Cabinet rift over Gibraltar warning

A cabinet feud has broken out over the future of Gibraltar after a warning from the Defence Secretary that Britain's military interests are being put at risk.

In an extraordinary intervention, Geoff Hoon has written to Foreign Secretary Jack Straw warning a deal to hand back the Rock to Spain could damage the ability of the British and US armies to operate from its naval base and military airfield.

The intervention was being seen by some as signs that Mr Hoon has designs on the Foreign Secretary's job.

One diplomat told The Times that the letter was "outside his departmental remit", and that the terms of their negotiations with Spain had been agreed with the Defence Ministry.

The letter also spells out that a joint sovereignty deal for Gibraltar conflicted with the principle of self-determination. There is evidence the "clear majority" of the colony's 30,000 people want to remain subjects, it states.

The move will increase concerns that the sovereignty battle over Gibraltar is likely to become more tense. The colony is a key staging post for military operations around the Mediterranean, and more than 400 British military personnel based there.

Its facilities are widely used for ships bound for military operations, but also for relaxation for personnel sent out on peacekeeping or other missions. Almost half the colony is taken up by stores and army installations.

Mr Straw has repeatedly said that military assets would remain under control, whatever happens to the talks with Spain, but it is thought that Spain would like a "joint use" agreement.

The Spanish prime minister Jose Maria Aznar is due to come to Britain later this month, when there will be fresh negotiations over the fate of the Rock.