GIBRALTAR: Btitain and Spain denied negotiations about the future of Gibraltar were on the brink of collapse yesterday despite few public signs that an agreement on shared sovereignty was close.
Although Downing Street was careful to pitch the talks between the Prime Minister, Mr Blair, and his Spanish counterpart, Mr José Maria Aznar, as an "interim staging post" rather than a "final make-or-break day", officials acknowledged that negotiations had reached a "difficult" stage.
After two hours of talks, Mr Blair insisted during a joint press conference that discussions about Gibraltar had been "very useful" and would continue in a "positive and sensible" atmosphere.
Irritated by the suggestion from the press that the talks faced a "deepening crisis", Mr Aznar said the issue had been on the table since 1713, when Spain ceded Gibraltar to Britain.
"I don't think it is appropriate to use the term crisis to describe the situation," Mr Aznar said. "We know what problems still have to be resolved. We are also fully aware of the difficulties we all face in resolving those."
London and Madrid are keen to secure a deal on shared sovereignty this summer, which would then be put to a referendum of Gibraltarians.
However with Britain prepared to share sovereignty provided it represents a final settlement and Spain's refusal to abandon its claim to the territory, combined with Gibraltar's opposition to shared control and anger that the deal is likely to remain on the table even without its approval, progress appears unlikely.
The two leaders met as full-page advertisements were placed in several British newspapers by the government of Gibraltar seeking the support of British voters against joint sovereignty.