SPAIN'S TRILATS RE:GIBRALTAR & BILATS WITH UK

C O N F I D E N T I A L MADRID 000839 FOR EUR/WE, NEA/IR E.O. 12958: DECL: 08/20/2029 TAGS: EFIN PGOV PREL SP IR SUBJECT: SPAIN'S TRILATS RE:GIBRALTAR & BILATS WITH UK RE:IRAN Classified By: Charge William H. Duncan for reasons 1.4 (b) and (d) ¶1. Summary. FM Moratinos attended a Spain-UK-Gibraltar ministerial meeting on July 21 in Gibraltar, the first time in 300 years a Spanish Minister has set foot on the Rock. While Moratinos received significant negative press from critics who believed his trip weakened sovereignty claims, he insisted that it was essential to defend Spain's interests, attempt a new approach to achieve national goals and find a common solution. After the tripartite Gibraltar ministerial, Moratinos and UK Foreign Secretary Miliband held a dinner meeting in Spain that focused on Iran (see para. 11). The British Embassy in Madrid continues to be concerned about Spain's role in EU deliberations on next steps regarding Iranian proliferation and potential high-level Spanish delegations to Teheran. End Summary. ¶2. (U) In a historic July 21 visit, Foreign Minister Moratinos participated in a ministerial meeting of the Tripartite Dialogue Forum" with UK Foreign Secretary David Miliband and Gibraltar Principal Minister Peter Caruana. It was the first time in 300 years a Spanish Minister set foot in Gibraltar since it was ceded to Britain under the Treaty of Utrecht. The Spanish Foreign Affairs Ministry maintained a subtle distinction that Moratinos' presence did not constitute an official visit to the territory; instead Moratinos was only participating in a tripartite dialogue that had already held ministerial sessions in London and Madrid -- protocol dictated the location. The Spanish MFA also stressed that meaningful dialogue was the only way forward and that hard-line stances of the past only marginalized broader Spanish interests. An MFA spokesperson emphasized, "the forum does not deal with sovereignty issues," noting that Moratinos presence in no way prejudiced any claims of sovereignty. ¶3. (C) The tripartite forum aims to increase cooperation on the environment, financial services, law enforcement and customs, education, maritime security, communications and visa matters. A British Embassy in Madrid contact who participated in the sessions said that the dialogue is structured to allow regular exchanges of views, while minimizing any controversial issues such as sovereignty of the territorial waters around the Rock. For example, with regard to maritime cooperation and a proposed ferry service between Gibraltar and Algeciras, Spain, the British poloff projected that feasibility and economic impact studies could continue for several years, if not longer. We understand from both the British Embassy and the Spanish MFA that they are in agreement that the overall bilateral relationship has much more important elements than Gibraltar, and the tripartite discussions are a way to move forward on specific projects while avoiding difficult differences of opinion regarding the Treaty of Utrecht, its provisions and current implications. The forum is also structured in a way that each ministerial session will result in some type of announced agreement to maintain a perception of progress. ¶4. (C) An eighteen-page document summarizes the results of the July ministerial session. Negotiations are moving forward on a tax information sharing agreement based on OECD models, which will include mechanisms to prevent money laundering and terrorism finance, as well as fiscal and financial fraud. According to the British Embassy, modalities need to be discussed. While the substance of the agreement is moving forward, Spain will not sign a document with Gibraltar, and Gibraltar will not allow the UK to sign a document on its behalf. British diplomats and their counterparts are exploring alternatives. Another priority is a maritime cooperation agreement that would allow a quick response to any environmental disasters, specifically provisions that would allow Spanish emergency teams to operate in waters claimed by Gibraltar or the UK. ¶5. (C) The next working group will discuss a joint airport project that is important to Spain in terms of economic development. Moratinos has proposed that Spaniards access the runway through tunnels from La Linea, Spain, thereby allowing Spaniards to feel they are departing from their own country because they won't have to present identification at the border. The UK and Gibraltar had planned a follow-on meeting in mid-September, but now the Spanish have asked for more time to organize their delegation and reports. ¶6. (C) As part of the education component, Moratinos announced that a Cervantes Institute cultural center will open in Gibraltar before 2010, under the direction of a former Chief of Studies of the Spanish Diplomatic School. Current polling shows that the vast majority of Gibraltar residents do not want the territory to come under Spanish control. Moratinos has remarked that Spain needs to, "win the hearts and minds," of Gibraltar residents as part of a long term process of achieving its objectives. -------------- 300 YEARS LATER - THE ROCK IS STILL A HARD PLACE FOR MORATINOS -------------- ¶7. (U) In terms of Spanish public opinion, Moratinos encountered significant negative press commentary, particularly from the opposition Partido Popular (PP) that has always taken a hard-line on Gibraltar. The timing of the tripartite session was not optimal, coming between Moratinos' visits to Equatorial GUINEA and Venezuela, both criticized by some as putting Spain's trade and business interests ahead of human rights and good governance. According to the press, the Gibraltar opposition was also against Moratinos' visit and his meeting with Peter Caruana due to Spain's claim to the waters around the Rock. ¶8. (U) Both the PP and the small, centrist Union for Progress and Democracy party described Moratinos' visit as despicable, irresponsible, and a terrible mistake. PP leader Mariano Rajoy commented acidly that Moratinos was the first foreign minister in history to make an official visit to his own country. Even left-of-center daily El Pais published an editorial opining that Moratinos' participation, versus the participation of another Ministry official, might be seen as ambiguous both inside and outside Spain in terms of sovereignty claims. An El Pais poll determined that public opinion was split with 50 percent for/50 percent against the Gibraltar visit. On August 15, PP Foreign Affairs Coordinator Gustavo Aristegui stirred the pot again, accusing Gibraltar authorities of piracy for sending armed vessels into territorial waters claimed by Spain. He also claimed that Gibraltar was expanding its territory with landfill that included contaminated materials. ¶9. (U) In an attempt to calm down Spaniards during a post-ministerial press conference, Moratinos said again that the question of the sovereignty had never been on the table, adding that Spain's claims over Gibraltar are unalterable and acknowledged by all parties. Moreover, Moratinos said, "I don't regret having gone to Gibraltar. On the contrary, I went there to defend Spain's interests." Addressing the PP criticism, Moratinos said, "It is only a minority that has taken this outdated nationalist stance. Our national dignity has been damaged by a policy that has not worked for over 300 years. What we have done is take a new approach to achieve our aims. We have to find a solution that meets the needs of all involved." ¶10. (U) And the Zapatero administration is continuing damage control to counter the PP opposition - on August 18 the MFA announced that the GOS would file a supporting brief at the European Commission against an appeal launched by the UK and Gibraltar. The appeal seeks to annul a December 2008 European Commission decision recognizing Spanish control over the waters surrounding Gibraltar. This is the first time the dispute over territorial waters around Gibraltar has been raised to the EU's Justice Tribunal. Spain is basing its legal brief on its claims that the Treaty of Utrecht only cedes to the British Crown the city and fortress of Gibraltar, along with the port and defensive structures. Spain claims the treaty does not include the isthmus, territorial waters or airspace. -------------- BILATERAL SPAIN-UK TALKS FOCUS ON IRAN -------------- ¶11. (C) Given the sensitivity of sovereignty claims, it was not possible to hold a bilateral Spain-UK meeting on the margins of the tripartite session. The British Embassy told us that Miliband flew to Jerez, Spain for a dinner meeting with Moratinos. British Embassy poloff said that Iran was a main topic of conversation, with Miliband stressing the need for EU unity on next steps regarding Iranian proliferation. Noting that Iran had responded to serious threats of sanctions in the past, Miliband argued that the credible threat of sanctions could move things in the right direction. However, Moratinos continued to believe that dialogue was the only way forward and that putting pressure on the Iranian regime would only result in counter-productive behavior. Miliband told Moratinos that others would look to Spain to provide leadership on the issue during its January-June 2010 EU Presidency. British poloff also said that Spain continued to give hints that they might undertake a high-level visit to Iran "if the conditions were right" and the UK suspected that Spain might schedule a visit during the EU Presidency, adding that absent a dramatic change in Iran's stance, any proposed travel by Moratinos to Iran would result in a Miliband phone call advising against the move. DUNCAN