Ships from both nations are to make a ceremonial entry into Gibraltar harbour next week, performing gun salutes, he said.

The mini-armada is comprised of British frigate HMS Grafton, the US guided missile destroyer USS McFaul and the auxiliary ship RFA Sir Tristram.

The commander in chief of the British fleet, Admiral Alan West, will raise his flag on the Grafton.

Gibraltar's parliament, the House of Assembly, will meet in special session on August 4 to bestow the freedom of the city award on the Royal Navy, which took part in the capture of Gibraltar on August 4, 1704.

A 'freedom' parade will see sailors march through the town centre.

Officials said the award is being conferred upon the navy "in recognition of its close association with Gibraltar over the last 300 years"

A British military spokesman said that the 'freedom' ceremony "will be the last of a series of events that aim to strengthen the long-standing relationship between the people of Gibraltar and the Royal Navy."

British Royal Marines are scheduled to undertake a ceremonial guard mounting at The Convent, the official residence of the British Governor Sir Francis Richards in another event.

Spain still lays claim to Gibraltar, a tiny territory on the southern Spanish coastline which it eventually ceded to Britain under the 1713 Treaty of Utrecht.

Adding to the tension between London and Madrid over the "Rock" was a visit in June to Gibraltar by Princess Anne, daughter of Queen Elizabeth II, to mark the tercentenary.

WAR.WIRE