Talks on Gibraltar reach critical stage

Britain and Spain are at a critical stage in negotiations over the future of Gibraltar.

A senior British official said yesterday: "It's kind of make-your-mind-up time for the Spanish." The two sides aim to reach an agreement by the summer, but a deal was "not a foregone conclusion".

After what the Spanish press billed as a "secret meeting" between Jack Straw, the Foreign Secretary, and Josep Pique, his Spanish counterpart, in Valencia, one British source said: "We are making progress, but it is real negotiation. It is difficult and it is not a foregone conclusion that we will reach an agreement."

He added: "We are not going to sign a deal by the summer if it is not the right one. We've made it clear to the Spanish what has to be in this agreement."

Although Mr Straw insists any deal will be put to the 30,000 inhabitants in a referendum, Tory MPs and islanders have accused him of doing a secret deal with Spain.

The official said the principle of the people of Gibraltar holding a referendum with the final say over their sovereignty was not one Spain would accept easily. "It would be unrealistic to expect the Spanish to bury their historical claim [on the island]," he said.

Mr Pique said "substantial progress" had been made after the meeting on Tuesday.

Gibraltarians see any notion of sharing sovereignty as the thin end of the wedge.

In March, 25,000 islanders, adamant that they wanted to remain part of Britain, demonstrated against British and Spanish efforts to end the dispute.