Gibraltarians demonstrate against plans for shared sovereignty

Gibraltarians left work, shops and school yesterday and donned Union flags and silly hats to celebrate their national day. Part Notting Hill Carnival, part parish fête, part trade union rally, this year's festivities had a powerful undertow, marking the relaunch of Gibraltar's campaign against Anglo-Spanish attempts to strike a joint sovereignty deal.

Gibraltar's Chief Minister, Peter Caruana, urged his compatriots to vote in a referendum on joint sovereignty on 7 November. The shadow Chancellor, Michael Howard, won huge cheers when he condemned Labour's "betrayal" of Gibraltarians' right to be consulted about their future.

Simon Hughes said the Liberal Democrats had invited Mr Caruana to address their party conference. And the Labour MP Lindsay Hoyle, chairman of the parliamentary Gibraltar group, had them roaring approval when he said: "There'll be no Spanish flag planted in Gibraltar the way they planted it on Parsley Island."

What seemed an interminable wrangle between Whitehall and Madrid over a settlement that sidestepped Gibraltar's objections has now faltered. Both countries expected a joint sovereignty deal by the summer.

Then, in July, Spain's Foreign Minister, Josep Pique, was sacked, partly because he failed to deliver on Gibraltar. Within hours, Moroccans occupied the tiny outcrop of Perejil (Parsley Island). Spain sent gunboats, and hostilities flared for a while.

It was a disaster for Spain. The Gibraltarians asked what was different about their relationship with Britain. So Tony Blair and Jose Maria Aznar may quietly abandon their ambition to make history as the men who solved the dispute over the Rock.