1. The Foreign and Commonwealth Secretary, the Right Hon. Sir Geoffrey Howe, and the Spanish Foreign Minister, His Excellency Sr Don Fernando Morán López, held a meeting in Brussels on 27 November during which they agreed on the way in which the Spanish and British Governments will apply by not later than 15 February 1985 the Lisbon Declaration of 10 April 1980 in all its parts. This will involve simultaneously:

1. (a) The provision of equality and reciprocity of rights for Spaniards in Gibraltar and Gibraltarians in Spain. This will be implemented through the mutual concession of the right which citizens of EC countries enjoy, taking into account the transitional periods and derogations agreed between Spain and the EC. The necessary legislative proposals to achieve this will be introduced in Spain and Gibraltar. As concerns paid employment, and recalling the general principle of Community preference, this carries the implication that during the transitional period each side will be favourably disposed to each other's citizens when granting work permits.

2. (b) The establishment of the free movement of persons, vehicles and goods between Gibraltar and the neighbouring territory.

3. (c) The establishment of a negotiating process aimed at overcoming all the differences between them over Gibraltar and at promoting cooperation on a mutually beneficial basis on economic, cultural, touristic, aviation, military and environmental matters. Both sides accept that the issues of sovereignty will be discussed in that process. The British Government will fully maintain its commitment to honour the wishes of the people of Gibraltar as set out in the preamble of the 1969 Constitution.