Spanish troops begin Parsley Island pull-out

Madrid began withdrawing troops from the tiny island of Perejil last night, after the US brokered a deal between Spain and Morocco that will see the island returned to its native goats.

Spanish defence sources confirmed that the lifting by helicopter of equipment and troops had already begun, and that the remainder would follow shortly.

"Spain and Morocco have reached agreement about Perejil island that presumes the return to the status quo from before July," a Spanish government spokesman said.

The US had been concerned that growing military tension between a major European country and Morocco could undermine the global war on terrorism.

Behind the comic aspects of the tussle over the islet ­ so named apparently because parsley ("perejil" in Spanish) is the only thing that grows there ­ opinion within the EU over Spain's gunboat diplomacy in the Gibraltar straits is deeply divided.

Madrid ordered its small military force off the island ­ a mere 250 metres from the Moroccan coast ­ amid growing international ridicule, as well as fear that the situation could spiral out of control. The pullout came before EU foreign ministers met in Brussels, thereby averting a public row between Spain and some of its partners. France has already blocked an EU statement of support for Spain, on the grounds that it added "one crisis to another crisis".

Such was US concern about the rising military tension between these two prickly neighbours that Colin Powell, the Secretary of State, personally intervened in the dispute.

The US feared the diplomatic fallout could affect the operation of the Nato facility on Gibraltar ­ used, among other things, to monitor suspected Islamic extremists.

America was also keen to ensure that Spain did not stir up further anti-Western feeling in the Islamic world by using its military muscle to dominate Morocco. Mr Powell telephoned the foreign ministers of Morocco and Spain, urging restraint. He made a second call to the Spanish foreign minister, Ana Palacio, after Spanish special forces recaptured the territory, situated close to the Spanish enclave of Ceuta, in a pre-dawn raid on Thursday.

The State Department's chief spokesman, Richard Boucher, said the US had presented its views on the situation, that both countries "need to resolve this peacefully ... and engage in a dialogue that can make it possible to resolve these underlying issues."

Another spokesman confirmed America's concerns about possible regional disruption and the effect this could have on Nato activities in the straits.

"It's in nobody's interest to have this going on," he said. "We have been working closely with both parties for a peaceful resolution."

At times, the row over a barren piece of land, occupied mainly by goats, has verged on the absurd. However, the dispute has stirred up intense emotions, threatened to create a divide between the Western allies and Arab nations, and sent alarm bells ringing thousands of miles away in Washington.

The saga began on 11 July when Perejil ­ or Leila in Arabic ­ was occupied by a small Moroccan force after months of tension between Madrid and Rabat. A dozen Moroccan gendarmes planted two flags and two tents on the uninhabited rocky outcrop. Rabat's move provoked condemnation from Spain's EU allies ­ but what was to follow gave them cause to rethink.

While allies were kept in the dark, Spain had been planning its "counter-invasion". On the eve of the operation, a naval ship was dispatched to Ceuta with a task force of three Cougar battlefield surveillance helicopters, inflatable launches and Mistral anti-aircraft missiles. Spain's ambassador to Morocco, Fernando Arias-Salgado, slipped away from Rabat ­ recalled to Madrid "for consultations". Airports in Jerez and Spain's other North African enclave, Melilla, were closed to civilian traffic.

At around 4am on 17 July, Spain sent warships, fighter aircraft and special operations troops to storm the tiny island. Spain's Defence Minister, Federico Trillo, said the country "had been attacked in a sensitive point of its geography" but Madrid seemed to be using a sledgehammer to crack a nut. A further irony, one that may have escaped the recovery force, is that the Spanish military's own maps showed the island as being in Moroccan territory.

Confronted by overwhelming Spanish firepower, the "occupying force" offered no resistance. No shots were fired and no one was injured as six Moroccans were taken prisoner and handed over to Spanish security officers who took them to Ceuta where they were bundled across the border into Morocco.

The Spanish action was condemned by the Arab League and caused ructions behind the scenes in Brussels.

The incident illustrates how speedily relations between Spain and Morocco can suddenly erupt. The two neighbours are at odds over the Western Sahara and over economic issues including fishing rights. Spain is concerned that Morocco will try to claim its North African enclaves, Ceuta and Melilla ­ described by Ms Palacio as as Spanish as Seville.

As one European diplomat put it: "The sooner Perejil is returned to its native population of goats, the better."