Spain believes an agreement with Morocco over the disputed island of Perejil may be close. The US is mediating between the two countries to help resolve their territorial dispute over the island.
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US Secretary of State Colin Powell engaged in a round of telephone diplomacy with Morocco's King Mohammad VI, Spanish Foreign Minister Ana Palacio and Moroccan Foreign Minister Mohamed Benaissa to bring about a resolution.
Spain believes an agreement with Morocco over the disputed islet can be reached a government source said today.
Though Spanish Foreign Minister Ana Palacio has not spoken directly with her counterpart in Rabat, Spain is hopeful of a solution after intense diplomatic efforts last night, the source said.
"Although there is no agreement, we are close to getting one after the latest contacts," the source said, declining to provide further details.
Spain and Morocco have been locked in a heated standoff over the uninhabited islet of Perejil, known as Leila in Morocco, after Rabat sent troops to the rocky outcrop on July 11 which were evicted six days later by Madrid's forces.
"The secretary has been working very closely with the Spanish and Moroccan governments on the issues surrounding the island," State Department spokesman Mr Richard Boucher said.
"We remain hopeful that a resolution to these issues can be reached on .... the basis of returning to the status quo ante," he said.
The United States stepped in after the dispute stormed onto the international stage, dragging in NATO and the European Union, which supported Spain, while the Arab League and the six-nation Gulf Cooperation Council (GCC) backed Morocco's calls for Madrid to withdraw from the islet.
Under the US-brokered deal, Spain and Morocco would agree to remove from the island any "outposts, flags and or symbols of sovereignty", a pledge that would be tantamount to a return to the status quo before the dispute.
The two countries would then follow up with ministerial-level talks to work out a lasting solution to the territorial dispute over the 13.5-hectare (33-acre) island.
In Washington, US officials said late Friday that they were waiting for Rabat and Madrid to give final approval to the agreement which they said was imminent.
"We are waiting to confirm details that we would hope would lead to a resolution," one senior State Department official said on condition of anonymity.
Morocco accused Spain of in effect making a "declaration of war" by sending in troops to evict the Moroccan soldiers which Rabat claimed had been sent to clamp down on illegal immigration and terrorism.
In addition to Perejil/Leila, about 200 meters (yards) off the Moroccan northern coast, Spain governs Ceuta and Melilla, and claims sovereignty over other offshore isles.
During a visit to Paris yesterday, the Moroccan foreign minister accused Spain of "occupying" the island but said his country would not go to war over the dispute.
"Morocco is a country of dialogue... War for us is excluded," said Mr Benaissa.