Select Committee on Foreign Affairs Appendices to the Minutes of Evidence

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.

E Montado

Administrative Secretary

21 March 1997

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