The Spanish government has attacked the defence secretary following his decision to attend a celebration of 300 years of British rule in Gibraltar.

The diplomatic spat came as senior UK politicians attended the ceremony on the Rock on Wednesday.

Geoff Hoon joined top military personnel and opposition politicians at the ceremony.

He joined First Sea Lord Sir Alan West to observe a military parade involving 300 British soldiers.

The Ministry of Defence praised the people of Gibraltar, but denied Hoon's visit was an attempt to "provoke" the Spanish.

"We understand the political difficulty which Gibraltar causes the Spanish government. The British government has no wish to allow questions relating to Gibraltar to damage our relations with Spain," said a spokesman.

"However from a defence perspective we intend to utilise our defence facilities there in which we have invested considerable resources. We certainly do not do so to provoke the Spanish government."

The MoD also talked up relations between the UK and the Rock.

"Gibraltar has played an important part in Britain's naval history. During this time the armed forces have shared hardship and success with its people and they valued greatly the loyalty shown to them in return," said a spokesman.

"Those who have served there retain great affection for the Rock and its people."

The comments came after Spanish foreign minister Miguel Angel Moratinos accused Britain of an "unfriendly" act by sending Hoon to Gibraltar.

"This commemoration of a military event in the past does no favours for relations with Spain," he said.

"It is very strange that in the European Union, in the 21st century, the military occupation of the part of one member state by another is being celebrated."

Spanish prime minister Jose Luis Rodriguez Zapatero characterised the celebration as "inappropriate".

'Tough'

Speaking from the Rock Tory leader Michael Howard said it was "tough" if the Spanish were offended by the nature of the celebrations.

But he denied that the celebrations would lead to a rift between London and Madrid.

"There is not going to be a breakdown. The people of Gibraltar are entitled to remain British, they have made that clear," he told the BBC.

"The people of Gibraltar consider this as a great day in their history. They are entirely justified in doing so.

"As far as I am concerned I support their intention to do that.

"I think it is right and appropriate for the defence secretary to be here and it would have been appalling if he hadn't come because of the attitude of the Spanish government."

Talks off

Recent talks over the future governance of the British peninsula broke down after the Gibraltarians held an unofficial referendum in which they rejected any moves towards joint sovereignty with Spain.

Other politicians attending the ceremony include Lib Dem MP Simon Hughes.

He said the 300th anniversary should be used to create a position of mutual respect between the people of Spain and Gibraltar.

"In the 21st century all peoples in Europe should enjoy self-determination and the people of Gibraltar are entitled to the government of their choosing just like every other people across the continent," said Hughes.

"As a friend of Spain and a strong supporter of the European Union, I hope that this will be the last year when the Spanish government takes such an old-fashioned attitude to its British neighbour on its doorstep.

"The future for the Iberian peninsula lies in Spain, Portugal and Gibraltar respecting each other and working together and not in shouting across what should be the most friendly frontier."