Report examines Gibraltar's precarious economic situation and the Rock's strategic importance to Britain.

Too small for industry, declining in importance as a passenger and trade sea-port, dependent on hostile Spain for its dockyard labour force, and offering few opportunities to its young generation, the colony is now turning towards tourism for its economic salvation. Apes, cheap cameras and English food have only a limited tourist appeal and so a casino and new hotels are being built to attract more travellers. The confidence which the Governor Sir Charles Keightley and the Mayor have in the future of the colony is not shared by Gibraltarian schoolchildren who express their intention of going to study and settle in England. But Gibraltar's main importance is and will remain her strategic value ("defence of Western nations against communism" says Governor reading from script) and the British forces are obviously well established there. Long sequence on the mounting of the guard, description of airport's role and music of the "Britannia rules the waves" genre convey this impression.