Annex 5, Annex 2
Letter from Mr Ernest Montado, Administrative
Secretary, Government of Gibraltar, to Mr J Pearce, Director National
Audit Office, 21 March 1997
As requested, I attach relevant correspondence
setting out the early warning signals sent by the Gibraltar Government
to HMG, as far back as September 1976 about the potential liability
to Spanish pensioners.
You will see from this correspondence that the
matter was subsequently the subject of discussions aimed at arriving
at a lump sum settlement with Spain. This particular opinion was
pursued on and off, until about 1982-83, by which time, Spain
was edging towards EC Accession and increasingly disinclined to
negotiate on this basis.
I hope that the information is of help. If you
require further clarification, please let me know.
21 March 1997