It was a key stopping point for vessels en route to India via the Suez Canal. A large British naval base was constructed there at great expense at the end of the 19th century and became the backbone of Gibraltar's economy. British control of Gibraltar enabled the Allies to control the entrance to the Mediterranean during the Second World War. It was attacked on several occasions by German, Italian and Vichy French forces, though without causing much damage. The Spanish dictator General Francisco Franco declined to join a Nazi plan to occupy Gibraltar but revived Spain's claim to the territory after the war. As the territorial dispute intensified, Spain closed its border with Gibraltar between 1969 and 1985 and communications links were severed. Spain's position was supported by Latin American countries but was rejected by Britain and the Gibraltarians themselves, who vigorously asserted their right to self-determination. Discussions of Gibraltar's status have continued between Britain and Spain but have not reached any conclusion. Since 1985, Gibraltar has undergone major changes as a result of reductions in Britain's overseas defence commitments. Most British forces have left the territory, which is no longer seen as a place of major military importance. Its economy is now based on tourism, financial services, shipping and Internet gambling. Gibraltar is largely self-governed, with its own parliament and government, though the UK maintains responsibility for defence and foreign policy. Its economic success had made it one of the wealthiest areas of the European Union. Geographical background The history of Gibraltar has been driven by its strategic position near the entrance of the Mediterranean Sea. It is a narrow peninsula at the eastern side of the Bay of Gibraltar, from the city of Algeciras. Gibraltar is on the far south coast of Spain at one of the narrowest points in the Mediterranean, only from the coast of Morocco in North Africa. Its position on the bay makes it an advantageous natural anchorage for ships. As one writer has put it, "whoever controls Gibraltar also controls the movement of ships into and out of the Mediterranean. In terms of military and naval power, few places have a more strategic location than Gibraltar." The territory's area measures only . Most of the land area is occupied by the steeply sloping Rock of Gibraltar, which reaches a height of . The town of Gibraltar lies at the base of the Rock