By Daniel Schweimler in Madrid

The people of Gibraltar vote on Thursday in a general election in which the main issue, as it always has been, is the future status of the British Overseas territory.

The elections were called last month in a surprise decision by the Chief Minister, Peter Caruana.

His main rival is the man he ousted from power four years ago, the leader of the Socialist Labour Party, Joe Bossano. The result will be watched with interest by the Spanish Government.

The one issue that both main candidates in the elections in Gibraltar agree on is that the territory must remain British and Spain's claim to the sovereignty must be firmly rejected.

Mr Caruana, is portraying himself as a safe pair of hands. The local economy is thriving and while relations with Spain are not exactly good, they have been worse.

He says that while the 30.000 residents of Gibraltar want to remain British citizens, they are not anti-Spanish.

Mr Caruana, a quietly-spoken lawyer, is also keen to renegotiate Gibraltar's status with Britain for a looser alliance.

Mr Bossano, his fiery main rival, was Gibraltar's chief minister for eight years before his defeat in 1996.

He has promised a fairer distribution of some of the wealth that has flowed into the tax haven in recent years, but is also firm about the residents of Gibraltar wanting to remain British.

Gibraltar was captured from Spain in 1704 and formally ceded to Britain under the Treaty of Utrecht in 1713.

Spain has consistently reclaimed the territory and tension between London and Madrid over the issue is never far below the surface.

For now, both countries find it convenient not to discuss Gibraltar in case it sours their otherwise very good relations.

Whoever wins the election in Gibraltar must somehow find the best way to keep the territory functioning as a very British entity a long way from home.