expanded use of our airport, which overcomes our exclusion from EU aviation measures and facilitates flights to and from Spain and other destinations. As I have said many times before, we are open to an agreement at a commercial and practical level. To reach any agreement there have to be concessions, or “give and take” by all sides. However, there can be no concessions on sovereignty, jurisdiction or control of the airport. Nor will there be Spanish officials present in Gibraltar. None of the parties are seeking to address such issues in these negotiations, which are not about sovereignty. If it emerges, what will emerge is a practical agreement that will make our airport more useful for the social and economic development of people on both sides of the frontier, while fully safeguarding the political interests of all sides. In a vibrant democracy such as ours, it is inevitable that Oppositions will seek to undermine the record and achievements of Governments. But Gibraltar is a politically astute community which knows how to distinguish between reality and self serving, politically motivated spoiling tactics. And so, despite what you were told, we have a good new bus service. Despite what you were told, we have an enviable, great new hospital. Despite what you have been told the economy and public finance are sound and performing at record levels. Despite what you were told there has never been more jobs (3000 more) for our youth and for our graduates to come home to… And, in the same way, and despite what you are being told the trilateral forum agreements, if they emerge, will be as good for Gibraltar as they will be good for the people of the Campo area. As with buses, hospitals and so many other things, events which you will be able to judge for yourselves, and not self serving political comments, will establish and prove the reality of the governments achievements and failures. As I have always done, I will work tirelessly during 2006 to take Gibraltar further forward and improve the quality of life of as many people as possible. Have a good year. Keep safe and well and enjoy the very many blessings that we have in Gibraltar. xxxxx

48 New Year Message from Liberal Leader GSD HAVE RUN OUT OF IDEAS, SAYS GARCIA The GSD have run out of ideas and out of time and the GSLP-Liberal Opposition can win and form Government at the next elections, that was the confident proclamation made by Dr Joseph Garcia in his New Year message for 2006. Chastising the GSD administration for acting as if they were not answerable to anyone for their actions, Dr Garcia said there was “something seriously wrong with the attitude of a Government that behaves as if Gibraltar belongs to them.” On the international front, Dr Garcia repeated the well-known GSLP-Liberal aspiration to a decolonised Gibraltar, “2006 must be the year of decolonisation,” and rejection of “the Spanish claim to each and every part of Gibraltar.” “Everything from the lighthouse to the frontier fence belongs to us and they are never going to have it back,” he declared. He said that Madrid continues to undermine the position of Gibraltar in the European Union in every conceivable way. On the question of the airport, Dr Garcia referred to Gibraltar’s exclusion from the EU law blacklisting unsafe airlines, and said Gibraltar is entitled to inclusion in European safety measures “as a matter of right, as a part of the EU. Dr Garcia argues that the Rock’s inclusion or otherwise “must not be subject to Spain getting what it wants.” “There are serious issues of principle and of law at stake in all this, he declared.” As regards the reform of the local constitution, Dr Garcia said it would be a serious political miscalculation to agree to a text which modernises our relationship with UK but does not decolonise the Rock. Dr Garcia expressed support for a new constitution that decolonises Gibraltar and affords “the maximum level possible of self-government just short of independence.” NEW YEAR MESSAGE Dr Garcia said: “Gibraltar is one of 16 colonies left in the world. We cannot remain a colony for ever. The indications are that 2006 will be the year when we finally face our decolonisation head-on. This is more than just an abstract or academic principle. Decolonisation is a very real issue, a fundamental human right, to which we are entitled by virtue of our colonial status.” “The decolonisation of Gibraltar and of the other 15 territories will complete the wave of decolonisation which followed the Second World War which saw the attainment of freedom from colonial rule by millions of people all over the planet. In some cases the colonial powers were willing participants in the decolonisation process and were more than happy to leave. In other cases, where there were wars of independence, they had to be pushed out by the colonial peoples themselves. This was of course, a long time ago. The last territory to be removed from the UN list of colonies, East Timor, was a comparatively recent example of a people who achieved their freedom in the end despite an invasion and the physical occupation of their country.” SELECT COMMITTEE “In 1999 a process was started by a Select Committee of the House of Assembly to reform our existing 1969 constitution line by line. This document was approved by the whole House in February 2002 and, if agreed as drafted, would change the status of Gibraltar by ending colonial rule while at the same time retaining our links with UK, the European Union and British Crown. Over 30 years ago, the negotiators of the existing 1969 Constitution thought at one point that they were engaged in a process to decolonise Gibraltar. Despite the change of the term “Colony of Gibraltar” to “City of Gibraltar” our international status remained the same. There has been no constitutional change since 1969. Now, over 30 years later, we cannot make the same mistake again. Any attempt to agree a constitution which modernises our relationship with UK but does not decolonise Gibraltar would be a serious political miscalculation. It would be used as an excuse to deny Gibraltar further change and ultimate decolonisation for another 30 years. We owe it to future generations not to repeat the mistakes of the past. 2006 must be the year of decolonisation.” “It has already been made public that agreement between Gibraltar and London on the new constitutional blueprint is expected in 2006. Assuming that an agreement is reached, then the document would have to be approved by the people of Gibraltar as their decolonised status in an act of self-determination. This would give Gibraltar the maximum level possible of selfgovernment just short of independence. We would have a decolonised British Gibraltar.” EUROPEAN COURT

49 Also on the external front, the European Court may well take a decision in 2006 on the complaint put to it by Spain against the manner in which Gibraltar was enfranchised for Euro elections. It is clear Madrid continues to undermine the position of Gibraltar in the EU in every conceivable way. As you know Gibraltar airport was recently excluded from the EU law on the blacklisting of unsafe airlines. No doubt more of these exclusions will already be in the pipeline in 2006. The point must surely be that Gibraltar is entitled to inclusion in these measures as a matter of right, as a part of the EU, and our inclusion or otherwise must not be subject to Spain getting what it wants. There are serious issues of principle and of law at stake in all this.” “Much has already been said in relation to our airport particularly from the Spanish side. They continue to claim that the land on which the airport is situated belongs to Spain and that it was usurped by the British. We reject the Spanish claim to each and every part of Gibraltar. As far as we are concerned everything from the lighthouse to the frontier fence belongs to us and they are never going to have it back. At the time of writing this message there is still no word from the Gibraltar Government on the details of what they are discussing with Spain over our airport. We continue to rely on leaks in the Spanish press and on information made public now and again by Spanish politicians. This is wrong.” LUXURY DEVELOPMENTS “On the internal front, the way in which the Government has continued to handle development projects is a matter for serious concern. Building and construction are not led by the needs of the community. They are led by the demand for luxury flats at the high end of the market which the average Gibraltarian cannot afford to buy. For years now we have a Government that has sold off huge parts of Gibraltar as if they were dealing with their own private real estate. In many cases these projects do not even go out to tender, for instance the Mid-Town project in the naval grounds and the Nelson’s View development at Rosia Tanks. In other cases, where the tender documents stipulated low rise construction of four storeys, like The Anchorage in the South District, the height restrictions were removed after the tender was awarded almost doubling the height of the some of the buildings in the process.” READY FOR GOVERNMENT “There is something seriously wrong with the attitude of a Government that behaves as if Gibraltar belongs to them and as if they were not answerable to anyone for their actions. The plain fact is that they will be answerable. They will be answerable to the people of Gibraltar, at the next general elections. During 2005, over a whole range of issues, more and more people have turned to the GSLP-Liberal Opposition. This trend will continue into 2006. The GSD have run of ideas and out of time. We, on the other hand, are ready for the next general election whenever it may be called and confident that with your support and your backing we can win and form your next Government. Whatever challenges 2006 may bring us, you can rest assured that if we stick to our convictions and to the strength of our arguments, Gibraltar will win through in the end. On behalf of the Liberal Party I wish you all the very best for 2006.” xxxxx PROGRESS ON GIBRALTAR, STRAW TELLS COMMONS • EU constitution ‘in limbo’ Foreign Secretary Jack Straw yesterday effectively declared the European Union constitution dead. And on the eve of his meeting with Chief Minister Peter Caruana this afternoon, he also indicated that he was hopeful of “significant progress’’ over Gibraltar as he was grilled at Commons question time. Tory former minister John Maples (Stratford-on-Avon) had asked about the extent of funding to Spain and whether this had implications for Gibraltar. He said that, in December, Mr Straw announced that transitional cohesion funding to Spain had been extended. Mr Maples asked what Britain had “got in exchange”, adding: “It seems to me that we have given up eight billion euros of our rebate over the next few years, at least in part to fund Spain’s Moroccan colonies, while Spain does all it can to cripple Gibraltar’s economy ’’

50 “As for discussions with Gibraltar, I have to tell you that, since the accession of the new government, there have been constructive discussions with the Spanish government as well as, of course, with the chief minister and his government from Gibraltar and I hope that, despite all the historic difficulties, they may be able to ensure significant progress.’’ Asked about the state of the constitution by Tory spokesman Graham Brady, Mr Straw said: “I think probably the best that can be said about the European Union draft constitution is that it’s somewhere in limbo.’’ But after cries of “ah!’’ from MPs, he clarified this analysis, adding: “It shows what a poor theological background you’ve got ... since limbo’s somewhere suspended between heaven and hell, it’s difficult to argue that it’s not dead.’’ • Meanwhile it has emerged that the new Estatuto de Autonomía in Spain will keep its current text and will not include Gibraltar as Izquierda Unida and PA had been seeking. The current text allows for future inclusion of ‘recovered territories’ without overall reform but names none. xxxxx Works start in June GRAND PARADE TO CONTINUE AS PUBLIC CAR PARK * project will have 300 free spaces Parking in Grand Parade will remain free as part of plans to build a private three-storey underground car park on the site. Both the Gibraltar Government and Grand Developments Ltd, the company behind the scheme, stressed that point yesterday as they moved to allay concerns that the project would cut the number of free spaces available to residents in the area. While parking spaces in the underground complex will come at a premium, the surface of Grand Parade will continue as a public car park. The developer also countered critics who said the project would increase traffic congestion in the area, arguing that it would instead have the opposite effect. Cars will access the underground complex through an entry underneath Europa Road opposite the Queen’s Cinema, but will exit via an ex-military tunnel, the Ragged Staff tunnel, close to the roundabout at the southern end of Queensway. “You’re actually getting rid of congestion because we’re decanting out straight into Queensway, rather than into the Trafalgar circus,” said Howard Danino, a director of Grand Developments. According to the company, there will be a total of approximately 1300 parking spaces available once the project is complete, including some 300 free spaces on the surface level. The free spaces on the surface of Grand Parade will most likely be designated for use by Gibraltar residents only. The subterranean car park has yet to obtain final planning approval but, setting aside any unforeseen glitches, the developer believes construction work could start as early as June this year. Grand Developments is currently conducting a survey of residents in the area to determine whether drivers interested in the underground complex would prefer to buy or rent spaces. That will help determine the final make-up of the spaces available in the car park. “We have to know more or less what kind of demand is going to actually come back,” said Stanley Prescott, another of the company’s directors. A circular recently distributed by Grand Developments provided indicative rental prices that varied from £60 to £85 monthly for unallocated parking, to up to £140 a month for a reserved space. The leasehold on a lock-up garage, meanwhile, could fetch anywhere between £25,000 and £29,500, while the purchase of a parking place leasehold is valued at between £12,500 and £17,500. Those rates are in line with current market prices, the company said. Provisions have been set out to provide alternative free parking during the construction of the underground building, which will be done in two phases and will take approximately two years. The most difficult part will be phase one, which will take about 14 months and will cover roughly half the area of Grand Parade. During that phase, about 150 free spaces on the surface will be temporarily unavailable. During the construction of phase two, which will take about 10 months, the developers will provide temporary free parking underground for up to 150 cars, in addition to the 150 free

51 spaces on the surface. Joe Holliday, Minister for Trade, Industry and Telecommunications, said yesterday that the project would be beneficial to Gibraltar, particularly because the catchment area for people who currently use Grand Parade stretches from the Upper Town to the South District. “The Government is not going to allow a scheme to go through that would worsen either traffic flow or parking in Gibraltar,” he said. “The situation can only improve because the current status of the top layer of parking in Grand Parade will remain as it is today.” “What will actually happen is that there will be more available spaces because it is obvious that there will be a number of car owners who currently park in Grand Parade who will take the opportunity to buy within the new complex.” Mr Holliday also addressed questions raised in the press last week as to why the project had not gone out to tender. He said that the proposal for the underground car park was an original idea and had been presented by Grand Developments to the government. “If anybody comes to the government with an original idea for a project which the government believes is of social or economic interest to Gibraltar, then you’ve got to sit down and take that project forward,” the minister said. “But you cannot then put the project out to tender.” “What’s the use in coming up with ideas [as a developer] if you’re then going to lose out?” xxxxx BUDHRANI TO KENYA Speaker of the House of Assembly Haresh Budhrani is attending the 18th Commonwealth Speakers’ and Presiding Officers’ Conference being held in Nairobi, Kenya from 3rd to 8th January 2006. The Conference will be officially opened by Francis Ole Kaparo, Speaker of the National Assembly. Some of the subjects that will be discussed include: the relationship between parliament and the executive, integrity and security of parliamentary precincts and the development of parliamentary skills. xxxxx Royal Gibraltar Police GOVERNOR STARTS RECRUITMENT PROCESS FOR LOCAL COMMISSIONER * Top level UK police chief to head selection board Governor Sir Francis Richards has taken the first steps for the recruitment of a local Commissioner of Police. The position is being offered to local residents who qualify – in practice current senior officers in the Royal Gibraltar Police who can satisfy the appointment board chaired by Sir Ronnie Flanagan, HM Chief Inspector of Constabulary (HMIC). For sometime there had been doubts within the force that an appointment might be made from UK as has happened in the case of the present Commissioner Joe Ullger’s predecessor Alan Castree. But the public statement, originally planned as an advertisement, is understood to have been made to raise public awareness of the recruitment process. HMIC advisors have been in Gibraltar recently to consider the best way to proceed in finding a successor to Commissioner Ullger who retires as the force closes a celebration of 175 years. Only a handful of officers in the force are sufficiently senior to apply. Currently the deputy Commissioner is Jimmy McKay and then there are two superintendents Louis Wink and Richard Bossano. The next level in to the 200 plus force is Chief Inspector of which there are six. In a statement yesterday the Convent said that the Governor has begun the process to recruit a new Commissioner of Police the position becoming vacant on the retirement of Commissioner Joe Ullger in early April. “The Commissioner is responsible for ensuring an efficient and effective police service for Gibraltar. The Governor aims to appoint someone with the personal qualities required to lead the Royal Gibraltar Police through a period of great change and challenge,” said the

52 statement adding that interviews for the position will be held in Gibraltar in early February by a Board appointed by the Governor to advise him on the selection. It confirmed that the Board will be chaired by Sir Ronnie Flanagan, HM Chief Inspector of Constabulary. The Convent also confirmed that candidates must be resident in Gibraltar and will be sent an application pack for completion. xxxxx

CARUANA TO MEET STRAW Trilateral talks planned for later this month Chief Minister Peter Caruana is to meet with the Foreign Secretary Jack Straw in London this week. This was confirmed yesterday evening when the Government issued a press statement following Chronicle questions (Dominique Searle reports). No 6 said that Mr Caruana, who is to be accompanied by Chief Secretary Ernest Montado, will be focus the discussions, which include Foreign Office officials, principally on issues relating to constitutional reform and to issues under negotiation in the Trilateral Forum. He is also to meet with Defence Minister Adam Ingram. The meeting comes as Spanish pensions and use of the airport are issues at a critical stage. It is understood that a meeting of the trilateral forum, but not at ministerial level, is being considered for this month. Ministerial talks continue to be shunted to an unfixed future date as sensitive technical issues remain to be resolved ahead of any announcement that could be made at a meeting of Mr Straw, his Spanish counterpart Miguel Angel Moratinos and Mr Caruana. Spain has made clear that agreements that would set off improved practical relations including frontier flow and co-operation affecting flights, must be concluded as a package. There are indications that Spain is considering contributing towards payment of Spanish pension increases if Britain also agrees. But the form of any agreement also could have implications in Gibraltar. Spain is meanwhile also pressing for Britain to give written reassurances that no nuclear repairs on submarines will take place in Gibraltar. The meeting with Ingram could touch on this issue although the future of MoD jobs is likely to be the priority on that agenda. xxxxx

53

Chief Minister meets Straw and Ingram CARUANA UPBEAT ON TRILATERAL PROCESS AND CONSTITUTIONAL REFORM • MoD have ‘no problem with airport deal’ Chief Minister Peter Caruana ended high level meetings with both Foreign Secretary Jack Straw and, separately, Adam Ingram, Armed Forces Minister, in an up beat mood yesterday confident that Mr Straw is giving serious consideration to several key political points of the Constitutional Reform proposal. Another negotiating meeting, of the full Gibraltar and UK delegations, on constitutional reform is planned. Mr Caruana is this morning engaged in discussions with Dominick Chilcott, the Foreign Office diplomat who represents Britain at the Trilateral Forum. They are reviewing the progress of the tri-lateral process and likely to be planning the agenda for the next meetings. Mr Caruana, accompanied by Chief Secretary Ernest Montado, told the Chronicle last night that he had met with Foreign Office lawyers in the morning to review more technical aspects of the constitutional proposals and progress had been made on issues that were pending since the negotiations at the Caleta Hotel in autumn 2005. “The meeting with Jack Straw was a good one. The purpose was to follow up on four issues that the negotiating delegations felt had to be referred to political consideration between GoG and the UK ministers. I took Jack Straw through the Gibraltar view and our reasons and he seemed quite receptive,” said Mr Caruana. He said Mr Straw has agreed to reflect on these arguments and come back. Mr Caruana had written to Mr Straw on these issues and the opportunity was used yesterday to use the one hour meeting to expand on these. Mr Caruana, reluctant to discuss details, said these points related to elements in the Constitution that Gibraltar’s Constitutional Reform Committee wants to change in order to make them non-colonial in nature. “We have put forward very powerful arguments on all four issues. If we win all four we will be over the moon, if we win most we will have done very well,” he said. “I think Jack Straw was taken by the logic of the argument. He now needs to take the decision as to whether the UK is willing to cede the ground or not.” The two politicians also reviewed the trilateral process and Mr Caruana said that the Foreign Secretary was clearly well informed, although he has not been involved in talks yet, and both were hopeful that agreements will be possible. Asked if there had been progress on issues needing UK action such as pensions Mr Caruana said pensions is an issue that Spain and UK need to take positions but that “UK is keen to move the issue forward”. Mr Caruana said that, although this is a complex and expensive issue, the UK is taking the desirability of resolving it very seriously. xxxxx INGRAM OKAYS AIRPORT MOVES Armed Forces Minister Adam Ingram has given Gibraltar reassurances that MoD is behind an airport agreement being achieved so long as its interests are safeguarded. Following his meeting with the Chief Minister Peter Caruana it emerged that the practical issues include the funding of the runway and specific issues such as ammunition stores at that site. Mr Caruana is set to brief the unions on his discussions with Mr Ingram in relation to contractorisation. He did not want to comment before such meetings but said that those are ongoing negotiations. “Both sides appear to be equally hopeful that negotiations will lead to the satisfactory solution everyone wants it to.” Mr Caruana said that the adequate safeguarding of these MoD interests at the airport had also been one of the factors in the Government’s negotiating brief. Safety, use of airport, ammunition facilities in potentially key zones and MoD reluctance to subsidise expanded commercial traffic are issues they discussed. MoD will continue to

54 provide services to the facility. “There is a list of issues which MoD as owner and financier of the airfield wants to ensure are taken care of,” said Mr Caruana. “There is no problem with the MoD on a possible airport agreement.” Mr Caruana confirmed that part of an airport agreement will involve discussion with the MoD about the extent to which increased revenue from increased commercial traffic will eliminate the need for MoD to subsidise continuing civilian operation. “That will happen as a matter of business model,” said Mr Caruana adding that more traffic will generate more income for MoD. xxxxx Rosia Tanks DEMOLITION GO AHEAD AS HERITAGE TRUST CONFRONTS GOVT POLICY OEM International was last night given the green light to demolish part of Rosia Tanks, in a decision that drew immediate flack from the Heritage Trust. (Brian Reyes reports). The Development and Planning Commission approved the company’s demolition application despite a last-minute attempt by the Trust to delay the decision. The DPC’s chairman, trade and industry minister Joe Holliday, confirmed that the application had been approved by a majority vote. Last night, the Trust and its lawyers were urgently planning a legal counter offensive. The South District Committee also met last night to discuss its response to the decision. Despite yesterday’s DPC approval, government buildings officials have to approve some technical aspects of the demolition, including ensuring that no utilities in the area will be affected. Major work is unlikely to start for some days yet. Rosia Tanks has been at the centre of a heated row since plans to build houses on the site were unveiled late last year. Objections to the government-backed project range from concerns about the loss of what many regard as a valuable heritage site, to fears about the impact on the urban and social fabric of the area. There was a rush of activity yesterday afternoon as lawyers acting for the Heritage Trust moved to file an application for a judicial review of the DPC’s decision last December to grant outline planning permission for the development. The application was filed by Keith Azopardi, lawyer with Attias & Levy and Mr Holliday’s predecessor at the Department of Trade and Industry. The Trust had hoped that the DPC would postpone yesterday’s vote on the demolition permit pending the outcome of the judicial review. Prior to the meeting, it had written to the DPC asking as much. Lawyers acting for the South District Committee had also written to the DPC with a similar request. But the application was assessed during the course of the afternoon and was approved by a majority vote of the DPC. Last night, the Trust and its lawyers were considering whether or not to apply to the courts for an injunction to have the demolition stopped pending the outcome of the judicial review. A key consideration will be the level of costs that might be incurred by the Trust should the works be stopped for an extended period and the legal case lost. xxxxx CASINO NEGOTIATES MOVE TO OCEAN VILLAGE Gibraltar’s International Casino, part of the Gala group, is negotiating a possible move to heart island’, a yet to be built part of the Ocean Village development complex. Barclays Bank is already looking to move its backroom operations there from Regal House. The negotiations are ongoing but the casino’s managing director Adrian Stevenson told the Chronicle that the possibility is being explored and that the deal could involve the developers of the Ocean Village project taking on the current casino premises. The Chronicle understands that this would be converted to residential premises. Mr Stevenson said that would be a matter for the developers but the Casino, which is looking to reinvest in its operation, see the potential of the Marina Bay area because of the easy access to both a large section of the Gibraltarian community as well as the coach and cruise terminals.

55 Nothing has been signed yet but Mr Stevenson believes that the Casino will continue to be a real contributor to the tourism industry give that it attracts a considerable number of visitors in addition to the bingo and tables. “We are a popular venue with some big players,” he said. Work on the heart island could start within the month. xxxxx COURT ORDERS FREEZE ON ROSIA TANKS DESTRUCTION The Heritage Trust has obtained a court order temporarily freezing all major demolition work on Rosia Tanks. The injunction, which was granted early yesterday morning by Chief Justice Derek Schofield, requires that the site be preserved in its current state until further notice. (Brian Reyes reports). The Trust applied for the order after the Development and Planning Commission [DPC] voted on Thursday to approve OEM International’s application for a demolition permit. Earlier that same day, lawyers acting for the Trust had filed an application for a judicial review of the DPC’s decision to grant outline planning consent to OEM’s governmentbacked proposal to build houses on the site. The Trust had asked the DPC to delay its vote on the demolition permit pending the outcome of the judicial review, but the vote was taken nonetheless. The injunction granted yesterday will be reviewed before the judge next Friday. Work at Rosia Tanks will remain on hold until that time. By then, lawyers acting for OEM and the DPC will have received the relevant legal documents and prepared counter arguments. OEM International is represented by a team from Hassans led by the firm’s senior partner James Levy QC, while the DPC is represented by James Neish QC. The Heritage Trust is represented by Keith Azopardi, barrister with Attias & Levy. In a statement yesterday, the Trust outlined the arguments behind its application for a judicial review of the DPC’s decision on Rosia Tanks. That decision was “wrong in law” and “in breach of statutory procedures”, the Trust said. It was also “in breach of the Trust’s rights to be heard and/or consulted,” the statement added. The decision also reflected “a failure to take proper account of the heritage value of the Rosia Tanks and the wider Rosia heritage site of which the Tanks form an integral part, and which comprises the rest of the Victualling Yard complex, Parson’s Lodge Battery, fortifications and Rosia Bay.” The Trust is due to meet Peter Caruana, the Chief Minister, on Monday to discuss its concerns on the project. “Although the Trust asked for an earlier date, the Chief Minister’s diary commitments did not allow this,” the Trust said in its statement. “The Trust would have preferred to discuss matters with the Chief Minister before resorting to litigation but this has not been possible due to the speed with which events have developed.” “The distinct possibility that the demolition permit would be issued at [Thursday’s] meeting of the DPC gave the Trust no option but to proceed with legal action.” OEM said yesterday that it could not comment in any detail on the latest developments because it had yet to receive all the documents relating to the Trust’s legal challenge. “We have to consider the documents and we will then decide on a course of action,” said one of the company’s lawyers at Hassans. In a separate development, the South District Committee said it had formally established itself as an association. Spokeswoman Gigi Sene said the newly-constituted association fully backed the Trust’s actions and would continue campaigning against the project. An appeal will be launched in the coming days to raise funds to support the Trust’s court action, she said. xxxxx CARUANA MEETS HERITAGE TRUST Peter Caruana, the Chief Minister, and Culture Minister Fabian Vinet met with a delegation from the Heritage Trust yesterday to discuss a number of issues including the controversial

56 project to build houses on the Rosia Tanks site. Neither the Chief Minister or the Trust would comment on the content of their discussions. Last week, the lawyers acting for the Trust obtained a court order freezing all work at Rosia Tanks pending a court appearance this Friday. xxxxx Trilateral forum UK-SPAIN CONFIRM PENSIONS MEETING AMIDST REPORTS OF DEAL • Talks expected late January by Dominique Searle The Foreign Office has confirmed that the British and Spanish officials involved in the trilateral process met on Monday in Madrid to discuss Spanish pensions. Gibraltar was not present, reflecting the Gibraltar Government's position that this is essentially a UK-Spain matter to be funded by them. According to Europa Sur yesterday an agreement in principle has been concluded. The Foreign Office would not comment on that report nor would the Spanish Foreign Ministry. The meeting comes just five days after a Gibraltar- UK bilateral in London at StrawCaruana level and just a fortnight ahead of trilateral forum talks at Pons-Chilcott-Caruana level scheduled for UK the week around January 25. And Shadow Minister for Social Services Charles Bruzon said yesterday that Gibraltarian pensioners must have their pensions revalued if this happens for former Spanish worker. IN LONDON Last week Mr Caruana met Foreign Secretary Jack Straw to discuss the trilateral process and constitutional reform. The pensions issue was raised. After the meeting Mr Caruana said that pensions is an issue on which Spain and UK need to take positions but that "UK is keen to move the issue forward". Mr Caruana also said that, although this is a complex and expensive issue, the UK is taking the desirability of resolving it very seriously. If an agreement on pensions is concluded this paves the way for the next talks, expected in fortnight between Mr Caruana and the leading UK and Spanish diplomats Dominick Chilcott and Jose Pons, to set the agenda for a full and first ministerial trilateral. This would be where Mr Caruana, Mr Straw and the Spanish Foreign Minister Miguel Angel Moratinos would be expected to announce a package of agreements principally on the use of the airport, frontier flow and co-operation on a wide range of issues including telecommunications. The Chronicle also understands that there are plans for a 'tertulia' that could bring together leading figures from all three countries in an informal venue. 40 MILLION EUROS The Europa Sur report claimed that the money involved would be some 40 million euros and that the Spanish Foreign Ministry had confirmed that a technical meeting had taken place. The Chronicle understands that Spain was considering making a contribution to the payment in certain circumstances. Yesterday the GSLP/Liberal Opposition noted these remarks on the Spanish pensioners claim for revalued pensions. "The Opposition fails to understand why the Government of Gibraltar should think there is anything complex about it since both Government and Opposition have in the past made detailed public statements explaining the history of this issue which is not complex at all," they said last night agreeing that it is an expensive issue to settle in the sense that it will cost the UK money which London has been trying to avoid paying since 1989. HOWE'S PLEDGE "It needs to be recalled that in December 1985 then Foreign Secretary Sir Geoffrey Howe gave a commitment to the then Spanish Foreign Minister Fernando Ordoñez that pre-1969 pensioners would have their pensions revalued to the then current 1986 level on 1 January of that year," they said. "At the time the payment of social security pensions from the social insurance fund was paid to all post-1969 contributors at a rate which was increased annually in line with the percentage increase shown by the Employment Survey for male weekly paid workers. That is to say annual increases were made above the rate of inflation." The Opposition says that locally paid pensioners received such increases in 1987 and 1988

57 and Spanish pensioners received the same, funded by the UK, for those two years. "In 1988 when the GSLP took office the United Kingdom Government, following a study that they had funded by agreement with the previous administration tried first to pass on to the Gibraltar taxpayer the full cost of the Spanish pensions, which was rejected. Then the UK offered to keep the payments going if they were frozen at that rate paid for by the UK with any future increases paid for by Gibraltar. This was also rejected." They add that given this position, it was finally agreed that the UK would continue funding pre-1969 pensions at the frozen rate, and that Gibraltar paid pensioners would have their own pensions frozen at the same time to protect the UK from possible legal action by the European Union on grounds of discriminatory treatment. "The problem is therefore quite straightforward and simple. The frozen pensions exist because the UK did not want to pay and wanted to be protected from paying and the problem disappears the moment UK agrees to pay," says the Opposition. On the reports of a deal being reached last Monday they say that the indications are that what is being negotiated is that the UK will make a one-off lump sum payment to cover the retrospective element for pensions paid since 1989 and that the Spanish Government would then bridge the gap between the frozen pension and the revalued pension from a current date onwards on the basis of means tested, non-contributory supplementary pensions. "This would mean that the cost of revaluing the pensions would be shared by the two Governments," said Shadow Minister for Social Services Charles Bruzon. 'PAY UP' "The Gibraltar Government, for its part, has apparently been urging the UK to meet the cost of Spanish pensions. This is not a new position. The Opposition believes that if and when this happens there must be equal treatment given to local pensioners. In other words, local pensioners must have their pensions revalued as well," he said.

xxxxx CIA secret movement of terrorist suspects GIBRALTAR INCLUDED IN EU-WIDE PROBE Gibraltar will be included in the scope of an investigation into the allegations that CIA both ran detention centres in Europe and used airports in Europe to transport terrorist suspects to locations where they could face torture. However, reliable sources in the Parliament have indicated to the Chronicle that Gibraltar has not, as yet, been mentioned in the context of these movements. A cross-party committee of 46 MEPs will also examine whether European governments knew about these alleged practices - and if EU citizens have been involved.

xxxxx Fate of Rosia Tanks to be decided next week HERITAGE TRUST GETS A GLIMPSE OF THE TANKS by Brian Reyes Members of the Heritage Trust inspected Rosia Tanks for the first time yesterday to assess whether it was worth pursuing their legal battle to try and save the site. After weeks fighting to protect what the Trust believes is an important historical asset, members finally got to peek inside. The visit followed a meeting in the morning between Chief Minister Peter Caruana and senior representatives from the Trust and OEM International, the developer behind a government-backed project to build houses on the site. The meeting in No.6 Convent Place came just hours before a hearing in the Supreme Court to review an injunction obtained by the Trust a week earlier to freeze all demolition work at Rosia Tanks. The Trust had already filed an application for a judge to review the decision by the Development and Planning Commission [DPC] to grant outline planning permission for the housing scheme. At the hearing yesterday, lawyers acting for the DPC, OEM and the Gibraltar Government left no doubt that they would firmly oppose the legal challenge to the project. Together they will question the grounds on which the injunction was obtained and contest the Trust’s application for judicial review. But it is possible that, having inspected the tanks, the Trust’s position will change by the

58 next hearing. In theory at least, it might even drop the legal action. A full meeting of its board of trustees is scheduled for Monday and there may be “further discussions” after that, said Keith Azopardi, the Trust’s lawyer. The court will reconvene next Tuesday to hear legal arguments from five lawyers representing interested parties. Each barrister will have just one hour to present his client’s case. The injunction freezing all work remains in place until then. The Trust’s visit to Rosia Tanks yesterday was something of a short and cursory trip. Given the tricky access, its members did not actually enter the tanks. But they did manage to look inside one– No.6 – from its hatch door entrance. Yesterday, none of the Trust’s members would comment on their initial impressions ahead of Monday’s board meeting. Members of the South District Association, who have also filed an application for judicial review of the DPC’s decision, are scheduled to visit the tanks on Monday. Nick Cruz, the association’s lawyer, said there were many common issues between the group’s position and that of the Trust. But he said the potential exposure to a high bill for legal costs meant the chances of the association’s members seeking an injunction should the Trust withdraw were “not particularly great”. They would probably continue with the application for judicial review, but any freeze on demolition work would have to come from the court itself. The hearing next week will start on Tuesday and conclude the following day, focusing mainly on technical legal arguments. The Chief Justice, Derek Schofield, said he expected to reach a decision by Friday at the latest. The DPC is represented by James Neish QC, the government by Freddie Vazquez QC and OEM by Daniel Feetham. xxxxx ROSIA TANKS BEFORE THE COURTS TODAY The issue of Rosia Tanks goes before the courts again this afternoon at 2.30 following a series of intense discussions between lawyers and heritage representatives over the weekend. The South District Committee was meeting last night to consider its position as the Heritage Trust left a meeting with the Chief Minister at No6 understood to have lasted over two hours. The Trust is under pressure because the injunction they obtained could mean heavy costs if the developer wins the legal argument. Today’s hearing follows an adjournment from Friday’s session after which the Trust went down to the site. CONSERVATIONIST LOBBY Two conservationists, Lionel Culatto and Willie Serfaty were allowed to enter the Tanks yesterday afternoon. Mr Culatto was ecstatic after seeing what he described as the “cathedral like vaults”. “I really did not expect it to be so dramatic,” he said adding that he believes good use could be made of the site and that it should not be even partly demolished. “The current development plan does not allow the building of a block of flats on the Tanks site. If the Chief Minister wants to build those flats Government must abide by the law of the land and an amended planning scheme must be produced for public scrutiny in accordance with the law that his own Government passed in 1999.” “Respect for the rule of law is a basic foundation of any democratic system and is what distinguishes democracy from a dictatorship. As a lawyer the Chief Minister knows this well enough and certainly believed it when he said those same words when he wrote a letter to the Gibraltar Chronicle on the 11th September 1986. The principle has not changed,” said Mr Culatto. xxxxx CARUANA AND PONS MEET THIS WEEK Chief Minister, Peter Caruana, will be meeting with Spanish Foreign Office Director for Europe and the Americas, Jose Pons on Friday, No 6 announced yesterday.

59 It said that the meeting is in preparation for the next trilateral meeting. Mr Caruana will be accompanied by Chief Secretary Ernest Montado. The date and venue of the next trilateral meeting will be announced by the UK Government which will host the Forum Meeting, said No6. xxxxx Court hearing ROSIA TANKS SET FOR DEMOLITION AS HERITAGE TRUST BACKS OUT * SDA in plea to Caruana and DPC to visit site Dominique Searle reports There is now no legal obstacle to the demolition of Rosia Tanks and heavy machinery is set to move into the early 19th century site within a week. It could happen today. This follows the Heritage Trust’s decision yesterday to reluctantly withdraw from proceedings which it says it cannot afford. The Trust’s lawyer, Keith Azopardi, insisted that his client still believes the tanks should be saved. And the South District Association (SDA) made a call from court urging Peter Caruana, Chief Minister, and the Development and Planning Commission (DPC), to visit and see the tanks for themselves before these are destroyed. SDA lawyer Nick Cruz made no application to the court for an injunction, but instead indicated that by Monday he would have instructions on whether or not he should proceed. The Trust’s decision to pull back from both the injunction and their application for judicial review of the Development and Planning Commission’s decision was revealed before Chief Justice Derek Schofield in a hearing at Supreme Court library yesterday. In a palpably sombre atmosphere the court was told that the Trust could not risk the costs and damages its action might have incurred. The Trust, created in 1986 and having experienced several transformations since, is a statutory body set up by Government and funded by them with a £30,000 annual subvention. Informed sources say that that the damages claimed by OEM International, the developers, could have been in the £50,000 to £70,000 a week region. However, it is understood that had the Trust acted earlier they may have avoided this potential liability in terms of damages although any action risks costs mainly from legal fees of the other parties if they win. OEM International is understood to have signed with their contractor Haymills just hours before it was served with an injunction from the court when the Trust first acted on January 13. And the Trust itself is known to have delayed considerably given that Government announced its plans in October and on November 23 2005 the DPC gave outline planning permission which could have been challenged then before the company had engaged in the project. Whilst the SDA consider their next move, the Heritage trustees left the court gloomily and with an air of defeat, handing out a statement in which they said that they “continue to be implacably opposed to the destruction of these tanks. This view was reinforced after a physical visit to the tanks on Friday (January 20) when the opinion of those attending was that they were in good condition.” The statement echoed Mr Azopardi’s own to the Chief Justice that his application was for leave to discontinue on the basis that there would be no order as to costs. He said this followed the meeting between the Trust and the Chief Minister on Monday evening. The Trust’s reasons for the instruction, decided on by majority vote of its Board on Monday, was that they could not afford to become engaged in a protracted legal case which had the potential of exhausting their limited funds. The Trust said that, in any event the Government might take the project over and carry it out as a government project “thereby circumventing the need to obtain planning permission. It also stated that the Trust’s limited funds – which the Chronicle understands are in the £150,000 region - might “perhaps” be put to better use in the many projects in which it is currently engaged. “The decision to withdraw is taken with great reluctance but in the light of the realities of the situation and the means at the Trust’s disposal. The Trust’s decision has no bearing on the merits of the case, its own legal assessment of the prospects of success or the heritage value of the site itself.” “[The Trust] has come reluctantly to the view that it had little option but to take this course

60 or risk the continued existence of the Trust,” it said adding its continued support for the Government’s objective of the construction of affordable housing. The Trust was merely seeking to question the building of these at Rosia Tanks, it said. Mr Azopardi had told the hearing that “sometimes cases are not decided on merit” but that after much agonising behind closed doors the Trust had taken its decision and would now get on with its duties as best it could. There was no objection to the withdrawal from the DPC and its lawyer James Neish QC explained that the DPC had not taken part in any of the negotiations. Freddie Vazquez QC for the Government said that his client respected the integrity and proper intentions of the Trust but felt they had been misguided and wrong in taking up these proceedings. Daniel Feetham, acting for OEM International, confirmed that there would be no application as to costs. The judge allowed the application to be withdrawn with no order as to costs. The collapse of the action leaves several issues, that would have been explored if the judicial review had gone ahead, unanswered. The proceedings of the DPC would have come under scrutiny including the case made to members and how they each voted. It has also emerged that the DPC did not even visit the site, an issue taken up by the SDA lawyer Nick Cruz. He said that the SDA’s experts Lionel Culatto and Willie Serfaty had visited the tanks on Monday and their views confirmed the Trust’s position. The vaults are in excellent condition, he said, adding that the experts had described them as “cathedral like”. The judge indicated that if proceedings had been started the court itself might have wanted to view the tanks, subject to any submissions. Mr Cruz also said that until Monday he would not be able to give an indication on whether his clients will proceed. This is pending further legal consultation but all indications are that the issue of costs is the main factor. He said his clients “cannot afford the luxury of damages that might be awarded.” Although he had given notice of judicial review proceedings and papers had been served, the parties had been asked not to spend time on these. No application was made yesterday that could halt demolition works. Later the SDA said they were angry and upset at the turn of events. “We reiterate our request made during the hearing in court this afternoon that the Chief Minister and members of the DPC should visit the site so that they are fully aware of what part of Gibraltar’s heritage they are so eager to destroy forever,” said the SDA. xxxxx GSLP/LIBERALS ‘TOTALLY OPPOSED TO ROSIA DEMOLITION’ GSLP/Liberal Opposition yesterday declared that it is totally opposed to the demolition of Rosia Tanks. They said that they had awaited for the outcome of the court case before commenting. “We are committed, if elected into government in time, to find an alternative site for the Nelson’s View development and in this way save the Rosia Tanks,” they said. The Opposition said that the circumstances which have led the Heritage Trust to drop the court case, for fear of the financial repercussions, has exposed a serious issue of principle. “This centres on the inability, in practice, of a statutory organisation to have access to justice on a matter of great public interest, all the more so when faced on the other side by the combined resources of the Government and a developer,” said Dr Joseph Garcia. He said that the Opposition maintains its view that the Government only has itself to blame for the controversy. “It will be recalled that the Opposition originally questioned, both inside and outside the House of Assembly, how the site at Rosia Tanks came to be included in a tender which was for North Gorge and Buena Vista only.” “We made the point that what the Government should have done is to proceed with the original project as advertised in their tender notice, and then allow tenders for the new site at Rosia Tanks. This would mean that other prospective developers could have different ideas for the site which would be more in keeping with the concerns that have been expressed for the area.” It was confirmed that the Leader of the Opposition Joe Bossano has now written to the developer OEM International to advise them that the Opposition has taken a policy decision against the Nelson’s View development at Rosia Tanks. The Opposition have told the developer that it does not accept that the choice is whether Rosia Tanks should either be developed on the one hand, or preserved with the loss of 200

61 housing units on the other. “This is so quite simply because the 200 housing units could be constructed somewhere else at an alternative site” said Shadow Minister for Trade and Industry, Dr Garcia. He said that the Government had much to answer for. “In 2002, the Government tender documents for Grand Magazine, the Victualling Yard and Rosia Mole specified that ‘the area is overdeveloped as a residential area and underdeveloped as a local and tourist asset.’ It went on to say that the “areas are of high historical and heritage value and include some of the most important constructions of this nature in Gibraltar.” Dr Garcia said: “It is therefore contradictory for the Government to construct more houses in an area which they themselves considered, as far back as 2002, was already overdeveloped. It makes even less sense for the Government itself to have identified the need to improve the touristic value of the area based on its heritage assets, and now proceed to knock down the historic water tanks which are part and parcel of those very same heritage assets. When questioned about this, the Government’s feeble reply was that they had changed their mind.” “It is clear to the Opposition that the lack of a tender process, the lack of proper planning, the shift in Government position and the absence of an updated development plan have all contributed to the present mess. It is, in every single respect, a mess of the Government’s own making and the political responsibility for the wanton destruction of part of our heritage falls squarely on their shoulders,” said Dr Garcia. xxxxx TOURISM MINISTER HOSTS PRESS DINNER IN MADRID Deputy Chief Minister Joe Holliday hosted a dinner in Madrid last night attended by 22 travel journalists, on the eve of FITUR. The journalists represent a cross section of magazine titles and national newspaper travel supplements. The Minister addressed those present and highlighted the projects that are underway for increasing Gibraltar’s hotel bed-stock. The journalists present showed interest in the tripartite talks and in particular the development of Gibraltar airport. The Minister was confident that developments in this respect would happen in the near future. After dinner Minister Holliday presented the first Gibraltar Tourism Journalism Award in Spain for the best article on Gibraltar published during 2005. The winner of the Award is Ana Vara, whose article “Gibraltar: Más que un Peñon” was published in the magazine “Turismo y Aventura” last April. Her prize consisted of a cheque for EUR 1000 and a glass model of the Rock. xxxxx GOVT ORDERS TOTAL PIGEON CULL AS ANTI-BIRD FLU MEASURE Government will order a total cull of Gibraltar’s wild pigeons in a pre-emptive move to protect humans against bird flu. The dramatic step is being taken on the advice of the Civil Contingency Committee’s Avian Flu Group, which met this week. It means that undomesticated pigeons such as the ones seen on Main Street and in Casemates Square will be humanely killed. “Although the feral pigeons do not currently represent a threat to public health in the context of Avian Flu, they represent the most likely source of bird to human infection in Gibraltar should Gibraltar’s wild bird population ever become infected in the future,” the government said in a statement. “In that eventuality, and since culling takes a considerable period of time, it would not be possible to take timely action.” Officials stress that this is a precautionary measure and that there is currently no risk to human health in Gibraltar from bird flu. There is no evidence of wild birds in Gibraltar having contracted the virus and, even if there were, the risk to humans would in any case be negligible. Additionally, documented bird flu cases around the world have shown that the virus has not spread between humans. The Avian Flu Group continues to closely monitor international developments and advice on this subject. This week it reviewed progress in developing Gibraltar’s response plans in case the need

62 should ever arise to protect the local community. Stocks of a flu vaccine that could help minimise the effects of the virus have already been ordered. Alongside the pigeon cull, the government will ban imports of poultry and poultry products from countries which have suffered bird flu outbreaks. An advisory leaflet will be prepared and circulated to households in order to reassure people about the current position, which does not represent a threat to public health in Gibraltar. The Avian Flu Group is chaired by Peter Caruana, the Chief Minister, and includes Ernest Britto, Minister for Health; Jaime Netto, Minister for the Environment; Ernest Montado, Chief Secretary; Dickie Armstrong, Assistant Chief Secretary, Dr Vijay Kumar, the Director of Public Health; Dr David McCutcheon, Chief Executive of the Gibraltar Health Authority; Joe Catania, Deputy Chief Executive of the GHA; Pepin Delgado, the Chief Environmental Health Officer; John Cortes, general secretary of the Gibraltar Ornithological and Natural History Society; Mark Pizarro, veterinary surgeon; and Leslie Edmonds, the government’s Civil Contingency Coordinator. xxxxx

AZOPARDI LUNGES OUT AT GOVT OVER ROSIA TANKS As the developers OEM International met yesterday to finalise the technical issues and their strategy for demolition of Rosia Tanks, Keith Azopardi, former deputy Chief Minister of the last GSD Government, has attacked his former leader over his handling of the affair. In a letter to the Editor Mr Azopardi, former DTI and Heritage minister and with the GSD Government from 1996 – 2002, states that Government should, if necessary, provide the developer with an alternative site for housing. With part of the £15 million it is receiving Government should restore and find a sensitive use for the Rosia Tanks, he says. “Government needs to be careful that by doggedly insisting on having its way on the Tanks it does not exert its political muscle in a way that is repugnant to many of its citizens and to the democratic values of this community,” he said. Former AACR minister George Mascarenhas has also written in and is calling for an inquiry on the issue. “Desperate measures by a desperate Government and the worst thing is that the end result will not even deliver the ‘affordable’ housing that we so badly need,” he says. The GSLP/Liberal Opposition has also spoken out urging the demolition be stopped. Although the South District Association have not yet formally dropped their plan for legal action this is likely to happen next Monday unless they are advised to act. Their fears are the costs involved in a protracted action. But sources in the SDA said that they have not given up the battle. OEM International is led chairman Robert Noonan. He has been involved with Gibraltar for over 12 years and via his Irish Trusts. When the affordable housing project was announced it was revealed that he made a donation of £1m towards to fund the new swimming pool currently under construction at Europort Avenue for the elderly and disabled. He was also leading the now abandoned project to build an airport in the Jimena area. Meanwhile it has emerged that Rosia Tanks have been highlighted as part of Gibraltar’s heritage worth protecting since the early 1980s. Marcus Binney of SAVE Britain’s Heritage said yesterday that this position was restated in a SAVE report on Gibraltar published in 1995. And the Heritage Trust chairman Joe Ballentine was yesterday trying to focus on the duties that remain for the Trust to continue with. It emerged that the Government subvention for the Trust is in fact only £8,500 a year and that the £30,000 earmarked in the last Estimates relates to a one-off payment Government is offering the Trust in return for the lease of the Victualling Yard proper. The Trust currently earns rent from allowing companies to use the vaults in the building as stores. Government has asked for the return and ideas for the use of the building are understood to include kennels as well as parking for police vehicles. But Mr Ballentine said he is satisfied that the Government will seek to make the Yard a

63 protected building. At present, under the Gibraltar Heritage Trust Ordinance 1989 only the gates of the Yard are protected. Most of the fortifications and caves are protected as are some buildings: Church Doorways, St Jago’s Barracks, Convent Stables, The Convent Main Street, Court House Main Street, Exchange Building, Gibraltar House of Assembly, Moorish Bath, Garrison Library and Gardens, Cathedral Church of St Mary the Crowned and the Synagogue, Engineer Lane. Mr Ballentine said that the Trust has made recommendations for buildings it wants protected but draft amending legislation has been around for some time without being enacted. Marcus Binney’s SAVE report is one of the guiding documents of the Trust in its work. Mr Binney says that some 1100 structures and buildings were identified by them and he expressed dismay at the plans to demolish the Tanks which, he says, are an integral part of the Victualling Yard complex. “The Victualling Yard is of enormous importance. Gibraltar’s naval heritage is very complete and unique, “ he said. A POTTED HISTORY OF THE VICTUALLING YARD During much of the 18th Century the dockyard was sited at the New Mole but the victualling was concentrated at the North Mole. There were two main stores, one at Waterport and the other at the White Convent in Irish Town. During the Great Siege these facilities were found most inconvenient as they were too close to the enemy lines. With the loss of Minorca and the alienation of Britain in the Mediterranean following the American War of Independence, victualling and in particular the supply of water, became a major problem for the Royal Navy. It also became clear that it was unlikely that Minorca would ever again be permanently available. John Jervis, Lord St Vincent, had been appointed Admiral in Charge of the Mediterranean Fleet, and in 1799 whilst staying ashore, through ill health, in one of the houses in Rosia Parade, known then as “Rosia House” (part of that house is now St Vincent House – originally St Vincent House and the adjoining house was one larger house) recommended the re-siting of the victualling yard to Rosia, adjacent to his house. The site was particularly suitable as there was access to Rosia Bay and was protected from the seaward gunfire by the outcrop known as Parsons Lodge Battery. Furthermore it was out of range of the enemy guns at the North Front. The works were carried out by a local contractor, John Maria Boschetti, and it seems that his original quote in 1799 was for just over £22,000. This estimate in 1807 was just over £40,000 but in 1808 his estimate had risen to over £62,000. It is generally accepted that the tanks were commenced in 1799 and completed in 1804. However, although they were aware of the proposed scheme in 1799 the Navy board only approved the project in 1807 and again it is not clear whether that was only the dry stores. It is not unusual (in Gibraltar certainly) for works to be carried out without formal approval, especially if they were perceived to be urgent. It is generally accepted that the whole complex was completed in about 1812, although the dry stores themselves may well have been completed earlier. (Abridged from Lionel Culatto) xxxxx Annual dinner speech GFSB PRESIDENT GRILLS GOVT OVER HUGE INCREASE IN BUSINESS COSTS * Protect local firms, says Guerrero GFSB President Marilou Guerrero yesterday quizzed the decision by Convent Place to considerably increase all the costs of doing business in Gibraltar. During her speech at last night’s annual dinner of the small business federation, Ms Guerrero questioned the need for a 100% (or more) increase in all government licences and fees, in the light of Government’s repeated assertions that inward investment had increased and was bringing in more money for its coffers. Ms Guerrero declared: “Water and electricity have also been significantly increased for businesses and residents alike, as have the connection and standard charges. Early payment rate relief for businesses has been reduced by 10%, and in many cases the rates increased.” She said larger businesses could assimilate these increases, but small firms that support

64 many families and add diversity to the economy could not remain competitive, and run a real risk of closure. Criticising a lack of meaningful consultation, forward planning and advance warning of decisions on the part of the Government, Ms Guerrero said it was difficult for businesses to budget for the future and give quotations for work when rules change without notice and that some industries submitted for tenders that have to fix prices 12 months in advance on information that is currently available. “The shortfall caused by unexpected increases has to come out of the bottom line profit,” she said. Although Ms Guerrero welcomes and recognises the need for inward investors, Ms Guerrero argues that local firms “must be protected and encouraged as well”. “We have to do everything we can to make entrepreneurial dreams a reality, and not place obstacles in their path,” she declared. Meanwhile she claimed that lack of consultation by Government meant that people were giving up and resigning themselves to accept the inevitable. Even when consultation occurred and agreement was achieved, she continued, it was a fact that implementation did not always follow. Ms Guerrero also asked whether Government has “a strategic plan for Gibraltar’s economy” or dealt with situations as they arise or “at best in four year cycles till the next elections.” She said businesses require flexibility when hiring workforce, especially in the tourism and hospitality industry, to meet market demands. A long overdue Government commitment to restructure Social insurance contributions with fairer rates, she said, would benefit employer, part-time employees, and assist in eradicating illegal labour. “We are still waiting. Instead, the contribution rates were increased this year, including those for part-timers.” Ms Guerrero also criticised the existence of delays when dealing with Government and said the seven Ministers in charge of departments and many efficient Civil Servants must be allowed to get on with their jobs. “To not do so is demoralising and results in delays and inefficiency and the obvious current state of apathy and lack of motivation, that affects us all down the line.” Ms Guerrero said the tourist product which was “the mainstay of the economy,” remains very “tired” and pointed to the need for beautification and renovation of sites. She also deplored the lack of funding in this area and cuts to the current tourism budget. “Have any of you visited Europa Point or the Upper Rock recently? Or wandered through the upper town areas?” Commenting on the announced increases in Upper Rock entrance fees for tourists, to support a £2 million beautification programme, she said that renovation and repairs to the sites should have been taking place during the last few years “when tourists have been paying high entrance fees.” She urged the authorities to resort to more effective publicity to obtain much better results, and argued that we were using antiquated methods to get the tourist message across. Ms Guerrero noted satellite television adverts and ‘in your face’ promotion used by “our neighbours and other tourist areas in the Mediterranean.” She said the Rock should use modern tools and communication methods, television and the internet, “invest now to obtain the rewards in the future.” As regards relations with the TGWU, and the threat of a general strike, she said the Union had accused them of having “third world conditions for our employees.” Ms Guerrero expressed their openness to discuss issues with them, and explained that many businesses were not in a position to accept substantial demands on behalf of employees. She called for such expectations to be realistic and that “extremely good” public sector agreements with Government, did not mean this could be matched in the private sector. “We have to make the money to pay for both,” she said. Ms Guerrero also said the Rock was exposed to competition and must be ready to adapt to changing conditions. GUERRERO’S CROSS-BORDER CONCERNS Ms Guerrero last night noted the “lack of information” that in her view is raising serious doubts and concerns as regards “the cross border cooperation and possible airport agreement.” She said this would affect business “in a tremendous way and there is no getting away from reality.”

65 Ms Guerrero urged a process of meaningful consultation at every stage on the practical decisions that will affect the business environment or community. She said: “Subject to political considerations, commercial details must be shared and discussed.” “I would like to know what the views of the opposition are on the airport agreement and cross-border cooperation with regards to business issues. I have heard their views on pensions, but have not heard them express their position or question the Government on any other issue of this very important possible development.” xxxxx SDA VOW TO FIGHT ON The South District Association yesterday said it will continue to battle on to stop the building of flats on the Rosia Tanks site. They are due to decide on whether they move ahead with a bid for an injunction but said that their spirits are high and they remain committed to their campaign. “We are not giving up,” said a spokesman. xxxxx ‘GIB ECONOMY CAN FORGE AHEAD, WITH ME’ • Bossano tells GFSB Opposition Leader Joe Bossano last night told the business community that he believes that Gibraltar’s economy is well placed to forge ahead. In a speech to the black-tied and evening dressed gathering of Gibraltar Federation of Small Businesses (GFSB) members at their annual dinner he set out to analyse the economy and suggested that it would perform better if he was Chief Minister. The annual dinner at the International Casino heard strong criticism of Chief Minister Peter Caruana’s handling of the economy but also an admission from Mr Bossano that all politicians make mistakes. “Let me say that whilst I disagree with the view that the present Government, or for that matter any government, can do no wrong it would be equally false to suggest that they get nothing right. But it’s not my job to go about highlighting what they get right and singing their praises. They have plenty of others already doing that for them so I don’t really think they need any help from me. “ “We all make mistakes in life. The GSLP Government made them and got some things wrong as well as getting many things right. The important thing is to acknowledge one’s mistakes and learn from the experience so as not to repeat them,” he said . Mr Bossano recognised that although today, the private sector has to operate in an open and more competitive climate the business community has always shown a great capacity to adapt and take advantage of new opportunities. “Provided the Government can get its house in order the prospects for the local small business and for the overall growth rate of the economy are sound and we are working on the programme for the future on this basis,” he said. And he declared that the GSLP/Liberal policy is to achieve high economic growth. “We believe in setting out the targets beforehand so that you can measure our success by comparing the results with the targets,” he said. “Our economic policy is to have a Gibraltar Business Plan. But, of course, just like in a business one does not reveal to the competition the details of what we propose to do. “ Mr Bossano said that fiscal policy needs to be complementary with economic policy and with social policy objectives. He said that tax incentives for small businesses, rate reductions for given types of businesses, keeping down electricity and water costs are all examples of fiscal policies, but ones which can be given effect, in measures designed to favour and promote economic growth. “One can use taxation policies to promote business expansion, which in turn produces higher economic growth. “ “When 1988 the GSLP Government had removed the levy on bunkering sales the result was a huge expansion in oil bunkering from Gibraltar, which then led to offshore bunkering companies coming and which created a market that continues to grow to this day”, he said. GROWTH “Recently the Government has been boasting that the estimate for growth in the economy was 10.4% in the financial year 2003/2004. We welcome this rate but are convinced it is possible to do better,” he said. “The current economic policy is to say that the economy is booming whether it is growing

66 at 5% or 10% simply because the underlying philosophy is never to admit that the Government is capable of making mistakes of getting anything wrong,” he said. Mr Bossano said that the small business sector is not growing or making ever bigger profits year after year and that retail trade is not increasing in line with the overall rate of economic growth. And he accused the Government of failing to listen to people. Mr Bossano said that out of 1,400 employers in Gibraltar some 1,100 are small businesses. “They are struggling to survive. The GFSB rightly recognises the desirability of encouraging inward investments, we believe in this too, but the big boys need no help, they know how to look after themselves and they will only stay here for as long as we provide them with a more profitable environment than the competition. “ On Government spending Mr Bossano was not drawn on the size of the public service: “There is no golden rule as to how big or how small the public sector should be. The only rule that counts is whether we can afford it, whatever the size”. “If the economy grows faster, the Government can also grow but at a slower rate. If on the other hand the Government spending grows faster than the rest of the economy, then it must eventually make one of three choices. Either raising taxation, or cutting back spending, or going into the red and bridging the gap by drawing on the reserves or borrowing,” he said adding that after the 2003 general election there has been all three. “In the 2003 budget when the Government predicted a £6.7 million surplus, I said their figures were wildly optimistic. Immediately after it was re-elected, the Government admitted it needed to raise money to cover the deficit they had known of, but kept quiet about, during the election campaign. As everyone now knows the deficit for that year was over £7 million. Not the £1.3 million shown on the books by massaging the figures through creative accounting,” he claimed. Mr Bossano said that the audited accounts show is that in that year, 03/04, Government spending increased from a figure of £178.9 million in 02/03 to a figure of £201.6 million. “A rise in one year of £22.7 million. A new record, but one which Mr Caruana does not go around boasting about”. “What is worrying about the situation is that the year when the Government accounts go into the red is the year when the economy has grown over 10%. The implications of this are that even this level of economic growth, 10.4%, does not result in revenue flows to the Government to make annual increases in public spending of this order sustainable,” he said. Mr Bossano said Gibraltar is told it has never been more prosperous “ but we go deeply into the red at the same time.” “Looking at the expenditure to see how you use public money in a way that helps the achievement of your targets on the economy, using your revenue measures in a way that does hinder, those very same objectives. That is the key to a successful fiscal and economic management programme that sustains the level of the public sector, but not at the expense of the private sector,” Mr Bossano to ld the GFSB. Mr Bossano also said that the “Jewel in the Crown” in the picture being painted of the economy “is the so-called, fabulous “Sovereign Bay”, which is predicted to bring into Government coffers between £60 and £100 million. “ “You may not recognise it, but this is the very same land that these very same people when in Opposition constantly campaigned against and obstructed. When the land was being created it used to be a scrap yard, according to them, because building rubble was being used to reclaim land at minimal cost before 1996. It can’t have been such a bad idea because they have continued doing it for the subsequent 10 years and now, as if by the use of a magic wand, the scrap yard has become the biggest asset Gibraltar has. It’s a jolly good job we ignored their protestations at the time and continued with the project. Such is politics, I’m afraid.” xxxxx TRILATERAL AGREEMENT POSSIBLE BY APRIL – CARUANA • Diplomats concerned at Odyssey/Junta row developments A package of measures including the use of the airport, telecommunications, frontier traffic flow and co-operation generally could be in place before April. This was confirmed yesterday by Peter Caruana, Chief Minister, just ahead of his private meeting in Malaga with Jose Pons, the Spanish Foreign Ministry director for Europe. Sr Pons, who leads the Spanish delegation at the trilateral forum had indicated this time

67 frame to journalists yesterday and Mr Caruana agrees that this would be desirable. April would be the point at which the British diplomat Dominick Chilcott moves on to an ambassadorship. Mr Caruana made clear that Mr Chilcott’s moving on would not scupper the process but added that it would be desirable to reach agreements before his departure because of Mr Chilcott’s close knowledge and grasp of the matter. An agreement before April is “not an unrealistic timeframe,” said Mr Caruana who pointed out that it might be that some elements of the package remain to be concluded after that. No statement is expected from yesterday’s meeting and there are growing indications that many of the items being discussed are only a few decisions away from conclusion. The meeting is a prelude to talks in England expected in the coming weeks hosted by Mr Chilcott. Despite speculation in the Spanish press the Gibraltar Government has reiterated several times that there can be no concessions on sovereignty, jurisdiction or control of the airport, or presence of Spanish officials in Gibraltar. The Chronicle understands that Schengen membership has been mooted as one option that would impact on the issue of how the movement of people is controlled. Pensions remains an issue to be decided essentially by UK because it will pick up the lion’s share of the bill if there is agreement. The rest would be paid by Spain and most political observers believe that the aim is for a lump sum, once and for all payment. But there remains the issue of what department in UK actually provide the money required estimated at some 40 million euros. SUSSEX ROW But whilst the key parties are focused on trying bring positions closer there has been increasing concern in diplomatic circles that the row over Odyssey, the vessel seeking to lift treasure from the wreck of what is believed to be HMS Sussex, could sour the atmosphere. The Junta de Andalucia unsuccessfully tried to take a seat in the talks process at the early stages although there has been careful deference to its jurisdiction in certain areas of Campo political life. Now the Junta appears to have found in the Odyssey saga an opportunity to exert its interests in the area. In turn the Spanish Foreign Ministry has attempted to placate the Junta making statements that suspended works but have kept the door open to a resolution with the US backed exploration company leading the Odyssey project. The last thing the diplomats want is a fiasco at sea detracting from their efforts. Less still would they want the row to move towards questions of sovereign waters or litigation over jurisdiction. xxxxx ROSIA TANKS SET FOR DESTRUCTION • Trafalgar 200 director highlights heritage value South District Association is today set to take a final decision as to whether or not it will try to get a court order to block the demolition of Rosia Tanks and the building of flats on the site. The collapse of the Heritage Trust case last week meant a legal go ahead for the developer OEM International to move in with demolition teams although there were several technical issues that they had to resolve. This includes the need to remove some MoD cables running through the site. The demolition could happen any moment although its passage will be eased if the SDA also back down from legal action. The Heritage Trust is in disarray as it recognised that it had been tardy in acting on the issue. It has also emerged that trustees were several times told that they would face personal liability for costs and damages once the Trusts own resources were depleted in any legal battle. This argument has been questioned by legal sources involved in the attempt to stop demolition. Meanwhile Dr Colin White, Director of the National Maritime Museum, Portsmouth and Director of Trafalgar 200 was contacted by the Heritage Trust. Responding to the news he said that the tanks are a key element in the Rosia site. “Some years ago now, I wrote a report on the interpretation of Gibraltar’s heritage, following a fact-finding visit that I made as the guest of Major General Simon Pack, who was then CBF. In it, I highlighted the great historical significance of the Rosia Bay site and

68 its various buildings and other associated constructions,” he said. Dr White said he stands by his opinions expressed in that report. “Indeed, my visit last October, when I took part in the Trafalgar 200 celebrations, has only served to reinforce my view of the historical importance of the whole Rosia Bay complex. The excellent Calpe 2005 Conference clearly demonstrated that Gibraltar played an important role in British naval operations in the Mediterranean in the late 18th and early 19th centuries and the development of the Rosia Bay site was directly linked with this role.” On the water tanks he said these represent “a key element in this very important early 19th naval site and any development which threatens their existence should be avoided if at all possible”. “I fully understand that there is very acute pressure on space for housing in Gibraltar and I appreciate that Government has a very difficult balancing act to perform here between the urgent need to provide housing and the need to preserve the Rock’s heritage. But, I do hope that the historical importance of the tanks will be given due weight in any debate.” Meanwhile it is understood that leading conservationists are hoping that a proper archaeological survey for the record can be carried out on the site before it is turned to rubble. xxxxx HOLLIDAY AT MICROSOFT GOVERNMENT LEADERS FORUM Deputy Chief Minister, Joe Holliday, is representing the Gibraltar Government at the prestigious Microsoft Government Leaders Forum for Europe, currently being held in Lisbon. The Chief Minister was unable to attend the Forum, as a result of other engagements. This is the third year that Microsoft organises a Government Leaders Forum for Europe. It is regarded as an exceptional opportunity that will bring together European leaders to exchange experiences and discuss important policy issues at a pan-European level. The keynote speakers at the Forum will include the President of the European Commission, José Manuel Barroso; José Socrates, Prime Minister of Portugal; Ms Mary Robinson, former President of Ireland; Javier Solana, of the Council of the EU; George Reid, Presiding Officer of the Scottish Parliament; Esko Aho, former Prime Minister of Finland; Sir Howard Davies, Director of the London School of Economics; and Bill Gates, Chairman of the Microsoft Corporation. xxxxx HATTERSLEY BACKED POLITICAL UNION WITH SPAIN by Jonathan Jeffries and Chronicle staff Roy Hattersley, former Labour minister and currently a Guardian columnist, may have spent the last 30 years as the bête noir of local integrationists – but he is set to be taken down another peg in local esteem. According to recently opened files at the Public Records office it was his view that political union with Spain was the only solution to Gibraltar. According to a 1975 confidential memo by Mr Hattersley, the then Secretary of State for Foreign affairs, he further complained that the situation between Gibraltar and Britain was one of an increase in political and social ties. These were connections which he would rather not have. An example of this was when he praised the work of Jack Scamp, in mediating over public sector wage dispute. His recommendation being to tie Gibraltarians’ wages to levels in Britain. Others at the FCO felt that Gibraltarian loyalist sentiments towards Britain were “embarrassing to Her Majesty’s Government”. That the Gibraltarians’ “Union Jack flag waving” made it more difficult for moderate political views on the future of Gibraltar be taken seriously. These were some of the comments which were included in a set of government files held at the Public Records Office. These British Government files have now been opened to the public after 30 years. It was clear from all the documentation that has been opened, that the FCO wanted to end colonisation as quickly as possible. This was not going to be easy as the FCO had commitments to the Gibraltarians. During 1975 with the fragile state of Franco and the political uncertainties this could bring, the FCO had serious concerns about the political situation in Spain and how this could affect Gibraltar. One political assessment file even considered the possibility of a “revolution” in Spain. There were concerns that if this happened there may have been a flow of refugees into Gibraltar

69 However, it was assessed that a democratic Spain may help reconcile moderate Gibraltarians to the idea of joining Spain. Quite critical to this was “if Spain were to enjoy better economic growth than ourselves”. So therefore that Gibraltarians would feel economically worthwhile to join Spain. They also speculated that the “militant trade union element” in Gibraltar would welcome a leftwing government with whom they “would be able to do business with”. However, it was concluded that the general Gibraltarian views are moderate and would have sympathy with Social democratic or Christian democratic government in Spain. It was clear from the files opened that the FCO felt it an urgent matter to build “confidence of Gibraltarians in Spain”. The approach the FCO took was to set up talks with Spain over the future of Gibraltar. That by doing this it would “open the eyes of the Gibraltarians to the realties of their position”. Initially there were informal contacts. Although these were in private, the FCO’s cover was blown when reports were made in the Chronicle. The tactic they adopted was what was referred to “classic lines” that these meetings were about goodwill only. Even so the FCO was cautious about the Spanish position in that little had changed in Spain’s attitude and approach. The FCO were also clear that Spain had ruled out an Andorra-style solution. In trying to set the right framework for the talks the FCO had asked the Spanish government not to make big noises at the United Nations on Gibraltar in 1975. At this time there were sensitive negotiations about the de-colonisation of Spanish Sahara. The FCO had also asked Morocco not to raise any claims on the Spanish enclaves. The FCO wanted to avoid comparisons between the Spanish enclaves in Morocco and Gibraltar. ‘RESIDUAL’ SOVEREIGNTY A Spanish foreign official’s own views were that there could be “residual sovereignty” approach meaning that the land passes over to Spain in a long period of time and that the Gibraltarians can write their own terms. The FCO did agree with this position but thought it was unlikely due to issues around sovereignty safeguards. Nonetheless, according to the files the FCO did go ahead with confidential talks with the Spanish Foreign Ministry. On the list of concessions it was to recognise the fact that Spanish government did want the return of Gibraltar. The FCO wanted the negotiations to lift restrictions on Gibraltar. This then would get the issue moving on the decolonisation, the FCO suggested to the Spanish government to concentrate on the human issues rather than the treaty of Utrecht (upon which both governments would not agree on). If the restrictions remained it would only serve to harden the views of the Gibraltarians and lessen the process of de-colonisation. Even when the talks were going ahead there was a sense of stalemate in that it was felt that the 1969 pre-amble to the constitution committed the British Government not to change the status of Gibraltar unless agreed with the inhabitants. The FCO negotiators concluded that had it not been for this constitution the British Government would have given Gibraltar to Spain much earlier. Their assessment found by giving these rights the British Government had reacted its own “diplomatic difficulties”. Finally in another revealing document concluded that neither imperial sentiment nor British defence interests would impede a settlement with Spain. The reality for the FCO is that Gibraltar would not hold out to a Spanish military invasion. The Spanish government went as far to suggest to the FCO negotiators that the British Government could maintain a military base even after sovereignty is handed over to them. xxxxx

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SIR FRANCIS RICHARDS Sir Francis, as to be expected, has adopted the lowest of low profiles in respect of his last job. However Sir Christopher Meyer writes in ‘DC Confidential: “ September 2001 - Sir John Major and David Manning finally returned to London at the end of the week, thanks to the British intelligence services. A special aircraft had brought all three intelligence chiefs to Washington – Sir Richard Dearlove of the Secret Intelligence Service, Eliza Manningham-Buller of M15 and Sir Francis Richards of the Government Communications Headquarters – for urgent consultations with the Americans. After their meetings we had a drink together on the terrace late on the Thursday night. The worry was a further strike by Al Qaeda. There were rumours of trucks carrying ‘dirty’ nuclear devices. Major and Manning hitched a ride with them back to London”. xxxxx JOHN BORDA John Borda is part of a duo that has been nominated for three awards in the online Local Government Chronicle awards. They are: Finance – internal invoicing: Human Resources – talent management: Community Involvement – beating the waste mountain. xxxxx HELP PLEASE Wing Commander J.P. Blackman of Gibraltar House, Gibraltar Square, Stratton, Cornwall EX23 writes to seek assistance about the first occupant of the house in which he lives. It is believed locally that it was Ensign Robert Smith of the 12th of Foot. The front of the house sports two plaques – one RS GIBR 1785; the other 12 Regt Foot. It is thought that Ensign Smith served with the Suffolk Regiment during the Great Siege and according to the Army List he was commissioned as Quarter-Master with effect from 23 June 1779 and then promoted to Ensign on 22 June 1780. He appears to have returned to civilian life in 1784 and by 1785 built this house in Cornwall. The Wing Commander seeks information about the Ensign’s time on the Rock. The Friends of Gibraltar Heritage Society hope to send a member to photograph the house and the plaques. xxxxx FATHER STEPHEN ALKER Father Stephen Alker has been appointed the Army’s new Principal Catholic Chaplain and Vicar General. This will take effect in March. Father Stephen, 52, spent Christmas and the New Year in Iraq with Headquarters Ist Armoured Division. He said: ‘My duties will include ecclesiastical oversight for 28 Catholic chaplains under the jurisdiction of the Bishop of the Forces. I will also have operational and deployment responsibilities for about 120 chaplains of all denominations under the direction of the Chaplain General to Land Forces. My recent time in Iraq gave me a chance to meet many of the padres serving there and gain valuable insight into their work. This will be particularly useful in the land Command appointment as I will be the one selecting and sending padres on deployments. I feel honoured to be asked to do this job. It will be a challenging task and I look forward to working closely with both my Catholic and ecumenical friends to build up the Kingdom of God within the Army community’. There are two Gibraltarian Catholic chaplains – Father Michael Fava and Father Danny Hernandez.

xxxxx HELP PLEASE Edna Marlow seeks information about the parents of Thomas Worth (1786-1810) and John Buckland (died 1810). The two sailors died at the Battle of Cadiz. She would also like to know the location of a monument on the Rock to those who lost their lives at this battle. Her electronic address [email protected] xxxxx ADELA GOOCH Adela Gooch is no longer a journalist as she left her position as Iberian peninsula correspondent of the Guardian and the Economist. She is now the deputy director of the Wilton Park complex which falls within the remit of the Foreign Office. Consequently she has a close working relationship with Sir Jeremy Greenstock the director of the Ditchley complex, another Foreign Office establishment. Before Sir Jeremy went on to be appointed the United Kingdom ambassador to the United Nations and then the Prime Minister’s representative in Iraq he was responsible for Gibraltar when he was ran the Southern European department. The British Government is forbidding publication of his memoir of his time in New York which deals with the plethora of diplomatic activity at the time of the decision to invade Iraq.

xxxxx MARY MUIR The Daily Mail reports that Mary Muir, 41, the niece of the Duke of Marlborough, is the wife of

71 xxxxx RESIDENTS DROP LEGAL ACTION, BUT VOW TO FIGHT ON Heavy machinery was moved into Rosia Tanks yesterday, just hours after the South District Association confirmed it would not seek a court order to stop demolition of the site. A contractor working on behalf of developer OEM International will carry out groundwork in the coming days ahead of major work, which is expected to start within the week, an OEM spokesman said. But despite the sight of cranes and diggers, campaigners remained adamant that they would oppose the demolition to the end. “Following the withdrawal of the Gibraltar Heritage Trust, the SDA has decided not to proceed with its legal action because of the personal exposure of its committee members to potentially exorbitant costs and damages,” the association said in a statement. “However the SDA is continuing to oppose the construction of Nelson’s View and will continue to fight to ‘Save the Rosia Tanks’ until the last brick has been removed from the site.” Rosia Tanks has been at the centre of a heated row since government-backed plans to build houses on the site were unveiled late last year. Objections ranged from concerns about the loss of what many regard as a valuable heritage site, to fears about the impact on the urban and social fabric of the area. But the government and OEM have argued that the project will be socially advantageous to Gibraltar and will help meet the demand for affordable housing. Yesterday, the SDA appealed to the government to build the houses on another site. “The SDA…continues to support the construction of ‘affordable’ homes, but not at the expense of Gibraltar’s heritage,” it said. “This site represents an important part of Gibraltar’s history and of its links to the United Kingdom.” The SDA drew attention to an article that appeared in yesterday’s edition of The Times, in which the British newspaper’s architecture correspondent reported on the Rosia Tanks controversy under the headline “Nelson caves to be turned into car park”. The SDA is setting up a website and has launched a financial appeal to raise funds in support of its campaign. It has also called on the Heritage Trust to publicly back its efforts. Even at this late stage, there are still some final technical issues to be resolved before the demolition of the tanks can proceed. A spokesman for the Ministry of Defence said yesterday that there are number of MoD utilities running through the site, including water pipes, electric cabling and communications cabling. The utilities will have to be protected or re-routed before the demolition starts, he said. The Gibraltar Electricity Authority has already carried out work to re-route an electricity cable that ran through the site. An OEM spokesman said last night that most of the site will be demolished once work finally gets under way. xxxxx FEBRUARY FOE AND ROSIA TANKS Friends of the Earth, Gibraltar yesterday reiterated their opposition to the Rosia Tanks demolition and development. “Since last year we have made clear our views. We believed then and still believe now that the project is wrong on environmental and ecological grounds, especially regarding questions of population density, traffic congestion, and the overloading of public services. As an organisation we are less concerned with issues of historical heritage though many of our members, as individuals, do of course feel strongly about these.” “Within the bounds of our environmentalism, Friends of the Earth, Gibraltar continues to offer support to the South District Association and indeed all concerned citizens in this matter”. xxxxx

72 ‘HERITAGE TRUST MUST BE PROPERLY RESOURCED’ Joe Ballantine, who resigned this week as chairman of the Gibraltar Heritage Trust, said yesterday that the Trust urgently needed additional resources in order to properly do its job. Mr Ballantine admitted that the Trust had been caught unawares by the proposal to build houses on Rosia Tanks, a site which had been in the hands of the MoD since it was built and about which the Trust initially had very little information. But he said that part of the reason was because the Trust, which only has one permanent member of staff, was desperately under-resourced. Mr Ballantine rejected arguments that there had been ample time to voice objections to this project. While he accepted that the government had flagged up Rosia Tanks as a development site as early as October 2004, he said officials had not informed or consulted the Trust directly. “To claim that we failed to see the dangers is, I think, a little simplistic,” he told the Chronicle. It was only once the government-backed Nelson‘s View development began to make its way through the planning process that the heritage implications became apparent. Members of the Trust – he highlights Denis King, who also resigned this week – started to delve into available research on the Rosia Tanks. They quickly came to the conclusion they were dealing with a rare site of great value. “Then you suddenly say ‘hey, this is a different picture’,” Mr Ballantine said. “This is important.” The campaign soon took on a legal dimension and by early January, the Trust’s lawyers had obtained a court order freezing work on the site pending a judicial review of the initial decision to approve the housing project. But it rapidly became evident that the Trust could be left facing a huge bill for costs and damages should the action fail. At that point, the board broke ranks. While everyone was still opposed to the demolition of the tanks, there was disagreement as to the level of risk they were willing to accept. On January 20th, a majority of the board’s members took the decision to drop the court action. It was a close vote, one that Mr Ballantine did not support. “We still had time to go to the wire on the injunction,” he said. “But the arguments (for and against the project) were not tested in court.” He said he understood and shared the board’s concerns, but believed the Trust would have prevailed in court had it pushed ahead. “We’re a charity, we’re small people,” Mr Ballantine said. “Is there no way in which small people can challenge big people, (simply) because they haven’t got the money?” “There were principles of justice involved.” Mr Ballantine believes the law should be tougher and weighted in favour of protecting Gibraltar’s heritage. He called on the government to move ahead with the new Heritage Ordinance as a matter of urgency. There are at least four drafts of this legislation, which has been under discussion for years. Mr Ballantine said it was vital that the Trust be directly consulted at an early stage on major development projects, and that sensitive buildings be listed and thus protected by law. “Heritage is not the pastime of people who don’t have anything else to do,” he said. “Heritage should be fundamental.” “Heritage should be respected by people, both young and old.” Educating people about the value of heritage, he added, should be one of the Trust’s main aims. “But they need the staff, they need the people.” xxxxx HERITAGE CHAIRMAN RESIGNS OVER ROSIA TANKS ROW Joe Ballantine resigned his post as chairman of the Gibraltar Heritage Trust yesterday, citing mounting frustration at events surrounding the Rosia Tanks controversy. In a frank statement to the press, he said he believed the Trust should have pursued its legal bid to halt the demolition of the tanks. The Trust’s board took a majority vote to drop its court case amid fears of exposure to

73 potentially massive costs and damages. “I believe that decision was premature,” Mr Ballantine said. “I believe that the Trust…should have concluded the hearing in progress to see if our case would be substantiated in law, the chances of which we were informed were good.” In a letter to Heritage Minister Fabian Vinet, he said his conscience would not allow him to remain at the head of the Trust. Mr Ballantine said he could no longer bear the stress and frustration at having failed to convince anyone in the administration to relent in its drive to continue with the Rosia Tanks project. Denis King, a fellow member of the Trust’s board of trustees, has also resigned his position. Mr King had been heavily involved in promoting Gibraltar’s historical sites – including Rosia bay - to Trafalgar enthusiasts during events last year to mark the bicentenary of that famous battle. “He now feels that, once the tanks are demolished, he stands to lose credibility with these many people and that he is no longer able to carry out his duty properly as a custodian of Gibraltar’s heritage without losing face,” the Trust said in a statement yesterday. The board of trustees is due to hold an emergency meeting this evening to assess the impact of the resignations and plot a course for its future. The board’s vice-chairman, David Eveson, has stepped into the top post on a temporary basis. Both Mr Ballantine and Mr King had been among six government-appointed trustees, with the remaining six elected by the members of the Trust. Yesterday, Mr Ballantine said his unease with the way heritage issues are handled in Gibraltar went broader than the row over Rosia Tanks. “The question of the lack of proper consultations with the Trust also bothers me as does the progress in the listing of heritage buildings, which has seen no movement in the past five years or so,” he said. “I am hoping that my resignation will bring this to the fore and that the protection and preservation of Gibraltar’s heritage will experience a resurgence that will prevent the tragedy of the fate of the Rosia Tanks from happening again.” Mr Vinet was unavailable for comment on the resignations yesterday. xxxxx GIBEX, GIBRALTAR’S STOCK EXCHANGE PROJECT The high powered breakfast meeting with Peter Montegriffo of Hassans, Jimmy Tipping Finance Centre director, James Levy QC of Hassans, the Chief Minister Peter Caruana, Sinja Kohn Bank Medici chairman and Marcus Killick the Financial Services Commissioner. The presentation at the Eliott Hotel yesterday led by the Bank Medici and Hassans highlighted the commitment to this project that also has Gibraltar Government support. The ‘baby’ of Sonja Kohn and James Levy it is considered to be an opportunity for Gibraltar to bridge offshore and EU onshore markets. Speakers were Mr Caruana, Mrs Kohn, Mr Montegriffo and Dr Alexander Ganez , former Austrian Stock Exchange Commissioner. Mrs Kohn said Gibraltar is a ‘sleeping beauty’ with “a lot of potential. A lot has been done and a lot will be done.” xxxxx GIBEX, GIBRALTAR’S STOCK EXCHANGE PROJECT The high powered breakfast meeting with Peter Montegriffo of Hassans, Jimmy Tipping Finance Centre director, James Levy QC of Hassans, the Chief Minister Peter Caruana, Sinja Kohn Bank Medici chairman and Marcus Killick the Financial Services Commissioner. The presentation at the Eliott Hotel yesterday led by the Bank Medici and Hassans highlighted the commitment to this project that also has Gibraltar Government support. The ‘baby’ of Sonja Kohn and James Levy it is considered to be an opportunity for Gibraltar to bridge offshore and EU onshore markets. Speakers were Mr Caruana, Mrs Kohn, Mr Montegriffo and Dr Alexander Ganez , former Austrian Stock Exchange Commissioner. Mrs Kohn said Gibraltar is a ‘sleeping beauty’ with “a lot of potential. A lot has been done and a lot will be done.” xxxxx

74 CONVENT ASSERTS BRITISH RIGHTS OVER HMS SUSSEX The Convent said yesterday that only Britain can decide the fate of HMS Sussex, the English galleon that sank off Gibraltar in 1694 carrying a valuable cargo of gold. In its first official statement since the row over the Sussex first flared up over a fortnight ago, the Office of the Governor said Spain cannot claim sovereignty over the waters in which the wreck lies. “As the Sussex is a British military wreck it is entitled to sovereign immunity,” the statement said. “As it is resting in international waters it is for the UK alone, as the Flag State of the vessel, to decide what happens to it.” The dispute over who controls the waters around Gibraltar is an old one and hinges on an arcane international agreement known as the United Nations Convention on the Law of the Sea (UNCLOS). Coastal states customarily claimed three nautical miles as their territorial sea but, in 1982, UNCLOS gave states the option of extending that to 12 miles. The convention adds that “where the coasts of two States are opposite or adjacent to each other, neither of the two States is entitled, failing agreement between them to the contrary, to extend its territorial sea beyond the median line every point of which is equidistant from the nearest points on the baseline from which the breadth of the territorial seas of each of the two States is measured.” The UK claims a territorial sea of three nautical miles for Gibraltar in accordance with UNCLOS, but has not claimed the full 12 miles. This leaves a “funnel” of international waters on the Gibraltar side of the median beyond the three nautical miles up to the 12 mile limit. It is these waters that are disputed in the Sussex controversy. “The UK has not agreed that Spain may extend its territorial sea into this “funnel” and therefore the Spanish cannot claim sovereignty over this area which is where the Sussex lies,” the Convent’s statement said. Disputes over interpretation of the convention are resolved in a special court in Hamburg known as the International Tribunal for the Law of the Sea. But all parties in the dispute must first agree to bring the case to court before it can proceed. Although the UK has in the past considered using the legal route to clear up the dispute, the case has never made it before a judge. xxxxx February 20/21 meeting of the trilateral forum CARUANA UPBEAT FOR IMMINENT AGREEMENT by Dominique Searle Chief Minister, Peter Caruana, yesterday warmed the cockles of the finance centre’s heart as he predicted benefits and opportunity for Gibraltar and the finance centre if agreement on a package of measures is agreed with Spain in the coming weeks. His remarks came as Britain announced that it will be hosting the next session of the trilateral forum – Caruana, Pons and Chilcott - on February 20 and 21. And the Chief Minister followed his up-tempo analysis of the recent development of the finance centre and the course it had taken under his government since 1996, with a similar optimism for Gibraltar’s international position. Mr Caruana said he was looking forward to a reply from Britain on the constitutional negotiations in the next few months “sooner rather than later.” The address, to over 100 leading businessmen and finance centre operators, came with the presentation by the Medici Bank and Hassans of a commitment to establish a stock exchange in Gibraltar, bolstering a sense of dynamics already being experienced in that sector. Mr Caruana’s reference to the trilateral talks follows an extended private meeting with José María Pons, Director General for Europe and North America at the Ministry of Foreign Affairs and Cooperation, in Malaga last Friday. He recalled how in 1996 he and Peter Montegriffo, another of the speakers yesterday, had plotted a course for both the finance centre and on relations with Spain. But just a couple of years ago no one could have predicted the current scenario. The Chief Minister told the breakfast session audience at the Eliott Hotel that, if an

75 agreement can be concluded, it would be the success of this longstanding policy on relations with neighbouring Spain that could now lead to significant agreements, beneficial for the finance centre, including on telephones, pensions and the airport. On the latter he made clear that this would be in a manner that had no implications for sovereignty (including the land on which the airport is built), with full EU flight rights and “under our control”. The announcement that the next meeting of the Trilateral Forum of Dialogue on Gibraltar will take place at Chevening House in Kent on 20 and 21 February was made by the British Government. A footnote to the statement making clear that there will be no press facility – something that would have been agreed by the three sides - can be read as an indicator that this is expected to be a meeting that would finalise the technical issues and, if successful, would prelude a full ministerial meeting. That next stage would mean Mr Caruana meeting in an unprecedented trilateral with Miguel Angel Moratinos, Spanish Foreign Minister and his UK counterpart Jack Straw. The Chronicle understands that as optimism for an airport agreement grows local and Campo business leaders are negotiating on the opportunities both in any extended terminal and as a consequence of the impact on business generally. The statement issued by the Convent yesterday said: “The establishment of the Trilateral Forum of Dialogue on Gibraltar was announced on 16 December 2004 by the Governments of Spain, Gibraltar and the UK with the aim of dealing with a range of issues which affect all three parties.” The February 20/21 session will be with Dominick Chilcott (FCO Director Europe) on behalf of the UK; José María Pons (Director General for Europe and North America, Ministry of Foreign Affairs and Cooperation) will attend for Spain and Chief Minister Peter Caruana will attend the talks on behalf of Gibraltar. Although the talks may need to be extended there is a hope on all sides that the main agreements will be finalised before Mr Chilcott moves on to a promotion in April. xxxxx SENIOR GENERAL’S VISIT ‘HIGHLIGHTS GIB MILITARY IMPORTANCE’ Chief of the General Staff, General Sir Michael Jackson will be visiting British Forces Gibraltar as part of his farewell tour before handing his post over later this year. General Jackson will be accompanied on his trip by Lady Jackson. Their programme will include a demonstration on Tunnel Warfare by the Royal Gibraltar Regiment and a visit to Gibraltar Squadron. General Jackson will also attend a number of social functions. The Commander British Forces Gibraltar, Commodore Allan Adair said, “In the last five months we have had the pleasure of hosting the First Sea Lord and the Vice-Chief of the Defence Staff. General Jackson’s visit on the back of our other guests, highlights the importance that Gibraltar maintains as an operational base in the contribution to the UK’s defence aims and the aspiration to maintain this connection well into the future”. xxxxx Rosia Tanks HERITAGE TRUST BACKS SDA PROTEST CALL - It’s Government’s decision, developer tells - Irish Independent Robert Noonan the developer behind the Rosia Tanks project has reportedly distanced himself from the decision to use the Rosia Tanks as a building site. He was quoted by the Irish Independent: yesterday as saying: “It (the decision to develop the site) has nothing to do with us. It is between the present government and the heritage commission.” The remarks come as preparation for demolition continues and the South District Association (SDA) announces plans for a public protest next Tuesday lunchtime from Convent Place. Their ‘Save the Rosia Tanks’ campaign is being flagged in advertisements and on a website and is being backed by the Gibraltar Heritage Trust. The Trust issued a statement yesterday wishing the SDA well in their continued fight to save the Rosia Tanks and said that they will be pleased to advise them on the heritage dimension should they so require. “We understand that the SDA have called for a demonstration and would urge all members of the Gibraltar Heritage Trust and all those who share our concern for Gibraltar’s heritage to support this action,” said the Trust. Meanwhile the newly appointed temporary chairman David Eveson has confirmed that

76 when the Government had first announced that Rosia Tanks were earmarked for development they had assumed that this was in the context of a touristic development as had been set out by the then Heritage Minister Keith Azopardi. This is a reference to a tender issue put out by Government in 2001 which envisaged “sensitive” development of the area. At the time the tanks were still in use by MOD and the Government hired an architect to put their ideas to developers. These envisaged the use of the flat rooftop of the tanks for surface parking but not demolition. The Trust failed to pick up where the project was now going. Mr Noonan was quoted in the Independent as saying that the Rosia Water Tanks site was in two parts, the smaller of which would be destroyed by the development of £100m (147m euros) worth of affordable housing apartments and an underground car park. “The major ones, the ones in good condition, are available to the public in the complex next store,” Mr Noonan is quoted as saying. The newspaper said that the Kerryman, whose next door neighbour in Gibraltar is financier Dermot Desmond, said OEM’s overall master plan with the Gibraltar government envisaged a £400m (588m euros) development. “Besides affordable housing, the plan envisaged a £250m (368m euros) private development, including an upmarket new marina.” He is also quoted as saying that plans to upgrade Gibraltar airport to an international airport would give the project of some 1,000 units a major boost. Mr Noonan is chairman and acting chief executive of OEM plc in the UK, but the Gibraltar development is being undertaken by OEM International, a separate company controlled by a Noonan family trust. Meanwhile, Mr Eveson told the Chronicle that to save the Rosia Tanks would require a change of heart from the Government. This might still be achieved if public pressure is maintained, he said. At the present time he says that the main objectives of the Trust are: •To remain resolved to continue its defence of Gibraltar’s heritage. This includes its objections to the demolition of the Rosia Tanks •To pursue the incorporation of all heritage buildings, sites and fortifications into the Schedule of Listed Buildings within the revised Heritage Trust Ordinance •To establish a ‘Heritage Charter’ describing the Trust’s role and its position as a Charity made up of volunteers •To continue to foster the knowledge and appreciation of our heritage by people of all ages In a statement the SDA called “on all those people who oppose the way that the Government has handled the ‘Rosia Tanks Affair’ “ to come out and protest on Tuesday 7th February 2006 between 1.15 pm and 1.45 pm at Convent Place. As part of the Protest, ‘Lord Nelson’ will present the Chief Minister with a book of evidence containing all the witness statements that the SDA says it was “prevented” from producing in Court, another copy of the 3000 strong petition, letters supporting the preservation of this historic site and other documentation. “Although the main focus of the campaign continues to be to ‘Save the Rosia Tanks’ from imminent destruction the manner in which the Government continues to treat those who have raised concerns about the construction of Nelson’s View leaves a lot to be desired, it said. It calls on the Government to set up an independent public inquiry to examine and report on the process by which this decision was reached, and, if necessary, implement its findings. “The speed at which the Government seems to have rushed to give the necessary permissions to demolish the tanks is unprecedented in Gibraltar and points to an intent to push through decisions without giving those raising concerns a forum in which to voice these,” said the SDA. The SDA calls for recognition and adds that even at this late stage, the Government and the other interested parties can meet with representatives of the SDA to hear their case that to save the Water Tanks is a wise decision and that it makes sense to build ‘affordable’ homes on another site. It wants the Tanks and the Victualling Yard immediately listed. xxxxx WORKS START FOR NEW MILITARY HOSPITAL For over two centuries, English servicemen in Gibraltar have received medical care in dedicated military facilities in the South District.

77 The Royal Naval Hospital [RNH] and its precursors were close to the docks and, historically at least, the climate at the southern end of the Rock was considered cleaner and more conducive to a speedy recovery. But in a break from that tradition, work started yesterday on construction of a new military hospital in Devil’s Tower Camp, next to the airfield and in the shadow of the North Face. By the time it is operational early in 2008, the new hospital, known formally as an Integrated Healthcare Facility, will accommodate all the services currently on offer at the Royal Naval Hospital and the Joint Medical & Dental Unit on Queensway. Once the transfer is complete, the Royal Naval Hospital and the Queensway site will be handed over to the Government of Gibraltar as part of the Ministry of Defence lands deal. Despite cost-cutting across the entire MoD, some £8.6m is being channelled into the new hospital. “It’s a very exciting project and it shows great commitment to Gibraltar,” said Commodore Allan Adair, Commander British Forces in Gibraltar. “We’ve been here for over 300 years and we intend to stay, otherwise we wouldn’t be spending nearly £9m on it.” There are several reasons why the MoD needs its own dedicated medical facilities on the Rock. MoD obligations are to provide standards of care locally that are in line with comparable services and facilities in the UK. Additionally, military personnel sometimes require specialist treatment that is unavailable in a civilian hospital. Although local demand for MoD medical services is relatively low, Commodore Adair points out that he is responsible for nearly 3000 servicemen and their families, including members of the Royal Gibraltar Regiment. “I think that could swamp St Bernard’s and that’s the reason why we have a separate facility,” he said. “In the planning stages several years ago we looked at the possibility of perhaps having a ward in St Bernard’s, but that was not selected as an option.” Medical services on offer in the new two-storey hospital will range from day-to-day GP care to maternity and intensive care units. Once the building is complete, all the equipment from the existing facilities will be ferried across. Options are currently being assessed to provide interim care, including setting up a field hospital or bringing in RFA Argus, a Royal Navy ship that has a hospital complex on board. xxxxx HMS Sussex UK-SPAIN ROW ERUPTS OVER SOVEREIGNTY OF THE SEA •Claim ‘full’ territorial waters, Opposition demands As the GSLP/Liberal Opposition yesterday waded into the growing row over the HMS Sussex gold recovery expedition, the statement from the Convent this week on British territorial waters around the Rock prompted a formal protest from Spain. The Opposition has declared that the United Kingdom Government should now extend the territorial waters of Gibraltar from three miles to twelve. The British Embassy in Madrid last night confirmed that the Spanish Foreign Ministry had delivered a verbal note, but it declined to comment further. However the note reportedly declared that the waters around Gibraltar, including those where Sussex may lie, are Spanish, said Madrid wire services. The note also repeats the traditional line that Spain only recognises the British possession as set out in the Treaty of Utrecht 1713. This remains the valid legal position; Spanish diplomatic sources were quoted as saying last night. The Spanish Government has expressed surprise at the Convent statement and has also reiterated that this has no effect on their claim over the waters. They also said that they only accept the British sovereignty within the Gibraltar port area. However there was also a line emerging from Madrid that this matter should not contaminate the current trilateral forum, due to meet in just over a fortnight. The exchange follows a statement from The Convent setting out the UK official position on waters around the Rock and the ‘Odyssey’ expedition.

78 The Opposition read the Convent statement as “confirmation” that there is a dispute between the United Kingdom and Spain over the status of the waters. On the question of extending the demarcation of waters the Opposition said: “This is something than can be done unilaterally and which does not require Spanish consent under the terms of the Convention. Quite apart from the immediate issue relating to HMS Sussex, there may well be many things that Gibraltar may want to do within twelve nautical miles in the future.” The Opposition said it was apparent to them that there may have been a potential problem to do with the status of the waters given the statements issued by the Spanish Foreign Ministry, the Junta de Andalucia and the American company Odyssey Marine Exploration Inc. “The Convent has also confirmed that Gibraltar’s territorial waters on the eastern side are at present three miles, but that we have the right to claim twelve miles under the UN Convention on the Law of the Sea. The Convention says that Gibraltar is entitled to twelve nautical miles on the east side, or out to median lines where the coastline of other states are under 24 nautical miles distance from Gibraltar,” said the GSLP/Liberals. They argue that the Spanish Government has already claimed the full twelve nautical miles for itself and that it also entered into a reservation, at the time of ratification of the Convention, that such ratification “cannot be construed as recognition of any rights or status regarding the maritime space of Gibraltar that are not included in Article X of the Treaty of Utrecht of 13 July 1713.” Madrid further added that it considered that aspects of the Convention were not applicable to Gibraltar because it was a colony subject to a process of decolonisation in which only the relevant resolutions adopted by the General Assembly are applicable, said the Opposition.. They add that the reservation made by Spain, which is still in place, is not binding and does not have any legal effect. “Moreover, the United Kingdom responded at the time by declaring that it had no doubt as to its sovereignty over Gibraltar, including its territorial waters. London added that as the administering power, she had extended the Convention and ratification to Gibraltar.” “It is clear to the Opposition that there are serious issues of sovereignty at stake in the dispute over the wreck of HMS Sussex. Spain has no right to interfere in the Sussex exploration in the same way as she would also have no right to interfere with the Sovereign Bay project on the east side. These are not Spanish waters and what happens there has got nothing to do with Spain.” xxxxx SDA PRESS FOR HALT TO ROSIA TANKS DESTRUCTION The South District Association (SDA) yesterday continued to appeal to the Chief Minister to relent and reverse the decision to destroy the Rosia Water Tanks. The call follows comments made by Robert Noonan, the owner of OEM International, who was quoted in the Irish Independent as saying: “It (the decision to develop the site) has nothing to do with us. It is between the present government and the heritage commission.” The SDA say this statement “goes to the heart of the matter and clearly underscores that the Government can make the decision to suspend the demolition of the tanks even at this late stage.” The Association urged support for the Protest Gathering at Convent Place on Tuesday between 1.15 pm and 1.45 pm. Meanwhile the UK based Society for Nautical Research, of which Prince Philip is patron, has written to the Chief Minister and tourism chiefs calling for a rethink. The society says that in the early 19th century the main victualling dockyards at Britain were not just storage and issuing facilities. “They were also major manufacturers producing most of the bread, salt provisions and beer needed by the fleet. Overseas a chain of local dockyards was progressively established. Of these smaller yards Gibraltar was possibly the most important. Most of Gibraltar’s stores were supplied from the home establishments. But one of the most important resources needed by any fleet or garrison was and is drinking water. Gibraltar’s needs were met from a series of cleverly constructed vaulted underground storage tanks.”

79 “It is thus very disappointing to learn that the Gibraltar Authorities appear to be about to decide that both the built environment of the Rosia Bay Victualling Yard and the water cisterns underneath the site should be sacrificed for a block of flats and their associated car parking. It is the more disappointing because there is nothing similar to this local victualling yard complex left anywhere else,” says the society in its letter.. “It is a Georgian gem. We feel even at this late stage that every effort should be made to list and preserve the buildings and maintain the architectural integrity of the site. Sympathetic conservation and use of the buildings would bring valuable revenue into Gibraltar for it is the historic naval and military buildings and engineering works together with the fortifications that give Gibraltar its historic interest. “ xxxxx GOVT WILL NOT HALT ROSIA TANKS DESTRUCTION - OFFICIAL Gibraltar Government has given the green light for demolition of Rosia Tanks. In a mega-statement that breaks its silence, No6 has declared that it does not intend to intervene to prevent this development and stands by its decision that the heritage value of the tanks and their condition and other characteristics does not compel their preservation. Noting that a variety of allegations and arguments have been used by those opposed to the Development the Government claim that while some have been genuinely motivated by heritage concerns, “others have been motivated by other factors, including self-interest and political opportunism.” Government said that now that the court case is over it considers that it is appropriate and necessary to respond to these arguments and allegations, “so that people can form a view of the reasonableness of the Government’s decision in the context of accurate information, knowledge of the Government’s position and of the conduct of others in this matter.” No 6 says that a huge range of arguments have been deployed, including heritage, the fairness and integrity of the planning process, integrity of the Government’s decision - making process, lack of tender for the site allocation, alleged bullying by Government of the Heritage Trust, traffic congestion, loss of views, overcrowding, shortage of schooling, whether the housing will be affordable, lack of sewage and infrastructure, that the buildings were too big, etc, etc. THE DPC No 6 says it is completely satisfied that the Development and Planning Commission took properly into account all lawful and relevant planning factors in coming to its decision, including the issues raised by those who submitted objections to the Development and Planning Commission as part of the planning process. “The Government has already announced plans for improved traffic access, parking facilities and green areas in the South District. There will be no shortage of schooling. All other infrastructure is sufficient. All relevant factors have been taken into account”. On the South District Committee Government says it has no doubt that many residents of the area surrounding the Rosia Tanks have a proper regard and concern for heritage generally, including this site but it says that it believes that the persons who established the South District Committee and who direct it, are not primarily motivated by Heritage considerations. BAND WAGON “Heritage featured very lowly in their original arguments, and when it did first arise, the argument related not to the heritage value of the tanks but to the proximity of the new building to the Victualling Yard and the Parson’s Lodge. Furthermore, the public petition raised by the South District Committee did not even mention heritage and said only that the signatories were ‘against the proposed Rosia Tanks development as it is too large and unsuitable for the local area’. The Government, accordingly, believes that the South District Committee rather belatedly ‘jumped onto the bandwagon’ of heritage as a prop to the principal reasons for their objection. Now, their case is exclusively based on heritage to the extent that their campaign is called ‘save the Rosia Tanks’”, SAYS No6. HERITAGE TRUST No6 says it fully supports the work and “proper role” of the Heritage Trust, and regrets the decision of Joe Ballantine to resign as Chairman. Suggestions made by persons who are not Trustees, that the Trust may have been subject to pressure or bullying by the Government to discontinue their action, are outrageous and wholly untrue, says the Government statement. However, its says that given recent statements by some persons closely connected with the Heritage Trust, “it is appropriate to say that in the Government’s view the Trust’s decision to commence legal action was not consistent or compatible with its behaviour in relation to Rosia Tanks prior to commencing that legal action. Nor did that behaviour indicate to the Government any sense that the Trust attached sufficient heritage importance to the Tanks themselves as to require the Government not to allow their destruction. “ The Chronological facts, against which the reasonableness of the Government’s behaviour needs to be

80 measured, are stated by Government to be :1. In April 2004 the Government prominently published the fact that the Rosia Tanks site was available for development, including for affordable housing. The Trust did not react adversely. 2. On 12 October 2005 the Government and the Developer announced the Nelson’s View Development on the site of the Rosia Tanks. The Trust did not react until 4 weeks later, and then it was not to argue the heritage value of the Tanks or the need to prevent the demolition of the Tanks, but to lament the damage that the new building would (through proximity) cause to the heritage value of surrounding sites (Victualling Yard, Parsons Lodge etc). 3. On 24 November 2005 the Chairman of the Heritage Trust wrote to the Chairman of the Development and Planning Commission reiterating “the concerns of the Trust as regards the deleterious effects that this project will have on the heritage sites and buildings in the proximity of the proposed building, the protection of which is a prime duty of the Trust.” Again, no mention of the Tanks themselves or any concern about their heritage value. 4. Upon submission of the application for the planning permission, and as part of the statutory 21 day public consultation process under the Town Planning Ordinance, introduced by this Government, public notice was given of the application for outline planning permission. Nearly 500 citizens exercised their statutory right to submit objections to the Development and Planning Commission. The Heritage Trust did not do so, and filed no objection. 5. The Chairman of the Heritage Trust is a member of the Development and Planning Commission and was present at the three meetings at which this project was discussed and approved, including on 7 December 2005, when the Development and Planning Commission gave final approval and granted outline planning permission. That outline planning permission fully envisaged and indeed referred to the demolition of the Tanks. There were no votes against the decision by any member of the DPC. The Government also says that it notes the call by the new Chairman of the Heritage Trust for all heritage sites to be listed urgently. “The Government is happy to consult with the Heritage Trust about what further sites are sufficiently important and valuable to be listed by the Government for protection under the Heritage Trust Ordinance. However, the Government has never received a request for the Rosia Tanks to be listed. This did not require a new Ordinance.” The Government also says it is committed to the preservation of important and valuable heritage in Gibraltar and to rescue it from decades of dilapidation and abandonment, e.g. Casemates, the King’s Bastion and the Victualling Yard itself. “While everything that is old is heritage, not everything that is heritage is important and valuable enough to require preservation. The Government formed the balanced view that the heritage value of these underground tanks were outweighed by the social value of affordable housing on this attractive site. The Government must make a judgement and, in the case of Rosia Tanks has done so. Many people will disagree with that judgement, but that does not make the Government arrogant or indifferent to heritage or to other people’s views.” Turning to the GSLP/Liberal Opposition the Government makes the following statements: 1. During November and December, the GSLP/Liberals broadcast seven party political broadcasts, all of which were also issued as written statements. In not one of them did they express opposition to the demolition of the Rosia Tanks; 2. During December, the GSLP/Liberals asked 7 questions in the House of Assembly about or relating to the Rosia Tanks development. At no time during the lengthy exchanges in the House did they express concern about or opposition to the demolition of the Tanks or indeed the construction of Nelson’s View on the site of the Rosia Tanks. 3. Indeed, at no time since the original announcement on 12th October 2005 has the GSLP/Liberal Opposition voiced any opposition to the Nelsons View development or any heritage concern about the Rosia Tanks demolition. In late December (a full 8 weeks after the original announcements), following submission to him of the South District Committee’s petition, Mr Bossano wrote to the Committee and to the Developer expressing, for the first time, that the Opposition were opposed to the Nelson’s View development. But that opposition was not expressed in terms of heritage concerns for the Tanks themselves or any other heritage concern. TENDER PROCESS No6 notes that both the Opposition and the South District Committee have raised the fact that this site did not form part of the original tender won by this Developer, and that the site was allocated directly to this Developer without tender. “That is correct. But the Government does not understand what is the objection to that. Unlike the previous Government’s policy which was that all development sites were allocated without tender, this Government’s policy is that all Government sites, assets and contracts are awarded by tender unless there are exceptional circumstances, such as particular and exceptional social or economic benefit to the

81 community. This exception to the tender policy has been set out publicly many times before. In addition, the Government’s 2003 Election Manifesto made it clear that sites would be made available to developers provided they build affordable housing for residents at prices agreed with the Government. That is precisely what has happened at the Rosia Tanks site and at the two sites in Cumberland Road. Furthermore, with the particular construction method being used in these projects, the more volume built by one developer, the cheaper all the houses can be sold for”. The Government says it therefore totally rejects the insinuations of impropriety attaching to the “accusation” of direct allocation of these sites without tender. Last Minute, Unplanned “It has also been said that the allocation of this site for housing development was adhoc, unplanned and not thought out. This is disproved simply by pointing out that it has been publicly identified by Government for possible development as affordable housing since April 2004! “ said No6. xxxxx SDA REPONSE TO GOVT The following is the South District Association’s response to the Government’s statements publicised in the press yesterday. They reiterate that their campaign to Save the Rosia Tanks will continue ‘until the last brick has been removed from the site’: “The SDA, as it has done since the beginning of its campaign, is continuing to call on those who “…support the construction of affordable homes but not at the expense of Gibraltar’s heritage” to join the Protest Gathering called for Tuesday 6th February 2006 from 1.15pm – 1.45 pm at Convent Place, to show the Chief Minister that as a people we care about our heritage and our identity and appeal to him to halt the demolition even at this late stage. It is not too late to stop the work from going ahead and to build this block of flats on another site. The Government refers to its press statement of Thursday 22nd April 2004, which listed a large number of sites for development. But it does not specifically say that all the sites listed would be for construction of ‘affordable’ homes. The list is long containing up to 65 sites and includes some of the sites that the Association feels could have been used as an alternative, like North Front Ariel Farm. The SDA stands by its views that it is not possible just from reading this list to determine that the Rosia Tanks was going to developed an ‘affordable’ housing scheme. In respect to heritage matters, neither the Association nor the Heritage Trust have hidden from the public the fact that they were unaware of the historical significance of the site and how each part of the site is interdependent. It is a fact that is on the record that it was only when these matters were being fully researched that the significance of the site became apparent. The SDA is fully aware that there are other concerns that residents have over and above the heritage issue. However the speed at which the Government has driven this particular project has meant that the priority for the Association has become saving the Water Tanks from destruction. Hence the current emphasis, but the Government can be sure that once the issue of the Rosia Tanks is determined one way or the other, that these concerns will be given greater attention. Had the SDA been given the opportunity to address the Development and Planning Commission, and when this was denied, seek redress through the Courts these issues would have been raised alongside the heritage concerns. The Association continues to stand by its view that the Government have not allowed all the concerns raised to be given the proper consideration. At no stage has the Government made any attempt to discuss these matters with the South District Association. Indeed this is the first press statement in which the Government recognises the South District Association by name and does not dismiss it as a ‘fringe element’. Once again the SDA calls on the Government to halt the demolition and appeals to them to consider the evidence that will be presented to them during the Protest Gathering. Attached is a list of some of the concerns that the SDA has been trying to raise with Government without success since it began its campaign in October 2005. THE WIDER CONTEXT OF THE DEBATE Heritage – the Rosia Bay area that includes the Victualling Yard, Mole and the Water Tanks represent an important part of our heritage and of our historic links to the United Kingdom. Don’t you think they are worth saving and developing in a sensitive manner to enhance the leisure and tourist product of Gibraltar and to preserve our history and identity as a people? Traffic Congestion – How long does it take you to get to work or drop your children off at school each morning now? What do you think will happen once the Anchorage, Cumberland Terrace, North Gorge, Buena Vista and Nelson’s View are completed, a total of over 1000 homes? We estimate that there may be as many as another 1600 vehicles travelling to and from town at peak

82 hours each day. How much time is this going to add to your daily journey? Remember all the traffic in the South District converges on the Queens Cinema bottleneck. Schools – There is only one First School and one Middle School serving the South District, St Joseph’s. What impact is the possible doubling of the intake into these two schools going to have on your child’s education? These two schools are very important to the development of your children’s education. Have you asked yourself how the school is going to cope with the increase in numbers? Environment – There are already problems with the sewage system in the South District. If this service is experiencing problems now, what is it going to be like once these homes have all been built? Parking – Do you have problems finding a parking space for your car now? Even though each home owner has been promised one parking space, families in Gibraltar invariably own more than one car. What additional parking provision is the Government going to make available for the use of residents and guests, once these developments are completed? Beachgoers – the numbers of people using the area increases dramatically in the spring and summer months. Will the area around Rosia be able to cope, when it is having difficulty at the moment? Construction Phase – all traffic to and from each site will cause severe disruption and inconvenience. In the Cumberland Terrace, Anchorage and Nelson’s View projects it is going to be more intense than at North Gorge, particularly if all 3 projects are built more or less at the same time. Are you prepared to put up with the inconvenience, like the noise, dust and other disruption that inevitably follows? The South District Association tried to raise all these issues with government and the development and planning commission during the so called ‘consultation phase’ of the process. The association has received no direct response from the DPC or the government to any of these concerns and continues to be completely ignored by the government of Gibraltar.” xxxxx Territorial waters BOSSANO URGES GIB “NOT TO DROP GUARD” Leader of the Opposition Joe Bossano has linked the row over the HMS Sussex treasure ship with statements by Campo PSOE MP Salvador de la Encina who, speaking on the subject, declared that Spain’s policy in relation to Gibraltar is “to use a mailed fist in a velvet glove.” Mr Bossano said that if this is the message of the “new climate” in Madrid, “then the moral of the story is that we should not drop our guard.” A GSLP-Liberal spokesman said: “We note reports that a court in La Linea has now issued a warrant for the arrest of the Odyssey Explorer and its crew. This is in line with the policy of the Spanish Government that the vessel has been operating in Spanish waters and is therefore subject to Spanish law.” “It will be recalled that last month the Civil Guard intercepted the vessel and instructed the Master to appear before the court in La Linea. The lawyers for the Odyssey Explorer refused and made it clear at the time that “neither the ship nor the Master of the vessel fall under the jurisdiction of the authorities that delivered the request.”” “Meanwhile, PSOE MP for Cadiz Salvador de la Encina has said that the policy of the Spanish Government in relation to Gibraltar is to use a “mailed fist in a velvet glove”. He made these comments when speaking about the controversy surrounding the salvage operations of HMS Sussex.” “In this context, it is possible that Mr de la Encina may be saying that Spain will stick to its position for the sake of appearances (the velvet glove), but that in practice they will make no attempt to stop us at this moment in time and reserve the right to make use of the mailed fist at some point in the future.” “The Spanish Government has already said in an official statement issued by its Foreign Ministry that, as far as they are concerned, Gibraltar does not have any territorial waters at all, other than the waters inside the Port which were ceded under the Treaty of Utrecht. Mr de la Encina himself recalled this statement over the weekend.” “These developments are totally unacceptable. Firstly, the court in La Linea continues to behave as if the waters on the east side are Spanish and has issued an arrest warrant on that basis. Secondly, the metaphor a mailed fist in a velvet glove is intended to imply a situation in which a person assumes the disappearance of a threat i.e. the mailed fist because of the

83 external appearances i.e. the velvet glove. If that is indeed the message of the “new climate” in Madrid then the moral of the story is that we should not drop our guard.” “There is one way in which we can establish whether the Spanish Government is making all these hostile noises simply for effect in Spain or whether they really mean what they say. The sooner UK challenges the Spanish position as to the sovereignty of the waters on the east side and around Gibraltar the better it will be. We welcome the initial clarification that has been made by the Convent last week that there is no question of the unclaimed 9 miles of our territorial sea being available for the Spanish Government to claim as their own. However, having said this, action must now be taken to close the loophole.” xxxxx ROSIA TANKS PROTEST GOES TO NO. 6 Some 250 people, Rosia residents and others opposed to the demolition of the Rosia Tanks, held a lunchtime protest at Convent Place yesterday in a bid to persuade Chief Minister Peter Caruana that there was still time, in the words of their chant, to “Save the tanks.” Tonight they will hold a candlelight vigil at the site and South District Association chairperson Gigi Sene believes this will probably be a wake for the ancient structures. “It will be a saying goodbye to the tanks if that is what the Chief Minister is bent on doing,” she said. With the support of groups such as the Environmental Safety Group, Friends of the Earth and individuals, the SDA stood behind banners declaring ‘Nelson’s view, Caruana’s folly’ and ‘Save our heritage’. A CD with their case for saving the tanks was presented to the Chief Minister’s secretary Denis Hook whilst a hard copy was presented to Governor Sir Francis Richards who received them in his office. Nelson himself was present and irate at that - Malcolm Blagg dressed in the full Nelson kit declaring that the Government is doing nothing for future generations or history. Dr Ann Coats, secretary of the Naval Dockyards Society in Britain, declared that heritage is an asset, not a problem. The Heritage Trust took her around the Rosia area but she did not get access to the tanks. She said the area would make a wonderful development opportunity. She hoped the Government would invite international architects to design a plan that would incorporate business and residential areas and develop the bay. Dr Coats said she was moved by those who spoke of long family links with people who had worked with MOD for generations. “They are going to lose something special when those tanks disappear, if they disappear.” Speaking to the protestors she urged the restoration of the whole Rosia complex to be used for touristic, educational and cultural purposes. “Instead of a few people owning Nelson’s view you can all own it,” she declared. She said heritage sites are swamped by tourists in Britain and all over Europe dockyards are being preserved for regeneration. She said that in Plymouth and Gosport these are regenerating income now that other jobs have gone. “Gibraltar needs affordable housing and it needs to treasure its heritage. There is nowhere in the world like Gibraltar and there is nothing in the world like the Rosia Tanks. This is not a dilemma, it is an exciting opportunity.” Mrs Sene said that the SDA felt that the planning and development process in Gibraltar “leaves a lot to be desired”. “Where is the openness and the consultation when they meet behind closed doors, and there are five government members who can push anything through regardless of the opposition,” she said to cheers. She said that 500 objection letters had been ignored as had the request to be heard. “We have not had a single acknowledgement. When are we going to be heard? Maybe in a year and a half when the elections come round.” Mrs Sene said that 10 per cent of the electorate who signed the petition are being ignored. “If all these people decided not to vote for the present government then where would the GSD be?” She said she did not wish to make the issue political but she felt it was no longer possible at the late stage not to make a few political points about due process. “They are hurrying through the demolition so that the heritage issue will disappear,” Mrs Sene said. She argued that there was no reason why the project is not moved to the aerial

84 farm by Eastern beach. There were boos when she declared that the Chief Minister, as is normal procedure, would not personally receive them. She declared that whilst there were only volunteers in the Heritage Trust, the Government has “a minister for heritage, a whole heritage division employed full time, earning good money, that has not produced a report on this site. I don’t understand that.” After her meeting with the Governor Mrs Sene said that she had been told that the matter was a domestic one in which he has not say but that he had followed the issue with interest. “I hope that the Chief Minister will see fit to look at our CD and become more informed.” Alfred Vazquez, a leading SDA campaigner, said that the demonstration had been a resounding success. “Gibraltar can have affordable housing without having to sacrifice our heritage,” he said. “This is a government hell-bent on denying the people the proper procedures to test and be consulted on issues which they may not agree with them on. Simply to ignore us is just not good enough.” Also present was Joe Ballantine the recently resigned chairman of the Heritage Trust. “Hopefully a miracle will occur and the tanks will be saved and the development will move elsewhere. But after yesterday’s announcement from the government - ‘we will not change’ – that will probably not happen, sadly,” he said. The candle-light vigil will be led by Dr Coats tonight from 7.30 pm to 8.00 pm outside the front gates of the Rosia Tanks site. xxxxx EUROPE’S HERITAGE BODY JOINS ROSIA TANKS APPEAL Europa Nostra, the pan European Federation for Cultural Heritage, which is presided over by the Prince Consort of Denmark, has written to the Chief Minister Peter Caruana urging that the Rosia Tanks be preserved. The organisation says that it had been informed by its member organisation Gibraltar Heritage Trust (GHT) and the South District Association (SDA) of the imminent threat of destruction of the Rosia Water Tanks in Gibraltar, an outstanding example of late 18th century naval architecture with great historic, cultural and architectural significance for Gibraltar and for Europe as a whole. In their letter they state: “As the voice of the civil society associations concerned with the conservation and enhancement of cultural heritage throughout Europe, we urge you to use your authority to postpone the planned works and engage into the necessary process of public consultation on the development of the Rosia Water Tanks site and the possible alternative locations for the affordable housing project.” “We have been given to understand that the planned apartment building, known as Nelson’s View, will detract from what remains of the heritage of Rosia Bay. It will overshadow the Victualling Yard and Parson’s Lodge which won a Europa Nostra Diploma in 1996 for the careful repair and restoration of the historic fortification. But most importantly this construction will destroy the unique Rosia Water Tanks, of great historical and architectural value, as has been underlined by two leading experts on British Naval History, Dr Colin White, Director of the National Maritime Museum in Portsmouth and Dr Jonathan Coad, a member of the Europa Nostra Scientific Council and Vice-President of the Society for Nautical Research.” Europa Nostra says it fully appreciates the needs to build affordable housing for families in Gibraltar but shares the GHT’s view that this should not be done at the expense of the valuable heritage assets of the Rock, especially if alternative locations do exist. Meanwhile Graham Watson Liberal MEP for Gibraltar has written to the Chief Minister in support of the campaign to save the Rosia Tanks. In his letter he says: “I would like to express my concern over the proposed demolition and to request that the possibility of locating affordable housing is looked into. The tanks represent an important part of Gibraltar’s heritage and I understand they could potentially form part of a heritage and tourism project, providing valuable income. Such a project might actually qualify for EU funding support, with which I would be pleased to assist.” The letter goes on to say: “I am particularly concerned since the South District Association lodged their concerns

85 during the early stages of the consultation period, yet did not receive even an acknowledgement”. Mr Watson’s support has been welcomed by the South District Association and comes only a day after Mr Neil Parish Conservative MEP for Gibraltar publicly backed the save the Rosia Tanks campaign. This is the second letter written to Mr Caruana by Gibraltar’s representatives at the European Parliament. The Association says it is hoping that the Chief Minister will take note and act quickly to halt the demolition. In a further twist the South District Association have written to the Health and Safety Officer at the Ministry of Employment highlighting a number of health and safety concerns that the Association hopes will be addressed as a matter of urgency, so that no health and safety laws and practises are being breached on the site. xxxxx SDA CONTINUE ROSIA TANKS LOBBY AS THE WALLS COME TUMBLING DOWN Demolition works above ground have started at Rosia Tanks and the South District Association is calling on its members and supporters throughout Gibraltar to attend a third candle lit vigil that has been called for tonight. There has been increased activity on the Rosia Tanks site since Friday afternoon of last week, when approximately 15 people held a meeting, the SDA believes, to discuss the demolition. “Yesterday the outer perimeter walls were being demolished and today the SDA believes that the buildings above ground will be turned into rubble. The next step will be to move underground and destroy these historic water tanks, that in their day could provide enough water for 18 months for 80 Royal Navy ships of the line,” said the SDA. They say that it seems incredible that the Government continues to push ahead without giving any organisation both local or international the opportunity to discuss this issue with them. “On Monday Mr Graham Watson, Liberal MEP for Gibraltar, who has also intervened on behalf of the campaign, reported in a interview on GBC Radio that he had not received a reply to his letter asking the Chief Minister to reconsider. Europa Nostra, the Pan European Federation for Heritage, and others have also written but one wonders to what effect.” “Undeterred the SDA will continue its campaign until the last brick has been removed from the site,” said a spokesman. The SDA says it continues to have serious concerns in respect to Health and Safety issues that appear to have been addressed but only in a piecemeal fashion. In particular, fears about asbestos being present on the site amongst residents have not been allayed and there is still serious concern regarding this matter, they said. The Association claims it has had confirmation that there is asbestos present in No 3 building and that tests are being conducted on samples taken from the covering of the Rosia Tanks itself. It is believed that the covering itself may contain asbestos. The SDA are continuing to put their concerns regarding asbestos in writing to the Health and Safety Inspectors and are in the process of putting them on notice that it expects any removal of asbestos from the site to be managed in accordance with current health and safety regulations. “The Association cannot comprehend or understand the way that the Government has handled this matter and wants to state once again that it does not believe that this historic site has to be sacrificed to provide ‘affordable’ housing. Affordable housing can be built elsewhere and the Water Tanks preserved and developed sensitively.” The vigil is as from 7.30 pm outside the entrance to the Rosia Tanks. Meanwhile, the SDA also emphasised the historic importance attached to the site and refer to a report prepared by Ann Coats, Secretary Naval Dockyards Society with information supplied by Lionel Culatto, Steven Harrison, Dennis King, Robert Matto and William Serfaty (posted under features on www.chronicle.gi). xxxxx NO CHANGE FOR MILITARY ROLE There are no plans to change Gibraltar’s current military role Adam Ingram, Armed Forces minister has said. Mr ingram said that the Rock’s role centres on providing a forward mounting base and other facilities to support overseas operations. xxxxx

86 WINK IS NEW POLICE COMMISSIONER -OFFICIAL Superintendent Louis Wink is to be the new Commissioner of the Royal Gibraltar Police, the Convent confirmed yesterday. Governor Sir Francis Richards has approved the recommendation of the selection board chaired by Sir Ronald Flanagan, Her Majesty's Chief Inspector of Constabulary, that Superintendent Wink should be appointed Commissioner of the Royal Gibraltar Police in succession to Mr Joe Ullger QPM CPM. Mr Wink will take up his appointment on Mr Ullger's retirement in April. Mr Wink joined the force as a constable in 1976 and rose through the ranks serving in almost all the departments. In 2003 he attended the Strategic Command Course in UK. This is designed to prepare officers for senior position. Mr Wink also attended a diploma course at Cambridge University on applied criminology and police management. xxxxx ANGLICAN MILITARY BISHOP ON GIB VISIT The Rt Rev David Conner Bishop to the Armed Forces will arrive at Gibraltar today and stays until Monday. His visit has two purposes: to meet service personnel and their families and to conduct confirmation of members of King’s Chapel at the Sunday morning service. He will also take the opportunity to meet other chaplains to the forces and the units that make up British Forces Gibraltar. The Bishop is also the Dean of Windsor, responsible for the running of St George’s Chapel in Windsor Castle. The Bishop will be accompanied by his wife Jayne and they will be staying with Governor Sir Francis Richards. xxxxx ESG TAKE POLLUTION CONCERNS TO EU PARLIAMENT ESG, Hassans and Professor Benach have just returned from Strasbourg this time directly lobbying the Environment Commissioner, Stavros Dimas over the question of cross border pollution which they identify as caused primarily by heavy industry in the Campo area. “Supported by the energetic commitment of Neil Parish MEP for Gibraltar who organised this meeting, the team was able to press upon the Commissioner the main focus of its complaint lodged with EC legal offices for the last 4 years,” said the ESG on their return. Keen to present the matter as apolitical and cross border, the team also invited a Spanish MEP, David Hammerstein, known for his support on environmental problems in Spain to lend his support. “In this light the Commissioner could fully appreciate the efforts made to depoliticise the matter and focus, instead, on the environmental impact from the various commercial and industrial activities taking place within the Bay.” Fully briefed in a fourteen page document, the ESG hope that Mr Dimas will use his position to help bring about the necessary action by the EC legal team against Spain on infringement of environmental directives if it draws similar conclusions to those outlined in the complaint. The ESG state that “in spite of the clear environmental degradation created by heavy chemical industries like those situated in the Bay and the Refinery in particular, the options for action by the Commission are narrow”. Among these are: • to ensure that the environmental impact from these industries is clearly monitored and information publicly available (such as was highlighted by the bucket brigade work revealing an absence of such data as required under “Benzene” Directive 2000/69) – and to bring about infringement proceedings if necessary • and for the suitability of the “grandfather clause” status claimed by CEPSA, (obviating the need for compliance with current industrial emission standards (until 2007 IPPC legislation)), to be closely examined as the growth of its refining capacity and petrochemical industry over the last 15 years raise some doubts over its qualification for such status – this expansion of capacity and industry was pointed out to the Commissioner in some detail The ESG reports that the conclusion of the meeting with the Commissioner was that due to the original complaint by ESG and GONHS to the EU in 2002 and continued pressure by the ESG (4 further files), culminating in meeting with personnel of enforcement and

87 technical departments of the directorate of the Environment, Mr Dimas had revealed that Spain had provided information in response to them and that further information was expected imminently, which they would then assess. A further letter drawn up by MEP Neil Parish and the team was drafted in Strasbourg on the meeting outcome and has already been sent to the Commissioner. “It is clear that after having followed the ‘Brussels’ process directly for 4 years, the ESG can now take full advantage of the backing of such MEP’s as Neil Parish to lobby directly and have a “voice” in the European parliament. Without this, it has been very difficult to access a right to environment justice.” xxxxx

SDA GAINS CROSS-PARTY SUPPORT FROM MEPS ON TANKS CAMPAIGN *Asbestos issue could delay works The South District Association said yesterday that the campaign to save the Rosia Tanks has now achieved cross party support in Europe. And informed sources yesterday confirmed that, in addition to the asbestos being removed from building ceilings, samples indicate that the paint covering the entire roof of the tanks contains asbestos. This could delay demolition as builders decide how they proceed with its removal. Glyn Ford Labour MEP for Gibraltar has now also written to Chief Minister Peter Caruana, in support of saving the Water Tanks and moving the construction of affordable homes to another site. The SDA again appealed to the Chief Minister to reconsider his decision and halt the demolition. This site can be preserved and developed sensitively and as all three MEPs for Gibraltar (Neil Parish Conservative MEP, Graham Watson Liberal MEP and Glynn Ford Labour MEP) have stated the 'affordable' homes earmarked for this site should be moved to and built on an alternative site. In his letter Mr Ford says he took up the issue after being approached by the SDA. "It is clear from the information I have received that the tanks are an important part of Gibraltar's heritage providing Gibraltar with a fine example of late eighteenth century naval architecture with great historic significance. I absolutely support the need for affordable housing in Gibraltar but do not accept that this site is either the most appropriate or the only one available. Surely it would be feasible to find an alternative site to build 200 housing units or whatever number might be considered necessary to meet Gibraltar's housing needs," he says. "I urge you to use your authority to postpone the planned works and restart the process of development of the Water Tanks site with a new look at alternative locations for affordable housing. I do not believe it is in Gibraltar's long term interests to develop this area for more housing and that all should be done to seek to persuade the Government to change its policy," said Mr Ford.

xxxxx Territorial waters THREE MILES SUFFICIENT, COMMONS TOLD The British Government said this week that it considered Gibraltar’s three-mile territorial waters “sufficient”, even though it could in theory seek to extend them to 12 nautical miles. Douglas Alexander, Minister for Europe in the Foreign and Commonwealth Office, made the statement in the House of Commons in response to questions from Paul Keetch, the Liberal Democrat MP for Hereford. “Under international law, States are entitled, but not required, to extend their territorial sea up to a maximum breadth of 12 nautical miles,” Mr Alexander said.

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“Where the coasts of two States are opposite or adjacent, the general rule is that neither is entitled, unless they agree otherwise, to extend its territorial sea beyond the median line.” “The UK Government considers that a limit of three nautical miles is sufficient in the case of Gibraltar.” The questions to the minister come less than a fortnight after the UK and Spain clashed over the Rock’s territorial waters, an issue highlighted by controversy over the search for the sunken galleon HMS Sussex. At the time both Britain and Spain staked their claims in the strongest of terms: London claimed three miles of territorial waters around Gibraltar, while Madrid dismissed any talk of British sovereignty over the sea around the Rock. The diplomatic row prompted the GSLP/Liberal opposition to call on the British government to extend Gibraltar’s waters to include the additional nine nautical miles that it is entitled to. Since then, Spanish and British officials have held high-level discussions in Madrid and London to ease tensions and return to the status quo, albeit with more clearly defined positions. In his parliamentary answers this week, Mr Alexander also made clear the British government’s stance on what it believes is the wreck of HMS Sussex. “We cannot give exact details of its location due to concerns about the security of the wreck, but it lies outside British Gibraltar territorial waters in international waters,” he said. Although he did not provide details, a statement from the Convent earlier this month made clear that the wreck lies off the east side of the Rock, within the unclaimed nine nautical miles of sea. xxxxx CARUANA CALLS CONSTITUTIONAL REFORM MEETING NEXT WEEK Chief Minister Peter Caruana has convened a meeting of the Gibraltar Constitutional Reform delegation for next Friday, No 6 said yesterday. The meeting comes just two days after he has participated in a meeting of the trilateral forum in London and just weeks after he met Foreign Secretary Jack Straw on the question of Constitutional Reform. After his January 11 meeting Mr Caruana said he was confident that Mr Straw is giving serious consideration to several key political points of the Constitutional Reform proposal. He said then that another negotiating meeting, of the full Gibraltar and UK delegations on constitutional reform, is planned. Mr Caruana, was reluctant to discuss details, but said the points discussed related to elements in the Constitution that Gibraltar's Constitutional Reform Committee wants to change in order to make them non-colonial in nature. xxxxx RECORD BUNKERING Bunker companies delivered 6million tonnes of fuel oil to ships in the Bay of Gibraltar last year, according to industry sources. Gibraltar supplied a record 4million tonnes of fuel oil to commercial ships in 2005, representing a 12% increase over the total for 2004. Bunker volumes are also growing in the port of Algeciras, which delivered just over 2 million tonnes of fuel last year, up 33% on the previous year. xxxxx ELIOTT GETS EXPANSION GO AHEAD The Development and Planning Commission is poised to grant outline planning consent for a project to build an annexe to the Eliott Hotel in the heart of town. Although some technical matters need to be clarified, the commission last month agreed in principle to clear the project through the first stage of the planning process. The proposal submitted by the O’Callaghan Hotel Group has been drastically scaled down from the original plan for a 28-storey building, which was rejected by the DPC last year. The latest plan cuts the height of the building by over half compared to the original submission. In the current application the proposed annexe would measure 42 metres in height, about

89 the same as the existing Eliott Hotel. The plan is to construct the annexe on a site on Cannon Lane currently used as a car park. It will be joined to the existing hotel by a link bridge crossing over Cannon Lane. If approved, the new hotel will cost £9 million to build and will have 90 high-quality rooms with en suite bathrooms. According to the planning application, this will help address the demand for high quality business hotel suites and associated facilities. xxxxx NO REASON TO HALT ROSIA DEMOLITION - CARUANA SDA raise asbestos concerns Government has no plans to retreat on the Rosia Tanks demolition, Peter Caruana, Chief Minister, told Canal Sur Radio yesterday. “There are no reasons to change the decision. The Government has taken a decision that has taken into account all the objections that are being repeated. For a small group of people to keep repeating the same objections that have already been taken into account by Government in a balanced decision is not opportune.” Mr Caruana said that in a democracy the Government must take decisions that serve the collective interests of the people. “If governments in a democracy were not to do anything to which a minority of its electorate objects, we would become a useless mechanism to govern countries. One thing is that we are told we must consult. But to consult does not mean one has to act in accordance with each person that expresses their opinion. We have to govern and we have to take decisions. Citizens then take their decision at the polls.” Meanwhile, the South District Association has said it continues to get unconfirmed but “reliable” reports that more asbestos has been found on the site. It is already known that the roof of one of the buildings is made from asbestos sheeting. “Now in a further scare, it has come to the Association’s attention that the external covering used to protect the Water Tanks contains asbestos. Residents reported that a couple of persons in protective clothing, who are understood to have been Health and Safety Officers, were seen collecting samples from the Pump House, as it is thought that the pipes and other machinery inside this building may also contain asbestos. It appears that samples have been taken away from the site to be tested.” The SDA reports that no further demolition works have been carried out on site since the perimeter walls and one of the buildings above ground were demolished. “Yesterday residents of the South District reported that heavy machinery had left the site and that all demolition works had been halted. It seems that until the extent of the asbestos is uncovered no further work can be carried out.” “In response to concerns expressed by residents of the area in the past fortnight, the SDA put the developers and the relevant authorities on notice that any asbestos found on site must be removed in accordance with the relevant ordinance. It hopes that both the Government and OEM International take note”. The SDA claim it is becoming clear now that “no attempt was made to carry out a full survey to determine if there was any asbestos on the site before work commenced that could give rise to public health fears. Under current legislation, it is the responsibility of employers to carry out a suitable and sufficient assessment so as to determine what asbestos is or is not liable to be present. Further the employer has a duty not only to protect employees from exposure to asbestos but also to protect any other person who may be affected by the work activity.” If this is the case, then no work should have been carried out on the surface covering of the Water Tanks. Before works commenced the asbestos should have been stripped off the roof covering of the Water Tanks. Only then should the drilling for the geo technical survey have taken place, they said. The SDA says it hopes that before the asbestos is removed the extent and type will be determined. “Asbestos dust is highly toxic. There are three types, white which represents a serious threat to health and blue or brown that is highly aggressive and very serious health risks.” The SDA says it does not feel that enough care has been taken to protect the public from

90 the adverse effects of asbestos. Members of the SDA will continue to monitor the site to ensure that all asbestos is removed in a controlled manner and that it is contained prior to and during the removal so that no particles are released into the atmosphere, said a spokesman. “In an effort to allay fears that are being widely expressed by residents in the area the SDA is calling on the Government and OEM Interna-tional Limited to disclose fully the extent of the problem and inform them on any plans to remove asbestos from the site before they are carried out. This has become even more critical now that the Health and Safety Inspectors have informed SDA representatives, this morning, that they have been instructed not to disclose any information to members of the public verbally on this matter. As from today all queries regarding asbestos on the Rosia Tanks site must be put in writing to them.” The SDA says it is distressed and angry. “It means, in effect, that any person who has any fears for their health can no longer call in to request information on or be reassured as to the extent of the asbestos present, the type or the manner of its removal”. “This is seen as a clear signal, once again, that the Government is trying to obscure the whole affair. In view of this the SDA has written to the Health & Safety Inspectors and sent copies to the Chief Minister’s Office, His Excellency the Governor, the three MEPs who are supporting the campaign, the Chairman of the Development and Planning Commission and OEM International Limited, so that they are in no doubt that this matter is being monitored closely and that the SDA expects full disclosure promptly.” xxxxx

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THE OFC REPORT 2006-02-12 This report is deemed to be the premier report of the world’s leading international financial service centres. Gibraltar is allocated three pages which include advertisements from Credit Suisse and Hassans. The first page lists all the relevant official information whilst another page tells the story of Gibraltar as a trust jurisdiction written by the combined talents of Michael Castiel and Raquel Moss. xxxxx ADMIRAL SIR ALAN WEST Recently whilst on the Rock this Dateliner heard a persistent rumour that Sir Alan had withdrawn from the list of potential candidates to be the next Governor and Commander in Chief of the Crown Colony and Garrison of Gibraltar. The rumour went on to specify that he had been appointed Lieutenant Governor of the Isle of Man. A call to the Isle of Man confirmed that this story was not true. Vice Admiral Paul Haddacks was appointed Lieutenant Governor of the Isle of Man last October and has no intention of resigning. His rank is also not high enough for the position of Governor of Gibraltar. Sir Alan West now returns to the list of contenders. xxxxx KATIE MUNITZ Katie Munitz is researching a 10,000 word dissertation on the subject of how does the Rock of Gibraltar affect the vegetation that grows on it. She flies to the Rock in July and she will visit predetermined ten points and examine height, slope direction, soil ph and soil profile. She will measure the percentage cover of vegetation, the number of species at the site and what different species grow at different heights. Katie welcomes any assistance and can be contacted on [email protected] xxxxx CADOGAN HOLIDAYS Cadogan Holidays continues its expansion in the eastern Mediterranean by issuing a dedicated 32 page brochure under the title ‘Discover Israel’ January 2006- March 2007. This was launched by a distribution within the pages of The Jewish Chronicle offering readers a 20% discount on all brochure prices. xxxxx MICHAEL BRUZON Michael Bruzon, a Gibraltarian making his way as an artist slowly but surely in the Mother Country, is holding an exhibition of his work in the art centre of Eton College. The exhibition is called ‘Hive’ and deals with life in the community and the impact of football in the community. Michael was the resident artist at Brentford Football Club where his paintings were widely acclaimed. It opens on Saturday and can be seen at Eton during the following four weeks. It is hoped that Gibraltar’s quartet of OEs will make a point of seeing this exhibition. xxxxx JOE BOSSANO Joe Bossano has accepted an invitation to become an honorary member of the Falkland Islands Association. In his letter of reply Joe wrote that he was delighted to accept and felt immensely honoured that the FIA had offered him honorary membership. He said that he had always been a 100% committed defender of the Falkland Islands and its people. He feels that the Gibraltarians probably understand the Falkland Islanders’ position better than anyone else. At the United Nations the reaction to the claims of the Gibraltarians and the Falkland islanders for the right of self determination first emerged in 1965 and were identical in respect of both territories so the parallels have been there for 40 years. Joe became a legend in the Falkland Islands, when last May at a United Nations seminar in St Vincent, he tore into an Argentinian diplomat for suggesting that the Seminar include as one of its recommendations that the doctrine of the United Nations was that the

92 question of the Falklands was one of territorial integrity and that self-determination did not apply because the people there were indistinguishable from the occupying power that had transplanted them. xxxxx MALTA AND GIBRALTAR This Dateliner is indebted to May Isola for loaning him a copy of a rare book titled ‘Malta and Gibraltar 1915’ - an historical and descriptive commercial and industrial facts and figures: approved by the Military Censor, London: compiled and edited by Allister Macmillan. The inside front cover shows a photograph of the most famous Rock in the World taken by A. BEANLAND. (CANNOT GET RID OF UPPER CASE) “Malta and Gibraltar, bulwarks of the Empire on which the sun never sets, there are no places like them anywhere. E\ach is the complement of the other; and so long as the Union Jack is an emblem of British naval supremacy, and of liberty and justice, so long will they be amongst the most valuable of all the widely-spread British possessions. ……. Mighty strongholds of world-wide influence, they are amongst the factors operating most surely for the annihilation of the despotic militarism that would, if possible, enslave humanity. …….. Gibraltar’s Main Street is full of intense ethnological interest for types of all races of mankind may be seen there; and a considerable trade is done by the local shopkeepers with the passengers from the numerous vessels that call at the port.” The first 397 pages are about Malta and then 109 pages dedicated to Gibraltar. Since then Malta has become an independent nation and Gibraltar later this year will be decolonised with a modernised Constitution. There is a fine account of the 14 sieges. One illustration stands out and it is of the fresco painted in 1870 by Captain Marshman of the 28th Regiment (now (1915) the Gloucester ) depicting the 39th Regiment (now the Ist Battalion, Dorsetshire Regiment) taking part in the great sortie on the night of 27th November 1781 against the French and Spanish besiegers. Colonel E.R. Kenyon, Royal Engineers, contributes an article of particular relevance to those interested in Gibraltar’s heritage. It is about the fortifications, antiquities, buildings of Gibraltar. This is followed by J.B.Triay’s account of the port and harbour and then a pen portrait of the leading commercial companies on the Rock. These are Saccone and Speed; L.H.Fava and Co; Beanland, Malin and Co; Stagnetto, Ellul and Co; Thomas Haynes; Bristol Hotel; Levy and Co; Francis Hernandez and Sons; R and J Abrines; S.E. Benoliel and Co; Hotel Cecil; Manuel Danino; Smith, Imossi and Co; Marin and Podesta; M.H. Bland (founded under the name Middleton, Macintosh and Bland); A. Mateos; Gibraltar Gas Company; Lewis Stagnetto; Grand Hotel; John Carrara and Sons: Benady Bros; W.J. Ellicott; Francis Balestrino; Joseph Cazes; J.Lucas Imossi; R. Cardona; John Risso and Sons; Calpe Stores; Anthony Ocana; Joseph Rugeroni; Thomas Mosley; A.E. Ferrary; The Anglo-Egyptian Bank; Bristol Pharmacy; Richard Povedano; James Dagnino; Coll and Cassaglia; Joseph Gache; Michael Durante; Bassadone Sisters; Schembri and Co¨J.A.Garibaldi: Moses S. Seruya; Thomas Gamble: W.F.Roberts; Anglo-Hispano Bodega Company; Charles A. Imossi; R.W. Rich; J.Roscoe; John Onetti; John de la Paz and Co; Avelino Sanguinetti; Chevalier George A. Prescott; W. Lequich; Larios Hermanos; B. Sacarello; Aurelios Bottino; G.H. Cartwright; Solomon Cohen; William Guillem; Andrew Freyone; James Sanguinetti; James Pratts; J. Barea; D. Hulhoven; J.B. Littlewood; J.R.K. Dacre. Thirteen names warrant biographical notes and these Gibraltarians are included; Arthur Carrera; John Cochrane; A.Podesta; J.B.Triay. There is an historic photograph of the Government House Group taken on the King’s birthday, 3rd June 1914. Names of interest include: Marques de Marzales (Pablo Larios); J.A. Patron; Captain Loaysa (Spanish Army); Lieutenant Dona (Spanish Army), Fernando Schott (German Consul); Colonel Leon (Spanish Army); General Alcina ( Governor of Algeciras); F. Marti (Spanish Consul-General); Commander Espinosa (Spanish Navy); A. Porral. What beggars belief is that there are more Spaniards than Gibraltarians in this photograph.

93 xxxxx ELMA DANGERFIELD Elma Dangerfield died earlier this month. She was both the heart and the powerhouse behind the European Atlantic Group and will be sadly missed. Elma was 98 years old. She was a passionate supporter of the inalienable right of the Gibraltarians to self determination and at the height of the Blair, Straw, Emyr Jones Parry initiative to force joint sovereignty onto the Gibraltarians invited the Chief Minister to address a crowded meeting in the House of Commons and then at a dinner a the St Ermin’s Hotel. xxxxx Trilateral process CARUANA: AGREEMENT ‘COULD BE WEEKS AWAY’ By Dominique Searle A significant easing of tension in the three hundred year dispute over Gibraltar could emerge next week from trilateral talks being held in Kent, England involving Gibraltar, Britain and Spain. Peter Caruana, Chief Minister, said yesterday that “we are discussing difficult issues, many of which have not even been discussed for years, less still negotiated.” But he told Spanish radio that his hopes remain that agreement will be concluded “in weeks rather than months.” The encounter this coming Monday hosted in Chevening, the British Foreign Secretary’s official country residence, will not resolve the historic dispute over sovereignty; instead Britain and Spain agreed in October 2004 that they should address practical issues in a process that would run parallel to discussions on the political dispute. The talks involving Mr Caruana, and the British and Spanish diplomats Dominick Chilcott, and Jose Pons start Monday afternoon and end on Tuesday with lunch. The three stay over at Chevening but only Mr Caruana will hold a press conference at the GIB office after the talks. Mr Caruana told La Mirada critica on Tele 5 yesterday: “Today my opinion of the state of the negotiations is that it is very possible that there will be an agreement that is good for all sides in relation to the airport. Without touching the issue of sovereignty and with no side advancing or regressing its position on sovereignty, it is possible to reach an agreement that allows Gibraltar’s airport to be useful to both Gibraltar and the Campo. We are on course to find that agreement which will be good for the people of each side of the frontier.” But he also made clear that issues remain to be resolved. “The most complex (issues) are the airport and pensions. The airport, because we have to find practical solutions that do not prejudice the political positions on sovereignty. That is very complex indeed. Pensions are not just technically difficult, this issue also has economic implications,” Mr Caruana told the regional Canal Sur Radio. Gibraltar’s position is that Britain and Spain must resolve any payment. “The possibility of agreement on all these issues is very close. We are talking about weeks, not months. If they are not reached in weeks I think that will be because they are not going to be agreed. There comes a time when if there are only a couple of points on each issue and they not are resolved it will be because they can’t be. We can’t spend another year on the same points.” “I remain confident that there will be a packet of agreements on the issues under discussions and this will create much better cross-border relations than in the past.” Mr Caruana restated that there can only be agreement if all the items are settled. The most obvious indication of a successful outcome on Tuesday will be an announcement that the process moves to a second level – an unprecedented trilateral meeting involving Mr Caruana, Jack Straw, the British Foreign Secretary, and his Spanish counterpart Sr Moratinos. This could happen as soon as mid-March. This was due last year and is described as being under a ‘two flags, three voices’ concept. If the talks move to that stage the agreement is that they are held on an open agenda basis – that would allow Spain to raise sovereignty and for a broader process of talks to take place although Mr Caruana has made clear that Gibraltar is equally free to state its position at talks. Additionally, Gibraltar has a written assurance from Mr Straw that Britain will not agree anything with Spain, including matters affecting sovereignty, without Gibraltar’s

94 consent. Mr Caruana told Tele 5 that he would expect to meet with the foreign ministers, after next week’s talks. This next session would be where these agreements “which do not affect fundamental positions or impinge on sovereignty” would be ratified and announced. He said Spain’s position is its traditional one - that its claim over sovereignty should not be prejudiced or modified. Gibraltar’s is “equally strong on sovereignty and, in our case, our claim to the right to selfdetermination. That is to say that Gibraltar, in the Europe of 2006, freely and democratically deciding its own future, and which we are not willing to put at risk in these discussions.” FT In a letter to the Financial Times, responding to an article which said a deal was close on Gibraltar’s status, Mr Caruana says that the FT rightly stated that the trilateral process does not relate to sovereignty and added that it is not concerned with Gibraltar’s status either. “A new modernised Constitution is currently being negotiated by the UK and Gibraltar, but this has nothing to do with the Trilateral Forum involving Spain.” Mr Caruana told Canal Sur Radio that he believes there is a willingness, within these conditions, to work for the benefit of citizens on either side of the border. He said that “we are discussing difficult issues, many of which have not even been discussed for years, less still negotiated.” It is important that a good agreement is reached for the benefit of Gibraltar and the Campo de Gibraltar rather than making premature statements, he declared. Mr Caruana told Tele 5 that he did not think there was any question of any lack of political will holding back a solution to co-operation at a local level in the context of the mixed commission. But he said the reality is that the powers of the Gibraltar Government to make agreements are greater than those held locally in the Campo, and that the Mancomunidad had had to defer to Madrid in order for agreements to be effected. On Wednesday the Chief Minister meets with Foreign Office officials in relation to other on going business. The Gibraltar delegation comprises Mr Caruana the Chief Secretary Ernest Montado and the Assistant Chief Secretary Richard Armstrong. They are accompanied to London by Press Secretary Francis Cantos. The Chief Minister departs for London on Saturday and returns to Gibraltar on Wednesday. xxxxx A ROYAL OCCASION An unusual encounter with the man who opened the Spanish border in 1985. Peter Caruana dined at the top table with former Spanish Prime Minister Felipe Gonzalez. The occasion was the 25th anniversary of the recovery of the Dehesa de Boyal, the lands of the Almoraima area for the people of Castellar. The towns Mayor Francisco Vaca Garcia explained that this was an ancient dispute which the young ‘Felipe’ as secretary general of the PSOE and a lawyer helped them resolve so that they could build their new town and again have access to hunting rights and pasture. Sr Gonzalez, ‘hijo adoptivo’ of Castellar, opened his speech saying he was pleased to be amongst friends ‘from Caruana, to the mayor and all you good people.’ xxxxx Sky interview: Caruana describes ‘twin-track’ approach STATUS TALKS ‘ONLY WITH UK’ Gibraltar is not being asked by Spain to pay with its sovereignty for normality, Peter Caruana Chief Minister told Adam Boulton in a Sky News interview yesterday. And Mr Caruana made clear that on status Gibraltar is talking to Britain only and intends to remain British. Comparing the situation in Spain today to that of the 2002 joint sovereignty crisis Mr Caruana said that the main difference is that now everyone understands that the future of Gibraltar in effect is only going to be decided by the Gibraltarians. “Previous attempts to do it bilaterally between London and Madrid got nowhere for very

95 good reason. These talks are not focused on sovereignty,” said Mr Caruana referring to the 2002 98% plus decision in favour of remaining British. Mr Caruana said that what is now being followed is a ‘twin track’ approach. “With the United Kingdom only we have status talks. That is a new non-colonial constitution between Britain and a British Gibraltar. And with Spain, in this trilateral process we have talks about other things.” He also said that Spain does not renounce her claim but recognises that the people of Gibraltar want to remain British. “When we (in Gibraltar) talk about status, we don’t talk about Britain or Spain. For us status is being British in a colonial relationship or British in a non-colonial relationship.” “I think that the Spanish Government has realised that if she is ever going to make any headway in her interest in relation to Gibraltar she has to try and persuade the people of Gibraltar. We may have a view on her chances of success on that but Spain now believes that unless she establishes normality in the relationship there is no prospect of any future generations of Gibraltarians thinking differently to what we all do today,” he said. xxxxx GB AIRWAYS GB Airways has been voted the fourth most popular airline in the world : after Air France, British Airways and Easyjet. This was at the Travel Weekly Globe Awards spon sored by Associated Newspapers Ltd. The decision was made by travel agents who took part in the poll. xxxxx Trilateral talks open at Chevening DECISION DAY FOR GIB RELATIONS WITH SPAIN Peter Caruana, Chief Minister, arrived at Chevening House, the British Foreign Secretary’s country residence yesterday for the start of a 24 hour marathon of intense negotiations on issues affecting future relations with Spain (Dominique Searle reports from London). Mr Caruana meets with Jose Pons, the Spanish Foreign Ministry director for Europe and America and his British counterpart Dominick Chilcott at lunchtime today. The three will be staying at Chevening until tomorrow lunchtime. Although it has been agreed that there will be no trilateral press conference or statement, Mr Caruana has made clear that as a politician he will be expected to make some statement after the session. He will be meeting the press at the GIB office in London. But, even if no detail emerges, the critical factor will be whether or not an announcement of ministerial talks will follow. That would be the most obvious indicator that an agreement in principle is basically concluded and only requires ratification and political decision to be announced. Mr Caruana, accompanied by Chief Secretary Ernest Montado and Press Secretary Francis Cantos, told Radio Nacional de Espana yesterday that talks can falter at the last more difficult moments but that he was optimistic that this was not the case now. “It is true that we are close to on agreements on some issues but this is a package and there is only agreement when all issues are agreed,” he said. Use of the airport, frontier flow, pensions and telecommunications are the main issues expecting agreement now. He said that the sovereignty issue is what had always made talks complicated but the effort now was to use the space available to the benefit of the citizens on each side of the border. He was hopeful that on the airport it is possible to make an agreement that Gibraltar does not advance on sovereignty and Spain does not regress on its position either. From this process he was confident that co-operation on local issues such as the environment would follow. One outcome he also suggested was that with normality the EU might no longer look to the three parties as a source of irritation. xxxxx PHOTOGRAPHY The editor thanks Janet Whiteley for the photographs published in this issue. xxxxx