Spain and Britain need to solve their centuries-old conflict over Gibraltar, Spain's Crown Prince Felipe told Britain's Prince Charles on Wednesday in Madrid.
It was time for both countries to "advance in solving the historical bilateral dispute," which is "still pending," Felipe said at dinner with the Prince of Wales and his wife, Camilla Parker- Bowles, the Duchess of Cornwall, dpa reported.
Spain has claimed the enclave on its southernmost tip since it was ceded to Britain by the 1713 Treaty of Utrecht. The vast majority of Gibraltar's 30,000 residents, however, want to remain British.
Charles met earlier with British expatriates and representatives of Spanish companies that have invested in Britain.
The visit to Spain was the second leg of a tour promoting British business and renewable energy. The prince and his wife arrived in Spain from Portugal, and were due to travel on Saturday to Morocco.
Thursday's programme was to include lunch with King Juan Carlos and Queen Sofia, as well as a meeting with Prime Minister Jose Luis Rodriguez Zapatero.
Nearly 390,000 Britons live permanently in Spain, including many pensioners. Britain is Spain's second-largest investor, with about 700 British companies based in the country.
Charles has made 10 official visits to Spain, but this week's visit is his first with the Duchess of Cornwall.
The British and Spanish royal families are related through Britain's Queen Victoria, who was the great-grandmother of Spain's Queen Sofia.