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since Gibraltar residents voted overwhelmingly by referendum in 2003 against a "total shared sovereignty" arrangement, talks between the UK and Spain over the fate of the 300-year old UK colony have stalled; Spain disapproves of UK plans to grant Gibraltar greater autonomy; Morocco protests Spain's control over the coastal enclaves of Ceuta, Melilla, and the islands of Penon de Velez de la Gomera, Penon de Alhucemas and Islas Chafarinas, and surrounding waters; Morocco serves as the primary launching area of illegal migration into Spain from North Africa; Morocco rejected Spain's unilateral designation of a median line from the Canary Islands in 2002 to set limits to undersea resource exploration and refugee interdiction, but agreed in 2003 to discuss a comprehensive maritime delimitation; some Portuguese groups assert dormant claims to territories ceded to Spain around the town of Olivenza

key European gateway country and consumer for Latin American cocaine and North African hashish entering the European market; destination and minor transshipment point for Southwest Asian heroin; money laundering site for European earnings of Colombian narcotics trafficking organizations

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