HL Deb 27 July 1967 vol 285 cc1313-24

7.15 p.m.

LORD MERRIVALE rose to ask Her Majesty's Government whether they would be prepared to review the financial aid given and state the support proposed if the majority of the people of Gibraltar vote in the Referendum to retain the link with Britain, in view of the changed circumstances which could arise out of the threatening implications of the aidemémoire of the Spanish Government to the British Government on 3rd July 1967, and given the present critical circumstances of Gibraltar whether they would not agree that the constitutional discussions which are proposed with their representatives should be of a wider nature than would appear intended. The noble Lord said: As Spain is increasingly moving along the cruel path of demoralisation with regard to the community of Gibraltar, I trust your Lordships will agree that it is right that, on this last occasion, we should discuss the matter before the Referendum, some of their problems should be aired this evening and that certain assurances should be sought from Her Majesty's Government.

The noble Lord, Lord Beswick, will be aware that on July 3 this year the Spanish Government in their aide-mémoire rejected the Government's proposal of June 14 last to hold a Referendum in Gibraltar in September. If I may paraphrase some remarks in the aide-mémoire, it went on to say that should the British Government persist in this decision the Spanish Government will feel itself without any further obligation towards Gibraltar. I should have thought that that was a threat in anybody's understanding. Therefore, I plead with the noble Lord to give a categorical assurance that Britain is prepared to guarantee an injection of capital aid which will ensure that Gibraltar can remain economically independent of Spain if the majority of the people of Gibraltar vote in the referendum to retain the link with Britain, should Spain—and I stress the word "should"—increase the pressure. I am not asking that the Minister should give an assurance that there should be a review of financial aid if the people of Gibraltar vote for retaining the link with Britain, but only if Spain increases the pressure as a result of the Referendum, thus occasioning further economic difficulties for Gibraltar. The noble Lord will be well aware that over the past few months, and even past years, Spain has constantly been increasing its strangulation of Gibraltar both from an economic point of view and from the aspect of communication with the outside world.

If we may consider the statement which the noble Lord, Lord Beswick, made on April 13 last to the effect that on the previous day an order had been published in Madrid establishing a zone in the immediate vicinity of Gibraltar in which all flying would be prohibited, that order in Madrid has made investors outside Gibraltar very loath to invest there. This restriction has also been responsible for the suspension of the development project planned by Messrs. Hood's of Wolverhampton. This project, as mentioned in the Financial Times of October 28 last year, as part of the gradual disengagement of the Rock's economy from Spain, was for a scheme costing over £1 million to form a little Gibraltar Riviera, including the construction of 100 chalets to be let to tourists. I am not saying anything new when I say that Gibraltar needs tourists as well as it needs more hotels. But not only has all residential development been halted by these Spanish restrictions upon overflying and so on, but so has hotel development been halted. I understand that £300,000 has been earmarked—I should like to say "allotted"—by Her Majesty's Government for capital development, and I believe that sum is mainly for hotel construction. Under present conditions this is a totally inadequate amount.

Therefore, I would ask the Minister, in view of the special circumstances prevailing in Gibraltar, to give very careful consideration to subsidising hotel construction on the Rock on a larger scale than is at present envisaged. I am asking for this on account of the present economic difficulties of Gibraltar. In other words, I ask Her Majesty's Government favourably to consider increasing the percentage of Government money which is to be provided for the development of hotels. I ask this since I believe that such a percentage increase would make a considerable difference in attracting the right sort of developer. Therefore, I was surprised and disappointed to read in Hansard of another place on July 25 this year a Government statement to the effect that Her Majesty's Government had allocated £600,000 to enable a start to be made on an expanded development programme up to 1970, as laid out in the Government of Gibraltar plan. But that is the same £600,000 which was mentioned by the Colonial Secretary Mr. Fred Lee on November 3 last year.

But—and this is the important point—since the statement of November 3 conditions have changed, and they have changed to the detriment of Gibraltar, particularly since the overflying ban by the Spanish Government. As I understand it, this amount of £600,000, like the £300,000 which I mentioned earlier, is to come out of the £2,500,000 which is the total amount to be provided for the expanded development programme. It seems that under the conditions at present prevailing in Gibraltar, Her Majesty's Government should raise their sights a little and possibly consider increasing the amount, which is to be spread over the period to 1970, from £2,500,000 to £3 million.

As I said earlier—and I would stress this—development is halted on account of the latest Spanish air traffic restrictions. In this context of a higher percentage of Government funds being provided for desirable development, and with a view to assisting it, I should like to ask the noble Lord whether consideration could be given to speeding up the relinquishing of some Ministry of Defence land on the western side, so that it could be developed to provide a strong tourist attraction.

As the Spanish aide mémoire states that holding a Referendum is contrary to the wishes of the United Nations (this is the Spanish point of view, and not my point of view or that of Her Majesty's Government) can the noble Lord say whether the very reasonable suggestion by the noble Lord, Lord Rowley, last week, that the United Nations Secretary-General should send a representative during the Referendum, has been implemented, and whether a reply has been received from the Secretary-General?

Various rumours are going round Gibraltar at the moment, and these have been mentioned in the local Press; for instance, that the Spanish labour force employed in the docks will be withdrawn after the Referendum; and that the Algeciras-Gibraltar ferry will no longer call at Gibraltar. Finally—I do not think this is a rumour, but it is a worrying thought which should be most carefully considered by Her Majesty's Government, because it fits into the Spanish pattern of slow strangulation of Gibraltar and its economy—there is the question of Spanish interference with the boundaries of Gibraltar's territorial waters. Therefore, will the Minister give a categorical assurance that Her Majesty's Government will not tolerate in the future any hindrance of free access by sea to the port and harbour of Gibraltar?

Access by air is already hindered by the air traffic restrictions and by crosswinds. For instance, on account of these crosswinds B.E.A. flights on June 10, July 8 and July 15 this year were diverted to Tangier, Malaga and Tangier respectively. Is it not feasible to believe that this coming winter, when Tangier airport is closed at night, the Spanish Government may endeavour, by a tightening up of the air traffic restrictions, to force diverted aircraft to land in Spain at Malaga? In other words, we could be playing into Spanish hands.

Regarding the need to maintain effectively and even to develop existing communications to and from Gibraltar, which are so essential to the Rock's survival, to the strengthening of its economy and to its development as a tourist centre, I should like to refer again to a point which I made on March 9, 1966. I should add that this suggestion has the wholehearted backing of the Gibraltar chamber of commerce, as well as of the members of the United Kingdom Mission of the Federation of Commonwealth Chambers of Commerce when they went out to Gibraltar; namely, the idea of some air link with Portugal.

As the noble Lord will no doubt be aware, trade is building up between Gibraltar and Portugal. Such an air link would be an added facility for tourists to visit the Rock and also to visit Portugal. On March 9 of last year, the noble Lord, Lord Walston, at column 1205 of Hansard said: British European Airways is an independent Corporation, and it is for the Corporation to fly where it considers its duties and its financial profit is likely to take it. Might I respectfully ask the noble Lord, Lord Beswick, whether a different yardstick could not be applied in the very special circumstances existing in Gibraltar? The link for which I am asking is more than just a service for purely social reasons or reasons of profitability. I believe this to be a means of opposing the stranglehold of Spain.

As B.E.A. would have to make an application to the Air Transport Licensing Board before the Board of Trade could apply to the Portuguese authorities, would the noble Lord consider taking the initiative with B.E.A. in this matter? On March 9, 1966, the noble Lord, Lord Walston, said that perhaps my remarks would be considered by B.E.A. Maybe they have been but, so far as I know, no action has yet been taken in this matter. Perhaps the noble Lord, Lord Beswick, would be willing to see whether Her Majesty's Government could take some initiative in this circumstance. This could be either a London-Gibraltar service, calling at Lisbon in both directions, or an extension of the London-Faro service, going on to Gibraltar, or purely a Gibraltar-Faro service.

Finally, I should like to turn to the last part of my Question. On July 19 the noble Lord, Lord Beswick, said: I do not think that such an exceptional arrangement "— he meant a Round Table Conference— would be suitable or necessary in the present circumstances of Gibraltar."—[OFFICIAL REPORT, col. 254.] What I am asking Her Majesty's Government to do is to consider to-day that after the Referendum there should be some form of discussions, which would be a reflection of, or would give effect to, the present feelings of every Gibraltarian; in other words, that both the political and economic aspects of their situation should be considered, for they are uppermost in their minds at the moment.

The decision which the people of Gibraltar will be asked to take in September is a political decision, which must of necessity have economic repercussions. The noble Lord, Lord Beswick, said last week that the Government envisage that the discussions will be held in Gibraltar. Are the Government proposing to send someone of the calibre of Sir Hilary Blood, or some Government nominee? I imagine that I am right in assuming that a constitutional conference, as such, is not proposed, for I presume that would be held in London. In order to allay the fears of some Gibraltarians who feel that a Government nominee's report would facilitate arbitrary decisions being taken by Her Majesty's Government, with no opportunity for consideration, debate or amendment by Parliament, would the noble Lord reconsider his previous statement on this matter? For if the people of Gibraltar vote for retaining their link with this country, surely that will entail recognition by Her Majesty's Government that the 1964 Constitution Order should be looked at again in the light of present economic conditions and restrictions.

My Lords, surely members of a Round Table Conference could look closely at and report on all these aspects. Most of the terms of reference of the Malta Round Table Conference would, it seems to me, be appropriate. They could, for instance, be amended as follows: To consider constitutional and related questions arising out of a majority decision for a free and voluntary relationship between Gibraltar and the United Kingdom; to consult representatives of all shades of political opinion and such other persons as may seem fit to them; to report their conclusions and recommendations. My Lords, if the noble Lord looks at the report of the Malta Round Table Conference he will see that economic development in this case is related to constitutional changes, and I should have thought this applies perfectly in the situation that will arise after the Referendum in Gibraltar. I cannot see why the noble Lord will not admit that there might be, that there could be, or that there is a relationship such as I have said.

In conclusion, wider-based discussions would surely give the required flexibility, and I would plead with the noble Lord to give some encouragement this evening to the people of Gibraltar, so that they may be assured that if they vote for retaining their link with this country, and if, because of this, Spain increases its pressure, Her Majesty's Government will take the necessary steps to safeguard their economic future.

LORD GRANTCHESTER

My Lords, before the Minister replies, may I ask him if he would say whether the meetings between Her Majesty's Government and the Government of Spain have come to a complete end, or deadlock?

7.34 p.m.

LORD BESWICK

My Lords, first of all, may I say that we must all admire the persistent way in which the noble Lord, Lord Merrivale, represents the viewpoint of some of the people of Gibraltar in this House. He has put forward a number of questions this evening, and, quite frankly, I cannot answer all the detailed questions which he has put to me. I have not had notice of all he was going to say; but I will undertake to look at what he has said and I will write to him further if I cannot answer all his points. The noble Lord, Lord Grantchester, asked me about the position with regard to Spain. There is at the moment (shall I call it?) a pause. Each side, I suspect, is waiting for the other to make another move. So far as the particular discussion about the air space is concerned, that is a matter which is being referred to the International Civil Aviation Organisation at Montreal.

The noble Lord, Lord Merrivale, himself put questions which fall into two parts, economic and constitutional, and I should like first to deal with the economic. Let me first say to him—and I say it in, I hope, a friendly way—that I think he would not be doing the people of Gibraltar a service if he allowed the impression to grow that they were becoming disturbed by Spanish propaganda and were in doubt about the validity of the assurances of support for Gibraltar which Her Majesty's Government have given. We have made our position regarding aid and support for Gibraltar perfectly explicit. I add only that assurances are rather like paper currency: if they are issued in too great a volume they are devalued. Moreover, it would be a mistake to overstate the vulnerability of the economy of Gibraltar.

The bread and butter of Gibraltar is the naval dockyard, as the noble Lord knows, and the activities of the Service Departments. These provide about 60 per cent. of the national income of Gibraltar. The Gibraltar Government's Development Plan for the years 1967–70 is primarily devoted to the maintenance of the dockyard and other key industries at the present level by ensuring an adequate supply of skilled labour. It provides for the building of houses, of which about 50 a year will be available for skilled immigrants to take the place of Spanish men in key posts who are lost by natural wastage. Our military activities in Gibraltar are not vulnerable to Spanish action.

The second main source of income, as the noble Lord himself indicated, is the tourist industry, and there is hope that a thriving industry, based more on holidays within Gibraltar and less on transit visitors, can be developed. The Gibraltar Development Plan acknowledges this. It includes expenditure of nearly £250,000 on improvements to the amenities, and some of these improvements are already under way, financed by Colonial Development and Welfare grants. It is also the Gibraltar Government's intention to stimulate private investment, not merely by the recently introduced taxation concessions to private investors but by Government expenditure to assist the private sector, especially in the hotel field. Over £300,000 has been earmarked by the Government for this purpose.

LORD MERRIVALE

My Lords, may I interrupt the noble Lord a moment? I understood it was £300,000, and the noble Lord says it is over £300,000. That is encouraging. To what extent is it over the £300,000? Because, as I mentioned, the £300,000 is not sufficient at the moment.

LORD BESWICK

I would rather leave it at that figure. Obviously, I do not think that it is a very large amount over that £300,000.

Despite what the noble Lord says about the recent discouragement, although the number of tourists entering Gibraltar is falling the time they spend in Gibraltar is not. The length of time spent by tourists in Gibraltar is increasing as holiday habits change. The number is still low and the amount of time they spend is still too low—it is between two and three nights each on average, as I understand it—but this can be further increased as the awareness of what Gibraltar has to offer is increased and the improvement in facilities begins to show. Many things could be done to increase the tourist industry in Gibraltar, and it was for this reason that the Gibraltar Government, financed by our own Ministry of Overseas Development, recently appointed a Director of Tourism. Mr. Scrace has now taken up his appointment, and results will no doubt soon begin to show.

I should mention the aid we have already given or promised. Gibraltar is by no means bankrupt, and our only support for the budget has been two special grants, in 1965 and 1967, of £100,000 each, to help with special expenditures arising out of the Spanish measures. Our capital assistance has been a £1,000,000 allocation of grant money for the years 1965–68, and an Exchequer Loan of £200,000, which the Gibraltar Government intend to use to finance the extension of their public utilities. More recently, the Gibraltar Government prepared their supplementary development plan for the four years 1967–70, which envisaged a total expenditure of £3,871,000, of which £2,500,000 would require finance by other means than loans. The then Colonial Secretary announced in November, 1966, as the noble Lord said, that the British Government supported the general objectives of the plan, and allocated £600,000 to enable a start to be made on it.

On October 31 the Foreign Secretary said in another place: Let me therefore make it quite clear that it remains the firm intention of Her Majesty's Government to sustain Gibraltar in her present difficulties, and if we think that further financial aid is needed for that purpose we will provide it". This is a pledge that we are carrying out in practice.

The noble Lord referred to the threatening implications of the Spanish Government's aide-mémoire of July 3. I suppose he was alluding in particular to the final paragraph, which said, in translation: If Her Majesty's Government proceed with their unilateral decision of 14th June, 1967, they will have embarked on a course contrary to that indicated by the United Nations, with all the consequences which that entails. The Spanish Government will then be under no obligation towards Gibraltar, for Great Britain will have violated Article X of the Treaty of Utrecht and the question of sovereignty will have been reopened. Her Majesty's Government will, of course, make their views known on the Spanish aide-ménoire through diplomatic channels in the usual way. It would not be appropriate for me now to suggest what the implications of this passage may be. Whatever they may be, however, there is no need or justification for my adding to what my right honourable friend the Foreign Secretary said last October about supporting the people of Gibraltar.

It would not be profitable for me to speculate on the possible scope or effect of any measures which the Spanish authorities might see fit to take with the aim of inconveniencing Gibraltar and damaging its economy if a majority of the people of Gibraltar vote in the Referendum for retaining their links with Britain. If the economy of Gibraltar were to suffer further restrictions, we should then confront a new situation which Her Majesty's Government would then consider, in close consultation, as is customary, with the Government of Gibraltar.

The noble Lord asked questions about the constitutional aspect. To put the matter into perspective I might remind the House of the terms of the Statement regarding the Referendum which was made here on June 14. It included the following words. It said that if the majority of the people of Gibraltar voted to retain their link with Britain with democratic local institutions and with Britain retaining its present responsibilities … we will regard this choice as constituting in the circumstances of Gibraltar a free and voluntary relationship of the people of Gibraltar with Britain. We will thereafter discuss with representatives of the people of Gibraltar appropriate constitutional change which may be desired. I said, "with representatives of the people of Gibraltar". I made it clear then, and I do so again, that that would include representatives of all shades of opinion in Gibraltar. I do not believe, and I said this at the time to the noble Lord, that a round table conference in this case is the right way of going about things. The Malta Round Table Conference was a special conference held to meet the exceptional circumstances of Malta arising from the proposal that Malta should be integrated with the United Kingdom and represented here in Parliament at Westminster. The Round Table Conference with members of all Parties was in that circumstance thought to be appropriate to that particular situation. The case of Gibraltar is different. Frankly, we do not see any necessity to widen the nature of these discussions. They are wide enough to cover all the needs of the situation.

LORD MERRIVALE

The economic needs too?

LORD BESWICK

All the needs of the situation. If I were the noble Lord I should read that in conjunction with the assurance given by my right honourable friend the Foreign Secretary. I was asked a specific question about lands held by the Ministry of Defence and the possibility of making them over for tourist purposes. The fact is that we have had no specific requests by the Gibraltar Government for the release of these lands: but if a request were made we should, of course, consider it.

LORD MERRIVALE

My Lords, they cannot make a request because all development has been halted on account of the air ban restriction.

LORD BESWICK

The noble Lord asked me if it would be possible for the land to be made available. What I said is that if such a request were made it would be considered. He asked a number of questions about air links. I cannot answer them "off the cuff". I will look into these matters. Finally may I say that the people of Gibraltar themselves, and the Legislative Council, as the noble Lord knows, have welcomed the holding of these constitutional discussions, and I should have thought we must now await the Referendum and its results, and then ensure the most fruitful constitutional discussions.

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